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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 rental management and home improvement tools market could reach USD 11.6–26.7 billion by 2025

Conservative case

USD 11.6 Bn

Base case

USD 17.9 Bn

Expansion case

USD 26.7 Bn

USD billion0102030202020212022202320242025
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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.

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
?
Virtual Viewing
?
HousingAnywhere
HousingAnywhere
HousingAnywhere
HousingAnywhere
HousingAnywhere
HousingAnywhere
Yardi Systems
RealPage
AvalonBay
Mynd
Knock
HousingAnywhere
AppFolio
Doorstead
Knox Financial
Rentify
Naborly
Zillow Group
Rentable
Goodlord
Great Jones
MeetElise
Home365
Onerent
Darwin Homes
Rentberry
Sunroom Rentals
NestEgg
Hemlane
RentSpree
TurboTenant
DoorLoop
Simplifyy
Avail
Domuso
Caretaker
Innago
Zently
Tenant Turner
VERO
Homeppl
RentRedi
Knock
RentCheck
Lofti
Nobee
Yuhu
RentTango
RE/MAX
Lone Wolf Real Estate Technologies
Fidelity National
Keller Williams
Coldwell Banker
CoStar Group (Homesnap)
Compass
HomeLight
Side
Placester
PLACE
HomeSpotter
Boston Logic (Propertybase)
Zillow Group
Paperless Pipeline
EZ Coordinator
Brokermint
Casafari
Localize
PriceHubble
BoomTown
RealScout
Elm Street Technology
Firepoint
Homesearch
UpNest
Perchwell
Aryeo
Audience Town
Properti
Ylopo
CoreLogic
RE/MAX
First American
Fidelity National
Doma
DocuSign
Notarize
Qualia
Spruce Holdings
JetClosing
Amitree
Zillow Group
Propy
Transactly
RentSpree
PropLogix
BlueSuit
Realty Back Office
SafeChain
Amazon
IKEA Systems
Thumbtack
Houzz
Porch
Plentific
HomeX
Lessen
Super
Matera
Realm
Inspectify
Rent Ready
Househappy
HomeZada
ZYYAH
Humming Homes
Lofti
CoreLogic
HouseCanary
Weiss Analytics
Clear Capital
Reggora
Aloft Appraisal
Mashvisor
HouseSigma
Plunk
HomeBinder
Matterport
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 23.0 bn
AppFolio
Public - Market cap USD 4.4 bn
Mynd
175
Knock
47
HousingAnywhere
43
Rentable
34
Goodlord
34
Great Jones
34
MeetElise
32
Home365
24
Onerent
22
Doorstead
16
Rentberry
14
Sunroom Rentals
13
Hemlane
12
Rentify
10
RentSpree
10
TurboTenant
10
DoorLoop
10
Avail
10
Naborly
9
Domuso
7
Caretaker
7
RentRedi
5
Innago
4
RentCheck
4
Yuhu
Unknown
RentTango
Unknown
Watchlist
?
Darwin Homes
Knox Financial
NestEgg
Simplifyy
VERO
Homeppl
Knock
Zently
Lofti
Nobee
Tenant Turner

Buying and Selling Tools for Agents

?

Disruptors

?
Funding in USD Millions
Zillow Group
Public - Market cap USD 23.0 bn
Compass
Public - Market cap USD 5.0 bn
HomeLight
628
Side
314
Casafari
140
Placester
109
PLACE
100
Localize
36
PriceHubble
34
BoomTown
20
RealScout
15
Perchwell
15
Elm Street Technology
8
Firepoint
7
Homesearch
7
HomeSpotter
4
Properti
1
Boston Logic (Propertybase)
1
Ylopo
Unknown
Paperless Pipeline
Unknown
EZ Coordinator
Unknown
Brokermint
Unknown
Watchlist
?
Aryeo
UpNest
Audience Town

Transaction closing tools

?

Disruptors

?
Funding in USD Millions
DocuSign
Public - Market cap USD 50.7 bn
Zillow Group
Public - Market cap USD 23.0 bn
Doma
Public - Market cap USD 2.3 bn
Notarize
213
Qualia
160
Spruce Holdings
110
JetClosing
44
Amitree
21
Propy
17
Transactly
12
RentSpree
10
PropLogix
Unknown
Realty Back Office
Unknown
Watchlist
?
SafeChain
BlueSuit

Home Improvement

?

Disruptors

?
Funding in USD Millions
Porch
Public - Market cap USD 1.6 bn
Thumbtack
698
Houzz
614
Lessen
205
Plentific
141
HomeX
90
Super
80
Matera
56
Realm
15
Inspectify
12
Rent Ready
12
ZYYAH
10
Househappy
9
Humming Homes
8
Watchlist
?
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

Virtual Viewing

?

Disruptors

?
Funding in USD Millions
Matterport
Public - Market cap USD 4.5 bn
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).

Company revenue is divided into three main segments:

1) Home: Revenue from direct buying and selling of properties (58.6% of revenue in H1 2021)

2) Internet, media, and technology (IMT): Revenue from rental management, advertising, transaction management, business software solutions, construction marketplaces, and others (36.5% in H2 2021)

3) Mortgage: Revenue from mortgage advertising, mortgage originations, sales of mortgages, and mortgage software solutions (4.9% in H1 2021)

The company generated total revenues of USD 2.5 billion during H1 2021, which grew by 33.6% YoY. The company’s top-line growth was supported by higher volumes of traffic to the company’s mobile apps and websites. As such, the average monthly unique users grew by 14.5% YoY in H1 2021, which contributed to overall growth in total visits, expanding 14.2% YoY over the same period. Subsequently, the total number of homes sold via the platform also grew by 5.7% YoY in H1 2021. The company’s adjusted EBITDA margin amounted to 14.4% in H1 2021, improving from 1.1% in H1 2020.

Segment:
Rental management
Competitors:
AppFolio Property Manager, Mynd, Compass, DocuSign, Doma
Disruptor Funding History

Rental management:

AppFolio
Mynd
Knock
HousingAnywhere
Rentable
Goodlord
Great Jones
MeetElise
Home365
Onerent
Doorstead
Rentberry
Sunroom Rentals
Hemlane
Rentify
RentSpree
TurboTenant
DoorLoop
Avail
Naborly
Domuso
Caretaker
RentRedi
Innago
RentCheck
Darwin Homes
Knox Financial
NestEgg
Simplifyy
VERO
Homeppl
Knock
Zently
Lofti
Nobee
Tenant Turner

Buying and Selling Tools for Agents:

Compass
HomeLight
Side
Casafari
Placester
PLACE
Localize
PriceHubble
BoomTown
RealScout
Perchwell
Elm Street Technology
Firepoint
Homesearch
HomeSpotter
Properti
Boston Logic (Propertybase)
Aryeo
UpNest
Audience Town

Transaction closing tools:

The 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
In House Development
M&A
Partnership
Investment

Notable Investors

No investor data is available

Funding data are powered by Crunchbase
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