# Real Estate: The Trillion Dollar Industry of the Future
Welcome to our YouTube video discussing the future of the real estate industry with Brendan Wallace, one of the founders of Fifth Wall, one of the largest real estate venture firms in the world. With 15 IPOs and over $32 billion invested in the space last year[^1], it’s clear that real estate is a booming industry.
At Fifth Wall, they are at the forefront of real estate technology investment, also known as prop tech, which encompasses any technology for the built world[^2]. Their unique approach involves partnering with some of the largest real estate firms in the world, allowing them access to invaluable expertise and firsthand knowledge of the industry[^3].
Through their collaboration with key players in the real estate sector, they have identified several areas in need of improvement. Home buying, for example, is a process riddled with outdated procedures and limited information, which can have a significant impact on individuals’ financial lives[^4].
To tackle these challenges, Fifth Wall has invested in groundbreaking startups like Opendoor, a marketplace that provides liquidity for homeowners to acquire new properties by unlocking their existing home equity[^5]. They have also funded other real estate tech startups such as Hippo and Doma, which offer digital home insurance and digital title insurance, respectively. Additionally, Blend, another Fifth Wall investment, streamlines the mortgage origination process by digitizing the borrower-lender interactions[^6].
With the success of residential real estate tech startups like Opendoor and Blend, Brendan Wallace predicts significant growth in commercial real estate tech. Traditionally underserved by innovation, the commercial side of the industry is ripe for disruption and improvement[^7]. The application of consumer insights and the integration of technology can streamline processes such as buying or selling commercial buildings, ensuring properties, signing leases, and obtaining mortgages[^8]. The emerging solutions may involve a combination of software and tech-enabled real estate service companies, transforming the commercial real estate landscape[^9].
If you are interested in the future of real estate and the potential of real estate tech, make sure to watch our video with Brendan Wallace. Don’t forget to like, subscribe, and follow us on social media for more informative content.
**Sources:**
[^1]: [Fifth Wall](https://www.fifthwall.com)
[^2]: [Fifth Wall Twitter](https://twitter.com/fifthwallvc)
[^3]: [Fifth Wall YouTube Channel](https://www.youtube.com/c/FifthWall/videos)
[^4]: [Code2040](https://www.code2040.org)
[^5]: [Initialized Capital](https://initialized.com)
Real estate is the trillion dollar industry that is lying in plain sight. Last year the space had 15 IPOs, and over $32 billion invested. Today we’re talking with Brendan Wallace, one of the founders of one of the largest real estate venture firms in the world. He’s going to take us through what the future of this incredible industry looks like.
https://www.fifthwall.com
Tweets by fifthwallvc
https://www.youtube.com/c/FifthWall/videos
00:00 The future of real estate
01:34 Home buying is broken
02:38 Opendoor marketplace
03:17 Fifth Wall Investments
04:20 Real estate tech’s potential
06:52 Follow Fifth Wall!
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Website: https://www.fifthwall.com
Twitter: https://twitter.com/fifthwallvc
Youtube: https://www.youtube.com/c/FifthWall/videos
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I’m Garry Tan, venture capitalist and founder at Initialized Capital. We were earliest investors in billion dollar startups like Coinbase and Instacart, and I’m a Forbes Midas List Top 100 venture capitalist in the world. We want these videos to be about helping people build world-class teams and startups that touch a billion people. Our startups have gone on to create more than $200 billion in market value so far, and Initialized has over $3.2B in assets under management.
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Prop tech is the way
good stuff, i wonder why it got such small number of views? I am real estate investor with a computer science background. I think there is immense potential for tech to make real estate business predictable, efficient, and even more lucrative.
With population decline across the world how will real estate continue to be profitable? Less families, more homes, etc. I’ve read that luxury homes will likely skyrocket in value in this scenario but middle and low end homes will drop in price dramatically.
My daughter is not going to believe we used to make a phone call, a realtor would show up to your house, sit down at your coffee table and flip through a listing presentation binder, and charge forty two thousand dollars.
The future of real estate does not involve realtors. But iBuyers will not be mainstream because there aren’t enough people willing to accept their unfair terms. People generally want to get every drop of equity out of their property. Opendoor, offerpad lose profits when they offer fair market value, they lose demand when they don’t.
The future of real estate will be buyers and sellers creating the supply on their own and transacting directly.
Gen Z buyers will download keys to their phone, gen z sellers will have push button listing publishing tech. The MLS will lose relevance.
Interesting takes! Where do you see the biggest opportunity for Canada is in the tech space?
