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Residential PropTech

Property owners and real estate companies are able to handle larger portfolios while offering faster and cheaper services.

Overview

Tools to streamline management and transaction workflow of residential properties

Powered by technology such as cloud computing, machine learning, and big data, property management and transaction tools enable property owners and real estate companies to handle larger portfolios of homes and improve user experience during transactions or while managing residential properties.

Despite the sheer size of the US residential property market, it has been one of the last sectors to implement technology.

While many of the top-funded property startups have focused on connecting buyers and tenants with sellers and landlords, tremendous opportunities still exist for innovation in other areas, given that renting and buying/selling properties involves a series of manual tasks. Moreover, the current Covid-19 pandemic has resulted in the widespread use of technology across different segments in the property sector.

What's driving this industry?
Market Sizing

The US residential proptech market for home improvement, rental management, and agent tools could reach USD 15.9–29.9 billion by 2026

Conservative case

USD 15.9 Bn

Base case

USD 24.4 Bn

Expansion case

USD 29.9 Bn

USD billion051015202530202120222023202420252026
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COVID-19 IMPACT

Virtual viewing becomes the norm:

  • Matterport saw 3D camera sales grow by 600% in April 2020.

Virtual appraisals gain traction:

  • In March 2020, Clear Capital launched its OwnerInsight online appraisal tool for homeowners to securely send information and images of properties. 

  • In April 2020, Reggora released a similar tool called Virtual Inspection. 

Online notarization is picking up:  

  • A remote online notarization (RON) platform, Notarize , claims its business grew by more than 500% between March 2020 and September 2020.

View detail

Market Mapping


The majority of startups have focused on developing rental management solutions and agent tools (buying/selling and renting). Many of the rental management tools are built for individual landlords due to the incumbents’ strong foothold in the enterprise segment. Meanwhile, the agent tools help real estate agents obtain referrals, respond to leads, generate leads, and search for properties collaboratively with clients.

Most startups on the list were founded between 2011 and 2018, with around half of them established over the past five years (2015-2018). Many of these newer startups are categorized under rental management and title and escrow.

All startups on the list are divided almost equally between the early stage and growth stage. Each category has its own leaders. Notably, all startups in the title and escrow category are growth companies.

Incumbents
Growth
Early
Seed
Pre-Seed
Rental management
?
Buying and Selling Tools for Agents
?
Transaction closing tools
?
Home Improvement
?
Valuation and appraisal
?
Online marketplaces
?
Virtual Viewing
?
ImmobilienScout
ImmobilienScout
ImmobilienScout
ImmobilienScout
ImmobilienScout
ImmobilienScout
ImmobilienScout
Yardi Systems
RealPage
AvalonBay
Realtor.com
Timios
Zumper
Mynd
Funnel Leasing
Knock
HousingAnywhere
AppFolio
Doorstead
Knox Financial
Naborly
Rentify
Zillow Group
Rentec Direct
Belong
Poplar Homes
Goodlord
Home365
Rentberry
Rentable
Great Jones
MeetElise
DoorLoop
RentSpree
Residently
Darwin Homes
RentRedi
Beanstock
Sunroom Rentals
NestEgg
Hemlane
Showdigs
TurboTenant
Letus (RentMoola)
Simplifyy
Avail
Innago
Domuso
Caretaker
Marble
Zently
Tenant Turner
Silver Home
Pichet Homes
Yuhu
VERO
Homeppl
Knock
RentCheck
Lofti
Nobee
Plexflow
RentTango
Flow
RE/MAX
Lone Wolf Real Estate Technologies
Fidelity National
Keller Williams
Coldwell Banker
CoStar Group (Homesnap)
Realtor.com
Compass
Knock
HomeLight
Redfin
Side
OJO Labs
Placester
PLACE
Unlatch
HomeSpotter
Boston Logic (Propertybase)
Zillow Group
Chime
Paperless Pipeline
EZ Coordinator
Brokermint
Casafari
Localize
PriceHubble
BoomTown
RealScout
Elm Street Technology
Firepoint
Homesearch
UpNest
Structurely
Perchwell
Audience Town
Properti
Aryeo
Flyp
Ownly
Nile
Ylopo
MoveGenius
CoreLogic
RE/MAX
First American
Fidelity National
Timios
Compass
HomeLight
Doma
DocuSign
Notarize
Qualia
Spruce Holdings
JetClosing
Amitree
Zillow Group
RentSpree
Propy
Transactly
PropLogix
SafeChain
BlueSuit
Realty Back Office
Amazon
IKEA Systems
HomeAdvisor
Thumbtack
Houzz
Porch
Plentific
Hover
Helpling
HomeX
Lessen
Belong
Super
Matera
PunchlistUSA
Latchel
Realm
Inspectify
Rent Ready
Househappy
iRestify
RoofMarketplace
Lula
HomeZada
Evo
Casa
Humming Homes
ZYYAH
Wreno
Improovy
Lofti
Dwellwell
CoreLogic
HouseCanary
Weiss Analytics
Clear Capital
Reggora
Aloft Appraisal
Plunk
Mashvisor
HouseSigma
HomeBinder
Realtor.com
ImmobilienScout 24
Opendoor
Compass
Pacaso
Knock
Casavo
HomeLight
Orchard
OfferPad
Redfin
FlyHomes
Zumper
Sundae
Zillow Group
Properly
Evernest
Welcome Homes
Ember
Beanstock
Aalto
Key
Faira
Estately
Pichet Homes
Flyway
Far Homes
PropBidder
Matterport
Hover
OneDay
Realvision
Pynwheel
Immoviewer
Virtu House
Moovie

