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High-tech flips. In 2021, iBuyers purchased over 70,000 homes in the US, double pre-pandemic levels. These real estate tech companies, which use algorithms to price and purchase properties “instantly” to resell them later, concentrated half of their investment activity in 5 Sun Belt cities — Phoenix, Atlanta, Dallas, Charlotte, and Houston. The capital-heavy business model has come under scrutiny: Zillow wound down its house-flipping business in November following its failure to accurately price homes, losing $881M in the process. But this may just be the beginning. Real estate’s complex and often paper-heavy processes are ripe for disruption, drawing a wave of innovation.
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