Welcome to The Real Estate Venturist. Every other week, this newsletter will give you a behind-the-scenes look at what it’s like to be a real estate entrepreneur. As always, this is not investment advice and merely my opinion.

AI is already here

Artificial intelligence (AI) is suddenly everywhere. Whether you’re using ChatGPT, Grok, Claude, or Gemini, it’s clear these tools are powerful—and evolving fast. But it’s not just about clever responses or viral demos. AI is starting to reshape how we work, build, and solve problems.

Case in point: I don’t know how to write code, yet I used AI to build and launch a working iOS app. It’s a simple sleep timer—nothing fancy—but it solved a real problem for me when I couldn’t find what I wanted in the App Store*. With a combination of ChatGPT and Grok, I wrote the code, debugged it, and got it live. There were moments where AI got stuck or broke things that had just been fixed, but with better prompting, it eventually solved problems I couldn’t. I was genuinely amazed.

That experience was a wake-up call. It showed me how much leverage AI gives individuals. With the ability to solve problems and iterate quickly, small teams can do the work of many. In real estate, that opens the door to leaner firms, lower costs, and a new kind of competitive edge.

The Broader Impact

I’m not pivoting to life as an app developer. I did it for fun—and to prove it’s possible. If I can do it, so can you. I now believe that no software is safe from AI. If you don’t like the price or functionality of something, you can build your own version. If it’s good enough, you can sell it to others like you. And if your price is too high, someone else might replicate it and undercut you. This cycle will continue until the price of many types of software approaches zero.

Consumers win. Software companies don’t. Lower prices are great for users, but not for the people building and maintaining these products. It’s hard to justify high-salaried teams when AI can replicate so much. That has to make venture capital investing in software riskier than ever. Yes, some software is still too complex for AI to replicate—but that won’t last. AI is advancing quickly. We’re at the dawn of a massive shift, not only in technology, but a shift in what’s perceived as investible. If traditional SAAS startups are less valuable because of AI, will investment dollars move to assets like real estate?

What it means for real estate

Yes, this is still a real estate blog. And I’m excited about what AI can do for our industry.

From an operations standpoint, I see big potential in using AI to create personalized versions of tools we’re overpaying for. We can build more targeted, cost-effective software. Staffing for investment funds should also shrink. If AI can build an app, it can underwrite and summarize deals. And as overhead decreases, so will asset management fees—which benefits investors.

On the property management side, there are already useful AI tools. They can handle rent collection follow-ups, schedule tours, engage with prospects, optimize temperature settings, and suggest rent pricing. But full property management? Not yet. Eventually, I predict tenants will troubleshoot maintenance issues—like clogged toilets or air filter changes—with the help of AI and robotic assistants. Property operating costs will fall.

Countless jobs will be eliminated in the future as AI takes hold. But one thing won’t change: people still need places to live. Apartments (and other forms of housing) will remain a viable investment. Not all real estate will hold up, though. With smaller AI-enabled (and VR-enabled) teams, how much office space will companies really need? Expect another round of disruption in the office sector.

In contrast, I believe apartments will be more resilient. Lower costs and steady demand make them a safer bet.

Given the speed of AI’s ascent, I’d focus on the near-term: look for markets that stand to benefit from AI-driven growth and investments that AI can enhance. Apartments should be relatively insulated from AI’s disruptive effects and will likely benefit from reduced operating costs. As to markets, I’d keep an eye on tech hubs like the San Francisco Bay Area, Austin, Dallas, and Raleigh-Durham. The race toward AI dominance will require significant hiring and R&D investment—both of which support near-term rent growth in these regions.

[*Author’s note: it’s hidden, but the iPhone does have a native sleep timer.]