Predictions for 2024

Early this year, the RET team sat down with a crystal ball to forecast the major trends of 2024. Our predictions include:

Construction tech will help construction bounce back

• Given the major construction slowdown of late, tech tools that can lower costs are part of the solution that will help developers put shovels in the ground.

The real estate tech “haves” will separate from the “have-nots”

• For most of the last decade, real estate tech was a rising tide that lifted all boats (startup life is easy when there is easy money). But in 2023 that changed and startups have been optimizing their business models to extend their runway.
• This year, we’ll see a clear divide between firms that have been successful at delivering a product the market needs with a sustainable business model and those that have not.

The year of consolidation

• Some companies will inevitably find themselves in dire straits. For many of the “haves,” those struggling firms could be intriguing acquisition targets that will bring economies of scale and customer concentration.
• We'll also see consolidation for tech users. Previously, there was a move away from platform solutions in response to innovation stagnation and the need for customization. In 2024, we will see a shift back toward consolidating services under one platform with integrations and economies of scale.

We also asked a few of our CEOs to chime in with their predictions:

"EV charging will reach a tipping point" – Mohammad Akhlagi, Plugzio

• With almost 2.5 million EVs on the road, we will begin to see a winning EV-charging strategy take hold. Owner-operators who haven’t solidified their EV charging strategy will “back a horse.”

"This will be the year of centralization, automation and elimination" – Roman Pedan, Kasa

• As revenue drags across real estate sectors, owners will be more focused on cost savings. Labor cost in most asset classes constitutes one of the largest line items. Owners will accelerate their thirst to centralize, automate or eliminate labor. Technology systems that can prove they do so will thrive.

"Housing affordability and rental regulation as a focus grows" – Tyler Christiansen, Funnel

• Renter regulations will hit the national political stage as a key element of housing affordability with a serious dialogue around “junk fees.” Eventually, this will impact which types of ancillary income are permissible.