Real estate startups face existential threats from all directions—the first of which is the sluggish real estate market. Four dozen real estate technology leaders share their experiences with Intel.
This report is available to subscribers only Inman Intelis the data and research arm of Inman, providing insights and market intelligence into the residential real estate and proptech businesses. Subscribe now.
Times are tough for proptech founders.
This key area of the real estate industry helps brokerages stay ahead of the curve while facing unique challenges in sales, integration and user acquisition.
But all of those hurdles pale in comparison to a bigger hurdle: Brokerage firms are waiting for the housing market to rebound before embarking on a real tech splurge.
Take the March Intel Index Survey Now
One proptech leader speaks for many when asked about prevailing customer attitudes.
“Fear,” the leader wrote. “Our customers are conservative about future spending.”
That feeling — which brokerage leaders might prefer to describe as a healthy caution — is currently gripping the industry and is holding back real estate, according to nearly 40 entrepreneurs and executives surveyed in February. One of the main factors in the development of technology companies. Via Inman Intel Index.
The 47 technology company leaders represent only a fraction of the 811 real estate professionals surveyed in February, a number that makes it more difficult to determine how their views change from month to month.
But as Intel closely monitors real estate industry sentiment across the brokerage, proptech, and lending sectors, their combined experience is a critical piece of the puzzle.
Read insights and observations from PropTech industry leaders in the full report below.
a tough case
Proptech leaders face diverse challenges.
But when asked by Intel in February which barriers stood out the most, these proptech respondents painted a clear picture.
- Half of PropTech Leaders Intel Index’s survey last month was titled “Residential real estate market pressures“This is the biggest challenge they face in selling technology in 2023 – it’s the biggest challenge of all the response options.
- equal share of PropTech respondents said market pressure By 2024, this will remain their biggest challenge.
- The largest remaining group of PropTech respondents— 28% — Name the related question their cost value proposition On the contrary, this is the biggest challenge.
Previous versions of the Intel Index confirmed that most brokerages Keep investing in the real estate technology sector and are willing to accept similar or potentially greater spending in the coming year.
But it’s clear that proptech entrepreneurs are feeling continued market uncertainty as they try to articulate their value to potential customers.
way forward
It’s not just the sluggish trading market that’s hurting their prospects. Other macro headwinds in the real estate industry are also affecting the proptech sector.
Nowhere is this more evident than in concerns about the regulatory framework for real estate.
This structure is undergoing rapid changes as a result of Commission-related rulings and settlements that have largely Setbacks Real estate’s largest players include the National Association of Realtors.
- When asked about last year, 52% Proptech leaders respond to Intel report in February interest rate or Recruiting technology talent is the most challenging part of the business environment.
- But when the focus turns to the next 12 months, the same proportion of PropTech respondents pointed to interest rate and laboratory market environment dropped to 37%.
- Meanwhile, concerns about next year appear to be shifting to regulatory implications.almost 19% of PropTech respondents said Regulation It is the biggest challenge faced by the business environment in the past year 33% They believe this will be the biggest problem in the coming year.
What will ultimately be the most important factor in PropTech’s recovery? The leaders said the solution could involve many factors.
- 28% Proptech leaders in the survey see the Federal Reserve’s interest rate cut later this year as a key step in PropTech’s recovery.
- Rest of replies divided among many categories, including The promise of artificial intelligence,increased Return to the officedry powder Resource deployment and a Changes in political leadership in washington d.c.
Intel will continue to gather feedback from real estate technology leadership and its brokerage peers in the coming months.
But as long as the trading market remains sluggish, they seem to think hopes of expansion will largely be on hold.
Methodological Notes: Inman of the Month Intel index poll Taking place from February 20 to March 3, 2024.Invite the entire Inman reader community to participate, and Intel 811 replies received.Respondents to this poll were directed to the SurveyMonkey platform where they self-identified their profile in the residential real estate market. Respondents were limited to one response per device, but there was no limit on IP addresses. Once a profile is selected (residential real estate agent, mortgage broker/banker, business executive/investor/proptech or other), respondents answer a unique set of questions for that specific profile.because poll There is no requirement for demographic information such as age, gender, or geographic location, and there is no weighting of the data.this poll Will be conducted monthly, with recurring questions and unique questions for each profile type.
Email Daniel Houston
