New data released by GowerCrowd led by Adam Gower reveals real estate crowdfunding was on the rise during the pandemic, and the number of crowdfunded deals as a percentage of all real estate transactions continues to increase. According to Gower’s research, in 2020 traditional capital-raising dropped from $51 billion to $48 billion, nearly a 6 percent decrease in activity. Alternately, during the same year, crowdfunded deals more than doubled, increasing from $7 billion in 2019 to $15 billion in 2020.

“Over the past several years, crowdfunding has grown much faster than traditional capital formation methods, posting positive gains even throughout the pandemic-induced economic downtown,” explains Gower. “Crowdfunding accounted for approximately 12 percent of all raises at the beginning of 2020, climbing to almost 25 percent by year-end. These significant figures confirm that crowdfunding is becoming a dominant factor in real estate finance, is resilient during periods of market volatility, brings liquidity when other sources of capital dry up and is a legitimate alternative to traditional sources of capital.”

This research is based on the analysis of more than 18,000 real estate projects.