The Impact of Sharing Economy, Office Supply Dropping, and Less Sophisticated Property Portals
Greetings! Welcome to another edition of Proptech Friday – your go-to source for the most recent happenings in real estate and proptech. I'm Wes Snow, here to navigate you through the latest news and innovations. Without further ado, let's jump into the newest updates!?
Well, I surely didn’t expect such insights. The study, conducted in 2021 and repeated in 2023, reveals disappointingly minimal improvements in the standardization of features and tools across platforms. In comparison to 2021, online real estate marketplaces now offer fewer sophisticated features, such as 'draw your own search area' or advanced search filters based on virtual tours.?
However, there is still hope that AI will change the game – the survey suggests that the extraction of property features from images and textual descriptions is seen as a valuable tool for building better filters and improving SEO.?
For more information, refer to the survey, or join us as we move on to the next exciting news.?
So, you might have thought WeWork's bankruptcy was spelling the end of office spaces, right? Well, not quite. Turns out, high-rise office spaces are facing increased demand and supply pressures due to their relative scarcity compared to other office options.?
Despite a national office space vacancy rate of over 20%, those upper-level high-rise floors (20 and above) have just a 12.4% vacancy rate, excluding New York City. So, it looks like the traditional office is holding its ground, even with a few changes in the mix.?
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Alright, time to dive into what's happening in the world of proptech startups.?
Do we still need real estate agents, or is the Internet enough? Startups like Prevu have a compelling answer. Prevu disrupts the industry by hiring agents as salaried staff with health benefits, reshaping their role into advisors akin to wealth management. Setting itself apart, the startup offers rebates to buyers on its platform, a key factor in its success across major metropolitan markets.?
Having secured $6 million in a Series A funding round, Prevu plans to utilize these funds to not only expand services but also to boost the technological capabilities of its platform. The question is, can this innovative model redefine the traditional real estate landscape??
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Did you know that in 2022, only one-third of renters did not own a home because they couldn’t afford it? ?
Well, it seems like we now have a startup that can solve that problem. Simply Homes, a Single Family Rental (SFR) sourcing and underwriting platform, has secured $22 million in funding this week, led by Gutter Capital and Watchung Capital.?
The platform addresses housing issues by optimizing the acquisition, renovation, and leasing of underutilized housing, making it accessible to lower-income families. Notably, over 80% of Simply Homes' tenants are single parents who would otherwise need to work 150 hours a week to afford market-rate rent. Way to go, Simply Homes!?
Origin AI, a provider of WiFi Sensing technology, has recently concluded a $15.9 million Series B extension round, with Verisure leading the investment. Their patented WiFi Sensing technology transforms WiFi signals into precise presence sensing solutions, serving Fortune 500 ISPs, security, and IoT companies. ?
Verisure, a leading European security systems provider, has expressed confidence in Origin AI's technology, recognizing its potential to complement security offerings.?
?Congratulations to Origin AI! Now, let's move on to the real estate news.?
Let's talk post-pandemic migration vibes. So, New York and Los Angeles, despite some population dips, held their ground with minimal impact on multifamily vacancies. Now, flip the coin—places like Las Vegas and Salt Lake City had a rougher ride. Population drops post-pandemic hit them hard, doubling those vacancy rates, primarily due to increased new construction.?
Now, brace yourself for the final scoop on our list!?
Though the trend of co-renting and co-living has been on the rise for a while (and will definitely stay as one of the leading property management trends in 2024), I don’t think we’re talking enough about it.?
While offering new income opportunities and enhanced accessibility, the sharing economy has sparked concerns. These concerns include the impact of co-living and co-renting on housing markets, competition among landlords, and challenges like safety and regulation. For instance, is the real estate industry well-equipped to handle the legal side of co-living? Can co-renting companies provide a safe and personalized experience for tenants??
I believe the trend will positively impact the real estate market, but you might disagree, so please share your opinion.?
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That’s all for today. Whether you're a pioneer in co-renting & co-living or any other real estate trend, we can help you by providing expert assistance in real estate portal development and custom proptech software development, audit, API integration, and more.?
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Contact us or book a free proptech call to find out how Ascendix can propel you ahead in the ever-evolving real estate landscape.?
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Absolutely love this week's topics! ?? As Helen Keller once said, "Alone we can do so little; together we can do so much." The sharing economy's potential is limitless. Speaking of collective efforts, there's a unique chance to be part of a Guinness World Record for Tree Planting that may interest your audience. Here's a glimpse into something extraordinary: https://bit.ly/TreeGuinnessWorldRecord ??? Let's make a difference together!