Fathom Holdings Inc. (FTHM): PESTLE Analysis [Nov-2025 Updated]

You're trying to navigate the choppy waters of the 2025 real estate market, and for Fathom Holdings Inc. (FTHM), the game has defintely changed. The biggest forces are the legal earthquake from the National Association of Realtors (NAR) commission settlement and the persistent economic headwind of mortgage rates sitting near 7.0%. Fathom's agent-centric, low-fee model is perfectly positioned to capture agents fleeing traditional brokerages, but they must execute their technology strategy, especially with the proprietary intelliAgent platform, to turn this industry disruption into profitable scale.

Fathom Holdings Inc. (FTHM) - PESTLE Analysis: Political factors

The political landscape in 2025 presents Fathom Holdings Inc. (FTHM) with a mix of tax certainty and regulatory complexity. The most significant near-term action is the federal government's move to permanently lock in key tax deductions, which stabilizes the demand side of the housing market. But, you still have to navigate a patchwork of local zoning reforms and a sharp rise in state-level consumer protection laws, especially those targeting technology platforms.

Shifting federal housing policy impacting mortgage interest deductions.

Federal tax policy, after months of uncertainty, has provided a clear runway through a major legislative act signed in July 2025. This bill permanently secured the current limits on the Mortgage Interest Deduction (MID), which was set to expire under the Tax Cuts and Jobs Act (TCJA) of 2017. For most filers, the maximum home acquisition debt eligible for the deduction remains at $750,000, or $375,000 for those Married Filing Separately. This removes a major overhang for high-value markets, giving buyers confidence that a key tax benefit won't suddenly revert to the pre-TCJA limit of $1 million.

Also, the State and Local Tax (SALT) deduction cap was temporarily increased to $40,000 for tax years 2025-2029 for taxpayers under certain income thresholds. This is defintely a boon for Fathom's agents in high-tax states like New York, New Jersey, and California, as it effectively lowers the cost of homeownership for affluent clients who itemize their deductions. Here's the quick math: a higher SALT deduction means more net disposable income for a buyer, which can support a larger mortgage payment, increasing their buying power.

Federal Tax Policy Factor (2025)	Pre-2025 Expiration Risk	New Policy (Signed July 2025)	Impact on Homebuyer Demand
Mortgage Interest Deduction (MID) Cap	Revert to $1 million	Permanently set at $750,000	Stabilizes high-end market demand; removes uncertainty.
State and Local Tax (SALT) Deduction Cap	Revert to $10,000	Temporarily raised to $40,000 (2025-2029)	Increases purchasing power in high-tax states for itemizers.
Mortgage Insurance (MI) Deductibility	Expired after 2021	Permanently restored starting 2026	Future boost for first-time buyers using low-down-payment loans.

Local government zoning regulations slowing new housing supply.

While federal policy helps demand, local zoning remains the primary bottleneck for new supply, which is critical for Fathom's transaction volume growth. The national housing deficit is estimated to be nearly 4 million homes, and restrictive 'exclusionary zoning' is the main culprit. This is a local problem, but the political movement to reform it is gaining speed.

We are seeing tangible results from pro-density policies in key markets. For example, in Sarasota, Florida, easing restrictions on higher-density developments saw the average monthly rent drop from $3,290 to $1,886 between January 2024 and January 2025. That's a huge affordability shift. Also, states like Colorado have mandated that 31 municipalities zone for high-density residential development near transit stops. This push for Accessory Dwelling Units (ADUs) and 'missing middle' housing types increases the inventory of lower-priced homes, expanding Fathom's addressable market of first-time and entry-level buyers. One clean one-liner: Local zoning reform is the new federal housing policy.

Potential for increased state-level consumer protection laws in real estate.

The biggest political risk for Fathom, given its technology-driven model and proprietary intelliAgent platform, comes from the surge in state-level consumer protection laws, especially those targeting technology and data. New York State, for instance, began enforcing the Algorithmic Pricing Disclosure Act in November 2025. This law requires businesses to disclose when personal data is used by an algorithm to set prices, carrying civil penalties of up to $1,000 per violation.

