Top 10 Fast-Growing Proptech Companies in the US in 2024

Top 10 fast growing proptech US 2024

Introduction

As we look back on the developments within the US proptech sector throughout 2024, it becomes evident that this year has been one of significant transformation and growth. Building on the insights from last year's analysis of the 2023 market, this article provides an updated examination of the evolving landscape of real estate technology in the United States. Coming after our successful annual publications focusing on the UK and EU markets earlier this year, this report seeks to encapsulate the pivotal trends and shifts that have shaped the proptech industry in the US over the past twelve months.

Real estate outlook environment for proptech startups in the US in 2024

The real estate environment in the United States in 2024 presents a complex landscape filled with both challenges and opportunities for proptech startups. The year kicked off with optimism due to improved builder sentiment and lower mortgage rates, yet the outlook soon faced pressures from rising interest rates and persistent home affordability issues. Despite these challenges, the undersupply of homes, estimated at over 3.5 million units, and high construction costs offer proptech firms opportunities to innovate in building and management solutions.

Investment trends show a promising shift, with family offices and real estate investors increasingly turning to real estate as a stabilizing asset amid market fluctuations and global uncertainties. The normalization of interest rates is expected to enhance these investments, particularly in megafunds and middle-market opportunities, which are crucial for maintaining generational wealth through consistent cash flow and tax advantages.

Commercial real estate companies (CRE) is also at a critical juncture. Despite the fears of a major crash following numerous bank failures in 2023, the actual impact on CRE has been less severe than anticipated. However, with nearly $650 billion of CRE debt maturing in 2024, the sector remains under scrutiny regarding its true exposure and potential risks to financial institutions.

On a broader economic level, the U.S. is poised to avoid a recession in 2024, supported by strong consumer balance sheets and a resilient job market. While some sectors like office real estate may struggle due to the rise of hybrid work arrangements, others such as retail and industrial remain robust due to limited new construction and sustained demand. Notably, the Federal Reserve has cut interest rates by 50 basis points last week, which could influence real estate capital markets and investment dynamics. As mortgage rates fluctuate, homeowners face significant decisions regarding refinancing and selling, pushing them to seek innovative proptech solutions that streamline these processes.

The landscape of work arrangements is also shifting. Amazon has recently implemented a policy mandating in-office work, which could signal a broader reevaluation of hybrid work policies across various industries. This move by Amazon may influence office space demand and design, providing both challenges and opportunities for proptech solutions focused on office real estate.

For proptech startups, this environment suggests a strategic focus on developing technologies that enhance building efficiency, improve real estate investment processes and manage the complexities of CRE financing and management. As the market continues to evolve, proptech firms have the opportunity to play a pivotal role in shaping a more efficient and responsive real estate industry.

For a more detailed exploration of these trends and their implications for the real estate market, you can read further on RSM here and CBRE here.

Selection criteria of 10 top proptech startups in the US

Identifying the most promising proptech startups and service providers involves meticulously evaluating various factors that highlight growth potential, innovation, and strategic positioning within the real estate sector. For our 2024 lineup of the top 10 fast-growing proptech companies in the US, we've established a set of criteria that ensures each selected company is exemplary in its contributions and potential. Here are the specific standards we used:

  1. Headquarters in the United States: Central to our selection, each company must be based in the US. This criterion ensures that the startups are contributing to and operating within one of the world's largest real estate markets, facing uniquely American challenges and opportunities.

  2. Employee Count of 50-200: We focus on companies that are no longer in their nascent stages but also not so large that they've moved beyond the startup phase. This range typically indicates a level of stability and capability for scalable growth without losing the agility and innovative spirit of a startup.

  3. Significant Growth: Each company must have achieved a growth rate of over 30% from June 2023 to June 2024. This indicator of rapid expansion is crucial as it demonstrates the ability of these startups to scale operations and significantly impact the market within a short period.

