“`
Rich Barton: Yes, happy to — I mean, you’re right, it is early in listing showcase having just launched in Q3 and we’re just now flipping to national. But in the early signal there is lots of signal. And as I talked about the agent response has been really positive. I think folks are seeing it as a tool to market themselves and win more listings, as well as market to listing. And then of course that provides this benefit to our buyer experience. And that results in the higher engagement with page views saves and shares, we shared some of the data on. We are seeing success with both premier agents and non-premier agents in the markets we’ve been in and as we’ve continued to take it to more markets and we expect that to continue.
And that gets — that’s what gives us excitement for the intermediate-term target we shared with you all going from what is less than 1% of listings today to 5% to 10% of total active listings at some point here in the future. And we think there’s growth and opportunity beyond that. Scaling this business is requires solving a bunch of operational complexity of the team has been hard at work doing as Jeremy Hofmann talked about a required a bunch of media investments. It requires a bunch of partner operations that the team has worked hard to get right. And we’re now benefiting from the fruits of a lot of that investment as we take this nationwide. So it is still early, we’ll share more as we learn from BMO markets with the largest set of partners.
But we’re really pleased with the response and the progress and the ability to work with just great agents, whether they are existing premier agents or this is their way into working with for the first time. It’s an exciting opportunity for listing showcase and that’s something we’re seeing.
Ryan McKeveny: Thanks. That’s helpful. And then one on ZHL. So the purchase volume growth kind of speaks for itself. But I think it implies market share wise in the purchase origination business close to a doubling in just the last two quarters of loan. So obviously, good progress there. I guess I’m curious on the comments you made about going from 23% to 53% of customers they are also working with PA. Is that a combination of the two kind of connection approach as you’ve talked about in the past being property first and financing first, is that kind of a mix of both PA coming back to you and you going to PA, and just any commentary on whether it’s one of those approaches. Meaningfully driving things or if it’s a combination of both, moving in the right direction. Thank you.
Jeremy Wacksman: Yes, it’s a good question. The short answer to your last question is, it’s both. And I think the reason why it’s both, it’s important to remember sort of why mortgage for the customer and for Zillow, right? And yes, we all know 80% of homes are financed with a mortgage, but it is more importantly that 40% of homebuyers start their journey shopping for a mortgage. And so that’s why we talk so much about most consumers either want to go see the house and book a tour ideally with real-time touring or they want to figure out what they can afford which Zillow Home Loans can help them with. Ultimately, they need to go through both those experiences and if which whichever door they start with, they need to use a great agent and they need to get a mortgage to get the house done.
And so it really is a contribution of both those things that’s driving that 23% to 53%. And that’s why we’re so excited about the opportunity to grow and deliver that integration to more customers in more of these enhanced markets as we scale this recipe. And that really does speak to the strong customer acquisition cost advantage, we think we have at Zillow. The majority of those customers as Rich talked about are already on Zillow and many of them are already going through one of those doors. And so, helping them understand and get what they need to use more of our services to get the house transaction done, right? That’s a great business for us. But ultimately, as Rich said, it’s what the consumer wants. It’s what they need to be able to buy the house.
So that’s why we’re so excited about mortgage. Yes, you’re right, we’re seeing over 100% year-over-year growth in purchase mortgage origination volume and we expect growth to continue in 2024 as we continue to scale the business.
Ryan McKeveny: Thanks a lot.
Operator: Your next question comes from Tom Champion with Piper Sandler. Please proceed.
Thomas Champion: Hi, good afternoon. Rentals growth is really strong. And it sounds like multifamily is driving a lot of that. The business has been around for a while. I’m just curious kind of the timing and why now that it’s become kind of so large and picked up so much momentum. And just curious if there’s any comment on the single room initiatives. I think that was announced recently. Thanks.
Jeremy Wacksman: Yes, Tom. I’ll take both of those. I mean, I think the why now is just the rental strategy we’ve had in place for a while is working and it’s working for us consumers and partners. We’ve had — and we have grown and have the largest audience in the category where we have the most renters coming to Zillow Group Properties. Because we have the most listings, we have the most complete set of listings, which is really the number one problem to solve for renters and we’re able to leverage that audience growth and engagement to really drive multifamily growth and start to work with more multifamily partners to bring their inventory online onto our properties, and that’s why we see a lot of growth potential ahead of us for rentals.
That’s what’s driven the meaningful growth throughout 2023 and as Jeremy Hofmann said, we expect that to continue into 2024. And then you specifically asked about the room for rent, that’s again, so for those who didn’t see we launched this week a new listing type, which is folks can post rooms for rent rather than entire places for rent, which is something that is increasingly common and prevalent across a lot of our rental markets and we’re really pleased with the early results there, we just turned out on the last couple of weeks, but that again speaks to the strategy of trying to organize them provide the most services and experiences for the renter and all renter personas in segments and then help them figure out which door they need to get through and which subset of inventory they want and that drives then the benefit for our partners for the folks who are trying to find the right renter whether that is a big building or an individual single family home.
Operator: Our last question today comes from Ron Josey with Citigroup. Please proceed.
Ronald Josey: Great. Thanks for taking the question. Just a quick follow-up on the rentals question right there. Just when you think about growth coming going forward is that from the multifamily property growth of 37,000 and growing or the mix of single family multifamily and sort of offering everything to everyone, which given your audience, I’m assuming that’s the case, but any insights on those two. And then, I think Jeremy, you talked about the staffing in head count for sales. And you mentioned rentals and listing showcase and Zillow Home Loans, talk to us a little bit more about just the maturity of the current sales force and how you — where you’re investing, I guess across those newer areas like rentals showcase in ZHL. Thank you.
Jeremy Wacksman: Yes, maybe I’ll start, and you can hit the staffing. I mean the short answer is, it’s going to be a mix of both. You’re seeing I would say over indexing growth from a revenue contribution standpoint in multifamily right now, but back to the strategy of the most complete set of listings, we do have both multifamily growth and longer tail, smaller inventory growth in terms of our rental manager and suite of products and services that our landlords and property managers use on that side. So we’re excited about both segments of supply, driving not just audience growth and engagement but the business over time. But obviously in the near-term, you’re seeing a faster acceleration ramp on the multifamily side. In Q4, you saw that over index and I think you saw in Q3 as well and you should expect to see that early into next year as well. And then maybe on the various step ups, I don’t know if you want —
Jeremy Hofmann: Yes, I can hit that. I mean, I think it’s natural at this point, just given the evidence of traction that we have that we should be accelerating growth, and it’s across all three of those. They all are doing quite well, but have a lot of opportunity ahead of them and we want to make sure we are well-positioned from a sales staffing perspective to capture that growth.
Ronald Josey: Got it. Thank you.
Operator: Thank you for your questions. This will conclude our Q&A session. So I would like to pass the conference over to Rich for any further remarks.
Rich Barton: Thanks, Sarah. And thanks everybody for your questions. You’ve heard today about our tremendous progress that we’ve made over the past two years on our journey to transform and re-platform this largest of industries. As we look ahead we are pressing down on the accelerator, increasing the breadth and depth of our products and services across more markets as we tap into this $30 billion TAM that’s already accessible, already raising their hands for help, already inside our store. We’d like to thank you again for being on this journey with us and we look forward to sharing more progress with you in the months ahead. All right. Have a nice evening.
Operator: That will conclude today’s conference call. Thank you all for your participation, you may now disconnect your line.