Awesome video, would love to see recent examples of marrying technology and real estate. Cars are moving into the digital era with Tesla. it’s time for REAL ESTATE to do the same!
Opendoor…ouch.
what's prop tech doing for the real estate development process? I watched the entire video, it appears most of the techs right now are focused on end users. how can prop tech help developers find built able lands? how can prop tech gives advice to developers on how much money they should pay for a specific piece of land based on AI algorithm or big data? how can prop tech help development for the whole construction process? securing land and building construction are the two most expensive processes of building any building. i work in the residential development industry our company built large residential complexes, land purchase and construction hard cost usually represent 70% of the total development cost. and these costs all translate into rents or sales prices.
I work at a real estate prop tech startup , nice to see some excitement in the space
Large but unless you get robots you will need people to make a building work! There are of course many front of house processes that can be digitized.
Garry, wonderful content.
I’m an SBA lending Operations Manager for a community bank in Texas. There is a great need for user friendly-software to bridge the gap between banks and the SBA approval process on commercial real estate loans. It is a quite tedious and painful process with many specific commercial / government requirements to be met. Software does exist but is hardly efficient for this specific type of lending. I am interested in finding a software engineer to begin a start up in the near future to fill the gaps and streamline this process. I believe there is a great opportunity for improving the process and changing the industry. I would love to be connected with someone who would be willing to invest in such a program.
Around the 4 min mark about residential real estate x signing lease process — the modern solution exists, it's called Belong. We just had the most seamless & modern experience renting out our next home in Seattle!
Love this video Garry! Great reminder that there is still so much work to do (esp in other industries) to use great software to solve the problem of digitizing archaic processes.
Love your content brother 👍🏾 quality video
Interesting!!!!
Hi Gary, love the videos! Any chance you'll soon have Eric, Richerd, and/or Wilkins from Manifold on your channel?
I am particularly interested in learning how two smart contracts could be used together to enable or create an NFT that reacts or is responsive to real time events (e g. the weather) or data generated from third parties (e.g. wearables that track physical activity; lab results from blood samples).
terrific stuff.
Just another attempt to get rid of the middleman.
There is a lot of opportunity out there but a question is if any of them will get to scale profitably. Let’s see!
Proptech is an area I want to focus on
@gary it’s fascinating to see true disruption, though outfits like propy in NFT space are just continuation of the monopoly known as NAR. How do you foresee disrupting the analogue realtor aspect?
Amazing video on PropTech industry Garry! Love your energy and a big fan of your channel.
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Massive, fragmented industry with low NPS = huge opportunity for Fifth Wall! Brendan seems to have a great eye for spotting opportunities that others gloss over.
I can't tell you how lovely it was to hear you and Brendan talking about how much potential startups in real estate have. I'm fiddling around with a potential real estate product now and have had SO many people tell me that it's too crowded of a market to want to compete in, so this was a welcome change. You asked what we would like to see more of: more videos about different VC's like this would be cool in addition to focusing on trends in different industries. I also really liked the videos you put together on your different portfolio companies and would love seeing more of those (though obviously, that's not necessarily an infinite supply of videos!). Thanks for sharing and officially following Fifth Wall now! Fingers crossed I can get a meeting with them once I start pitching VC's in a few months! ❤
Who is interested in the Real Estate industry or design??✅
Awesome channel 😎!!
A short video on Evan Walker, the co-founder and CEO of Route would be pretty interesting. Route seems to have broken a few of Slack's growth records.
yea totally agree bro, currently many many renowned cities still using archaic process for buying and selling properties. I recently sold my condo in Singapore and a lot of paper works still sending back and forth using email, WhatsApp or need to go to the lawyer firm to sign papers too. Mistakes still happen even they have been doing this for years!
Garry Tan what do you think revolutionary beside tech?
Great video. Besides the market size, we spend 90% of our time indoors, thus buildings have a huge impact on our lives. This is why Clairify helps asset managers with software and IoT to make buildings healthy, smart and perform better.
Garry ,your colour grading is so much better!
Good stuff. The material connection between it and the ethereal may still require a facilitating human touch.
Thank you for the content!
I learn a lot from your channel, Garry. Thanks again for what you do.
The core innovation is 3D Printing and modular house building. Others are just tiny.
I see Gary post, I like.
Proptech Revolution 🚀
What about tokenisation of real estate?
You know what would turn real estate on its head is affordable housing, I'm very interested in all this tiny home stuff that's brewing
Thats amazing, I was just about to make a site like blend. I’m still going for it!