Disruption makes money, but it doesn?t have a great track record when it comes to building more housing Like most industries, real estate has welcomed a flood of tech investors seeking change, profit, and ?disruption.? And though Silicon Valley venture capitalists and tech investors came to real estate relatively late compared to other fields, real estate tech?s big 2017 shows it?s trying to make up for lost time.
Coworking colossus WeWork is now valued at $20 billion. Fifth Wall Ventures, a fund dedicated to real estate technology, raised $212 million. Redfin had a big IPO, Common raised millions for coliving, and let?s not forget Airbnb?s continued expansion. Forbes estimates that investment in real estate startups globally has ballooned from $2.4 billion to $33.7 billion between 2008 and 2017. In real estate, as in other industries being transformed by technology, you can measure the commercial and cultural shift through language. An entire glossary of new terms?coliving, microunits, smart homes, and coworking?have taken root thanks to a speedy adoption of new technology.
These companies have endeavoured to solve some pretty vexing problems: They?re building community (WeWork). Making cities more affordable (Starcity). Helping people stay in their homes (Airbnb). Streamlining and simplifying the process of finding a roommate and paying rent (Common). Helping new businesses grow and thrive (WeWork again).
But are these companies fundamentally ?disrupting? housing...