The Disruptors


Home improvement startups lead funding, followed by transaction closing tools

Among our disruptors, the residential proptech segment comprises a few public players such as Zillow Group, Appfolio, and Compass, while also featuring a number of smaller, privately funded companies. In terms of private funding, the top two categories are home improvement and transaction closing tools. Each segment is characterized by the existence of a few players with substantial funding as of August 2021, such as Thumbtack (USD 698.2 million), Houzz (USD 613.6 million) and Notarize (USD 213.3 million).

Although the rental management segment features the most number of startups, these companies have raised relatively less funding, with Mynd being the highest-funded company at USD 117.6 million as of August 2021. This is possibly due to the existence of large property management software incumbents in the space. Many rental management startups have focused on providing their services to individual landlords that manage smaller residential property portfolios. An increasing number of newer startups have also focused on offering full-service property management rather than providing only a part of the service (e.g., rent collection only).

Aside from rental management, many startups have also emerged to equip the property sector with tools for agents that enable them to market homes (lead generation, agent matching, etc.). Public companies Zillow Group and Compass are the dominant players in this segment, while HomeLight and Side are the top private players in the space with more than USD 260 million in funding each as of August 2021.

Rental management

?

Disruptors

?
Funding in USD Millions
Zillow Group
Public - Market cap USD 8.4 bn
AppFolio
Public - Market cap USD 4.1 bn
Zumper
180
Mynd
175
Belong
138
Funnel Leasing
75
Poplar Homes
75
Goodlord
69
Home365
50
Knock
47
HousingAnywhere
43
Rentberry
35
Rentable
34
Great Jones
34
MeetElise
32
DoorLoop
30
RentSpree
28
Residently
20
RentRedi
17
Beanstock
16
Doorstead
16
Naborly
14
Sunroom Rentals
13
Hemlane
12
Rentify
10
Showdigs
10
TurboTenant
10
Letus (RentMoola)
10
Avail
10
Innago
8
Domuso
7
Caretaker
7
RentCheck
4
Silver Home
0
Pichet Homes
Unknown
Yuhu
Unknown
Rentec Direct
Unknown
RentTango
Unknown
Watchlist
?
Flow
Darwin Homes
Knox Financial
NestEgg
Simplifyy
VERO
Homeppl
Knock
Marble
Zently
Lofti
Nobee
Tenant Turner
Plexflow

Buying and Selling Tools for Agents

?

Disruptors

?
Funding in USD Millions
Zillow Group
Public - Market cap USD 8.4 bn
Compass
1528
Knock
875
HomeLight
743
Redfin
320
Side
314
Casafari
140
OJO Labs
134
Placester
109
PLACE
100
Localize
56
PriceHubble
34
BoomTown
20
RealScout
15
Perchwell
15
Elm Street Technology
8
Firepoint
7
Homesearch
7
Unlatch
7
HomeSpotter
4
Ownly
3
Boston Logic (Propertybase)
1
Chime
Unknown
Paperless Pipeline
Unknown
EZ Coordinator
Unknown
Structurely
Unknown
Brokermint
Unknown
Watchlist
?
Audience Town
Properti
Aryeo
Flyp
UpNest
MoveGenius
Nile
Ylopo

Transaction closing tools

?

Disruptors

?
Funding in USD Millions
DocuSign
Public - Market cap USD 9.2 bn
Zillow Group
Public - Market cap USD 8.4 bn
Doma
Public - Market cap USD 139.5 mn
Compass
1528
HomeLight
743
Notarize
213
Qualia
160
Spruce Holdings
110
JetClosing
44
RentSpree
28
Amitree
21
Propy
18
Transactly
12
PropLogix
Unknown
Realty Back Office
Unknown
Watchlist
?
SafeChain
BlueSuit

Home Improvement

?

Disruptors

?
Funding in USD Millions
Porch
Public - Market cap USD 204.1 mn
Thumbtack
698
Houzz
614
Lessen
235
Plentific
141
Belong
138
Hover
127
Helpling
95
HomeX
90
Super
80
Matera
56
PunchlistUSA
49
Latchel
24
Realm
20
Inspectify
12
Rent Ready
12
Humming Homes
10
ZYYAH
10
Househappy
9
iRestify
8
Wreno
6
RoofMarketplace
6
Lula
4
Evo
2
Casa
1
Dwellwell
Unknown
Watchlist
?
Improovy
HomeZada
Lofti

Valuation and appraisal

?

Disruptors

?
Funding in USD Millions
HouseCanary
129
Reggora
44
Aloft Appraisal
25
HomeBinder
3
Weiss Analytics
3
Clear Capital
Unknown
Watchlist
?
Plunk
Mashvisor
HouseSigma

Online marketplaces

?

Disruptors

?
Funding in USD Millions
Zillow Group
Public - Market cap USD 8.4 bn
Opendoor
1886
Compass
1528
Pacaso
1467
Knock
875
Casavo
761
HomeLight
743
Orchard
472
OfferPad
355
Redfin
320
FlyHomes
310
Zumper
180
Properly
154
Sundae
136
Evernest
22
Welcome Homes
19
Ember
17
Beanstock
16
Aalto
13
Key
9
Faira
6
PropBidder
2
Estately
1
Pichet Homes
Unknown
Watchlist
?
Flyway
Far Homes

Virtual Viewing

?

Disruptors

?
Funding in USD Millions
Matterport
Public - Market cap USD 939.9 mn
Hover
127
OneDay
24
Pynwheel
0
Immoviewer
Unknown
Moovie
Unknown
Watchlist
?
Realvision
Virtu House

Zillow Group

Zillow Group has a portfolio of real-estate technology brands, including online marketplaces (Zillow and Trulia), a direct buying platform (Zillow Offers), a home lending platform (Zillow Home Loans), as well as other property management and transaction platforms such as Zillow Rental Manager (a rental management service), Premier Agent (an advertising and lead generation services), dotloop (a transaction management service), and Zillow Closing Services (a provider of title and closing services).

The company revenue is divided into three main segments:

1) Home: Revenue from direct buying and selling of properties (73.8% of total revenue for FY2021)

2) Internet, media, and technology (IMT): Revenue from rental management, advertising, transaction management, business software solutions, construction marketplaces, and others (23.2% of total revenue for FY2021)

3) Mortgage: Revenue from mortgage advertising, mortgage originations, sales of mortgages, and mortgage software solutions (3.0% of total revenue for FY2021)

Key customers and partnerships

In August 2022, Zillow Group partnered with Opendoor to bundle product offerings, allowing users of Zillow to access Opendoor Offers (Opendoor’s iBuyer solution) and use it as a standalone product or alongside Zillow’s other offerings such as financing, closing, and agent selection solutions.

