Breaking into the real estate market has always been a challenge, but today’s landscape is more daunting than ever.
High interest rates have created significant roadblocks, slowing home sales and making property investments less accessible. And, for certain startups like Divvy Homes and EasyKnock it has made their fate unclear.
The fact that 48% of real estate businesses fail within four years underscoring the challenges of thriving in this competitive and often volatile industry.
Yet, despite these hurdles, the real estate market represents an unparalleled opportunity. With a projected global value of over $654.4 trillion, it remains one of the most significant and essential industries worldwide.
And the good news for you, the market is ripe for disruption with a staggering 66% of major real estate companies still relying on legacy systems.
With construction costs, remote work, and labor costs being the biggest disruptors of the real estate industry in 2025, now’s the time to jump into the ring.
In this guide, we’ll explore the exciting ways startups are reshaping real estate, presenting innovative ideas that challenge the status quo and bring the industry closer to its immense potential.
What is a real estate startup?
A real estate startup is an innovative business focused on transforming how people buy, sell, invest in, or manage real estate by leveraging technology, sustainability, or unique business models. These startups often address inefficiencies in the traditional real estate market, such as complex transactions, lack of transparency, or limited accessibility.
Housing and real estate: how they differ
While the terms "housing" and "real estate" are often used interchangeably, they represent distinct aspects of the property market. Housing refers specifically to residential properties—places where people live, such as single-family homes, apartments, or condos. It focuses on meeting the shelter needs of individuals and families.
Real estate, on the other hand, is a broader concept that encompasses all types of properties—residential, commercial, industrial, and land. It includes buying, selling, leasing, and managing these properties as assets, often for investment or development purposes.
Real estate startups can operate in either sphere or bridge the two, blending innovative technologies and services to address challenges across the entire property ecosystem.
How are real estate startups redefining real estate?
1. Flat-fee real estate
Let’s face it—selling a home can be stressful enough without the sting of hefty commission fees. That’s where flat-fee real estate startups are stepping in to shake things up. Instead of the traditional approach where agents take a percentage of the sale price, these startups offer services for a set fee. Whether it’s $3,000 or $5,000, the cost doesn’t climb with your property value, giving sellers much-needed predictability and savings.
Flat-fee services are also streamlining the process, focusing on transparency and efficiency to give clients a more straightforward experience. With everything from professional marketing to legal paperwork often included, sellers get the support they need—without the financial stress.
2. Proptech
Proptech, or real estate tech, is revolutionizing real estate by integrating cutting-edge tools like artificial intelligence, blockchain, and IoT (Internet of Things). These innovations are streamlining buying, selling, and investing, transforming the industry into a faster, more efficient, and transparent ecosystem.
Some key areas where Proptech is making an impact include:
Real estate transactions: Digitized processes, including secure e-signatures and blockchain-based smart contracts, make closing deals quicker and more reliable.
Property valuation: AI-driven platforms analyze market data to provide accurate and instant property appraisals.
Investment opportunities: Platforms offer fractional ownership and predictive analytics to help investors make smarter decisions.
Market insights: Big data provides actionable trends and forecasts for buyers, sellers, and investors.
3. AI and big data in real estate
Artificial intelligence and big data are reshaping real estate, making processes smarter and more efficient for buyers, sellers, and investors. Imagine house-hunting with AI-powered platforms that analyze your preferences, budget, and lifestyle to suggest tailored property options. It’s a faster, more personalized way to find your dream home.
For sellers, big data drives pricing strategies by evaluating market trends, comparable properties, and historical data, replacing guesswork with precision. Meanwhile, investors use predictive analytics to identify neighborhoods with high-growth potential or emerging rental demand, turning data insights into better financial decisions.
4. Virtual reality and augmented reality
Virtual reality (VR) and augmented reality (AR) are revolutionizing the way properties are showcased and explored. These immersive technologies are transforming traditional real estate processes, allowing buyers and renters to experience properties in a way that was unimaginable a decade ago.
Instead of relying solely on photos or scheduling in-person visits, VR enables potential buyers to take virtual tours of homes from anywhere in the world. They can "walk" through rooms, inspect layouts, and get a true feel for the property without setting foot inside it. This is particularly valuable for remote buyers or those relocating from other cities or countries.
AR enhances the experience further by allowing users to visualize changes to a space. For example, buyers can see how furniture will look in a room or how renovations might transform a space, helping them make informed decisions. Builders and developers also use AR to present pre-construction properties, offering buyers a chance to visualize the final product.
5. Real estate marketplaces
Real estate marketplaces are reshaping how buyers, sellers, and renters connect by creating centralized platforms that simplify the entire property transaction process. Gone are the days of scouring individual listings or relying solely on agents to find properties; today’s marketplaces offer seamless, user-friendly experiences that cater to a wide range of needs.
These platforms allow buyers and renters to search for properties based on detailed filters like price, location, and amenities. Sellers and landlords can easily list properties, showcase them with high-quality visuals, and reach a broad audience of potential clients. Some marketplaces even incorporate advanced features like virtual tours, AI-powered property recommendations, and data-driven insights to help users make informed decisions.
6. Green building technologies
Sustainability is becoming a top priority in real estate, and startups focused on green building technologies are leading the charge. These innovations address growing environmental concerns and meet consumer demand for energy-efficient, eco-friendly properties.
Green building technologies are transforming construction with materials like recycled composites and carbon-neutral cement, which reduce a building's environmental footprint. Energy efficiency is another major focus, with features such as smart HVAC systems, solar panels, and energy-efficient windows that minimize utility costs while reducing carbon emissions.
Water conservation is also gaining traction, with technologies like greywater recycling systems and low-flow fixtures becoming more common in residential and commercial properties. These advancements not only reduce water usage but also help developers meet stricter environmental regulations.
10 awesome real estate startups
Now that we got a sense of what’s happening, let’s check out some innovative real estate startups.
1. HomeLister
Year established: 2015
Location: Santa Monica, California
Funds raised: $15 million
HomeLister offers a flat-fee model for homeowners looking to sell their properties. By providing essential services like marketing, listing, and documentation for a fixed cost, HomeLister eliminates the need for traditional agent commissions.
How they are revolutionizing the industry:
Provides a cost-effective alternative to commission-based agents.
Offers full control of the selling process to homeowners.
Delivers a streamlined, user-friendly digital platform for listings and transactions.
Includes marketing tools to attract potential buyers, saving sellers additional costs.
Supports homeowners with step-by-step guidance throughout the selling process.
2. Propy
Year established: 2016
Location: Palo Alto, California
Funds raised: $16 million
Taking advantage of blockchain technology, Propy has created a secure and transparent real estate transaction platform. Buyers and sellers can complete deals online, including signing contracts and registering deeds.
How they are revolutionizing the industry:
Leverages blockchain for secure property transactions.
Enables paperless deals with smart contracts.
Reduces fraud risks and transaction times.
3. RealtyHop
Year established: 2016
Location: New York, New York
Funds raised: $4 million
RealtyHop connects buyers and renters with data-driven insights on property investments. Its platform highlights metrics like cap rates and cash flow, helping users make smarter financial decisions.
How they are revolutionizing the industry:
Offers advanced analytics for property valuation.
Simplifies the process of finding high-return investments.
Focuses on data transparency for buyers and renters.
4. EnvisionVR
Year established: 2021
Location: Sydney, Australia
Funds raised: $2 million
Seeing is believing and that is what EnvisionVR offers. They enable real estate developers to showcase properties through immersive virtual tours, allowing buyers to explore projects before they are built.
How they are revolutionizing the industry:
Provides immersive VR tours for pre-construction properties.
Enhances buyer confidence with detailed virtual walkthroughs.
Reduces reliance on in-person visits for remote buyers.
Allows developers to showcase unbuilt projects, speeding up sales timelines.
Offers customization options for buyers to visualize renovations or furniture placement.
5. Flyhomes
Year established: 2017
Location: San Francisco, California
Funds raised: $200 million
Year established: 2016
Location: Seattle, Washington, USA
Funds raised: $310 million
Flyhomes is reimagining the home-buying process with an innovative end-to-end platform. It simplifies transactions by offering cash-backed guarantees for buyers, streamlining the process, and eliminating uncertainties. Flyhomes combines brokerage, mortgage, and closing services into a single, cohesive experience.
How they are revolutionizing the industry:
Provides cash-backed offers for buyers to increase competitiveness in tight markets.
Offers a "Buy Before You Sell" program, helping homeowners purchase their next home before selling their current one.
Simplifies transactions by bundling brokerage, mortgage, and closing services in one place.
Reduces stress for buyers with streamlined processes and expert guidance.
Enhances transparency with tools like real-time market analytics and detailed property data.
6. Plentific
Year established: 2013
Location: London, UK
Funds raised: $140 million
Plentific provides a property management platform that helps landlords streamline maintenance and compliance tasks.
How they are revolutionizing the industry:
Uses AI to optimize property maintenance.
Connects landlords with trusted service providers.
Reduces costs and improves tenant satisfaction.
7. Hover
Year established: 2014
Location: San Francisco, California
Funds raised: $60 million
Hover uses AR technology to create interactive 3D models of properties. Users can visualize renovations and see changes to layouts in real time.
How they are revolutionizing the industry:
Allows users to create accurate 3D models of properties.
Enhances decision-making with real-time visualization tools.
Simplifies planning for renovations or new builds.
Reduces design errors by offering precise renderings of proposed changes.
Speeds up project approvals by enabling stakeholders to visualize end results.
8. BlocPower
Year established: 2014
Location: New York, New York
Funds raised: $250 million
Sustainability is key in BlocPower retrofits. They incorporate urban buildings with sustainable technologies like solar panels and energy-efficient heating systems.
How they are revolutionizing the industry:
Reduces carbon emissions in older buildings.
Saves property owners money through energy-efficient upgrades.
Promotes sustainability in urban housing.
Partners with local governments to tackle environmental challenges in low-income areas.
9. Doorvest
Year established: 2019
Location: San Francisco, California
Funds raised: $14 million
Doorvest makes it easy to invest in real estate by enabling users to purchase and manage rental properties entirely online. Its platform uses predictive analytics to identify high-potential properties and handle property management.
How they are revolutionizing the industry:
Provides a fully digital platform for real estate investing.
Uses data-driven insights to identify high-return rental opportunities.
Handles property management, allowing investors to remain hands-off.
10. GreenHaven Homes
Year established: 2015
Location: Horowhenua, New Zealand
Funds raised: N/A
GreenHaven Homes builds eco-friendly modular and transportable homes that combine innovative design with sustainability. Using locally sourced materials and a controlled-environment factory, they deliver cost-effective, high-quality homes.
How they are revolutionizing the industry:
Incorporates sustainable materials and energy-efficient solutions.
Uses a factory-controlled build process to minimize waste and costs.
Offers customizable designs tailored to New Zealand’s climate.
Supports local suppliers and nurtures young building talent.
3 real estate startup business ideas
So we have seen what’s being done and who’s doing it. Here are some ideas of what can still be done.
1. Predictive Neighborhood Transformation Platform
This startup idea focuses on harnessing public records, big data, and AI to provide insights into how neighborhoods are transforming. By analyzing data like building permits, infrastructure projects, zoning changes, and demographic shifts, the platform can predict how a neighborhood will evolve and help users find areas that align with their lifestyle, investment goals, or business needs.
Why it’s viable: With urban landscapes constantly changing, buyers and investors need tools that offer forward-looking insights rather than relying on static data. By predicting how neighborhoods will evolve, this platform not only empowers users to make informed decisions but also creates opportunities for targeted investments and personalized property recommendations.
2. Eco-Friendly Modular Leasing for Temporary Housing
This startup would focus on designing modular housing units that are sustainable, transportable, and quickly deployable to provide temporary housing solutions after natural disasters or during major repair projects. These units would be eco-friendly and customizable, offering comfort and practicality for families or individuals in transition.
Why it’s viable: The increasing frequency of natural disasters and the challenges of managing long-term displacement highlight the need for adaptable, temporary housing solutions. These modular units not only address housing shortages quickly but also support sustainable practices while providing a dignified and comfortable living environment.
3. AI-Powered Construction Materials Management Platform
This construction startup idea centers on leveraging AI to optimize materials management for construction projects. By analyzing uploaded blueprints, specifications, project timelines, and other inputs, the platform ensures materials are sourced, delivered, and managed just in time to keep projects running smoothly while minimizing staging, overhead, and waste.
Why it’s viable: The construction industry frequently suffers from delays, cost overruns, and inefficiencies tied to poor material management. These issues directly affect the real estate market. An AI-powered platform that eliminates guesswork, reduces overhead costs, and aligns material delivery with project timelines could save builders significant time and money.
Thinking about starting a real estate SaaS startup?
The real estate industry is ripe for innovation, and there’s still plenty of room for new ideas to thrive. If you’re ready to create the next big SaaS solution in this $654.4 trillion global market, make sure you partner with the right team.
At DevSquad, we specialize in helping entrepreneurs and startups build scalable, user-focused SaaS products that stand out in competitive markets. From product strategy to design and development, we’ll work with you to bring your vision to life and solve real challenges in the real estate industry.
Ready to build the next real estate SaaS success? Learn more about our SaaS development process.
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