What is the latest update in the Prop Tech market?

The Prop Tech market had a packed first quarter of 2026, with AI-powered search tools, pre-market listing battles, and strong financial results from the biggest players in the space.

This blog post covers the most important updates from Q1 2026, and we constantly refresh it as new information comes in.

And if you want to better understand this new industry, you can download our pitch covering the Prop Tech market.

Summary table of the most important updates in the Prop Tech market

We define PropTech as technology products that materially improve how real-estate assets are operated, managed, leased, or transacted.

We include software, data, and connected systems used by owners, operators, property managers, brokers, and occupiers across operations, leasing, sales, and asset-level decision-making.

We exclude construction technology, general-purpose fintech/insurtech not specific to real estate, and consumer smart-home electronics that are not tied to operating or transacting a property.

You can also get all the latest market news for the month here.

News	Category	Date	Source
Zillow launched Zillow Preview to show pre-market listings publicly before they go active	Product launches	March 17, 2026	Zillow Group
Homes.com expanded pre-market listings with eXp Realty as first national launch partner	Product launches	March 18, 2026	CoStar Group
Zillow launched AI mode to turn home search into a guided conversation	Product launches	March 25, 2026	Zillow Group
Homes.com launched voice-enabled AI search powered by Microsoft	Product launches	February 17, 2026	CoStar Group
Orbital raised $60M Series B to automate real-estate legal workflows	Fundraisings	January 26, 2026	Orbital
CoStar posted $3.2B in annual revenue with 19% year-over-year growth	Financial results	February 24, 2026	CoStar Group
Zillow reported strong 2025 results and doubled down on its housing super-app strategy	Financial results	February 10, 2026	Zillow Group
AppFolio crossed 9.4M units under management and lifted 2026 revenue guidance	Financial results	January 29, 2026	AppFolio
Entrata unveiled an agentic property management system with 100+ AI agents	Product launches	March 24, 2026	Entrata
Purlin and Final Offer merged to connect search, offer, mortgage and title	M&A	February 3, 2026	PR Newswire
Zillow fought back in the FTC antitrust case over its Redfin rentals deal	Litigation	February 25, 2026	Zillow
NAR released a statement on pre-marketing and coming-soon listings rules	Regulations & Policies	March 20, 2026	NAR

How is the Prop Tech market doing now?

How do we define the Prop Tech market?

We define PropTech as technology products that materially improve how real-estate assets are operated, managed, leased, or transacted.

We include software, data, and connected systems used by owners, operators, property managers, brokers, and occupiers across operations, leasing, sales, and asset-level decision-making.

We exclude construction technology, general-purpose fintech/insurtech not specific to real estate, and consumer smart-home electronics that are not tied to operating or transacting a property.

This is also the definition we use in our report covering the Prop Tech market.

How big is the Prop Tech market in 2026?

We estimate the global Prop Tech market at roughly $43 billion in 2026, within a range of $40 billion to $47 billion depending on how fast enterprise adoption and compliance-driven spending play out.

This is not a random guess, if you want to know how we have come up with this estimate, you can read our Prop Tech market size analysis here.

To put that number in perspective, the Prop Tech market sits between the global legal tech market (around $35 billion) and the cybersecurity software market (roughly $75 billion), which makes sense for an industry that touches every building on the planet but is still early in its digital journey.

The Prop Tech market scores 55 out of 100 on maturity (portals are mature but operations software still has a long runway), 80 out of 100 on competitiveness (hundreds of vendors fight for overlapping budgets), and 85 out of 100 on fragmentation (a few big portal winners but thousands of specialized tools everywhere else).

How fast will the Prop Tech market grow in the future?

We estimate a realistic annual growth rate of about 13% for the Prop Tech market from 2026 through 2036, based on continued software adoption in property operations, connected building systems, and compliance-driven data spending.

At that pace, the Prop Tech market should reach roughly $65 billion by 2030 and around $136 billion by 2036, which would make it roughly three times its current size.

That kind of growth would bring the Prop Tech market closer in scale to today's cybersecurity software market, which makes sense given that buildings account for about 30% of global energy demand and the push to digitize their operations is only getting stronger.

What does current funding activity look like in the Prop Tech market?

Our team, who continually updates our Prop Tech market pitch deck, is keeping a close eye on the market and tracking key signals.

One of those signals is fundraising activity across startups. Each month, we refresh this page with a list of startups of the Prop Tech market that have raised funding, and we also publish a quarterly analysis here.

Is funding momentum accelerating or cooling in the Prop Tech market these days?

In Q1 2026, the two most notable Prop Tech fundraising rounds were Orbital's $60 million Series B and Visitt's $22 million Series B, both announced on January 26, showing that investors are still writing meaningful checks for startups solving painful operational problems in real estate.

These rounds suggest that Prop Tech funding is concentrating around companies with clear product-market fit in transaction automation and commercial property operations, rather than spreading thinly across many early-stage bets.

The deal sizes in Q1 2026 lean toward growth-stage rounds ($20M+), which indicates that investors are backing proven Prop Tech companies that can scale rather than seeding new experiments.

Which categories and business models are attracting capital in the Prop Tech market?

These categories and business models of the Prop Tech market are receiving important fundraising currently:

• Transaction automation: Orbital raised $60M to automate real-estate legal workflows in the U.S. and U.K., targeting one of the slowest parts of property deals.
• Commercial property operations: Visitt raised $22M to build an AI-native operations platform for commercial real estate owners and operators.

