Knock Knock. Who's There? Opendoor.

Residential real estate is a massive market ($1.6 trillion annually) with low customer satisfaction and an inconsistent experience (28% of realtors do the job part time). Opendoor’s model has five tailwinds at its back:

The startup graveyard is filled with companies led by entrepreneurs who realized that the way we buy and sell homes sucks, but couldn’t ultimately figure out how to change it. They weren’t thinking big or long-term enough. The companies that have made the biggest impact, like Zillow and Redfin, make it easier to search for houses, but then kick buy... See more

Zillow uses agents and Opendoor sells homes itself. Because of that, Zillow has structurally higher costs, and it can’t collect the kind of data that Opendoor can, like how many visits it takes to sell a house in a particular microneighborhood.

Sellers enter their address, answer some questions, and receive an offer instantly.

The Fed signaled that it will keep interest rates near zero at least through 2023

Opendoor is executing impressively and intelligently on its original plan.

Rising state taxes and elimination of SALT deductions are motivating people to move

WFH is here to stay, so people are moving to higher quality-of-life cities

Fair, Opendoor has yet to face a real downturn, but it’s actually better positioned than competitors or individual home sellers if it does, for a few reasons: