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The proliferation of technology through society is constant and unwavering; it’s here and there’s more coming whether we are ready for it or not. However, we give pause to ask: what is residential real estate facing with the new rage of AI and chatbots?
Will we be in a futuristic world where the technology is able to generate rapid and accurate home valuations based on market data? Can we pass off some of the tediousness of paperwork to the machines? Will the technology take us all the way to mining potential owner profiles of individuals and families that are ready to sell, buy, or lease?
As with every boom or new trend, some companies will adopt and go all-in. Some companies will reject the chance, or simply tiptoe into the water. Whether either strategy leads to success we won’t know until things have settled many years from now. But rest assured you will see and hear (and read) all sides of the argument for adoption and against.
The history of prop tech is riddled with inconsistencies. Large U.S. venture capital firms were big fans of the use of crypto/web3 tech in real estate, and then that saw a big spike in 2021 before quickly retreating to the underground.
Brian Lent, CEO and co-founder of Plunk, a U.S.-based startup focused on using tech to more accurately value homes, says that his firm wants to be “Bloomberg for residential real estate.” Plunk claims to use double the amount of data sources in home valuation as Zillow’s Zestimate. In theory, this would create a faster and more reliable home valuation. For example, if you are thinking about a new home but wondering how much value a basement renovation or kitchen redesign would add, this new tech claims to have you covered: simply upload pictures of the kitchen remodel and get a near-immediate recalculation of the home’s value.
This is a great example of value creation and market leadership contributing to a positive outcome for all involved. But who has the power in all this? The answer just might be the same as always: the big guy with all the data.
For example, Milestones.AI, an Austin-based startup has built a home management system, thinking they can feed data-rich profiles of residential property into their AI to suggest when the right time to sell, buy, call a repairman about the furnace, etc. comes around. But this and many other algorithms need data and data entry to truly come into their own and realize their destiny. The threshold for sufficient data might not be crossed until 5, 10, or 15 years into the future. In the meantime, algorithmically driven decisions based myopically on limited data could prove to set back the whole industry.
Some firms have the data, some don’t; some companies have the right platform, some are behind. But what is widely known and seems to be the way forward with AI and other technologies in the residential real estate space, is that it’s all about figuring out what is smoke and mirrors and what is an actual value-add for the industry; something that can be an actual product.
Brian Lent, CEO and co-founder of Plunk, a U.S.-based startup focused on using tech to more accurately value homes, says that his firm wants to be “Bloomberg for residential real estate.” Plunk claims to use double the amount of data sources in home valuation as Zillow’s Zestimate. In theory, this would create a faster and more reliable home valuation. For example, if you are thinking about a new home but wondering how much value a basement renovation or kitchen redesign would add, this new tech claims to have you covered: simply upload pictures of the kitchen remodel and get a near-immediate recalculation of the home’s value.
This is a great example of value creation and market leadership contributing to a positive outcome for all involved. But who has the power in all this? The answer just might be the same as always: the big guy with all the data.
For example, Milestones.AI, an Austin-based startup has built a home management system, thinking they can feed data-rich profiles of residential property into their AI to suggest when the right time to sell, buy, call a repairman about the furnace, etc. comes around. But this and many other algorithms need data and data entry to truly come into their own and realize their destiny. The threshold for sufficient data might not be crossed until 5, 10, or 15 years into the future. In the meantime, algorithmically driven decisions based myopically on limited data could prove to set back the whole industry.
Some firms have the data, some don’t; some companies have the right platform, some are behind. But what is widely known and seems to be the way forward with AI and other technologies in the residential real estate space, is that it’s all about figuring out what is smoke and mirrors and what is an actual value-add for the industry; something that can be an actual product.
When looking at the future, it should be expected that trends in real estate are dominated by green initiatives. The industry is already seeing a significant investment (with further opportunity) in green buildings. Reports are starting to show now that there has been some time lag to study the impact of greening in real estate; for example, that green buildings are able to achieve a higher rental income. Alongside green buildings and the technology needed inside them, there are a few other initiatives in real estate technology to keep an eye on (if you aren’t watching these things already):
Wellness and Community, on demand buildings with flexible spaces
Tenant and User Platforms, connected amenities, security options, and content
Blockchain, altered operations and potentially utility services and data-driven urban logistics
Cloud-based Property Management, software in a one-platform approach
Real estate technology trends are continuing to advance and push boundaries, with more real estate companies jumping on the trend and turning to tech-based solutions for their real estate needs. From property aggregation software and even drones to predictive analytics and custom software; there's no denying the real estate industry is in for some exciting changes fuelled by technology.
Five technologies that have made their way into real estate, or could soon.
Accelerated by the pandemic, virtual property tours serve as an alternative to live showings. This practice did exhibit some benefits over traditional showings, showing that it has a place in the future lineup of products.
Property investors can find and analyze deals at an incredible rate, not seen before. Will AI and quantum computing create a strong-hold in real estate? So far it has been limited, but the time will surely come.
Enhanced efficiency has already shown its benefits and the benefits of technology in real estate in general. All different types of players in the real estate sector can automate many tedious day-to-day responsibilities, allowing them to complete tasks faster and better than ever before.
Not new in real estate by any stretch of the imagination, however, technology is further accelerating this trend in a way that many see as the democratization of the real estate market. More access, more data, more flexibility, and geographic easing.
Buying assets in a virtual world is still a relatively new concept, so investors will likely continue to proceed cautiously. However, the global metaverse real estate market was valued at $821.9 million in 2021, with a projected increase to $5.95 billion by 2028.
Five technologies that have made their way into real estate, or could soon.
Accelerated by the pandemic, virtual property tours serve as an alternative to live showings. This practice did exhibit some benefits over traditional showings, showing that it has a place in the future lineup of products.
Property investors can find and analyze deals at an incredible rate, not seen before. Will AI and quantum computing create a strong-hold in real estate? So far it has been limited, but the time will surely come...
Enhanced efficiency has already shown its benefits and the benefits of technology in real estate in general. All different types of players in the real estate sector can automate many tedious day-to-day responsibilities, allowing them to complete tasks faster and better than ever before.
Not new in real estate by any stretch of the imagination, however, technology is further accelerating this trend in a way that many see as the democratization of the real estate market. More access, more data, more flexibility, and geographic easing.
Buying assets in a virtual world is still a relatively new concept, so investors will likely continue to proceed cautiously. However, the global metaverse real estate market was valued at $821.9 million in 2021, with a projected increase to $5.95 billion by 2028.
The Condo Store (TCS) is extremely excited to be launching TCS Miami.
The same tried and true real estate investment platform that created the pre-construction sector in Toronto is opening in the U.S., to provide our loyal clients with never-seen-before opportunities in South Florida.
To carve out the market leadership that we occupy today, TCS has been working with developers for 20+ years in Toronto. The methods that we have used to cultivate our existing partnerships and relationships are the same we will use in Miami and surrounding areas. Many of the largest and most powerful Miami developers are already familiar with TCS, allowing us to be ready to make incredible and exclusive offerings to our high-net-worth clientele.
Canada is high on the list of foreign buyers in the U.S. (second only to China), with approximately $9.5 billion in transactions annually. In general, Canadians love to buy property in the U.S., and Florida real estate ranks the highest among those investors. The fact is that 58% of Canadians are more likely than the average foreign buyer to buy U.S. real estate for vacations, and the U.S. real estate market presents quality investment opportunities of all kinds.
In fact, the demand and purchase history for Canadians in the U.S. shows Florida is far ahead of the next two states on the list, and it isn’t even close. Compare that 45% of total annual purchases are in Florida to the 23% in Arizona and the mere 12% in California.
The demand and supply equation gives compelling reason for optimism, leading to significant ROI opportunities in the south Florida market. There is more demand than supply in the U.S. real estate market overall, so home prices have continued to rise. Florida continues to be the most successful state to encourage and grow their real estate sector with new condominium projects.
As we break into this new and exciting market in sunny Florida, we will be bringing forth investment offerings on a much smaller scale than our programs in Toronto, where we are able to secure up to 25-50% of an entire pre-construction project with hundreds of units for our clients. But comparison is the thief of joy, as they say! We’ll start on a smaller scale to feed the demand of our Canadian investor clients who are looking to the U.S., and plan to grow the Miami division over the coming years.
The same tried and true real estate investment platform that created the pre-construction sector in Toronto is opening in the U.S., to provide our loyal clients with never-seen-before opportunities in South Florida.
To carve out the market leadership that we occupy today, TCS has been working with developers for 20+ years in Toronto. The methods that we have used to cultivate our existing partnerships and relationships are the same we will use in Miami and surrounding areas. Many of the largest and most powerful Miami developers are already familiar with TCS, allowing us to be ready to make incredible and exclusive offerings to our high-net-worth clientele.
Canada is high on the list of foreign buyers in the U.S. (second only to China), with approximately $9.5 billion in transactions annually. In general, Canadians love to buy property in the U.S., and Florida real estate ranks the highest among those investors. The fact is that 58% of Canadians are more likely than the average foreign buyer to buy U.S. real estate for vacations, and the U.S. real estate market presents quality investment opportunities of all kinds.
In fact, the demand and purchase history for Canadians in the U.S. shows Florida is far ahead of the next two states on the list, and it isn’t even close. Compare that 45% of total annual purchases are in Florida to the 23% in Arizona and the mere 12% in California.
The demand and supply equation gives compelling reason for optimism, leading to significant ROI opportunities in the south Florida market. There is more demand than supply in the U.S. real estate market overall, so home prices have continued to rise. Florida continues to be the most successful state to encourage and grow their real estate sector with new condominium projects.
As we break into this new and exciting market in sunny Florida, we will be bringing forth investment offerings on a much smaller scale than our programs in Toronto, where we are able to secure up to 25-50% of an entire pre-construction project with hundreds of units for our clients. But comparison is the thief of joy, as they say! We’ll start on a smaller scale to feed the demand of our Canadian investor clients who are looking to the U.S., and plan to grow the Miami division over the coming years.
creating real estate millionaires.
One client at a time.
creating real estate millionaires.
One client at a time.
The Condo Store Realty Inc. (Brokerage)
TORONTO • MIAMI
Tel: 1.416.533.5888
Email: office@condostorecanada.com
The Condo Store Realty Inc. (Brokerage)
TORONTO • MIAMI
Tel: 1.416.533.5888
email: office@condostorecanada.com
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