Companies that developed tools to improve the consumer home-buying experience were more likely than others to receive a share of the more than $3 billion flowing into residential real estate proptech, according to the report. This niche could find room to grow in a post-NAR world as agents struggle to find ways to get paid directly and sellers become less likely to pay the buyer’s agent.

As if the problems with buyer representation agreements weren’t enough to challenge the dynamics between agents and consumers, the winds of change in the industry at large are only getting stronger and starting to blow in new directions.

Clear Cooperation – the rule that requires a listing to be publicly disclosed 24 hours after an agreement is signed – is as criticized as the very purpose of NAR. As more brokerage firms forego membership, they may be looking for new avenues of public and industry support that tech entrepreneurs can take advantage of.

According to CRETI, artificial intelligence and data support solutions were at the top of the funding list, and the multifamily sector was quick to put the goal of these funds into action.

Software providers in property management and apartment marketing moved quickly in 2024 to integrate AI into lead cultivation, applicant quality, maintenance processes, and even credit and fee delinquencies.

“The rise in AI-focused funding highlights investor confidence in its cross-sector applications and long-term growth potential, positioning the category as a cornerstone of the proptech ecosystem,” CRETI said.

One notable AI-driven investment is Camber Creek’s in SERHANT. Technologies. The popular industry fund invested a $45 million equity stake in the software offshoot of a career brokerage firm based largely on the strength of its AI marketing and business workflow solution S.MPLE.

The next 12 months should see a similar pattern, with a focus on quality investments.

“Transaction volume fell 15 percent compared to 2023, but average deal size increased 12 percent, reflecting a shift towards fewer but higher quality investments,” CRETI said.

Although seed and startup capital is harder to find, it benefits the industry, which has grown rapidly over the past five years. Software founders have looked beyond superficial lead generation gimmicks and overhauls of existing solutions to offer new forms of internal efficiency and focus on making search, escrow, and lending better for the consumer.

Email Craig Rowe