Technology Implementation Now a Top Challenge for Real Estate Leaders, NAA Research in Partnership with AppFolio Finds

Rhea-AI Summary

AppFolio (NASDAQ:APPF) and the National Apartment Association released the 2025 Performance Ecosystem Report based on a survey of 1,984 industry professionals (July 16–Aug 4, 2025).

Key findings: 66% of leaders' time is on routine operational work, while only 17% goes to stakeholder engagement and 16% to strategic work; respondents would prefer 26% strategic and 23% stakeholder time. Implementing new technology entered the top three industry challenges. AI use is widespread: 53% use general AI, 43% use embedded AI, and 77% report performance improvements. 67% favor consolidating data into a single platform to improve performance.

Positive

• 66% of leaders report time spent on routine operational work
• 77% of companies report overall performance improvements from AI
• 53% use general-purpose AI and 43% use embedded AI features
• 67% agree consolidating data into a single platform is key

Negative

• Implementing new technology rose into the top three industry challenges
• Only 16% of leaders currently spend time on strategic, performance-driven work
• Industry remains largely reactive with a 10-point gap between ideal and actual strategic time

Key Figures

Survey respondents 1,984 professionals NAA survey fielded July 16–August 4, 2025

Routine operational work 66% Share of leaders’ time spent on routine/reactive work

Stakeholder engagement time 17% Current allocation of leaders’ time

Strategic work time 16% Current allocation of leaders’ time

Ideal strategic time 26% Desired allocation to strategic, performance-driven work

Ideal stakeholder time 23% Desired allocation to stakeholder engagement

Performance improvements 77% of companies Report overall performance gains, largely driven by generative AI

Single-platform preference 67% of leaders Agree consolidating data into one platform improves performance

Market Reality Check

$233.57 Last Close

Volume Volume 197,604 is in line with the 20-day average of 200,978 (relative volume 0.98). normal

Technical Shares at $233.57 are trading below the 200-day MA of $239.70, and about 28.36% under the 52-week high.

Peers on Argus

Peer software names show mixed moves: PCOR up 1.04%, TTAN up 1.92%, while DAY, MANH, and PAYC are modestly negative. APPF’s slight gain of 0.43% appears more stock-specific than part of a broad sector swing.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 04	Investor meeting notice	Neutral	-0.6%	Announced Nov 18 investor meeting and strategy presentations via webcast.
Oct 30	Q3 2025 earnings	Positive	-1.2%	Reported 21% revenue growth with strong cash generation but lower margins.
Oct 20	Awards announcement	Positive	+2.1%	Recognized FUTUREist Award winners and a $75,000 charitable donation program.
Oct 16	Earnings call scheduling	Neutral	-2.3%	Set date and access details for Q3 2025 results conference call.
Oct 14	AI platform launch	Positive	+0.9%	Introduced AI-based Performance Platform and Realm-X Performers with user outcomes.

Pattern Detected

Recent news, including strong growth and AI/product updates, has often been met with flat to mildly negative next-day moves, suggesting investors react cautiously even to constructive headlines.

Recent Company History

Over the past few months, AppFolio has combined product innovation with active investor engagement. The AI-native Performance Platform and Real Estate Performance Management launch on Oct 14, 2025 highlighted measurable operating benefits. Q3 2025 results on Oct 30 showed strong revenue and cash flow, though margins compressed. Conference and investor-day announcements in October–November focused on strategy communication. The current NAA partnership research extends this narrative by emphasizing platform adoption and AI-driven performance in property management.

Market Pulse Summary

This announcement, based on a survey of 1,984 industry professionals, underscores that technology implementation and AI-native platforms have become central challenges and opportunities in property management. It reinforces AppFolio’s Real Estate Performance Management focus and highlights that 77% of companies report performance gains from generative AI, while 67% of leaders favor single-platform data consolidation. Investors may watch how quickly these preferences translate into deeper platform adoption and measurable financial outcomes.

Key Terms

generative AI technical

"With 77% of companies already reporting overall performance improvements – largely driven by generative AI –"

Generative AI is a type of computer technology that can create new content, like text, images, or music, on its own. It’s important because it can produce realistic and useful material quickly, which could change how we create art, write stories, or even develop new products. Think of it as a smart robot that can invent and produce things almost like a human.

agentic AI technical

"Widespread adoption of agentic AI capable of executing complex workflows is poised"

Agentic AI refers to computer systems that can make their own decisions and take actions without needing someone to tell them what to do each time. It's like giving a robot a degree of independence to solve problems or achieve goals on its own, which matters because it could change how we work and interact with technology in everyday life.

workflow technical

"agentic AI capable of executing complex workflows is poised to take these gains even further."

A workflow is the step-by-step set of tasks and handoffs people or systems follow to complete a business activity, like processing a loan, approving a drug trial stage, or publishing a report. Think of it as an assembly line or a recipe that ensures each step happens in the right order and with the right checks. Investors care because effective workflows speed up delivery, reduce errors and compliance risk, and make results more predictable and scalable.

AI-generated analysis. Not financial advice.

New report offers insights to drive performance across staff, residents, owners, and investors

SANTA BARBARA, Calif., Dec. 10, 2025 (GLOBE NEWSWIRE) -- AppFolio (NASDAQ:APPF), the technology leader powering the future of the real estate industry, in partnership with the National Apartment Association (NAA), today released the 2025 Performance Ecosystem Report, revealing critical insights into the challenges and opportunities shaping property management performance. Surveying nearly 2,000 real estate industry professionals, the report is a wake-up call for operators, highlighting the risks of not adapting to change.

While operational efficiency and maximizing financial performance consistently remain top challenges reported, for the first time, real estate professionals stated that implementing new technology and innovation has risen into the top three challenges (surpassing HR/Recruitment/Staffing). This suggests that operators are struggling with their current tools, signaling that a fundamental shift to a new, platform--driven approach is essential for success.

This shift comes as property management professionals spend most of their time on task-based operations that keep the business running but prevent them from focusing on growth.

The report reveals a significant time allocation imbalance among leaders, heavily favoring immediate demands.

The Problem: Leaders spend the majority of their time on:

• Routine Operational and Reactive Work: 66%
  

The Opportunity: Only a third of their time is dedicated to high-value activities:

• Stakeholder Engagement: 17%
• Strategic, Performance-Driven Work: 16%

Yet, when asked how they would ideally like to spend their time, respondents revealed a clear aspiration to focus on strategic, performance-driven work (26%) and stakeholder engagement (23%).

This gap highlights that the industry remains largely reactive, confirming the “efficiency trap” AppFolio has consistently identified. The findings validate the need for a new discipline to help the property management industry drive real performance for all stakeholders, which AppFolio refers to as Real Estate Performance Management.

“This report reinforces our belief that the industry needs a better way to drive performance in the new real estate era," said Stacy Holden, Vice President, Industry Principal at AppFolio. "When your platform can reliably do the work with you, with AI as a core building block, your teams can move into the foreground to manage relationships and create value that helps your entire ecosystem thrive.”

Falling Short of AI’s Full Potential

AI adoption is widespread, however, its full potential to generate strategic value for property managers remains largely untapped. There is a clear opportunity for property managers to embrace AI-native technology that creates a unified experience and drives true performance:

• The majority of respondents use general-purpose AI tools (53%) like ChatGPT and Gemini, and 43% use AI features embedded in their property management software.
• With 77% of companies already reporting overall performance improvements – largely driven by generative AI – the industry is seeing the beginning of what is possible. Widespread adoption of agentic AI capable of executing complex workflows is poised to take these gains even further.

“This new report from the National Apartment Association (NAA), in partnership with AppFolio, confirms that the largest threat to property performance today isn’t demand, it's operational strain,” said NAA President and CEO Bob Pinnegar. “At such a crucial time for our industry – where property teams are being asked to operate more strategically than ever – this timely analysis sheds light on constraints like staffing challenges, fragmented systems and reactive workflows. Long-term performance will depend on how well the industry aligns teams, technology and the customer experience, and we are grateful for the opportunity to work with AppFolio to analyze and leverage these insights to address challenges moving forward.”

The report's findings underscore the real estate industry's need for more integrated systems that eliminate internal hurdles and empower teams to shift their focus from low-value tasks to high-impact growth. With 67% of leaders agreeing that consolidating data into a single platform is key to improving performance, the path forward is clear. By automating entire workflows with agentic operations like Realm-X Performers and transforming key moments like the move-in process with Resident Onboarding, AppFolio’s Performance Platform helps property managers close the gap between managing tasks and driving real performance. This empowers operators to unlock new levels of success for residents, owners, and their business – all through a unified experience.

Explore the top trends defining today’s rental landscape and download the 2025 Performance Ecosystem Report.

Survey Methodology
The National Apartment Association (NAA), sponsored by AppFolio, surveyed 1,984 industry professionals between July 16 and August 4, 2025.

About AppFolio
AppFolio is the technology leader powering the future of the real estate industry. Our innovative performance platform and trusted partnership enable our customers to connect communities, increase operational efficiency, and grow their business. For more information about AppFolio, visit appfolio.com.

For more information, please contact:
AppFolio
appfolio@missionnorth.com

Photos accompanying this announcement are available at:

https://www.globenewswire.com/NewsRoom/AttachmentNg/6af3f4b4-a281-4f40-8fe7-b64703da6a7a

https://www.globenewswire.com/NewsRoom/AttachmentNg/15f5aed3-2d06-4a22-aff6-4f18cba2cbde

FAQ

What did AppFolio and NAA report in the 2025 Performance Ecosystem Report for APPF on Dec 10, 2025?

The report, based on a 1,984-respondent survey, found time-use imbalance (66% routine work) and rising tech implementation as a top-three challenge.

How widespread is AI adoption in property management according to the APPF 2025 report?

The report shows 53% use general-purpose AI, 43% use embedded AI features, and 77% report AI-driven performance improvements.

What percentage of leaders want to spend more time on strategic work per the APPF 2025 survey?

Respondents indicated they would ideally spend 26% of their time on strategic, performance-driven work.

Why does the APPF report recommend consolidating data onto a single platform?

67% of leaders agreed that consolidating data into one platform is key to improving performance and reducing fragmented systems.

How does the APPF report quantify the industry’s current focus on operational tasks?

The report states leaders currently spend 66% of their time on routine operational and reactive work.