This trend impacts Fathom's ancillary services, particularly title and mortgage, and how their agents use data for client pricing and marketing. The focus is on transparency and eliminating 'junk fees.' In New York City, the FARE Act prevents landlords from passing brokerage fees to tenants, a direct political action to lower consumer costs. Fathom must ensure its technology and agent practices are compliant with these evolving state-by-state rules:

• Audit all platform algorithms for compliance with New York's new disclosure act.
• Review all service fees to eliminate any that could be classified as 'junk fees' under proposed state legislation.
• Train agents on new state-level fair housing and criminal history screening laws (e.g., New York's Fair Chance Housing Act).

Geopolitical stability affecting foreign investment in US real estate assets.

Geopolitical stability directly influences foreign capital flows into the US housing market, a key driver in high-cost coastal and Sun Belt markets where Fathom operates. The data is mixed, reflecting global uncertainty. The National Association of Realtors (NAR) 2025 report showed a significant surge, with the dollar volume of foreign buyer residential purchases increasing by 33.2% over the prior year, totaling $56 billion.

However, this growth is selective. Geopolitical tensions, particularly with China, have led to a notable pullback from certain foreign investors. For instance, the US commercial real estate (CRE) market saw foreign investment flows hit their lowest level since 2011 in 2024. Still, the US remains a financial safe harbor, and investors from allied nations are viewing the current climate as an opportunity to acquire assets for lower prices due to the strong US dollar, which makes properties less affordable for foreign buyers.

This means Fathom's agents in markets like Florida, Texas, and California need to be keenly aware of shifting capital sources, particularly the continued strong demand from Latin American buyers, who accounted for 28% of all US property purchases by foreign buyers in the 2025 NAR report.

Fathom Holdings Inc. (FTHM) - PESTLE Analysis: Economic factors

High US Federal Reserve interest rates keeping mortgage rates elevated near 7.0%

You need to look past the Fed Funds Rate (the rate banks charge each other) and focus on the 30-year fixed mortgage rate, which is the real headwind for Fathom Holdings Inc. The Federal Reserve's restrictive policy has kept the cost of borrowing high, even with a few rate cuts in 2025. The 30-year fixed mortgage rate peaked at over 7% in early 2025, hitting 7.05% in January. While forecasts suggest a slight easing, rates are expected to remain elevated, with most projections for the end of 2025 settling in the mid-six percent range, such as the Mortgage Bankers Association's forecast of 6.4% for Q4 2025. This rate environment is a massive drag on transaction volume.

The core problem is the affordability squeeze. A buyer financing the median-priced home at a 6.5% rate pays significantly more monthly than one at a 4.0% rate, effectively locking out many first-time buyers and discouraging current homeowners with low rates from selling. Fathom Holdings Inc.'s brokerage model, which relies on high transaction volume, must contend with this reduced market activity.

• Mortgage Rates: Expected to end 2025 between 6.3% and 6.7%.
• Fed Funds Rate: Projected to be in the 3.75%-4.00% range by late 2025.
• Impact: High rates reduce new purchase volume, shifting focus to ancillary services.

Persistent housing supply shortages driving median home prices up

The housing market remains fundamentally supply-constrained, which is a mixed bag for a brokerage firm. On one hand, it keeps home prices from collapsing; on the other, it limits the number of transactions. The national median list price was still high at $405,967 as of October 31, 2025, and the median sale price was $368,300 in September 2025. This is not a buyer's market, but it's defintely not a deep recession either.

The inventory of existing homes for sale remains near record lows, around 1.37 million units as of October 2025. This shortage means that even with high rates, home prices are still rising, albeit slowly. J.P. Morgan Research projects US home prices to rise by 3% overall in 2025. This price appreciation helps Fathom Holdings Inc.'s gross commission income per transaction, but the low volume is the primary constraint. You can't make a commission on a house that isn't listed.

