Joseph Edgar is the CEO of Loca, which helps local businesses find, keep and reward customers.
The real estate technology landscape has dramatically transformed since 2008, evolving from a nascent sector to a dynamic, consolidating industry. With nearly two decades of experience starting, acquiring and growing real estate tech companies, I’m often asked about market saturation. While the industry’s scale and complexity might suggest otherwise, significant opportunities remain for new founders of tech startups. The key is understanding its nuances.
The Gatekeepers
Real estate encompasses diverse subsectors, including residential, commercial, industrial, senior care, homeowners’ associations (HOAs), hospitality, student housing and storage. Residential real estate, encompassing homes for sale and rentals, stands as the largest and most influential segment, driven by its economic scale and consumer impact. Notably, the U.S. added over 1 million new housing starts in 2024, with single-family homes up 6.5% since 2023, indicating a growing market ripe for innovative solutions.
The market for homes for sale remains the most lucrative segment, fueled by commissions of up to 6% per transaction, split between agents. A 2023 class-action lawsuit against the National Association of Realtors (NAR), settled for $418 million, has challenged this model, pushing for commission reform. Nevertheless, leads for home sales can draw sizeable revenue, solidifying tech companies like Zillow, Homes.com, Realtor.com and Redfin as gatekeepers of a $10 billion online marketplace.
These players dominate through listing control, data and user-friendly platforms. However, their focus on consolidation—such as Rocket Companies’ 2024 acquisition of Redfin and its exclusive listing deal with Zillow—creates a one-stop solution for finding a home, making an offer and getting a loan. Consequently, finding a home may become more laborious because consumers will be restricted to the listings present on each website, losing the ability to view all available options in a single search.
As the market consolidates and expands to more tech-enabled services, I believe it will also create gaps that can be filled by opportunistic entrepreneurs.
The Status Quo
The rental market, split between multifamily units and SFR (which include one-to-four units), is a dynamic arena brimming with potential. Zillow, CoStar, Move, Inc. and Redfin have jumped into the rental market as well, and this continued consolidation of homes-for-sale and rentals has deepened their presence as they generate revenue through lead sales and pursue growth via acquisitions.
I’ve also observed that these giants are snapping up tech firms specializing in property management, maintenance coordination and rental lead generation—particularly targeting SFRs—to tighten their grip on landlords and bolster their home-for-sale ecosystems. Solutions that help landlords and home owners are great areas to look for opportunities in developing future products or businesses.
Institutional investors like Blackstone, which owns about 300,000 SFRs, have made inroads, yet they control just 2% of the rental market, leaving the majority in the hands of individual landlords. Many of these landlords, especially SFR owners, self-manage their properties, relying on fragmented, often outdated solutions they’ve been accustomed to using. I’ve seen paper applications, paper checks, Excel sheets and drawers full of receipts continue to be the standard among many DIY landlords. I asked a landlord in Austin why he doesn’t use an online solution, and he said he was just used to it and didn’t want to learn something new.
This creates a ripe opportunity for entrepreneurs to deliver simple, tailored tech solutions—streamlining operations, digitizing payments and connecting this vast, underserved segment to modern digital tools.
The Opportunities
The real estate market’s ownership skews heavily toward Baby Boomers (ages 61 to 79 in 2025), who hold 38% of U.S. homes (subscription required)—approximately 32 million properties. Nearly 80% of Boomers own their homes, which equates to about $18 trillion in real estate value.
As this generation retires, they are poised to liquidate assets, selling homes to downsize or transferring wealth to their tech-savvy children. This shift could transition low-tech-managed assets to a new generation that expects digital solutions. In both owner-occupied and rentals, the properties will have a mix of for-sale and those inherited, but I expect the new generation will be looking for technology solutions either way.
I believe that entrepreneurs who perceive real estate tech as saturated are overlooking a significant opportunity. Consider that 78% of U.S. rent payments are still made by paper check—a clear indication of the tech lag among older landlords, many of whom are Baby Boomers. Real estate involves a substantial amount of transactions beyond a rent payment. Transactions such as utilities, property taxes, insurance, mortgage payments and even HOA dues all revolve around the home and represent opportunities for tech startups to offer solutions that can make things run smoother.
Given that many homes owned by retirees exceed their current needs, there additionally exists potential for creative renovation projects. These could encompass the development of accessory dwelling units (ADUs) through the conversion of single-family residences into duplexes or the construction of supplementary housing on the property.
As these properties transition to Millennials and Gen-Z, I believe demand for modern tools will surge. Here are some key opportunities to watch for:
• Property Management Tech: Many small-scale landlords lack efficient software for tenant screening, rent collection and maintenance tracking. Solutions bridging this gap could capture a market transitioning from analog to digital.
• Single-Family Rental Platforms: With SFRs often underrepresented in tech, a dedicated platform for listing, managing or financing SFRs could rival institutional players.
• Wealth-Transfer Tools: As Boomers sell or bequeath properties, tools that can streamline sales, estate planning or fractional ownership for heirs could tap into billions in housing wealth.
• Niche Subsectors: Beyond residential, areas like senior care, student housing and storage still largely lack the tech saturation of home sales, offering untapped potential.
Seizing The Moment
I believe the idea that the real estate market is saturated and lacks room for innovation and new startups is misguided. The dominance of major players often masks opportunities and underserved niches, particularly as wealth moves from one generation to the next. Entrepreneurs who build intuitive, scalable solutions can capitalize on this transition, transforming a consolidating industry into a launchpad for innovation.
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