PropTech Trends 2019 (Nine Four Ventures)

Summary

• In Toronto, it takes 21 years on average for a millennial to save for a home down payment.p.9
• Single-family zoning accounts for 75% of all residential land in the United States, restricting alternative housing supply.p.12
• US venture capital fundraising was on track to surpass $40B in 2019, with $41.2 billion raised across 162 funds as of September 30, 2019.p.19
• The residential real estate agent and broker ecosystem represents a $100B+ market.p.15
• More than 25% of REALTORs in the United States are now part of a real estate team to optimize operational efficiency.p.16
• Legacy furniture incumbents with market capitalizations of >$1B dominate the $50 billion furniture industry.p.24
• Demographically, half of all Americans are now over the age of 38, increasing the focus on coliving and senior housing models.p.11

Key insights

1. Next-generation real estate operators are increasingly blending traditional asset classes by integrating short-term rentals, coliving, and multi-brand retail concepts.p.3
2. PropTech startups are turning to OpCo/PropCo structures to unlock inventory and bypass traditional landlord risk constraints.p.5
3. Construction productivity in the United States per hour worked has stagnated compared to major manufacturing and trade sectors since 1947.p.12
4. Fintech platforms like Built Technologies are addressing construction bottlenecks by digitizing loan draws, milestone tracking, and lien management.p.13
5. Alternative financing platforms and iBuyers are disintermediating traditional buyer agents by providing direct cash offers and rent-to-own models.p.14
6. Commercial office owners are shifting focus from high-cost tenant amenities toward core operational efficiencies in energy, water, and access control.p.18
7. Venture capital investors in PropTech are increasingly prioritizing unit economics and clear paths to profitability over raw top-line growth.p.19
8. Computer vision and machine learning enable job-site image tracking to create accurate, cost-effective systems of record for ongoing construction.p.20
9. Verticalized software platforms solve marketplace chicken-and-egg dynamics by aggregating service provider supply before building transaction marketplaces.p.24