In fact, real estate fintech companies focused on disrupting the residential real estate transaction have largely seen a bump, not a decline, in their business during this time.
For additional context on where top investors believe the market is headed, be sure to check out our real estate and proptech investor survey from late March and the previous ones from late last year (when everyone thought 2020 would be something different).
Now, investors are ready to pour capital into the startups they believe are best-positioned in this new era, from companies tackling construction tech, financing and digital workflow tools to those finding ways to monetize vacant spaces, flex offices and yes, even co-living arrangements.
This could extend into co-living, but in the short to mid-term, means that I think we will see more rapid growth in companies offering more hybrid short to mid-term stay innovation models (Sonder, Zeus, Kasa, Whyhotel, etc. ) and companies servicing landlords or consumers who are doing this themselves (CasaOne, Feather, HelloAlfred, Hom).
Real estate fintech companies have a unique set of challenges in this time, given limited real estate sales and higher costs.
Because real estate is such a complex business, some of the investing trends we have seen around proptech are fad-based and not deeply rooted in fundamentals — and I do agree that some of these fads may not weather the challenges presented by the pandemic.
Our first survey, published last week, provided a broad view of the residential and commercial real estate landscape, and homed into the trends that have emerged and accelerated in the past year.
Nationally, the residential market has remained brisk (with some obvious exceptions, like New York), and many of the companies providing equity-based alternatives to debt financing (mortgages or HELOCs) are seeing a big surge in demand.
Flex office is also an area that I think will be challenged in the short term but I believe could see a major recovery once companies start to think about their ongoing office commitments.