AI & Real Estate: The $25 Trillion Transformation

Practical Insights on Which Innovations Will Drive Value for Agents and Investors

June 30, 2025

Hello, real estate professionals. The global residential market is projected to more than double to $25.82 trillion by 2034, with AI playing a central role in this transformation — but not all AI investments will survive the journey.

With Gartner predicting 40% of AI projects will be scrapped by 2027 due to costs and unclear ROI, the question isn't whether AI will reshape real estate, but which applications will actually deliver results for agents and teams.

In today's AI rundown:

• Residential market to hit $25.82 trillion by 2034, AI driving growth
• AI transforms property searches and virtual management in 2025
• Multifamily investors leverage AI for smarter market insights
• 40% of AI projects face cancellation due to poor ROI
• Blox launches AI financial automation for property operators

LATEST DEVELOPMENTS

MARKET RESEARCH 📈 Residential market to hit $25.82 trillion by 2034, AI driving growth

The Rundown: The global residential real estate market is forecast to expand from $11.67 trillion in 2025 to $25.82 trillion by 2034, with AI transformations fueling much of this 9.23% annual growth rate.

The details: • Growth driven by urbanization, sustainable housing demand, and smart home technologies • AI enhances real estate assessment, forecasting, and client interaction capabilities • Virtual tours and marketing content creation powered by AI improve decision-making • Tech-savvy buyers increasingly attracted to properties with AI-enhanced features • Agents can optimize workflows through AI-powered tools for better customer engagement

Why it matters: This massive market expansion presents a clear opportunity for agents who adopt AI tools early. The data shows AI isn't just a nice-to-have — it's becoming essential for competitive advantage in a rapidly growing market.

TECHNOLOGY TRENDS 🏠 AI transforms property searches and virtual management in 2025

The Rundown: AI-powered platforms are revolutionizing residential real estate by making property searches faster and more personalized while automating key management tasks.

The details: • Advanced algorithms and voice assistants enable faster, more personalized property searches • Predictive analytics improve market forecasting for better agent and investor decisions • AI-driven chatbots handle tenant inquiries and automate rent payment processes • Smart building systems optimize energy usage and maintenance scheduling • Blockchain integration with AI enables streamlined transactions via smart contracts • Combined innovations help agents save time while growing their business

INVESTMENT INSIGHTS 💰 Multifamily investors leverage AI for smarter market insights

The Rundown: AI is revolutionizing multifamily real estate investment by providing real-time, actionable insights that improve decision-making and investment returns.

The details: • AI analyzes income trends, job markets, school quality, and supply-demand dynamics • Early identification of promising neighborhoods before they become obvious opportunities • Demographic and economic data analysis highlights rising rental demand patterns • Preferred amenities identification enables better property positioning • Rental pricing optimization based on comprehensive market data • Enhanced tenant retention strategies through data-driven insights

INDUSTRY WARNING ⚠️ 40% of AI projects face cancellation due to poor ROI

The Rundown: Gartner reports that over 40% of agentic AI projects will be scrapped by 2027 due to escalating costs and unclear business value, though adoption will still accelerate.

The details: • Agentic AI systems designed to autonomously complete goals lack maturity for complex business tasks • Rising implementation costs without clear return on investment driving cancellations • Despite challenges, 15% of daily work decisions will be AI-autonomous by 2028 • 33% of enterprise software will include agentic AI capabilities within three years • Real estate workflows present both challenges and growth potential for AI applications

Why it matters: This serves as a crucial reminder to focus on AI tools with proven ROI rather than jumping on every new technology. The survivors will be applications that clearly save time or increase revenue.

PRODUCT LAUNCH 🔧 Blox launches AI financial automation for property operators

The Rundown: Blox has launched an all-in-one AI platform designed for rental property operators to automate key financial tasks and increase net operating income.

The details: • Automates statement audits, refunds, payments, messaging, and dispute resolution • Pre-integrated with major property management systems like RealPage and Yardi • Centralizes operations to reduce manual workload for property managers • Focuses specifically on receivables tasks that typically consume significant time • Aims to increase NOI through improved operational efficiency

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