Inflationary pressures increasing operational costs for brokerage firms

While headline inflation is moderating, the cost of doing business is still rising, especially for service-based companies like Fathom Holdings Inc. The US annual CPI inflation rate was 3.0% in September 2025, but the costs that hit a brokerage firm-like technology, marketing, and administrative support-are increasing faster.

For service firms generally, expected cost increases are running at a 5.7% pace in 2025. Here's the quick math: if Fathom Holdings Inc.'s General and Administrative expenses, which were already a focus area, continue to rise, it eats directly into their margin, even if revenue grows. They did a good job reducing their GAAP net loss to $5.6 million in Q1 2025 from $5.9 million YoY, but sustained cost inflation makes the path to consistent profitability harder.

Metric	Value (2025 Data)	Implication for FTHM
US Annual CPI Inflation (Sept 2025)	3.0%	Increases general overhead and agent support costs.
Service Firm Expected Cost Increase (2025)	5.7%	Direct pressure on operating expenses and profitability.
Q1 2025 GAAP Net Loss	$5.6 million	Cost management is critical to achieve the EBITDA positive goal.

Volatility in the stock market impacting consumer confidence and large purchases

Stock market volatility acts as a direct headwind to consumer confidence, particularly for those who draw down investment accounts for a down payment or feel less wealthy due to portfolio declines. This uncertainty makes people hesitant about the largest purchase of their lives. Still, Fathom Holdings Inc. has shown resilience, with its Q2 2025 revenue jumping 36.1% to $121.4 million, driven by 12,710 transactions and a growing agent network of 14,981 agents.

The company's ability to grow its agent count by 22.6% in a tough market shows its low-fee model is attractive, but the overall economic climate limits the total addressable market. The key opportunity here is Fathom Holdings Inc.'s ancillary services (mortgage, title) which provide a hedge. For instance, in Q2 2025, title revenue surged 88% to $1.5 million, even as mortgage revenue decreased 10.8% to $3.3 million. That's a clear signal that diversification is working to stabilize revenue against market swings.

Finance: Track the monthly change in the S&P 500 and correlate it with Fathom Holdings Inc.'s agent recruitment rate by the 15th of each month.

Fathom Holdings Inc. (FTHM) - PESTLE Analysis: Social factors

Growing consumer preference for transparent, lower-cost real estate transaction models

You are seeing a clear, sustained shift in consumer behavior: the public is tired of opaque pricing and high, non-negotiable costs in real estate. This is a massive tailwind for Fathom Holdings Inc.'s (FTHM) flat-fee, high-commission-split model. The average closing costs alone now run around $4,661 nationwide, based on 2025 reports, and in some states, buyers can pay well over $13,000 just to close the deal.

Buyers and sellers are demanding transparency, especially around commissions and hidden fees. The landmark legal and regulatory changes in 2024 have only amplified this, making low-fee brokers a viable alternative for consumers looking to reduce home selling costs. Fathom's model, which charges agents a flat fee per transaction instead of a percentage, directly addresses this social demand for cost-efficiency and clarity, translating into a lower effective cost for the consumer.

Increased demand for digital-first, seamless home buying and selling experiences

The market is increasingly driven by a digital-native mindset. Consumers, especially younger generations, expect a seamless, end-to-end digital experience, from initial home search to closing. They want a single, integrated platform, not a fragmented process. This is where Fathom's proprietary intelliAgent technology platform is a key asset.

The demand isn't just for a good website; it's for integrated services. The company's strategy to grow its ancillary businesses-mortgage, title, and technology-is a direct response to this. For example, the title business saw revenue increase 28.6% to $1.8 million in the third quarter of 2025, showing that agents and clients are using these integrated services. A simple, tech-enabled transaction is defintely a competitive advantage right now.

