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In sluggish 2024, proptech turned inward (and to Zillow)

Dec 24, 2024 - inman.com
The article discusses the state of the proptech industry and its developments in 2024. Despite a decline in proptech investments in early 2024, the sector showed signs of recovery by October, with increased funding and investor confidence. The focus for venture capitalists has shifted towards Series B rounds, emphasizing growth over new ideas. Many proptech companies have turned to artificial intelligence to improve internal operations and product offerings. Notable advancements include brokerage AI initiatives by companies like Restb.ai, Real Brokerage, and Keller Williams, which aim to streamline operations and enhance agent capabilities. The article also highlights the challenges of software independence and fragmentation in the real estate industry, which complicates the implementation of AI tools.

In the property management sector, AI has been leveraged to improve tenant experiences and operational efficiencies, with companies like Colleen and Lessen introducing innovative solutions. The article also touches on regulatory concerns regarding AI-driven pricing strategies, with RealPage and Yardi facing scrutiny. The build-to-rent space has emerged as a new asset class, attracting interest from proptech firms. Additionally, the article covers the ongoing competition in the real estate portal market, with CoStar's acquisition of Matterport and its advertising efforts to challenge Zillow's dominance. Other industry trends include the focus on buyer representation agreements, agent benefits, and the potential for acquisitions of innovative companies like Courted and Inspectify. Overall, 2024 was a year of introspection and preparation for future growth in the real estate technology sector.

Key takeaways:

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  • Proptech investment showed signs of recovery in 2024, with a notable increase in funding by October, indicating sustained investor confidence in real estate technology.
  • Brokerages are increasingly adopting AI to enhance operations, with companies like Restb.ai and SERHANT. deploying AI-driven solutions to improve property listings and agent workflows.
  • The rental industry is leveraging AI to improve tenant experiences and operational efficiencies, though regulatory scrutiny over AI-driven pricing strategies is intensifying.
  • The competition among real estate portals continues, with Homes.com striving to challenge Zillow's dominance, despite regulatory challenges and industry skepticism.
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