When Software Eats The Real (Estate) World

Robinson here - an incredible presentation from Alex Rampell at Andreessen Horowitz (aka a16z) on real estate & technology.

Buying a home is in many ways the pinnacle of the American dream. And yet the way things work today, it's a painful process. Real estate agents, brokers, banks, notaries, title insurers, and many other intermediaries all make for a convoluted, difficult, and expensive process for home buyers and sellers alike.

A few takeaways from my end:

  • If you’re a real estate agent, perhaps make a plan for your industry to change dramatically over the next decade or two.

  • “Dynamic Yield” is definitely A Thing - pricing real estate based on its expected rents really changes when those rents can be juiced, squeezed, and otherwise altered by innovative ways to use real estate space, Airbnb being the most obvious.

  • A few cool companies worth remembering:

    • Flyhomes buys homes for you in supply-constrained markets

    • Opendoor buys homes from you, right away

    • Divvy will buy a house that you want to rent, and then do something like a lease-to-own to you to build (a little) equity over your lease period

    • Point will buy part of your home as an equity partner

Informative as always from a16z - I’m grateful that they publish their work.

Robinson Crawford