Zillow Group uses machine learning to improve Zestimate algorithm for changing market trends

Seattle real estate giant Zillow Group announced new tweaks to its Zestimate tool that provides home value data on more than 104 million properties. The company now uses machine learning-based neural networks and additional data that improve how quickly the algorithm reacts to market trends. Zillow said Zestimate's national median error rate for off-market homes is now 6.9%, an improvement of nearly a full percentage point. The median error rate for on-market homes is 1.9%. Using neural networks was a technique used in 2019 by the winners of the ZIllow Prize, a competition to improve the Zestimate.