Page 38 - September October 2018 Disruption Report Flip Book

FANNIE MAE AND FREDDIE MAC SEJPATN.U-AORCYT.20210818
• Buyers continue to see purchasing a home as a good financial investment. Eighty-four percent reported they view a home purchase as a good investment.” (2018 Profile of Home Buyers and Sellers, National Association of Realtors®, 10/29/18)
The changing world of real estate
Alternative transaction models, living arrangements and tech-enabled management is poised to upend the real estate industry, according to Trulia founder, chairman and CEO Pete Flint. Flint wrote:
Real estate touches everything we do. It’s the economics of the physical space—it literally shapes our lives by defining the environment in which we live and do business. Tech has done a lot in the last few decades to revolutionize flows of information (Google), communication (Facebook, Apple), goods (Amazon), capital (PayPal, Venmo), and transport (Lyft, Uber). But real estate is larger than all of those categories combined,
and the transformation that real estate tech could bring to our lives is larger, and more profound, than you might think.
Despite real estate being—by far—the largest asset class in the world, most business categories surrounding it are still in the early stages of tech adoption. Even still, there have been more billion-dollar real estate tech companies founded in the last 15 years than almost any consumer services category (behind e-commerce). Generational trends and shifting consumer behaviors are creating an opportunity for a new wave of real estate tech startups with high growth potentials...
REAL ESTATE IS THE LARGEST ASSET CLASS IN U.S.
RE: THE LARGEST ASSET CLASS IN THE US
$31.8 trillion
Total value of residential real estate in the US
$485 billion
Annual residential US rental payments
$80 billion
Annual US residential real estate brokerage commissions
$15 trillion
Estimated value of US commercial real estate
Source: Zillow, NAR, Savills, Morgan Stanley, Real Trends
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