When does FinTech disrupt housing expenditures?

I just read an article on Techcrunch about a start-up who wants to make you able to sell a fractional ownership of your home.

That got me thinking. About two thirds of our income is spent on housing, transportation and food:

us-consumer-spending-2009-copyright-creditloan.com
Image credit Creditloan

Looking at transportation, we have quite some disruption in the making. Be it Uber which aims to become the marketplace between transportation demand and offerings. Be it Tesla, Google (and rumored Apple) which are working on driverless cars, essentially questioning on why we should own a car at all (after all, we need the car on average less than 4% of the day). With roughly a fifth of the average consumer’s paycheck going towards transportation IMHO consumers are ready to change their behavior if they can cut costs significantly.

Looking at food, we can also see quite some changes. Be it Amazon Fresh, taking the idea of Walmart (large supermarkets = less costs = lower prices = more consumers) to the next level, essentially cutting out the entire supermarket and delivering right from the warehouse to the consumer. Be it all delivery services, making any restaurant available at your fingertip.

But the largest chunk of our income is spent on housing – a staggering one third of our paycheck goes to housing on average. And nothing has really changed – you either pay a monthly rent or get a mortgage and buy a house. This is the largest monthly cash-out for any consumer and NOTHING has changed. OK, you might think of Nest as helping you cut utility cost but that is tiny compared to the huge potential. This is an industry ready for disruption as even small relative changes mean massive absolut savings for the average consumer.

Leave a Reply

Your email address will not be published. Required fields are marked *