Key facts
- Complete MLS data is vital for accurate housing market analysis and policy-making.
- Fragmented data can lead to inaccurate market pictures and suboptimal outcomes.
- The cost of fragmented data falls on consumers, professionals, and policymakers.
- Emerging technologies and AI are driving new uses and questions about MLS data ownership and monetization.
- MLSs are urged to proactively manage data licensing and AI integration to protect broker rights and ensure fair revenue distribution.
- The value of MLS data lies in its compilation, not individual listings.
Industry participants agree that the data held within Multiple Listing Services (MLS) is central to the functioning of the housing market, providing essential information for pricing, analysis, and policy-making. Economists Selma Hepp and Danielle Hale emphasized that complete and accurate data is crucial, warning that fragmentation can lead to skewed market perceptions and increased costs for all stakeholders.
Hale, chief economist at Realtor.com, explained that a complete picture of the housing market is vital for setting prices and making offers. She noted that fragmented data, especially if it omits high or low-end market segments, can significantly distort reported median prices and overall market performance. Hepp, chief economist and senior vice president of Cotality, added that fragmented data forces users to spend more time verifying its completeness and reliability, undermining the efficiency that MLS infrastructure provides.
The evolving technological landscape, particularly the rise of AI, presents new challenges and opportunities for MLS data. Leaders like Art Carter, CEO of California Regional MLS (CRMLS), acknowledge that data is valuable and difficult to contain, suggesting that MLSs must actively participate in its monetization rather than leaving it to third-party vendors. Chris Carrillo, CEO of North Texas Real Estate Information Services (NTREIS), echoed this sentiment, urging MLSs to be proactive in managing data usage to protect broker rights and ensure revenue benefits the content providers.
Discussions also focused on updating data licensing structures to accommodate the current "intelligence economy." Colette Stevenson, CEO of REsides, pointed out that existing licensing models are often too simplistic. Carter suggested creating metadata for datasets to define ownership and fair use, a practice CRMLS is implementing. Regarding AI, while many MLS leaders are hesitant to allow listing data to train large language models, Carter argued that preventing AI use is a "fallacy." Instead, he advocates for realistic AI integration that allows agents to leverage AI tools while controlling data access points. Andrew Coca, founder and CEO of Modern.tech and SourceRE, confirmed that MLS data is already being incorporated into AI, stressing the need for MLSs to take the lead to avoid being sidelined.