Sector Snapshot: Real Estate Tech Funding Sees Slight Rebound, But Still Far Lower Than Peak Years

When interest rates were low, the amount of venture capital dollars flowing into the real estate technology space was high. The inverse of that is also proving to be true. As interest rates climbed in recent years, funding to the space plunged.

But now in 2025, as rates have started to somewhat, venture dollars raised by real estate tech, or proptech, startups are inching upwards slightly compared to recent years. Capital is largely going to companies that either sit inside core workflows around payments, closings and procurement, or deliver explicit ROI via automation and artificial intelligence. But tech-enabled homebuilders are getting a piece of the pie, too.

The broad trend: Even before the pandemic-fueled funding peaks, proptech startups received more than double the amount of venture funding in 2019 than they have in more recent years. While investors haven鈥檛 given up on proptech, funding to startups in the space is only slightly higher in 2025, and deal count is at a multiyear record low.

Notably, private equity firms have been involved in three of the five largest deals in 2025.

The numbers: So far in 2025, global real estate-related startups have pulled in about $10.2 billion in seed- through growth-stage financing, per 附近上门鈥� down 57% from 2019, the second-highest year on record after the 2021 venture funding spike. Deal count is down 58.3% in 2025 compared to the high of 2,722 in 2021, the peak of the funding craze. The lower deal count signals both potentially decreased investor interest in the space, as well as larger round sizes.

Noteworthy recent rounds

Several large megadeals have taken place in 2025, many of them in the second half of the year. Unsurprisingly, AI surfaces in more than one deal.

Just this month, Santa Clara, California-based tech-enabled homebuilder raised $400 million in new financing 鈥� $300 million in real estate capital (for the purchase of lots) and $100 million for its operating company. CEO and co-founder told that the company鈥檚 goal is to be 鈥渢he Amazon of homes.鈥�

In its core markets, Homebound claims it is now building homes about 40% faster than its direct competitors, with build costs around 25% lower. It uses a proprietary AI platform that manages millions of data points across more than 1,000 distinct tasks required to deliver a home, from lot acquisition through move-in.

The company says it has grown its topline by more than 4x since 2021, and margin dollars by more than 6x, and is on track to be profitable in 2026.

The startup has raised nearly $530 million in capital since its 2018 inception. Investors include , , , , and , among others.

In July, New York-based , whose platform aims to allow consumers to earn rewards on rent and daily neighborhood spend, raised $250 million at a $13 billion valuation in a round co-led by and real estate company . Impressively, that鈥檚 up from a valuation of $3.1 billion in January 2024.

The company has raised over $800 million since it was founded in 2021, per 附近上门 . Other backers include , , and .

And in August, netted a $250 million Series E financing at a $2.25 billion valuation. led that round, which also included participation from , and . ElisaAI is focused on automating healthcare and housing systems.

The New York-based company has raised nearly $392 million since its 2017 inception, per 附近上门 . Its products include AI-guided tours, lease audits and a maintenance App designed to lower costs and improve tenant experiences, according to a by .

, former executive and current president of digital home finance startup , told 附近上门 News that he believes proptech is 鈥渙n the precipice of a massive transformation in the next year or two.鈥�

鈥淭he benefits of that transformation will accrue to the consumer,鈥� he added. 鈥淎I applications will re-make the way we discover, buy, finance, and manage our homes, and there鈥檚 suddenly a new opportunity for a next generation of leaders to rise to the top of the proptech industry.鈥�

Other notable raises

There were also a number of other interesting raises in the space over the course of the year that didn鈥檛 fall under the megadeal category. Many of their business models revolved on automating tasks as well as giving investors and homebuyers more options when it comes to purchasing or investing in homes.

In November, -backed , a Seattle-based fractional real estate investing platform, announced $27 million in new funding alongside the launch of a marketplace that it says gives investors a way to buy and sell shares of individual rental homes across the U.S. 鈥渨ith just a few clicks.鈥�
, a New York-based mortgage tech startup powered by agentic AI, landed $22 million in Series A funding. (Interestingly, digital wealth management platform , which just went public, also entered the mortgage tech space.)
, an AI-powered real estate platform based in Deleware that claims to help homeowners sell their homes without 鈥渃ostly鈥� commission fees, announced a $6.4 million seed round led by .

While there was a small rebound in 2025, it鈥檚 difficult to get too excited yet about the real estate technology funding outlook. Many of the biggest rounds were a mix of private equity and later-stage financings. Unless interest rates get meaningfully lower, we should probably expect more of the same in 2026.

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