Proptech funding rose to $16.7B in 2025

Proptech venture capital funding reached $16.7 billion in 2025, surpassing pre-pandemic levels despite a climate of high interest rates and cautious underwriting. This influx of capital comes as the industry shifts toward a more selective investment strategy, prioritizing startups that demonstrate clear product-market fit and strong customer retention. For the multifamily sector, these trends signal a move away from experimental solutions in favor of technologies that provide immediate, measurable improvements to operational efficiency and net operating income.

According to data reported by CRETI, proptech venture capital funding reached $16.7 billion in 2025, a figure that exceeds pre-pandemic levels but reflects a market tempered by constrained exits and tighter underwriting. Matt Knight, executive director at the Foundation for Innovation in Real Estate and founder of the PropTech Angel Group, observed that while optimism persists, the industry has faced a difficult two-year stretch where expected consolidation and mergers have not yet occurred at scale. This stagnation is partly attributed to property-level financial pressures, as bank issues with troubled borrowers in the multifamily sector have trickled down to impact overall proptech spending.

Aaron Ru, a principal at RET Ventures, anticipates that multifamily proptech funding in 2026 will remain active but increasingly selective. Ru noted that capital is readily available for companies with strong fundamentals and 'proven customer stickiness,' while startups from the 2021-2022 cycle lacking these attributes may face mounting pressure to consolidate. The current investment appetite is gravitating toward platforms that deliver measurable impacts on core workflows, such as leasing and marketing efficiency, maintenance and procurement optimization, and portfolio-wide data visibility, rather than 'flashy point solutions' that fail to integrate deeply into operations.

Artificial intelligence continues to be a dominant theme, though investor expectations for the technology have matured significantly. Rather than surface-level applications, the market is now favoring AI-enabled solutions built on durable data foundations and integrated into mission-critical systems. Ru highlighted that the primary objectives for 2026 will be efficiency and simplification, with a focus on tools that allow owners and operators to manage leaner teams and reduce operational complexity. Ultimately, the industry is moving toward technologies that can drive sustainable growth in net operating income (NOI) as construction performance in the multifamily sector remains volatile.