New home builders are facing a lot of changes and demands at the moment. The demand is needing an additional 100 billion square feet of living space in the next 11 years. The changes stem from a tech revolution that has finally reached the real estate industry with full force.
Up until now, home building has shied away from the tech revolution, remaining largely unchanged for the past few decades in terms of how houses are sold and built. But those past practices are no longer sufficient because of another demand —consumer interest in alternatives that give them more control and a more streamlined process.
This trend actually isn’t new. It’s been building since about 2005 when real estate tech began making information more readily available to consumers. The year 2015 marked the first time the majority of buyers initiated the homebuying process online. However, that’s largely where the innovation ended—until now.
Not surprisingly, an increase in real estate technology, also known as PropTech, has coincided with the increase in Millennials entering the housing market. This generational shift has been swift and undeniable. At the end of the day, if builders can’t live up to consumer expectations and offer them the PropTech tools they want, they’ll take their business elsewhere.
As Trulia founder turned PropTech investor Pete Flint points out, technology has transformed many aspects of life. But technology changes in real estate have the potential to be much greater than anything else we’ve experienced.