Struggles Mount for Proptech Startups Divvy Homes and EasyKnock

Struggles Mount for Proptech Startups Divvy Homes and EasyKnock
Divvy Homes and EasyKnock, once promising proptech startups, are facing significant challenges in the current high-interest-rate environment. Investment in U.S. real estate startups plummeted from $11.1 billion in 2021 to $3.7 billion last year. Divvy Homes is reportedly being acquired by Maymont Homes, while EasyKnock has abruptly shut down following multiple lawsuits. Both companies, which operated on similar rent-to-own models, struggled under the weight of rising interest rates and mounting debt. Analysts expect further difficulties for the real estate fintech sector in 2025.