From entertainment to transportation, technology has upgraded nearly all major industries ̵
The Next Generation of Real Estate Technology Companies The Company is pursuing a more expansive approach by dismantling existing systems and implementing completely new systems that respond to our growing demand for affordability, community and flexibility.
The Growing Need for Affordability
Home ownership has long been an integral part of the American dream For many young Americans today, it is an unattainable dream. One-third of millennials live at home, and as a cohort they spend more of their income on rents than previous generations – about 45 percent in the first ten years of their jobs. This leaves little money for savings, and even less for home ownership, the biggest financial burden of most people.
The increasing demand for affordable housing is driving some creative solutions with technical capabilities. A segment of startups is focused on making existing homes more affordable, especially in expensive markets such as New York and the Bay Area. Divvy helps consumers, many of whom have low credit and rental housing, who are tested for profitability by a combination of contractors and machine learning. Landed, funded by the Chan Zuckerberg Initiative, educators help find a home in the communities where they teach. Homeshare divides luxury apartments into several lower priced housing units, and bungalow is similar to houses. Both companies have built technology platforms to manage their leases and distribute tenant spending and streamline payments.
Consumers are not just looking for affordability, they are also looking for companies.
Another segment of start-ups aims to reduce the cost of building new homes, such as: As modular prefabricated houses to reduce the construction costs. Katerra, which has just raised $ 865 million, is aiming to create a seamless one-stop shop for commercial and residential buildings that manages the entire building process from design and procurement to completion of the construction. With a "full-stack" approach to every step of the construction process, they should increase efficiency and reduce costs.
As the economy slows, the need for affordable housing will only increase, making these startups not only recession-proof but also recession-intensive. Together, they help Americans achieve their dreams of the scale that are more accessible.
In search of the community
Consumers are not just looking for affordability, they are also looking for company. More than half of Americans feel lonely and the youngest cohort in their late teens and early to mid-twenties is the loneliest group (followed by millennials). Millennials are the first generation to enter the era of smartphones and laptops. With 24/7 connectivity, we can work anytime, anywhere, as well as expectation to work anywhere, anytime – and so many people who blur the line between work and life. Longer working hours make it harder to build the community organically, so many millennials place great emphasis on employers and landlords to make it easier for them.
Airbnb and WeWork have benefited early from the demand for community redefining of modern office space. Co-working companies such as WeWork as well as more targeted providers such as The Assembly *, The Wing and The Riveter offer speaker series, classes and other free member events to build connections. Once focused solely on housing, Airbnb has expanded its platform to share experiences in community building.
Shared Living and Hospitality start-ups also invest in community to attract and retain customers. StarCity offers adult residences, Common and HubHouse rental apartments to be shared by roommates, and Ollie offers luxurious micro apartments in a shared flat. These companies use technologies to promote personal connections. For example, Common Slack uses channels to communicate with members and join members, and HubHaus uses roamer comparison algorithms.
Within the hotel sector, Selina offers a combined travel lodge, a wellness and collaboration platform that aims to create a community for travelers and long-haul workers, complete with high tech office space on the beach and jungle. Meanwhile, the action-oriented lifestyle hotel Life House * connects guests with locally rooted food and beverage destinations and direct social introductions to the app.
Modern life needs flexibility
Life can be unpredictable, especially for young people People who frequently change jobs. Short employment is particularly common in the growing workforce of the gig economy. People who do not know how long their jobs will last do not want to be burdened with long-term leasing obligations or furniture that is almost as expensive to buy as the purchase.
The next frontier of real estate technology is as limitless as it is exciting.
Companies like Feather, Fernish and CasaOne rent furniture to people who are looking for flexibility in their home environment. Among consumers willing to buy their homes but looking for some extra help, Knock, formed by members of the Trulia startup team, recently acquired a $ 400 million B-Series has an end-to-end platform through which home buyers can buy a new home selling their old one. Valued at more than $ 2 billion, OpenDoor supported instant offers for homeowners who want to sell their homes quickly, and used algorithms to determine how much specific homes are worth.
Not only residents are looking for flexible leases. Many companies also do this, especially when they are taking on distributed employees or living in times of uncertainty or rapid growth. To enable flexibility, several commercial property technology companies have developed platforms that balance price, capacity and demand.
Knotel, a "headquarter as a service" for companies with 100 to 300 employees, builds and manages lower risk office space with more flexibility than is normally possible through commercial real estate leases, allowing tenants to quickly move office space when needed can add or reduce. WeWork allows members to pay only for the periods in which they come to work. Breather allows employees to rent the rooms by the hour, day or month.
The next frontier of real estate technology is as limitless as it is exciting. A whole new generation of startups are developing innovative solutions from scratch to meet our growing demands for affordability, community and flexibility. In doing so, they fundamentally envision how we live, work and play by changing the modern workplace, leisure space and even our definition of home. We look forward to seeing and experiencing what lies ahead.
* Trinity Ventures Portfolio Company.