Compass accused of hiding listings to drive up New York rents
A class action alleges the brokerage created a “fake supply shock” by delisting thousands of units from Zillow and StreetEasy, inflating prices during a housing crisis.
Two New York City renters have filed a class action complaint alleging that brokerage firm Compass artificially inflated rental prices by delisting thousands of units from public platforms. The plaintiffs, Peter Castaneda and Haley Gelfand, argue that Compass created a “fake supply shock” to drive up rents and broker fees. They contend that the firm, which they claim controls over 80 per cent of Manhattan rental listings based on 2025 data, used its market dominance to dictate pricing for a significant portion of the city’s housing stock.
The complaint details how Compass allegedly went to war with Zillow, the most popular free real estate platform, by hiding inventory from its site and its New York City-specific platform, StreetEasy. By removing these listings, Compass is accused of forcing renters to rely on paid brokers rather than free digital tools. The plaintiffs describe this as a strategy to “double-dip” on revenue, boost stock prices, and ignore consumer interests. In response, Zillow introduced new standards to exclude private listings, a move that prompted Compass to file its own antitrust suit, which was voluntarily dismissed in March after a judge ruled the brokerage was unlikely to succeed.
Specific financial impacts are central to the lawsuit. Castaneda signed a lease for a one-bedroom apartment in downtown Manhattan in August 2026 for $5,270 per month. The complaint notes that the average asking rent in the same area was $4,390 one month prior. Gelfand similarly observed real-time price increases on StreetEasy between July and early August 2026 before signing a lease for the same amount. The plaintiffs argue that these price differentials would not have existed but for the severe reduction in public listings, which altered the supply and demand dynamics on the platform.
Market data cited in the complaint indicates that available rental units across New York dropped by 40 per cent in the past year. This decline corresponded with a 3 per cent increase in rental prices in June 2026, which doubled to a 6 per cent increase in July. The plaintiffs claim this precipitous drop in inventory created a supply shock that Compass intentionally caused. They seek to represent all New York City renters who leased non-rent-stabilised, multifamily residential units from 1 August 2026 through the present, seeking damages and an injunction to prevent Compass from hiding listings.
The legal action coincides with ongoing antitrust investigations by local and federal authorities. US Senator Elizabeth Warren has described Compass’ conduct as “anti-competitive,” warning that it threatens to create a two-tiered housing market where insiders pay for exclusive access to inventory. Zillow’s spokesperson supported the class action, stating that when listings are deliberately hidden, “real consumers pay the price.” Compass declined to comment on the lawsuit.
Attorney Blake Hunter Yagman, who represents the renters, noted that New Yorkers are already facing affordability challenges that have evolved into a crisis. He argued that when an industry titan chokes off the supply of an essential good like housing, the implications are swiftly vast and severe. The plaintiffs also allege that Compass’ conduct harms the labour market by depriving non-Compass brokers of commissions, noting that 45 per cent of real estate agents are struggling to pay their own rents.
