Seattle-based Flyhomes announced another round of layoffs last week as the cooling real estate market continues to trouble industry startups.
The company said in a LinkedIn post that the cuts come “in the face of persistent and worsening industry headwinds which have prompted us to restructure our business to best meet the needs of our customers in a rapidly evolving real estate market.”
A Flyhomes spokesperson declined to answer questions, including how many jobs the company eliminated. Employees working in field operations and escrow posted on LinkedIn that they were laid off or affected by the cuts.
Started in 2016, Flyhomes promised to turn any home shopper into a cash buyer. The company provides short-term loans that allow buyers to offer all cash for homes, making them more competitive in a hot housing market.
The Flyhomes model was particularly suited to the frenzied market of 2020 and 2021. The company grew quickly after receiving $150 million in funding in the summer of 2021 and by early 2022 told the Puget Sound Business Journal it had 820 employees.
Since then, the housing market has shifted as interest rates have climbed but home prices haven’t fallen much, leaving fewer people able to bear higher monthly mortgage payments.
In that environment, buyers are facing fewer and less intense bidding wars and the ability to offer all cash is less crucial. Flyhomes has undergone several rounds of layoffs since the cooldown began, including cutting 20% of its staff in the summer of 2022.
Seattle-based Zillow and Redfin have also laid off workers as the market shifted in recent years. New York-based real estate firm Compass cut jobs last year, including 84 in Washington.
