High mortgage rates and slow home sales have put real estate fintechs under pressure, with just two startups making it onto the Forbes Fintech 50 list in 2025. As the industry grapples with a tough market, a few players are adapting and finding success.
Who Made the Cut?
- Valon – A cloud-based mortgage servicing platform that simplifies loan management for homeowners and lenders. The company grew revenue from $5 million to $30 million in 2023, securing its place on the Fintech 50 list for the third straight year.
- Groundfloor – A real estate crowdfunding platform that lets retail investors buy into property developments with as little as $100. Over $1 billion has been invested through the platform since its launch.
Why So Few Real Estate Startups?
- Interest Rate Hikes – Since the Fed began raising rates in March 2022, home sales plummeted to their lowest levels in 30 years.
- Refinancing Collapse – Mortgage refinancing applications are down 88% from their pandemic-era highs.
- Investor Pullback – Venture funding for real estate startups has dried up, making it harder for new players to scale.
A Market in Transition
Some former high-flyers have struggled to survive. Cadre, once a rising star in real estate investing, was sold to Yieldstreet for $100 million in late 2023—a steep drop from its $800 million valuation just a few years ago.
Yet, fintechs like Valon and Groundfloor prove that specialized, tech-driven solutions can still carve out market share. With homeowners looking for better mortgage management tools and investors seeking new ways to enter real estate, these platforms are positioned for growth even in a tough climate.
What’s Next?
- Real estate startups must innovate or risk fading away.
- If mortgage rates drop, expect a wave of new fintech activity.
- Platforms focused on alternative investing and lending could thrive as traditional real estate models struggle.
Bottom Line
Real estate fintech isn’t dead, but the gold rush is over. The companies still standing are leaner, more specialized, and focused on real value—not hype.
