Failed 2024
Divvy Homes
Rent-to-own fintech models collapse when interest rates spike and home prices decline.
Founded → Closed
2017 → 2024
Funding Raised
$735M
Industry
Real Estate/Fintech
Country
USA
IdeaProof AI Failure Score
68/100
Market Fit Risk
55
Burn Rate Risk
75
Founder Risk
25
Full Analysis
Divvy Homes offered a rent-to-own model: the company bought homes on behalf of customers who couldn't qualify for mortgages, renting to them with an option to buy. When interest rates spiked in 2022-2023, potential buyers couldn't afford to exercise their options. Home prices softened in some markets, leaving Divvy holding depreciating assets. The company sold its $1B+ portfolio at a loss and wound down by 2024.
Could This Failure Have Been Prevented?
IdeaProof's AI validates market demand, competitive positioning, and business model viability in minutes — catching the exact issues that sank Divvy Homes.