Demographic shift of Millennial and Gen Z buyers entering the market

The demographic landscape is changing the market's demands, even if Baby Boomers currently represent the largest share of buyers at 42%. Millennials and Gen Z are the future, and their values-tech-savviness, a demand for transparency, and a focus on value-align perfectly with Fathom's model. Millennials (ages 26-44) still represent a significant 29% of recent home buyers in 2025, and younger Millennials are the primary engine for first-time home purchases, making up 71% of first-time buyers in their age cohort.

Gen Z (ages 18-25), while only 3% of buyers now, are highly motivated and will grow into the market, demanding eco-friendly homes and snazzy technologies. You need to look at the median age of the first-time buyer, which has climbed to a record 40, a clear sign of affordability challenges. This financial pressure makes a low-cost brokerage model even more appealing to this crucial, cash-strapped segment.

Here's the quick math on the younger generations' market share as of the 2025 NAR report:

Generation	Age Range (2025)	Share of Home Buyers (%)	Key Behavior
Younger Millennials	26-34	12%	71% are first-time buyers.
Older Millennials	35-44	17%	Highly educated, median income of $127,500.
Gen Z	18-25	3%	Most likely to be single female buyers (30%).

Agent migration toward lower-split, high-value brokerage models like Fathom's

The structural shift in the industry is driving agents away from the traditional 70/30 or 80/20 commission split models. The high cost of doing business, coupled with legal uncertainty, has accelerated agent movement dramatically in 2025. Reports show that brokerage models with a capped or revenue-share structure are attracting about 31% of top-producing agents.

Fathom's model-a low flat-fee per transaction with a high commission split-is directly capitalizing on this migration. The proof is in their operational metrics: Fathom's real estate agent network grew 24.1% year-over-year to approximately 15,371 agent licenses as of September 30, 2025. That's a strong vote of confidence from agents looking to keep more of their commission dollar. The company's low agent turnover rate of about 1% per month also indicates strong retention.

The value proposition for agents is simple:

• Keep more commission: Agents retain a significantly higher percentage of their earnings.
• Access integrated tech: Use the intelliAgent platform and ancillary services.
• Gain professional support: Benefit from programs like Elevate, which is targeting over 300 onboarded agents by year-end 2025.

This agent migration is not just a trend; it's a structural realignment that is funneling talent and transaction volume directly toward low-fee, tech-enabled models.

Fathom Holdings Inc. (FTHM) - PESTLE Analysis: Technological factors

Integration of Artificial Intelligence (AI) for lead generation and agent support

The push into Artificial Intelligence (AI) is defintely a core opportunity for Fathom Holdings Inc. in 2025, moving beyond simple automation to sophisticated lead qualification. You see this directly in their Real Results lead program, which was launched in November 2025 and utilizes conversational AI to engage and vet potential clients. This isn't just a nice-to-have; it's a necessary market response. Industry data shows that AI-powered real estate lead nurturing is a rapidly expanding market, projected to grow from $1.58 billion in 2024 to $1.94 billion in 2025, representing a Compound Annual Growth Rate (CAGR) of 23%.

The goal here is simple: drive agent productivity. AI-powered chatbots, for instance, can enhance lead generation by as much as 33%. For Fathom, integrating this AI directly into their proprietary platform helps agents focus on high-intent clients, which should boost their ancillary business attachment rates for mortgage and title services. About 75% of top U.S. brokerages already use AI tools regularly, so Fathom is playing catch-up in adoption, but their strategic integration is smart.

Need for continued investment in the proprietary intelliAgent platform

The intelliAgent platform is the central nervous system of Fathom Holdings Inc.'s entire business model, and the need for continuous investment is non-negotiable. The platform earned recognition as a 2025 HousingWire Tech100 Real Estate honoree, validating its current feature set. This year, the company's Technology and development expenses for Q2 2025 were $1.8 million, a clear increase from $1.5 million in Q2 2024, showing a commitment to platform enhancement.

