Last year was a record year for Opendoor — and the latest data suggests that 2022 may turn out to be even bigger. Find out more on how the iBuyer is driving growth from data expert Mike DelPrete.

Are you receiving Inman’s Agent Edge? Make sure you’re subscribed here.

This post has been republished with permission from Mike DelPrete.

Last year was a record year for Opendoor, and 2022 may be even bigger. To date, Opendoor has exponentially increased its advertising spend and homes purchased.

Why it matters: The latest data reveals a company doubling down on growth, despite rising market uncertainty and the risks illustrated by Zillow’s 2021 implosion.

Opendoor’s growth, as measured by the number of homes purchased, has materially accelerated. Opendoor’s monthly purchase volume is running significantly ahead of last year; March was big, and April looks even bigger. The company purchased 2.5 times as many homes in Q1 2022 compared to the same time last year.

Opendoor’s advertising spend is driving the growth in transaction volumes. The company doubled its advertising spend in Q1 2022 compared to last year.

If that spend were annualized, Opendoor would be on track to invest a record $200 million on advertising in 2022.

The increasing advertising spend is causing Opendoor’s customer acquisition costs to rise compared to 2021 (as calculated by total advertising spend divided by houses acquired).

But customer acquisition costs are lower than Q1 2021, showing improving economies of scale.

The bottom line: 2021 was a record year for Opendoor — and the evidence suggests 2022 might be even bigger.

As a public company, Opendoor needs to demonstrate growth regardless of market conditions.

Despite recent profitability driven by record home price appreciation, Opendoor’s model only works at scale — a scale larger than 2021.

Opendoor remains committed to making its model work, and in a sense, is just getting started — by operating at a scale where things get interesting.

Mike DelPrete is a strategic adviser and global expert in real estate tech, including Zavvie, an iBuyer offer aggregator. Connect with him on LinkedIn.

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription