Technological innovation is witnessing a resurgence in the real estate industry.
Technology has greatly changed the world in which we live. Thanks to technological innovation, the way we eat, get to and from work, and even travel has greatly changed. However, there's one industry that seems to be left out of this innovation — the real estate industry.
Sure, websites such as Zillow and Trulia have changed the way we search for new homes, but there have been no fundamental changes with regard to what we buy or how we buy it. Nonetheless, that seems to be changing. In fact, Ofir Eyal Bar, a real estate mogul with multiple properties around the world, was recently quoted as saying:
"It's great to see that technology is finally starting to catch up to real estate. With companies like AirBnB changing the way we travel and HomeShare dividing luxury apartments into units, making them more affordable, the real estate industry is experiencing a technological renaissance."
Technology Is Bringing Affordability To Real Estate
One of the big problems in the real estate industry at the moment is affordability. While everyone seems to want to live in top-scale communities, not everyone's budget gives them the opportunity to do so. Nonetheless, there are two early-stage tech companies aiming to change that.
As Bar pointed out in the quote above, HomeShare is driving prices down by breaking luxury apartments into multiple units and renting them out by the unit. This model puts a new spin on the idea of having a roommate and brings affordability to high cost areas such as New York, San Francisco, and South Florida.
Another company that's using technology to solve a similar problem is Bungalow. However, Bungalow is focused on making high-end houses in high-end communities affordable, rather than focusing on luxury apartments.
Technology Isn't Only Leading To Change In Price
It's also worth mentioning that price isn't the only thing that's changing as a result of the ongoing technological innovation in the real estate industry. In fact, several aspects of the industry are getting a face-lift, including but not limited to:
● Travel - Investments in vacation homes can be hefty. Moreover, driving consumers to them can be difficult. That's where AirBnB comes in. The company's platform connects vacationers with vacation homes that they may have never seen through traditional methods. This is opening up a more vast list of options when choosing a vacation destination and a stream of income for those who decide to invest in vacation properties.
● Community - AirBnB once only focused on lodging. However, the company recently broadened its platform for community building through shared experiences. Other companies such as WeWork, The Wing, and more are working to build a stronger community out of real estate.
● Modern Life Requirements - When getting into a new home or apartment, there may be a need for furniture and other modern life requirements. Nonetheless, tech companies such as Feather and Furnish are using their technologies to solve some of these challenges.
The Bottom Line
The bottom line here is that technological innovation has vastly changed the way that we do many things. With new tech finally breaking into the real estate industry, it's likely to start reshaping the way we buy and furnish homes and apartments, travel, build a community, and more. At the end of the day, it's about time that the real estate industry got a tech-fueled nudge, and it's great to see that it's happening!