Tech companies that use algorithms to make rapid offers on a large scale are growing players in the U.S. housing market.
Andrew Khoury reports that the online real-estate marketplace Zillow is launching a home-buying program in Riverside and San Bernardino counties.
Zillow Offers uses an algorithm to make a preliminary offer on a property listing within two days, aiming to resell the home within 90 days—"faster than the traditional flip," Khoury notes. The program already operates in eight U.S. markets, including Las Vegas, Phoenix, and Denver.
Redfin, Opendoor, and Owning are also among the so-called iBuyer companies that buy homes rapidly and sometimes sight unseen, typically in exchange for a lower price and a higher commission. By one estimate, they could represent 10 percent of home sales nationwide by 2021.
For bigger iBuyers like Zillow, Khoury reports, the model is based on the scale and speed of transactions, rather than on earning the most possible on any particular property. Other companies, like Opendoor, have partnered with major builders to ensure that potential homebuyers can sell off their old homes.
FULL STORY: Zillow will buy your home directly. And it just brought the service to Southern California
Zillow's 'iBuying' Algorithms Overpaid For Homes
After investing more than $1 billion in buying homes over the last few years, Zillow has ended its 'iBuying' experiment as anticipated profits fail to materialize.
Growing Real Estate 'iBuyer' Companies Raise Concerns
The troubling trend of buying and selling homes as an investment has some critics worried that it will contribute to an already overheated housing market.
U.S. Home Sales to Foreign Buyers Drop by Almost 10 Percent
International purchases of homes on the U.S. housing market slowed in the last year.
Trump Administration Could Effectively End Housing Voucher Program
Federal officials are eyeing major cuts to the Section 8 program that helps millions of low-income households pay rent.
Planetizen Federal Action Tracker
A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.
Ken Jennings Launches Transit Web Series
The Jeopardy champ wants you to ride public transit.
Driving Equity and Clean Air: California Invests in Greener School Transportation
California has awarded $500 million to fund 1,000 zero-emission school buses and chargers for educational agencies as part of its effort to reduce pollution, improve student health, and accelerate the transition to clean transportation.
Congress Moves to End Reconnecting Communities and Related Grants
The House Transportation and Infrastructure Committee moved to rescind funding for the Neighborhood Equity and Access program, which funds highway removals, freeway caps, transit projects, pedestrian infrastructure, and more.
From Throughway to Public Space: Taking Back the American Street
How the Covid-19 pandemic taught us new ways to reclaim city streets from cars.
Urban Design for Planners 1: Software Tools
This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.
Planning for Universal Design
Learn the tools for implementing Universal Design in planning regulations.
Heyer Gruel & Associates PA
Ada County Highway District
Institute for Housing and Urban Development Studies (IHS)
City of Grandview
Harvard GSD Executive Education
Toledo-Lucas County Plan Commissions
Salt Lake City
NYU Wagner Graduate School of Public Service