The platform's strategic value is now extending beyond their internal agents into a Software-as-a-Service (SaaS) licensing model. Fathom is actively accelerating this strategy, targeting licensing to approximately 18,000 small brokerages. They successfully implemented their first licensing agreement with Sovereign Realty Partners in Q2 2025. This licensing effort is a direct play to diversify revenue, as the technology segment already saw an 18% increase in revenue in Q3 2025. It's a high-margin opportunity, but it requires sustained, heavy investment to keep the platform ahead of competitors like Zillow and Compass.

Expansion of virtual and augmented reality for property tours and remote closings

While Fathom Holdings Inc. hasn't publicly detailed its 2025 VR/AR deployment, the industry pressure to adopt these immersive technologies is immense. The market for Augmented Reality (AR) and Virtual Reality (VR) in real estate is projected to hit $80 billion by 2025 globally. This is where you find a clear opportunity for a technology-driven company like Fathom.

The consumer preference shift is already here, with 77% of clients having a strong preference for viewing virtual tours before committing to a physical visit. Listings that feature VR tours are seeing up to 87% more views. The global market value of VR in real estate alone is projected to reach $2.6 billion by 2025. Expanding virtual tours and remote closing capabilities is not just about convenience; it is a critical tool for agent recruitment and transaction speed.

Here's the quick math on the market opportunity:

Metric	2025 Projected Value	Impact on Real Estate Listings
AR/VR Market in Real Estate	$80 billion	N/A
VR in Real Estate Market Value	$2.6 billion	N/A
Client Preference for Virtual Tours	77%	Listings get up to 87% more views

Cybersecurity risks requiring defintely more spending on data protection

The flip side of a technology-centric model is the escalating cybersecurity risk, which requires defintely more spending. As Fathom Holdings Inc. integrates more systems-brokerage, mortgage, title, and SaaS-the attack surface expands significantly. Real estate companies are particularly vulnerable due to the intricate network of third-party vendors and a highly mobile agent workforce.

The financial stakes are high: the estimated cost of the average data breach is $3.3 million. Furthermore, the same Generative AI that powers Fathom's lead generation is also being weaponized by hackers; 67% of security leaders state that GenAI has increased their attack surface over the last year. This is a material risk that demands immediate attention.

• Budget Pressure: 77% of organizations globally expect their cyber budget to increase over the next year.
• Top Investment Priority: Data protection and data trust are a top cyber investment priority for nearly half of business leaders.
• Risk Vector: The high volume of field-to-office communication and payment transactions creates a playground for phishing and social engineering attacks.

Fathom must allocate a larger portion of its capital to proactive security measures, not just reactive ones, to protect its agent and client data, or face substantial litigation and reputational damage.

Fathom Holdings Inc. (FTHM) - PESTLE Analysis: Legal factors

The definitive impact of the National Association of Realtors (NAR) commission settlement in 2025.

The National Association of Realtors (NAR) commission settlement, which gained final approval in late 2024, has fundamentally reshaped the legal landscape for Fathom Holdings Inc. in 2025. Fathom Realty, a key subsidiary, reached its own nationwide settlement in the Burnett class-action lawsuit, agreeing to a total payment of $2.95 million to resolve all related antitrust claims. This was a pragmatic move to avoid the ongoing cost and distraction of litigation.

A crucial payment of $500,000 is scheduled for on or before October 1, 2025, following an initial payment made upon court approval. The biggest operational change is adherence to the new rules, which prohibit offering buyer broker compensation on the Multiple Listing Service (MLS). This change, combined with Fathom's existing flat-fee model-where agents pay a low transaction fee and keep nearly 100% of their commission-positions the company well to adapt, as its agents are already incentivized to negotiate competitive fees.

The initial market data for Q1 2025 shows the average buyer's agent commission at 2.4%, a slight increase from 2.37% in Q4 2024, but still lower than the 2.43% from Q1 2024, demonstrating a slow but definite shift in the commission structure.

Increased scrutiny on broker-agent independent contractor agreements.