Funding and financials 

The company generated total revenues of over USD 8.1 billion for FY 2021, which grew 144.0% YoY. The significant revenue growth is attributable to an over 2.5x YoY increase in home sales compared to FY 2020. Furthermore, the total visits increased 6.3% YoY to 10.2 billion in FY 2021. The adjusted EBITDA margin shrank 76.7% YoY to 2.4% in FY 2021 from 10.3% in FY 2020.

Segment:
Rental management
Competitors:
AppFolio, Compass, DocuSign, Doma, Opendoor
Disruptor Funding History

Rental management:

AppFolio
Zumper
Mynd
Belong
Funnel Leasing
Poplar Homes
Goodlord
Home365
Knock
HousingAnywhere
Rentberry
Rentable
Great Jones
MeetElise
DoorLoop
RentSpree
Residently
RentRedi
Beanstock
Doorstead
Naborly
Sunroom Rentals
Hemlane
Rentify
Showdigs
TurboTenant
Letus (RentMoola)
Avail
Innago
Domuso
Caretaker
RentCheck
Silver Home
Flow
Darwin Homes
Knox Financial
NestEgg
Simplifyy
VERO
Homeppl
Knock
Marble
Zently
Lofti
Nobee
Tenant Turner

Buying and Selling Tools for Agents:

Compass
Knock
HomeLight
Redfin
Side
Casafari
OJO Labs
Placester
PLACE
Localize
PriceHubble
BoomTown
RealScout
Perchwell
Elm Street Technology
Firepoint
Homesearch
Unlatch
HomeSpotter
Ownly
Boston Logic (Propertybase)
Audience Town
Properti
Aryeo
Flyp
UpNest
MoveGenius
Nile

Transaction closing tools:

DocuSign
Doma
Compass
HomeLight
Notarize
Qualia
Spruce Holdings
JetClosing
RentSpree
Amitree
Propy
Transactly
SafeChain
BlueSuit

Incumbents


Collaborations and acquisitions, two of the most popular methods to enter the space

Incumbents in the property management space (rental management and home improvement tools) comprise real estate investment companies, property management companies, digital home improvement companies (Amazon Home Services, IKEA Systems, and ANGI Homeservices), and high-end property management software companies such as Yardi Systems and RealPage. Many property management companies, especially industry leaders, tend to use these two software solutions.

Meanwhile, in the real estate transaction space, the incumbents are real estate brokerages, title and escrow companies, and home appraisal providers. Brokerages appear to focus more on equipping their agents with marketing tools and streamlining business operations with transaction management tools. The top title and escrow companies, Fidelity National Financial and First American Financial, seem to focus mostly on expanding their digital closing capabilities. Data and analytics provider CoreLogic has been a leading player in the property valuation field for around two decades.

Many incumbents have collaborated (i.e., integration with third-party systems) with startups to provide digital offerings, as it allows them to adjust to changing market demand quickly. One of the top five real estate brokerage companies, RE/MAX, has integrated its system with a digital signature management tool, DocuSign; and real estate investment trust (REIT) AvalonBay has collaborated with the artificial intelligence (AI)-powered leasing assistant MeetElise.

Acquisitions are another popular method for entering the space as they allow incumbents to capture market share quickly. For example, RealPage has made mergers and acquisitions (M&A) part of its growth strategy, with recent activities including the acquisitions of Buildium, SimpleBills, and Modern Message.

Some real estate brokerage companies have developed their own proprietary technologies to gain a competitive edge and prevent data sharing with third parties. For instance, Keller Williams has launched an agent-to-agent referral tool, Referral, while Coldwell Banker has developed a similar tool, Exclusive Look.

Rental management
Buying and Selling Tools for Agents
Transaction closing tools
Home Improvement
Valuation and appraisal
Virtual Viewing
Online marketplaces
In House Development
M&A
Partnership
Investment
Yardi Systems
RealPage
CoreLogic
RE/MAX
Lone Wolf Real Estate Technologies
First American
Fidelity National
Keller Williams
Amazon
IKEA Systems
AvalonBay
Coldwell Banker
CoStar Group (Homesnap)
HomeAdvisor
Realtor.com
Timios

Notable Investors


No investor data is available

Funding data are powered by Crunchbase
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