  4. Technology Provider That Enhances Real Estate Capabilities: The core offering of each startup must be technologically driven, providing solutions that enhance various aspects of the real estate process, from management and transactions to analytics and engagement. This criterion ensures that the companies are true tech innovators, bringing new efficiencies and capabilities to the industry.

  5. Endorsed by Proptech Experts at Mobile Reality: To add a layer of qualitative judgment to our quantitative metrics, each selected startup comes recommended by experts at Mobile Reality, who are veterans in the proptech landscape. Their insights help in recognizing companies that are not just growing rapidly but are also strategically poised to continue their expansion and innovation.

These criteria have been carefully crafted to highlight startups that are not only thriving in terms of numbers but also innovating and pushing the boundaries of what technology can do in real estate. By adhering to these standards, we aim to showcase those companies that are most likely to lead and redefine the industry in the coming years.

The unique selection of the top proptech companies in the US

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TestFit

  • https://testfit.io

  • Denver, CO, United States

  • Growth Rate: 151.43% (from 35 in June'23 to 88 in June'24)

TestFit, based in Dallas, Texas, continues to lead in real estate site planning with its advanced generative design platform. Demonstrating the largest growth among the companies at 151.43%, TestFit is reshaping how developers, architects, and contractors approach site feasibility. Their technology rapidly adapts to user inputs, significantly decreasing time spent in the preliminary design phases and boosting overall project efficiency. The platform’s ability to integrate real-time analytics and environmental data further enhances its utility, making it indispensable in urban planning and sustainable building designs. TestFit's services not only facilitate developers but also empower property owners with optimized site uses, enhancing property values and investment returns. With a strong focus on maximizing land use and project viability, TestFit helps stakeholders visualize the potential of undeveloped properties, encouraging more strategic development decisions.

PermitFlow

  • www.permitflow.com

  • New York 10036, United States

  • Growth Rate: 147.62% (from 21 in June'23 to 52 in June'24)

PermitFlow, located in New York, stands at the forefront of simplifying the construction permit application process across the U.S. The company's rapid growth of 147.62% underscores its crucial role in enhancing efficiency and reducing complexities in building projects. Their platform streamlines the permitting process, dramatically reducing wait times and helping developers get to construction faster. As urban growth continues to accelerate, PermitFlow’s innovative solutions help cities manage their development pipelines more effectively, ensuring compliance and speeding up project approvals. The integration of AI to predict common bottlenecks in the permitting process exemplifies their commitment to continuous improvement and customer satisfaction, making them a leader in construction technology.

Fello

  • https://www.hifello.com

  • Cleveland, Ohio 44124, United States

  • Growth Rate: 145.24% (from 42 in June'23 to 103 in June'24)

Fello, situated in Cleveland, Ohio, is dedicated to enhancing real estate selling strategies through advanced technology. The company saw a remarkable growth of 145.24% in its team size, indicating its success in empowering real estate professionals. Fello's innovative tools help agents maximize their market reach and effectiveness, transforming the traditional sales approach with data-driven insights.

Closinglock

Closinglock, located in Austin, Texas, delivers cutting-edge fraud prevention technology tailored for the real estate industry. Over the past year, the company more than doubled its workforce, boasting an impressive 112% growth, illustrating its pivotal role in modernizing real estate transactions. Their secure platform is essential for protecting sensitive financial transactions and has become a trusted tool for real estate professionals nationwide.

Morty

Based in New York, Morty is reinventing the mortgage industry with a fully digital marketplace. The company's employment growth of 75% from June 2023 to June 2024 underscores its innovative approach and commitment to simplifying the mortgage process. By offering transparency and choice, Morty empowers homebuyers to make informed decisions without the traditional complexities of securing a mortgage.

hh2

  • http://www.hh2.com

  • Kaysville, Utah 84037, United States

  • Growth Rate: 71.95% (from 82 in June'23 to 141 in June'24)

hh2, headquartered in Kaysville, Utah, specializes in cloud solutions for the construction industry. With a growth of 71.95%, hh2 continues to lead in integrating construction management software, proving its strength in the market. Their solutions bridge the gap between on-site work and back-office management, enabling smoother operations and real-time decision-making.

