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Contract Balances
 9 Months Ended
Sep. 30, 2022
Revenue from Contract with Customer [Abstract]  
Contract Balances Contract Balances
Contract assets were $80 million and $78 million as of September 30, 2022 and December 31, 2021, respectively. Contract assets represent amounts for which we have recognized revenue for contracts that have not yet been invoiced to our customers. Contract assets are primarily related to our Premier Agent Flex, Zillow Lease Connect and StreetEasy Experts offerings, whereby we estimate variable consideration based on the expected number of real estate transactions to be closed for Premier Agent Flex and StreetEasy Experts, and qualified leases to be secured for Zillow Lease Connect. We recognize revenue when we satisfy our performance obligations under the corresponding contracts. StreetEasy Experts is our pay for performance pricing model available in the New York City market for which agents and brokers are provided with leads at no initial cost and pay a performance referral fee only when a real estate purchase transaction is closed with one of the leads. Under the StreetEasy Experts pricing model, the transaction price represents variable consideration, as the amount to which we expect to be entitled varies based on the number of leads that convert into real estate transactions and the value of those transactions. We record a corresponding contract asset for the estimate of variable consideration for StreetEasy Experts when the right to the consideration is conditional. When the right to consideration becomes unconditional, we reclassify amounts to accounts receivable. Contract assets are recorded within prepaid expenses and other current assets in our condensed consolidated balance sheets.
For the three months ended September 30, 2022 and 2021, we recognized revenue of $50 million and $51 million, respectively, that was included in the deferred revenue balance at the beginning of the related period. For the nine months ended September 30, 2022 and 2021, we recognized revenue of $51 million and $48 million, respectively, that was included in the deferred revenue balance at the beginning of the related period.
Contract Cost Assets
As of September 30, 2022 and December 31, 2021, we had $25 million and $35 million, respectively, of contract cost assets. For the three and nine months ended September 30, 2022 and 2021, we did not incur any material impairment losses to our contract cost assets.
We recorded amortization expense related to contract cost assets of $7 million and $12 million for the three months ended September 30, 2022 and 2021, respectively, and $23 million and $32 million for the nine months ended September 30, 2022 and 2021, respectively.