Amazon Enters the Housing Arena

amazon mortgage

The real estate industry is booming with technological advancements, and Amazon seems to be jumping on the new opportunity. In this industry that has mostly remained the same in routine and process for over 50 years, consumers are beginning to demand a change. With most other industries streamlining their processes through easy clicks and phone apps, home buyers are wondering why they cannot complete their housing transactions with as little effort and human interaction as it takes to now order a pizza. While nothing notable has been implemented yet to replace agents, investments in real estate startups hit an all-time high this year, and big companies are keeping a close watch.

Amazon sells manufactured homes through third-party vendors and has considered offering home insurance in the near future. This could easily be Amazon’s way of dipping toes into the larger pool of possibilities, and this theory is supported by the company’s recent partnerships.  Amazon’s constant expansion of its artificial assistant, Alexa, has recently incorporated housing aspects. Partnered with Lennar, a home construction company, Amazon aimed to add smart devices controlled by Alexa to every prospective house in 2018. This included the recently acquired “Ring” app, which is a doorbell and security-camera system.

With continuing focus on voice technology, Amazon also recently partnered with Plant Prefab — a home manufacturing company specializing in sustainable construction and materials. Plant Prefab hopes to use Amazon’s technology to build houses more quickly and efficiently, as well as reduce cost for both the builder and buyer.  Since Amazon, one of America’s most successful companies, has great potential to further disrupt the real estate industry and housing market, it’s no surprise that real estate-based tech startups are jumping to fulfill customer needs.