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Key Takeaways PropTech’s next growth wave isn’t urban — it’s suburban property managers finally getting software built for them.
Residential real estate dominates PropTech revenue, yet suburbs remain underserved by scalable, practical technology.
For more than a decade, PropTech conversations seemed glued to the same map. New York, San Francisco and a handful of dense metropolitan hubs dominated the narrative because large buildings and consolidated portfolios made technology easy to scale.
Back then, investors were drawn to dense areas, and software followed suit. For instance, commercial properties held a large portion of the PropTech market share in 2024, reflecting their early demand for integrated analytics.
But that focus left out the largest portion of the housing economy. The real backbone of American real estate sits in suburbs and smaller cities, where most property managers still rely on outdated systems or manual work.
The inefficiencies in those markets have quietly accumulated, creating a massive opportunity. Depending on where you draw the operational boundaries, it reaches nearly $200 billion.
Hard numbers underscore this potential. The US PropTech market is projected to reach about $40.2 billion by 2030. Crucially, the residential segment makes up more than 57% of all US PropTech revenue, with 57.64% coming from this segment in 2022.
If the US PropTech market’s early phase solved problems for enterprise teams in high-rise buildings, the next phase will revolve around practical PropTech software development for the residential majority outside major urban centers.
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