The classification of real estate agents as independent contractors, rather than employees, remains a high-stakes legal risk for all brokerages, including Fathom Holdings Inc. The company's 10-K filing (March 2025) explicitly notes its exposure to Internal Revenue Service (IRS) regulations and state law guidelines on this matter, which are subject to constant judicial and agency interpretation.

For a high-growth, technology-driven brokerage like Fathom, whose agent network expanded by 22.8% to approximately 14,715 agent licenses as of March 31, 2025, any misstep in the independent contractor agreement model could result in massive back-tax liabilities, penalties, and mandated benefits payments. This risk is compounded by the ongoing threat of litigation, including class-action lawsuits related to employment law and agent misclassification.

Here's the quick math: if a significant portion of those 14,715 agents were reclassified, the financial impact would be catastrophic. The company must defintely ensure its contracts and operational control-or lack thereof-align perfectly with the strict, multi-factor tests used by various state and federal agencies.

State-specific licensing and continuing education requirements for agents.

Operating across 43 states plus the District of Columbia means Fathom Holdings Inc. must manage a complex web of state-specific licensing and Continuing Education (CE) requirements, which are actively changing in 2025. These regulatory shifts create an administrative burden and a compliance risk for a national brokerage.

Key 2025 state-level changes that impact agent compliance include:

• Maryland: Effective October 1, 2025, the mandatory Fair Housing CE increases from 1.5 to 2 hours.
• Georgia: New Broker Education Requirements mandate up to 18 hours of Broker classes for certain renewals starting July 1, 2025.
• Illinois: Core CE hours for Brokers/Managing Brokers increased from 4 to 6, with 2 hours dedicated to Fair Housing, effective January 1, 2025.
• Ohio: Pre-licensing education for salespersons decreased from 120 to 100 hours as of April 9, 2025, making agent recruitment easier but requiring updated training materials.

These changes require constant, granular updates to Fathom's agent training and compliance systems, intelliAgent, to avoid license lapses or fines. Staying on top of 50 different rule sets is a full-time job.

Antitrust litigation risk remains high for large, traditional brokerages.

While Fathom Holdings Inc. settled its portion of the commission lawsuits for $2.95 million, the broader antitrust litigation risk for the industry remains elevated in 2025. The core issue-the lack of genuine commission competition-is still being scrutinized.

The Department of Justice (DOJ) has maintained an active interest, indicating in early 2025 that certain provisions of the NAR settlement might still violate antitrust laws. This ongoing scrutiny means that any brokerage, particularly those with a large market share or those perceived as not fully embracing the new pro-competitive rules, remains a target for follow-on litigation.

The risk is not just about commissions; it extends to any anti-competitive behavior. The continued vulnerability stems from reports that some agents are still hesitant to negotiate compensation, with a recent Consumer Policy Center study finding that agents often still ask for 2.5-3% of a home's final sale price. This persistence of old habits keeps the legal door open for plaintiffs' attorneys. Fathom's flat-fee model is its best defense, as it inherently promotes agent-level competition, but its rapid growth means it must be meticulously compliant to avoid being dragged into the next wave of suits.

Fathom Holdings Inc. (FTHM) - PESTLE Analysis: Environmental factors

The environmental landscape is no longer a fringe concern; for a technology-driven real estate platform like Fathom Holdings Inc., it's a core operational and market factor in 2025. You need to see this as a clear-cut opportunity to differentiate. The shift toward green properties and digital-first operations is moving fast, but the rising cost of climate risk insurance is a serious headwind, especially in your high-growth markets like Florida and Texas. We need to map your digital advantage against these physical risks.

Growing demand for energy-efficient and green-certified residential properties

The demand for green homes is defintely past the tipping point, driven by both consumer preference and clear financial incentives. Younger buyers, particularly Millennials and Gen Z, are prioritizing eco-friendly features, and the market is responding with higher valuations for certified properties. For example, homes built to LEED standards have shown an 8% boost in resale value. This is a massive signal to your agents.

