Housing: Heartcore Consumer Technology Trends 2021

Heartcore is Europe's consumer technology VC. Our annual Consumer Technology Trends Report sums up what happened in the world of consumer technology - category by category.

“Working from home” is the new normal.

People working from home had been a growing trend, but at a small scale. In April 2020 this changed dramatically with Covid-19 related lockdowns, causing a 10x increase in people working from home all the time. More than half the working population in the West has worked from home during the pandemic. This is the new normal.

As we spend more time at home, we want it to look nice.

Are the 2020s the "New Biedermeier"? In the early 19th century (a period called Biedermeier) a new Urban middle-class concentrated their disposable income and creative works on their own home.

During the pandemic, people of again focus on their home and have increased spending it on interior design items and plants. The furniture market was down as a whole in 2020, but robust compared to other high-end consumer markets.

Some will not go back to the office.

As we eventually leave the pandemic behind us, some people will not want to return to their old way of working. Skilled labor demanding a flexible work environment in companies adapting will impact the real estate industry. Office buildouts must cater to hybrid work and companies might choose to build hubs closer to where their employees live. We can expect an increased demand for larger apartments that allow for WFH. Social centers and activities will evolve less around the workplace, creating opportunities to connect and bring people together in new ways

Digital nomads: a growing breed that works where they live, not live where they work.

20% of British workers would consider movign away from their company's workpalce. With companies re-thinking how they integrate remote work, these people will be able to build their careers from anywhere in the world. These new possibilities will increase workforce mobility and allow people to change where they live much more frequently.

Since 2008, homeowners have increasingly held on to their houses.

Real estate yields have been attractive to hold on to in a low-interest environment.

Technology companies improve liquidity for buyers and sellers.

Online real estate platforms simplify the home buying and selling processes, adding significant liquidity real estate market . For consumers this increases the flexibility into and out of the market. The u.s. is leading the way, but a similar trend can be observed in other geographies.

Regulators are pushing back as Airbnb is transforming cities...

Local governments have pushed back on Airbnb, given its negative effect on long-term rental supply. Measures include banning short-term subletting altogether, requiring hosts to register and working with Airbnb to fight tax evasion.

In Europe's most popular tourist destinations it has become very difficult to be an Airbnb host.

… accelerating the rise of professional short & midterm supply.

Professionally managed apartments reduce the volatility of experiences for consumers and allow Airbnb to scale their inventory further. Covid-19 had two well-funded players (Stay Alfred, Lyric) close shop. However scaling professionally managed supply of an Airbnb another travel marketplaces remains a large business opportunity.

Sonder| Founded: 2012 | Total Funding: $553M | Number of listings: 2344

Lyric (Closed)| Founded: 2014 | Total Funding: $179M | Number of listings: x

Zeus| Founded: 2011| Total Funding: $79M | Number of listings: 1679

Blueground| Founded: 2013| Total Funding: $77M | Number of listings: 3337

Stay Alfred (Closed)| Founded: 2010| Total Funding: $62M | Number of listings: x

Limehome| Founded: 2018| Total Funding: $43M | Number of listings: 64x

COSI| Founded: 2019| Total Funding: $6M | Number of listings: 42

ukio (Heartcore portfolio)| Founded: 2020| Total Funding: undisclosed| Number of listings: undisclosed