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Home/AI Incident Database/Zillow shuts its algorithmic home-buying business after overpaying for thousands of homes

Zillow shuts its algorithmic home-buying business after overpaying for thousands of homes

Zillow relied on its Zestimate-based model to buy homes at scale; when forecasts diverged from the market it was left with thousands of overpriced houses and a near-billion-dollar loss.

Severity: Highzillowalgorithmhousinglosses

Sources

zillowgroup.comhttps://www.zillowgroup.com/news/q3-2021-results/

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