CoStar Group Stock Experiences Significant Volatility
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 19 2026
0mins
Should l Buy CSGP?
Source: Fool
- Stock Decline: CoStar Group's stock has nearly halved over the past six months, currently priced at $48.97 with a market cap of $21 billion, reflecting investor concerns over its residential business despite the stability of its commercial core.
- Data Network Effects: CoStar has established a robust data network by connecting 8.5 million properties with over 230,000 professionals, facilitating deal closures and demonstrating its competitive edge in the commercial real estate sector.
- High Renewal Rates: CoStar boasts a 93% quarterly renewal rate, with its multifamily marketplace Apartments.com achieving a remarkable 99% renewal rate, underscoring the platform's significance and customer stickiness in the industry.
- Investment and Buyback: Despite an $850 million investment in Homes.com leading to net operating losses, CoStar plans to cut $300 million in spending and has authorized a $1.5 billion stock buyback, projecting an EBITDA of approximately $770 million for 2026, indicating confidence in future profitability.
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Analyst Views on CSGP
Wall Street analysts forecast CSGP stock price to rise
13 Analyst Rating
8 Buy
4 Hold
1 Sell
Moderate Buy
Current: 39.630
Low
48.00
Averages
74.92
High
101.00
Current: 39.630
Low
48.00
Averages
74.92
High
101.00
About CSGP
CoStar Group, Inc. is a provider of online real estate marketplaces, information, analytics, and three-dimensional (3D) digital twin technology in the property markets. The Company operates through two segments, which include Commercial Real Estate and Residential Real Estate. Its Commercial Real Estate segment offers commercial real estate information and analytics, online marketplaces, and 3D digital twin technology. Its brands include CoStar and LoopNet. Its CoStar offers subscription-based access to its platform of commercial real estate intelligence. Its LoopNet is a commercial real estate marketing site which enables property owners, landlords, and brokers to advertise properties for sale or lease on a site. Its Residential Real Estate segment hosts marketplaces which aggregate consumer demand for homes to rent or buy and sell marketing and leads to the agents, owners, landlords, and property management companies to reach consumers with offerings.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
U.S. Industrial Rent Growth Moderates
- Rent Growth Trends: According to Q1 2026 data from CoStar, the annual compound growth rate for asking rents of 50,000 square feet and above has exceeded 8.8% since 2019, yet the current annual rent change is now -2.7%, indicating a market slowdown.
- Mid-Sized Leasing Market: The leasing market for 25,000 to 50,000 square feet has an annual compound growth rate of over 6.8%, but the current annual rent change is largely muted, reflecting increased competition due to new supply affecting rent growth.
- Small Leasing Market: For leases smaller than 25,000 square feet, the annual compound growth rate exceeds 5.5%, although the current annual rent change is less than 1%, small-bay tenants have seen significant rent increases in recent years due to limited supply.
- Regional Variations: In the U.S., leases larger than 50,000 square feet continue to see stronger annual rent gains in the mountain and northeastern states, indicating varied market performance due to limited growth in logistics supply in these areas.
See More
Apartment Rent Growth Slows Significantly
- Weak Rent Growth: According to Apartment List, the national median rent rose by only 0.4% in March to $1,363, significantly lower than last year's 0.6%, indicating a trend of sluggish rent growth.
- Annual Rent Decline: March rents fell by 1.7% year-over-year, marking the largest drop since 2017, reflecting a significant weakening in market demand and a 5.5% decrease from the peak in 2022.
- Rising Vacancy Rates: The national apartment vacancy rate remained at 7.3% in March, unchanged from February, reaching the highest level since 2017, highlighting the growing conflict between new apartment supply and sluggish demand.
- Increased Rent Concessions: As of January, 16.6% of stabilized apartment landlords were offering concessions such as free rent or gift cards, indicating heightened competition in the market, particularly in cities like Austin, Phoenix, and Denver where rent declines are notable.
See More
U.S. Apartment Rent Growth Trends Analysis
- Rent Growth Overview: In March 2026, U.S. apartment rents increased to an average of $1,723, marking a 0.2% rise from February's $1,719, representing the fourth consecutive month of positive growth, indicating a gradual recovery after a flat to declining trend in the latter half of 2025.
- Regional Performance Disparities: While all five regions posted month-over-month increases, with the Midwest and Mountain regions leading at +0.3%, year-over-year growth was uneven, with the Midwest at +1.9% and declines in the South and Mountain regions at -1.3% and -2.2%, respectively, highlighting ongoing supply-demand imbalances.
- Market Dynamics Shift: Among the top 50 markets, 46 experienced month-over-month rent growth in March, led by San Francisco (+0.8%), Boston (+0.7%), and East Bay (+0.6%), while Oklahoma City and Northern New Jersey saw slight declines of -0.1%, reflecting intense market competition.
