During the last week of August, the National Association of REALTORS® hosted their annual iOi Summit, a premier showcase of the best current and future technologies shaping the real estate industry. While rates continue to hover around 7% and housing availability remains at historic lows, propTech solutions will continue to open new doors for consumers as they look to secure their first or next home purchase.
Here are some of the top trends and developments to watch:
Artificial Intelligence
Given the rapid rise and attention being paid to artificial intelligence (AI), it’s unsurprising that AI took center stage at iOi. From chatbots and assistants that will boost productivity to search tools that amass information on homes in various markets, matching consumers with their perfect choice, AI’s potential in real estate is only just beginning. While some worry that AI will eventually replace some workers, many argued that individuals and businesses leveraging humans and the power of AI will lead real estate into a stronger and brighter future.
Payments
Many of us have experienced the ease and simplicity of on-demand payments, such as with Venmo or Zelle, when we’ve decided to split dinner with friends. But many don’t understand the complexity or background details of these transactions. Recently, the Federal Reserve launched FedNow, an instant-payments platform, a more secure and convenient payment transfer system. Banks partner with the Federal Reserve and allow instant payments, fully backed by the U.S. Government. Agents and brokers could use FedNow to send instant commission payments, all backed by the government. Other companies showcased payment technologies, including the use of pending commission payments as a line of credit. While payments may not be top of mind in terms of innovation, new players are finding ways to reduce friction and allow optionality for users across the real estate spectrum.
With the costs of construction remaining high and a lack of laborers still plaguing many regions, new pre-built homes have the chance to revolutionize what we think of as affordable housing.
Housing Innovations and Alternative Financing
While modular housing is not a new concept, companies are sending the outdated ideas of modular housing to pasture and replacing it with pre-built housing made to last, look good and meet many local zoning codes. With the costs of construction remaining high and a lack of laborers still plaguing many regions, new pre-built homes have the chance to revolutionize what we think of as affordable housing. Additionally, alternative financing models, including shared equity and down payment assistance boosts from private investors, may open doors for borrowers who have previously been left on the sidelines.
For more information, visit https://www.nar.realtor/.
