• These figures represent only real estate deals in the investment crowdfunding (Reg CF) space, where everyday (retail) investors directly fund physical properties and earn returns through rental income or property value increases. We excluded any deals for software platforms that primarily generate subscription-based revenue, as well as “lifestyle” businesses like restaurants, hotels, or movie theaters—since those investments hinge on food, beverage, or hospitality revenue, rather than income tied to real estate assets. 
  • In 2016, there were no recorded deals (n=0). By 2017, the first single deal (n=1) raised a modest $4,200. The total increased to $30,650 in 2018 (n=3), and then saw a substantial jump to $1.4 million in 2019 (n=2). 
  • Funding volumes climbed quickly from $4.86 million in 2020 (n=6) to $8.27 million in 2021 (n=12) and further to $9.21 million in 2022 (n=16). This period saw a rising number of deals and larger total capital commitments, indicating growing investor interest. 
  • After dipping to $3.91 million in 2023 (n=11), total funding rebounded sharply to $15.35 million in 2024 (n=29). This near-quadruple increase from the previous year, coupled with more than double the number of deals, underscores a renewed momentum in physical real estate crowdfunding.

 

From 2016 to 2024, the real estate market and the broader economy underwent several distinct phases that influenced how retail investors approached crowdfunding:

  • In the mid-2010s, the U.S. and global economies were still benefiting from post-recession recovery efforts. Low interest rates and a generally positive economic outlook fueled a slow but steady uptick in real estate investment activity. Crowdfunding was relatively new, so early adopters tested the waters with smaller deals, leading to modest fundraising totals. 
  • As the concept of real estate crowdfunding became more familiar, platforms attracted more participants, and deal sizes grew significantly. By 2019 and into 2020, low borrowing costs continued to make property acquisitions appealing. Even amid the initial economic uncertainty of the COVID-19 pandemic in 2020, many investors looked to real estate as a tangible asset class, which helped boost crowdfunding totals. Government stimulus measures and a search for yield in a low-rate environment likely contributed to the increase in capital flowing into real estate deals through crowdfunding. 
  •  In 2021, the momentum continued, supported by robust demand for housing and commercial space in certain sectors (e.g., logistics, warehousing). However, as the pandemic effects lingered and inflationary pressures mounted, central banks began raising interest rates into 2022. This shift led to higher borrowing costs and a degree of market caution, which became more evident in 2023, when the total funding dipped. Uncertainty around interest rates and economic growth may have made investors more cautious in committing capital. 
  • By 2024, the real estate market showed signs of stabilization, possibly due to moderating interest rates or a clearer economic outlook. The sharp rise in crowdfunding totals that year reflects investors’ regained confidence in real estate as a hedge against inflation and a means to earn consistent returns through rents and property appreciation. Platforms may have also refined their offerings, improving transparency and access, thus attracting a larger pool of retail investors.

Overall, the real estate crowdfunding sector has evolved alongside economic cycles, interest rate environments, and broader market sentiment. The data suggest that when economic conditions are stable or improving, investor enthusiasm for crowdfunded physical real estate projects grows. Conversely, periods of uncertainty or rising rates can cause a temporary pullback, although the long-term trend remains one of expansion and increased participation in this alternative investment avenue.