The next frontier in real estate technology – TechCrunch

From entertainment to transportation, technology has upset almost every major industry, with one notable exception: real estate. Instead of disrupting the sector, the latest generation of real estate technology companies has mainly improved the efficiency of existing processes. Industry leaders Zillow / Trulia and LoopNet * have helped us search for homes and commercial real estate better and faster, but they have not significantly changed what we buy or rent, who or how.

The next generation of real estate technology companies is taking a more holistic approach, dismantling existing systems and re-inventing new systems to meet 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, but for many young Americans, it is an unattainable dream. One-third of Generation Y people live at home and, as a cohort, spend more of their income on rent than previous generations – about 45% in their first decade of work. That leaves little money for savings, let alone for homeownership, the biggest financial expense in most people's lives.

The growing need for affordable housing is at the origin of creative solutions based on technology. A startup segment is looking to make existing homes more affordable, particularly in high-cost markets such as New York and the Bay Area. Divvy helps consumers, many of whom have low credit ratings, rental housing, whose viability is badessed through a combination of subcontractors and machine learning. Landed, funded by the Chan Zuckerberg Initiative, helps educators to provide housing in the communities in which they teach. Homeshare divides luxury apartments into more affordable units, and Bungalow takes a similar approach with homes. Both companies built technology platforms to manage their tenant lists, allocate tenant expenses, and streamline payments.

Another segment of start-ups is to reduce the cost of building new homes, including prefabricated modular homes, to reduce construction costs. Katerra, which has just raised $ 865 million, aims to create a seamless one-stop shop for commercial and residential development, managing the entire construction process, from design to supply, through Completion of construction. The adoption of a "complete" approach at each stage of the construction process should enable them to gain in efficiency and reduce costs.

If the economy falters, the need for more affordable housing will only grow, which will make these start-ups not only safe from recession but even in turn. Together, they help Americans adapt their dreams to something more achievable.

In search of community

Consumers are not only looking for affordability, they are also looking for the company. More than half of Americans feel lonely and the youngest cohort in the late teens and early to mid-twenties is the most lonely of the group (followed closely by Generation Y). Generation Y is the first generation to enter the job market in the era of smartphones and laptops. 24/7 connectivity allows us to work anywhere, anytime, but it also creates work expectations anywhere, anytime – and so many people do it, which throws a gap between work and personal life. The longer work hours make the community more difficult to build in an organic way. That's why many millennia value employers and homeowners who make it easy for them.

Airbnb and WeWork were about to capitalize on community demand, one changing the way we travel and the other redefining modern office space. Collaborating companies like WeWork, as well as more targeted suppliers like The Assembly *, The Wing and The Riveter, offer free lecture series, clbades and other events for members to create links. Airbnb, previously focused solely on accommodation, has expanded its platform to include shared community building experiences.

Start-up companies in the life and hospitality industry are also investing in the community to attract and retain customers. StarCity offers adult dormitories, shared lodgings and HubHaus for roommates, and Ollie offers luxury micro-apartments in a communal living environment. These companies are leveraging technology to facilitate in-person connections. For example, Common uses Slack channels to communicate with members and connect them, and HubHaus uses roommate matching algorithms.

In the hospitality sector, Selina offers a mixed-travel lodge, a wellness and collaborative work platform aimed at creating a community for travelers and remote workers, with high-tech spaces. seaside and in the jungle. Life House *, an experience and lifestyle-driven hotel company, connects guests through local on-site food and beverage destinations and offers social presentations based on business-to-business applications. other travelers.

Modern life requires flexibility

Life can be unpredictable, especially for young people who tend to change jobs often. Short-term contracts are particularly common in the growing labor market labor force. People who do not know how long their work will last will not want to be burdened with long-term lease commitments or furniture that is as expensive to transport as it is to buy.

Companies like Feather, Fernish and CasaOne rent furniture to people looking for flexibility in their living environments. Among consumers who are willing to buy their home but are looking for additional help, Knock, created by members of Trulia's founding team and recently collected a $ 400 million B-series, offers a complete platform for to buyers to buy a new sell their old. Also focusing on flexibility, OpenDoor, worth over $ 2 billion, has launched "instant offers" for homeowners looking to sell their homes quickly, using algorithms to determine the value of specific houses.

It's not just residents who are looking for flexible leases; many companies do the same, especially those that host distributed employees or are experiencing periods of uncertainty or rapid growth. To enable flexibility, several commercial real estate technology companies have developed platforms that balance prices, capacity, and demand.

Knotel, a "head office as a service" for businesses with 100 to 300 employees, builds and manages office spaces that are less risky and more flexible than commercial leases generally allow, allowing tenants add or quickly reduce office space. necessary. WeWork allows members to pay only for the periods they enter work. To further enhance flexibility, Breather allows workers to rent rooms on time, day or month.

The next frontier of real estate technology is as limitless as it is exhilarating. A whole new generation of startups is designing innovative solutions to meet our growing demands for financial capability, community and flexibility. In doing so, they fundamentally rethink the way we live, work and play by transforming the modern workplace, recreational spaces and even our home definition. We are eager to see – and live – what lies ahead.

* Trinity Ventures holding company.