News Summary

The proptech sector, once buoyed by low-interest rates, is now experiencing significant challenges. Notable startups such as Divvy Homes and EasyKnock are among the latest to face difficulties. Divvy Homes, a rent-to-own startup, is in talks to be acquired by Maymont Homes, a division of Brookfield Properties, amidst a backdrop of staff layoffs and financial strain. The company, which raised over $700 million in funding, has been impacted by rising interest rates which hindered its business model of purchasing and renting homes. EasyKnock, on the other hand, has shut down operations following legal challenges and an FTC alert regarding its sale-leaseback model. The startup, which raised $455 million, faced allegations of deceptive practices and was ultimately unable to sustain its operations under the burden of debt and high-interest rates. These developments highlight the ongoing struggles within the real estate fintech space, exacerbated by the current economic environment.