Here's the quick math on why buyers are pushing this trend: a new green building offers average operating cost savings of 10.5% in the first year alone, which climbs to 16.9% over a five-year period. This directly impacts a homeowner's cash flow, making it a powerful selling point for your agents. The U.S. Green Building Market reflects this, projected to grow at a Compound Annual Growth Rate (CAGR) of 10.13% between 2025 and 2032.

Fathom Holdings, with its agent-centric model, needs to provide tools that highlight these green financial benefits. Nearly three-quarters of homebuyers, 73%, already prioritize energy efficiency, so this isn't a niche conversation anymore.

Green Home Financial Impact (2025)	Value/Metric	Source of Value
Increased Asset Value (New Green Buildings)	Over 9%	Higher market appeal, lower operating costs
First-Year Operating Cost Savings	10.5%	Energy-efficient systems, smart tech
Resale Value Boost (LEED Certified)	8%	Certification premium

State-level mandates for carbon emission reduction in new construction

While Fathom Holdings is a brokerage, not a developer, state and local mandates on carbon emissions directly affect the inventory your agents sell. These regulations are getting much stricter, moving from voluntary guidelines to mandatory Building Performance Standards (BPS) in major metropolitan areas. For instance, New York City's Local Law 97 (LL97) is one of the most ambitious, requiring buildings over 25,000 square feet to meet strict carbon limits aimed at a 40% reduction by 2030 compared to 2005 levels.

The key takeaway here is that compliance is becoming a major factor in commercial and multi-family property value. Even for residential sales, the trend is toward all-electric new construction, driven by 'clean building equipment standards' in states like California, New York, and Washington. Though Fathom's estimated full-year 2025 revenue of $424.23 million is below the $1 billion revenue threshold for proposed state-level corporate carbon reporting laws in states like New York and Colorado, the regulatory direction is clear: transparency on environmental impact is coming for everyone.

Increased insurance costs due to climate-related weather events

This is a critical near-term risk that directly impacts affordability and, therefore, transaction volume. The frequency and severity of climate-related weather events are driving property insurance costs to historic highs, especially in coastal and wildfire-prone regions where Fathom is active. The average annual property insurance payment for single-family mortgage holders advanced to nearly $2,370 per year in the first half of 2025, consuming almost one in every ten dollars spent on average mortgage-related costs.

The regional spikes are even more alarming. In California, the average annual premium is expected to increase by approximately 21% in 2025, approaching $3,000. In high-risk areas like Miami-Dade County, the average premium is already around $6,000 annually. This is forcing a change in buyer behavior: a survey from August 2025 showed that more than a third (33.7%) of prospective and recent buyers had to change the geographic area of their home search due to insurance challenges.

• Average U.S. Homeowners Policy Cost (2024): $2,801 (up 40%+ from 2019)
• California 2025 Premium Increase Projection: 21% (approaching $3,000 average)
• Miami-Dade County Average Premium: $6,000 per year

Focus on paperless transactions to reduce environmental footprint

Fathom Holdings' technology-driven, agent-centric model already has a natural advantage here. Your platform, built around the proprietary intelliAgent software, is inherently aligned with the industry's push for paperless transactions, which drastically reduces the environmental footprint associated with printing, shipping, and storing physical documents. The entire real estate sector is accelerating its digital transformation, with 81% of real estate organizations planning to spend most of their 2025 budget on data and technology.

The PropTech (property technology) sector, which includes solutions for digital contracts and closings, is projected to grow at a CAGR of 11.9% between 2025 and 2032. By facilitating virtually signed contracts and automated processes, Fathom is not just being environmentally responsible, but it is also increasing agent efficiency. This digital backbone is a competitive edge, allowing your agents to close deals faster while minimizing the paper trail, which is a tangible environmental benefit you can market to eco-conscious clients.

Finance: Draft a risk exposure map by state, cross-referencing Fathom's transaction volume with the latest 2025 home insurance premium data by Friday.