The pattern is clear: Prop Tech investors in Q1 2026 are backing software that sits inside daily workflows and removes manual labor, not tools that just display data.

Who's writing the most checks in the Prop Tech market?

These investors are being very active when it comes to fundraising in the Prop Tech market:

• Susquehanna Growth Equity led Visitt's $22M Series B, showing conviction in AI-powered commercial real estate operations software.

With limited public data on the full investor list for Q1 2026, it is worth noting that growth-stage investors are clearly prioritizing Prop Tech companies with strong operational traction.

Any big acquisitions or IPOs in the last three months in the Prop Tech market?

There was one notable merger during Q1 2026 in the Prop Tech market:

• Purlin and Final Offer merged in February 2026 to create what they call real estate's first AI platform connecting search, offers, mortgage, and title in one workflow.

This merger signals that the Prop Tech market may be entering a bundling phase, where connecting multiple steps of a real estate transaction is becoming more valuable than optimizing any single step alone.

How are companies in the Prop Tech market performing overall?

We are watching this market everyday, because we need to constantly update our pitch deck. Here is a couple of things we have noticed.

Are there any standout success metrics or financial results in the Prop Tech market?

Q1 2026 brought several strong financial results from major Prop Tech companies:

• CoStar posted $3.2 billion in annual revenue for 2025, up 19% year-over-year, with Q4 revenue alone reaching $900 million.
• Zillow reported strong Q4 and full-year 2025 results while continuing to build out its housing super-app strategy across search, rentals, and financing.
• AppFolio crossed 9.4 million units under management, hit $951 million in full-year revenue, and guided for $1.10 to $1.12 billion in 2026.
• MRI Software reported a record year after adding nearly 2,000 new clients and seeing a surge in adoption of its AI platform.

The big takeaway: the largest Prop Tech platforms are not just defending their positions, they are still growing fast and expanding their reach.

Have there been any major partnerships in the Prop Tech market?

Two partnerships stood out during Q1 2026 in the Prop Tech market:

• MRI Software joined Workday's partner ecosystem to connect facilities management with Workday's HR and finance workflows, making Prop Tech a more integrated part of the enterprise software stack.
• Zillow partnered with Google to bring home-buying guidance into NotebookLM, an early sign that Prop Tech content may increasingly reach consumers through external AI tools rather than first-party apps alone.

Both partnerships point to the same trend: Prop Tech companies are finding new distribution by plugging into platforms where their users already spend time.

Have there been any notable technology or infrastructure breakthroughs in the Prop Tech market?

Q1 2026 was packed with AI-driven product launches in the Prop Tech market:

• Zillow launched Zillow Preview to show pre-market listings publicly, making early-stage inventory visible to all buyers rather than just connected agents.
• Zillow launched AI mode, turning traditional filter-based home search into a conversational experience that connects directly to actions like touring or contacting an agent.
• Homes.com launched a voice-enabled AI search experience powered by Microsoft, positioning AI as a front-door product for consumer real estate discovery.
• Entrata unveiled an agentic property management system with over 100 embedded AI agents across leasing, maintenance, accounting, and operations.

The message from Q1 2026 is loud: AI in Prop Tech has moved from conference demos to shipped products that real users interact with every day.

Have any companies restructured or shifted pricing or business model in the Prop Tech market?

One leadership change stood out during Q1 2026 in the Prop Tech market:

• Lone Wolf Technologies appointed Matt Fischer as its new CEO in February, replacing Jimmy Kelly who moved into an advisory role during the transition.

New leadership at a major real estate software vendor like Lone Wolf often signals a shift in product strategy, M&A appetite, or competitive positioning in the Prop Tech market.

Are there any other notable wins or successes in the Prop Tech market?

One more win worth highlighting from Q1 2026:

• Homes.com signed eXp Realty as its first national brokerage partner for pre-market listings, turning a policy debate into a real product offering with a major distribution partner.

Landing a national brokerage like eXp gives Homes.com real inventory to compete with Zillow Preview, making the pre-market listings race one of the most important stories to watch in the Prop Tech market.

What is the overall sentiment in the Prop Tech market right now?

Are there any notable recent opinion pieces, thought leadership about the Prop Tech market?

We did not find any major standalone opinion pieces worth highlighting from Q1 2026 in the Prop Tech market, but the sheer volume of AI product launches from Zillow, Homes.com, and Entrata effectively served as the industry's loudest statement: AI is no longer optional, it is the new baseline for Prop Tech platforms.

Are there any interesting and recent market research reports about the Prop Tech market?

One research report stood out during Q1 2026 in the Prop Tech market:

• AppFolio published its 2026 Property Management Benchmark Report, which found that property managers using AI in their core workflows expect stronger growth than firms that have not yet adopted AI tools.

This is one of the clearest data points showing that AI adoption in the Prop Tech market is shifting from experimentation to a real performance gap between early adopters and everyone else.

Have there been any regulatory changes, policy updates, or new compliance requirements in the Prop Tech market?

Two regulatory developments shaped the Prop Tech market during Q1 2026:

• NAR released a statement on pre-marketing and coming-soon listings in March, weighing in on MLS rules that directly affect how portals like Zillow and Homes.com can display inventory.
• Zillow sought dismissal in the FTC's antitrust lawsuit over its rental-listings agreement with Redfin, a case that could reshape how major Prop Tech platforms are allowed to partner and share listings.

Policy and legal outcomes in Q1 2026 may end up mattering more than any product launch, because they set the rules that determine who controls listing inventory and how it flows through the Prop Tech market.

Who is the author of this content?

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