Online real estate agencies and their impact on the housing market

Gedikli, Cigdem; Hill, Robert; Talavera, Oleksandr; Yilmaz, Okan

doi:10.1111/1540-6229.70023

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Online real estate agencies and their impact on the housing market

Cigdem Gedikli

, Robert Hill, Oleksandr Talavera, Okan Yilmaz

Real Estate Economics

Swansea University Authors: Cigdem Gedikli , Okan Yilmaz

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© 2025 The Author(s). Real Estate Economics published by Wiley Periodicals LLC on behalf of American Real Estate and Urban Economics Association. This is an open access article under the terms of the Creative Commons Attribution-NonCommercial-NoDerivs License.
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DOI (Published version): 10.1111/1540-6229.70023

Abstract

Online platforms have transformed many markets, as evidenced by the rise of firms such as Amazon, Uber, and Airbnb. However, the recent emergence of online real estate agencies has not yet received much attention. We investigate the impact of online agencies on the housing market. Our dataset consis...

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Published in:	Real Estate Economics
ISSN:	1080-8620 1540-6229
Published:	Wiley 2025
Online Access:	Check full text
URI:	https://cronfa.swan.ac.uk/Record/cronfa70840

first_indexed	2025-11-05T11:35:14Z
last_indexed	2025-12-09T14:19:46Z
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spelling	2025-12-08T11:16:47.7045975 v2 70840 2025-11-05 Online real estate agencies and their impact on the housing market c83614936b5df640b1409eda0676aa44 0000-0002-0055-6397 Cigdem Gedikli Cigdem Gedikli true false bb42de9bf10d32bda4695327b3aa0470 0000-0002-0553-8518 Okan Yilmaz Okan Yilmaz true false 2025-11-05 CBAE Online platforms have transformed many markets, as evidenced by the rise of firms such as Amazon, Uber, and Airbnb. However, the recent emergence of online real estate agencies has not yet received much attention. We investigate the impact of online agencies on the housing market. Our dataset consists of 1,274,792 properties in England and Wales, for which we have matched Zoopla listings with actual transactions from the Land Registry. Using an instrumental variable approach, we find that time on market (TOM) is shorter by about 80 days and the sale-list price ratio is smaller by about 2.4% for properties listed with online agencies. These findings, combined with an average fee of less than one-third of that charged by traditional agencies, explain why online agencies have rapidly gained market share. Their share has risen particularly for properties in the mid-price range and in regions with younger demographics. Moreover, we find that the rise of online agencies has caused traditional agencies to change their behavior—TOM and the sale-list price ratio are lower for traditional agencies in regions with a higher share of online agencies. Journal Article Real Estate Economics 0 Wiley 1080-8620 1540-6229 diffusion of new technologies, digital disruption, online platforms, real estate market, sale-list price ratio, time on market 28 11 2025 2025-11-28 10.1111/1540-6229.70023 COLLEGE NANME Management School COLLEGE CODE CBAE Swansea University Another institution paid the OA fee Open Access funding provided by Universitat Graz/KEMÖ. 2025-12-08T11:16:47.7045975 2025-11-05T11:28:49.1110507 Faculty of Humanities and Social Sciences School of Management - Accounting and Finance Cigdem Gedikli 0000-0002-0055-6397 1 Robert Hill 2 Oleksandr Talavera 3 Okan Yilmaz 0000-0002-0553-8518 4 70840__35784__a5e6ecaba6924cce94bc2c463675a13c.pdf 70840.VOR.pdf 2025-12-08T11:13:30.0579523 Output 941710 application/pdf Version of Record true © 2025 The Author(s). Real Estate Economics published by Wiley Periodicals LLC on behalf of American Real Estate and Urban Economics Association. This is an open access article under the terms of the Creative Commons Attribution-NonCommercial-NoDerivs License. true eng http://creativecommons.org/licenses/by-nc-nd/4.0/
title	Online real estate agencies and their impact on the housing market
spellingShingle	Online real estate agencies and their impact on the housing market Cigdem Gedikli Okan Yilmaz
title_short	Online real estate agencies and their impact on the housing market
title_full	Online real estate agencies and their impact on the housing market
title_fullStr	Online real estate agencies and their impact on the housing market
title_full_unstemmed	Online real estate agencies and their impact on the housing market
title_sort	Online real estate agencies and their impact on the housing market
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author	Cigdem Gedikli Okan Yilmaz
author2	Cigdem Gedikli Robert Hill Oleksandr Talavera Okan Yilmaz
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publishDate	2025
institution	Swansea University
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description	Online platforms have transformed many markets, as evidenced by the rise of firms such as Amazon, Uber, and Airbnb. However, the recent emergence of online real estate agencies has not yet received much attention. We investigate the impact of online agencies on the housing market. Our dataset consists of 1,274,792 properties in England and Wales, for which we have matched Zoopla listings with actual transactions from the Land Registry. Using an instrumental variable approach, we find that time on market (TOM) is shorter by about 80 days and the sale-list price ratio is smaller by about 2.4% for properties listed with online agencies. These findings, combined with an average fee of less than one-third of that charged by traditional agencies, explain why online agencies have rapidly gained market share. Their share has risen particularly for properties in the mid-price range and in regions with younger demographics. Moreover, we find that the rise of online agencies has caused traditional agencies to change their behavior—TOM and the sale-list price ratio are lower for traditional agencies in regions with a higher share of online agencies.
published_date	2025-11-28T05:27:35Z
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Online real estate agencies and their impact on the housing market

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