Why Multifamily Real Estate Has a Love-Hate Relationship with Tech (and What 2024 Taught Us)

February 18, 2025

The Complicated Relationship Between Real Estate & Tech

The multifamily real estate industry’s relationship with technology has long been complicated. The years leading up to 2024 saw steady growth in tech adoption, but many promises remained unfulfilled due to implementation challenges, costs, and unclear ROI.

2024: A Turning Point

The challenging market environment forced real estate owners to scrutinize expenditures while tech companies continued innovating, especially with AI-driven efficiencies. This created a dynamic where real estate could no longer ignore tech but demanded tangible proof of value.

The 2025 Landscape

With Fed rate cuts loosening capital markets, competition is intensifying. Tech companies are aggressively pushing their solutions, leveraging AI to enhance existing technologies. While there is pent-up demand, there is also risk—real estate firms must be cautious about overhyped promises.

The Challenges of Tech Adoption in Real Estate

Slow Response to Change: Historically, real estate has been slow to adopt new technologies.
Mistrust of Vendors: Past experiences with over-promised solutions have made real estate professionals wary.
Resident Expectations: Younger residents expect seamless technology integration in their housing.
Staff Retention & Training: Implementing new technology requires proper training and buy-in from stakeholders.

Key Takeaways

ROI Matters More Than Ever: Real estate professionals are prioritizing measurable impact over hype.
AI is Transformative but Requires Caution: Not all AI implementations are equal.
Integration is Key: Standalone solutions must integrate seamlessly with existing systems.
Tech Must Address Real Pain Points: Solutions need to solve real estate’s unique operational challenges.

Building a Sustainable Tech Strategy

Real estate firms must find trusted tech advisors who understand their business and provide data-driven insights instead of one-size-fits-all solutions. The right tech partner will speak the language of real estate and focus on real-world impact.

Industry Experts Weigh In

“Multifamily real estate can no longer afford to adopt technology based on hype or hesitation. At this critical inflection point, real estate owners need more than sales pitches; they need clarity on which solutions truly align with their operational and financial goals.” — Taylor Wiederkehr, CEO, PropTech IQ

“There is no investment that will more positively affect the value of an asset more than an investment in technology.” — Sandy Jack, Director of Strategic Relations – Multifamily, Nomadix

What’s Next?

Finding the right technology partner is essential. Avoiding unnecessary complexity, ensuring proper implementation, and focusing on measurable benefits will define success in the next phase of proptech evolution.