CoStar News parent forecasts slower 2024 growth

CoStar Group, which operates a real estate news service, forecast 2024 revenue below market expectations on Tuesday, on signs of a slowdown in traffic to its websites as consumers face an uncertain property market, reports Zaheer Kachwala of Reuters.

Kachwala reports, “The forecast indicates that high borrowing costs are prompting consumers to hold off on big-ticket purchases like property, affecting subscriptions on CoStar’s subsidiary websites, ‘Homes.com’ and ‘Apartments.com.’

“The company had recently aired four commercials during the Super Bowl amid a marketing push to drive revenue and get ahead of rival home-search sites like Zillow Group and Redfin.

“CoStar expects revenue for its fiscal 2024 to be in the range of $2.75 billion to $2.77 billion compared with analysts’ estimate of $2.78 billion, according to LSEG data.”

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Chris Roush

Chris Roush was the dean of the School of Communications at Quinnipiac University in Hamden, Connecticut. He was previously Walter E. Hussman Sr. Distinguished Professor in business journalism at UNC-Chapel Hill. He is a former business journalist for Bloomberg News, Businessweek, The Atlanta Journal-Constitution, The Tampa Tribune and the Sarasota Herald-Tribune. He is the author of the leading business reporting textbook "Show me the Money: Writing Business and Economics Stories for Mass Communication" and "Thinking Things Over," a biography of former Wall Street Journal editor Vermont Royster.