- Ongoing Supply Pressure: Despite many markets moving past peak construction activity, significant inventory overhang persists, particularly in Austin (-4.8% year-over-year) and Denver (-3.5%), indicating that new supply continues to outpace demand, thereby restraining further rent growth.
See More
Southbank East Sees Demand Recovery
- Demand Recovery: In Q4 2025, Southbank East recorded an annual net absorption exceeding 200,000 sq ft, marking the strongest quarterly performance in over a decade, indicating signs of market recovery after two years of declining demand.
- Vacancy Rate Shift: The submarket's vacancy rate hit a 12-year high of 11.5% at the beginning of 2025, significantly up from less than 2% in 2019, reflecting the impact of new space deliveries coinciding with a slowdown in leasing activity.
- Development Completions: Nearly 1 million sq ft of new space has been delivered in Southbank East since 2020, with this development volume being more than five times that of the preceding five-year period, although over 20% of this new space remains available, suggesting gradual market improvement.
- Leasing Market Dynamics: The vacancy rate for floorplates larger than 15,000 sq ft stands at just 8.3%, lower than the London-wide rate of over 12%, indicating that tenants seeking larger spaces may face limited options, potentially impacting future leasing decisions.
See More
Single Women Outpace Men in Homebuying Trends
- Income Disparity Reversal: According to the National Association of Realtors, first-time single women homebuyers have a median income of $73,000, surpassing single men's $66,400, marking a potential shift in long-term homebuying trends favoring women.
- Rising Homebuyer Proportion: Single women account for 25% of first-time homebuyers compared to 10% for single men, a significant increase from 11% and 9% in 1985, indicating a growing recognition of homeownership as a wealth-building tool among women.
- Mismatch of Home Prices and Income: From 2000 to 2024, median household income rose by approximately 155%, while home prices surged by about 207%, creating substantial challenges for single buyers, particularly women relying on a single income to qualify for mortgages.
- Financial Sacrifices for Goals: Among single women buyers, 41% reported making financial sacrifices to save for a down payment, compared to 31% of men, highlighting women's commitment to achieving homeownership and financial independence despite economic hurdles.
See More
2026 CoStar Impact Awards Winners Announced
- Expert Selection: A panel of 570 industry experts across 129 global markets selected the winners of the 2026 CoStar Impact Awards, highlighting exemplary achievements in commercial real estate that elevate industry standards and market vitality.
- Outstanding Development: JPMorgan Chase's new headquarters at 270 Park Ave in New York City was recognized as the Commercial Development of the Year, with a 60-story, 2.5 million-square-foot skyscraper representing a $3 billion investment, expected to accommodate over 14,000 employees and set a new benchmark for premium office space.
- Montreal Innovation: The Champlain condo rental project in Montreal's Ville-Marie district was honored as the Commercial Development of the Year, transforming the former Odeon Champlain cinema site into a mixed-use development with 226 units, achieving 65% occupancy shortly after launch and advancing transit-oriented density goals.
- Defense Manufacturing Investment: Anduril Industries' lease at 4611 Airbase Road in Columbus, Ohio was awarded Lease of the Year, expected to create over 4,000 direct jobs, marking the largest job-creation project in Ohio's history and significantly boosting local economic growth and tax revenues.
See More
U.S. Industrial Rent Growth Moderates
- Rent Growth Trends: According to Q1 2026 data from CoStar, the annual compound growth rate for asking rents of 50,000 square feet and above has exceeded 8.8% since 2019, yet the current annual rent change is now -2.7%, indicating a market slowdown.
- Mid-Sized Leasing Market: The leasing market for 25,000 to 50,000 square feet has an annual compound growth rate of over 6.8%, but the current annual rent change is largely muted, reflecting increased competition due to new supply affecting rent growth.
- Small Leasing Market: For leases smaller than 25,000 square feet, the annual compound growth rate exceeds 5.5%, although the current annual rent change is less than 1%, small-bay tenants have seen significant rent increases in recent years due to limited supply.
- Regional Variations: In the U.S., leases larger than 50,000 square feet continue to see stronger annual rent gains in the mountain and northeastern states, indicating varied market performance due to limited growth in logistics supply in these areas.
See More
Apartment Rent Growth Slows Significantly
- Weak Rent Growth: According to Apartment List, the national median rent rose by only 0.4% in March to $1,363, significantly lower than last year's 0.6%, indicating a trend of sluggish rent growth.
- Annual Rent Decline: March rents fell by 1.7% year-over-year, marking the largest drop since 2017, reflecting a significant weakening in market demand and a 5.5% decrease from the peak in 2022.
