industry spotlight

Residential & Multifamily

Discover the residential real estate industry, where smart building tech and thoughtful design reshape our living spaces.

Elevating guest experience

The residential and multifamily market shows signs of resilience despite recent economic headwinds. This stability is driven by increasing demand for affordable housing, particularly among millennials and Gen Z. Multifamily development remains a bright spot, with over 900,000 units under construction across the US and an additional 500,000+ new units entering the market. While some multifamily real estate investors may face challenges in the current economic climate, the long-term outlook for the sector is positive.

Why it matters:

Housing startups have a ripe opportunity to tap into:

  • PropTech solutions
  • Home improvement & renovation
  • Build-to-Rent (BTR)
  • Student housing REITs

Between the lines:

Challenges are also picking up speed. So, prepare to address regulations, rising construction costs, pressure to integrate new technologies, fundraising, and security issues.

At Waveup, we’re experts in the residential and multifamily funding race, turning startup projects into profitable ventures

$3B+
Secured investments
600+
Ventures assisted
80+
Fields scrutinized

What we do:

Our team helps with fundraising, investor-appealing pitch decks, robust business plans, and M&A opportunities.

Go deeper:

Investigate our residential and multifamily real estate market research for current trends, insights, challenges, and tips to attract investors.

2x growth
The global residential and multifamily properties market is set to double by 2032.

 

42%
Individuals in the US choose renting.

Driven by demographic shifts, tech advancements, and a growing preference for flexible living arrangements
9/10

Renters use online reviews to research properties before making a decision.

40%

New multifamily developments in major US cities use sustainable design and green building practices.

6/10

Property managers plan to increase their investment in proptech solutions by 2025.

VENTURE LANDSCAPE

In 2023, the residential & multifamily VC funding reached $302M

Key verticals where funds flow:

  • Single-family rentals (SFR)
  • iBuyer platforms
  • Real estate data and analytics
  • Financial products for real estate

Leading residential & multifamily venture capital firms

Write to us to know more

Residential & multifamily industry challenges

Here are the key hurdles that hospitality companies have to overcome.

Fundraising race:

Hospitality startups often require large upfront capital for property, renovations, and staff. Venture capitalists may hesitate to invest in such asset-heavy businesses.

Why it matters

Lack of proper financing makes it hard for startups to:

  • Build a robust business model
  • Scale their business
  • Onboard new staff
  • Gain a competitive edge

What it takes:

  • Craft an investor-appealing deck to showcase a clear investment story, unique value proposition and market opportunity
  • Highlight operational efficiency to minimize costs and maximize margins
  • Prepare an effective investor outreach strategy to identify your target investors and their investment criteria

High competition:

The hospitality industry is highly competitive, with new businesses constantly entering the market. Startups may struggle to differentiate themselves and build a loyal customer base.

Why it matters

The inability to stand out can lead to:

  • Low customer acquisition and revenue
  • Difficulty building brand awareness
  • Reduced bargaining power

What it takes:

  • Target a niche market with unmet needs of travelers and tailor your offerings to cater to them
  • Leverage technology to improve efficiency, personalization, and guest interaction
  • Use analytics to understand customer preferences, optimize pricing, and track marketing effectiveness
  • Develop a solid customer base through loyalty programs, exclusive offers, and personalized communication

Technological disruptions:

Keeping pace with tech advancements can be expensive for startups with limited resources and expertise.

Why it matters:

Problems with tech advancements mean:

  • Losing market share
  • Higher costs
  • Customers churn
  • Data breaches

What it takes:

  • Invest in property management systems and data analytics tools for security
  • Invest in R&D to explore and implement innovative solutions
  • Comply with regulations to ensure your systems adhere to them
  • Partner with tech companies to access innovative solutions at a lower costinvestor outreach strategy

 

Staff retention:

The hospitality industry has historically struggled with high turnover rates due to high demand and lower wages. Finding and retaining qualified staff requires significant capital and time, ensuring a high level of customer experience.

Why it matters:

Understaffing creates a domino effect, like:

  • Limited capacity
  • Poor guest service
  • Hindered business reputation
  • Limited funding

What it takes:

  • Foster a respectful work environment with opportunities for growth and recognition
  • Provide training programs to equip staff with the skills they need to succeed
  • Implement technology to streamline tasks and reduce workload
  • Build a strong employer brand through social media and online platforms to showcase the startup as a great workplace

FAQs

Do investors prefer to back residential or commercial real estate startups?

Both residential and commercial real estate can be suitable investments, but the decision depends on your individual goals and risk tolerance. Residential real estate — tends to be more stable with lower vacancy rates, while commercial real estate can offer higher potential returns but also comes with greater risk.

How attractive is the industry to potential residential & multifamily investors?

Despite economic headwinds, the residential and multifamily sector is growing. Investors are keen on rising interest rates and urbanization trends, as these markets offer much more stable income and lower volatility than office or retail markets.

If you are a residential & multifamily startup, how easy is it to raise funds today?

It is not easy. Competition is high, and investors are more selective. So, better focus on creating a strong business plan and a competitive edge to attract investment.

How long does it take to create a pitch deck and financial model for a residential & multifamily startup?

On average, we handle documentation in 2-3 weeks. But sometimes it might take around a month. Feel free to ask for more information.

What are the key mistakes residential & multifamily startups make in their pitch decks?

The absence of an investment narrative, a solid competitive moat, and a clear path to profitability are the top mistakes we’ve observed in many startup decks. These shortcomings may lead investors to overlook your pitch, even if your solution is disruptive.

How competitive is the residential & multifamily market?

Both the residential and multifamily markets are highly competitive right now. The shortage of houses and apartments drives fierce competition, pushing higher rents and home prices.

What services do you provide for investors looking to invest or already investing in the residential & multifamily sector?

We help investment funds conduct thorough due diligence on promising residential & multifamily projects and offer complete fundraising support to their portfolio companies.

Do you provide residential & multifamily startup M&A support?

Of course! Our team supports residential & multifamily M&A, identifying opportunities, assessing their potential, and ensuring successful partnerships post-deal.

Do you make intros to residential & multifamily startup VCs?

We link you with residential & multifamily venture capitalists, assessing your team, product, and funding goals, and guide your engagements with VCs for successful relationships throughout and beyond negotiations.

Do you have data or research available to purchase on the residential & multifamily market?

Yes, we do! Our residential and multifamily market research includes industry reports, competition analysis, and more. We use only reliable data sources to collect the most relevant information for you, such as the industry’s challenges, multifamily real estate trends, and competitive dynamics.

Which growth stage of companies have you worked with in the past?

We support residential & multifamily startups in growth and fundraising from Pre-Seed to Series C and beyond.

Venturing into the residential & multifamily industry? You're in the right place

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