In the end A decade on, an area of technology that affects the quality of people’s lives – from where we live to the things we put in our homes – has come a long way. Proptech has made our lives easier with innovations like smart homes, AirBnB and the ability to shop and secure a mortgage from our phones.
But huge gaps and opportunities remain.
For example, the residential market for a single family is huge. About 2 trillion dollars the value of the home sold in 2021, according to CoreLogic. But buying a home is still an extremely difficult process. A team from Keller Williams identified 180 things a seller’s agent doesand even this list, as exhaustive as it can be, does not fully explain to many other players in a typical trade.
These days, buying a house is like running over a tower: you have to sprint between obstacles and pray that you have the stamina to survive it all. It shouldn’t have been that difficult. So let’s fix it. This is a call for current and future proptech entrepreneurs to solve problems close to home.
There has never been a better time to start. Capital is looking for good ideas and quality execution. In 2021, venture capital increases to a record 11.7 billion dollars into proptech. Although the market has begun to slow down this year, driven in part by factors such as public market activity, inflation and higher interest rates, there is still a strong appetite among investors. invest in great and novel ideas with excellent execution.
If no one can find your home online, is it really for sale?
Starting a business is hard, but now we have a path for proptech that, with sponsors and mentors, can propel entrepreneurs through the early hurdles to maturity and deep market penetration. .
Proptech can solve many home buying basics
Proptech still has fundamental problems to attack, including one of the most common: buying a home.
Here are eight high-leverage homebuying woes that remain unresolved. Given the enormity of the housing industry, even slight improvements in some of these areas will be warmly welcomed and great strides rewarded.
Housing affordability
Challenges: Many Americans cannot own a single-family residence, no matter how long and wisely they save. High construction costs, strong demand driving prices up due to relatively low supply and low incomes can make home ownership difficult or impossible.
This is not an issue exclusive to lower income households. The National Association of Realtors’ Housing Affordability Index, which measures the extent to which an average-income family can afford the monthly mortgage payment on a median-priced home. jar, 30% off from April 2021 to April 2022. Housing is making up a larger percentage of Americans’ incomes.