- Rising Vacancy Rates: The national apartment vacancy rate remained at 7.3% in March, unchanged from February, reaching the highest level since 2017, highlighting the growing conflict between new apartment supply and sluggish demand.
- Increased Rent Concessions: As of January, 16.6% of stabilized apartment landlords were offering concessions such as free rent or gift cards, indicating heightened competition in the market, particularly in cities like Austin, Phoenix, and Denver where rent declines are notable.
See More
U.S. Apartment Rent Growth Trends Analysis
- Rent Growth Overview: In March 2026, U.S. apartment rents increased to an average of $1,723, marking a 0.2% rise from February's $1,719, representing the fourth consecutive month of positive growth, indicating a gradual recovery after a flat to declining trend in the latter half of 2025.
- Regional Performance Disparities: While all five regions posted month-over-month increases, with the Midwest and Mountain regions leading at +0.3%, year-over-year growth was uneven, with the Midwest at +1.9% and declines in the South and Mountain regions at -1.3% and -2.2%, respectively, highlighting ongoing supply-demand imbalances.
- Market Dynamics Shift: Among the top 50 markets, 46 experienced month-over-month rent growth in March, led by San Francisco (+0.8%), Boston (+0.7%), and East Bay (+0.6%), while Oklahoma City and Northern New Jersey saw slight declines of -0.1%, reflecting intense market competition.
- Ongoing Supply Pressure: Despite many markets moving past peak construction activity, significant inventory overhang persists, particularly in Austin (-4.8% year-over-year) and Denver (-3.5%), indicating that new supply continues to outpace demand, thereby restraining further rent growth.
See More
Southbank East Sees Demand Recovery
- Demand Recovery: In Q4 2025, Southbank East recorded an annual net absorption exceeding 200,000 sq ft, marking the strongest quarterly performance in over a decade, indicating signs of market recovery after two years of declining demand.
- Vacancy Rate Shift: The submarket's vacancy rate hit a 12-year high of 11.5% at the beginning of 2025, significantly up from less than 2% in 2019, reflecting the impact of new space deliveries coinciding with a slowdown in leasing activity.
- Development Completions: Nearly 1 million sq ft of new space has been delivered in Southbank East since 2020, with this development volume being more than five times that of the preceding five-year period, although over 20% of this new space remains available, suggesting gradual market improvement.
- Leasing Market Dynamics: The vacancy rate for floorplates larger than 15,000 sq ft stands at just 8.3%, lower than the London-wide rate of over 12%, indicating that tenants seeking larger spaces may face limited options, potentially impacting future leasing decisions.
See More
Single Women Outpace Men in Homebuying Trends
- Income Disparity Reversal: According to the National Association of Realtors, first-time single women homebuyers have a median income of $73,000, surpassing single men's $66,400, marking a potential shift in long-term homebuying trends favoring women.
- Rising Homebuyer Proportion: Single women account for 25% of first-time homebuyers compared to 10% for single men, a significant increase from 11% and 9% in 1985, indicating a growing recognition of homeownership as a wealth-building tool among women.
- Mismatch of Home Prices and Income: From 2000 to 2024, median household income rose by approximately 155%, while home prices surged by about 207%, creating substantial challenges for single buyers, particularly women relying on a single income to qualify for mortgages.
- Financial Sacrifices for Goals: Among single women buyers, 41% reported making financial sacrifices to save for a down payment, compared to 31% of men, highlighting women's commitment to achieving homeownership and financial independence despite economic hurdles.
See More
2026 CoStar Impact Awards Winners Announced
- Expert Selection: A panel of 570 industry experts across 129 global markets selected the winners of the 2026 CoStar Impact Awards, highlighting exemplary achievements in commercial real estate that elevate industry standards and market vitality.
- Outstanding Development: JPMorgan Chase's new headquarters at 270 Park Ave in New York City was recognized as the Commercial Development of the Year, with a 60-story, 2.5 million-square-foot skyscraper representing a $3 billion investment, expected to accommodate over 14,000 employees and set a new benchmark for premium office space.
- Montreal Innovation: The Champlain condo rental project in Montreal's Ville-Marie district was honored as the Commercial Development of the Year, transforming the former Odeon Champlain cinema site into a mixed-use development with 226 units, achieving 65% occupancy shortly after launch and advancing transit-oriented density goals.
- Defense Manufacturing Investment: Anduril Industries' lease at 4611 Airbase Road in Columbus, Ohio was awarded Lease of the Year, expected to create over 4,000 direct jobs, marking the largest job-creation project in Ohio's history and significantly boosting local economic growth and tax revenues.
See More