Fabrica

  • https://www.fabrica.land

  • San Francisco, CA 94109, United States

  • Growth Rate: 60.67% (from 89 in June'23 to 143 in June'24)

Based in San Francisco, CA, Fabrica is at the forefront of transforming real estate transactions with blockchain technology. Since 2018, Fabrica has been making real estate assets programmable, leveraging blockchain to represent real estate as digital assets. This innovation facilitates new ways to own and utilize land and built properties, significantly enhancing liquidity, efficiency, and delivering a modern experience to end users. The company's staff expanded by 60.67% from June 2023 to June 2024, signaling robust market adoption and a pioneering shift towards digital solutions. Fabrica’s platform uses NFTs to represent land rights, showcasing their commitment to refining and scaling property onboarding to the blockchain, promising a future where real estate transactions are more transparent and streamlined.

LeadSimple

  • http://leadsimple.com

  • Brush Prairie, WA 98606, United States

  • Growth Rate: 60% (from 35 in June'23 to 56 in June'24)

Operating from Brush Prairie, WA, LeadSimple offers comprehensive CRM and workflow automation for property management. The company achieved a 60% increase in its workforce, reflecting its effectiveness in streamlining operations for real estate professionals. LeadSimple integrates key business processes into a single platform, fostering better communication and efficiency.

Backflip

Based in Denver, CO, Backflip combines proptech and fintech to empower real estate entrepreneurs to revitalize local communities. In the period from June 2023 to June 2024, Backflip experienced a substantial employee growth of 50.98%, reflecting its increasing impact in the sector. Their innovative financial solutions accelerate property renovations and sales, stimulating local economic growth.

Sclera

  • https://www.sclera.com

  • Chicago, Illinois, United States

  • Growth Rate: 33.33% (from 129 in June'23 to 172 in June'24)

Chicago's Sclera is at the forefront of transforming facility management and asset management through technology. The company grew by 33.33%, highlighting its role in pioneering integrated building systems and operations. Sclera's advanced solutions enable facilities to operate more autonomously, boosting efficiency and reducing operational costs across multiple industries.

Conclusion

As the final proptech industry report of 2024, and following our detailed reviews of the UK and EU markets, it is clear that the US proptech sector continues to stand at the forefront of innovation and adaptation. This year has been about overcoming challenges and seizing the opportunities an ever-evolving economic and technological landscape presents. From responding to shifts in monetary policy, such as the Federal Reserve's significant interest rate cuts, to adapting to new norms in workplace arrangements, like Amazon's shift to an in-office policy, proptech firms have demonstrated resilience and agility. As we conclude this year's series of analyses, the ongoing transformation within the proptech industry promises to redefine the boundaries of real estate technology and investment strategies, ensuring that the sector remains at the cutting edge of innovation for years to come.

Insights on Leading Proptech Companies

Are you fascinated by the growth and impact of leading proptech companies? At Mobile Reality, we delve deep into the success stories and strategies of top real estate tech industry players. Our expertise in analyzing market trends and company innovations allows us to provide valuable insights into the factors driving the success of these companies. Our curated selection of reports offers a comprehensive look at key proptech companies, their technologies, and market strategies:

Explore these detailed reports to gain a deeper understanding of the fintech sector's movers and shakers. Don't hesitate to contact our sales team if you have any questions or want to explore partnership opportunities. Those interested in joining our dynamic team can visit our careers page to submit their CVs. Join us in exploring the future of proptech and the companies shaping it!

Published at26.09.2024
Matt Sadowski
Matt Sadowski

CEO @ proptech & real estate tech advisor

Table of contents

  1. Introduction
  2. Real estate outlook environment for proptech startups in the US in 2024
  3. Selection criteria of 10 top proptech startups in the US
  4. Conclusion

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CEO of Mobile Reality

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