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PropTech vs RegTech Churn Rate

Side-by-side benchmark comparison, updated March 2026.

RegTech has a lower monthly churn rate (1%) than PropTech (2.5%), a difference of 1.5 percentage points. RegTech median ARPU is $420 versus $195 for PropTech.

Head-to-head benchmarks

MetricPropTechRegTech
Monthly churn2.5%1%
Annual churn26.2%11.4%
Median ARPU$195$420
Typical customer base200-8,00050-1,000

Top proptech churn drivers

  • Real estate market slowdown reduced transaction volume32%
  • Broker or property manager switched firms, losing seat22%
  • Product failed to integrate with MLS or property management platform20%
  • Platform consolidation by large brokerage or REIT14%
Full PropTech benchmark

Top regtech churn drivers

  • Regulatory rule change that product had not yet implemented28%
  • Financial institution internalized compliance workflow26%
  • Acquisition of customer eliminated the compliance function20%
  • Product could not scale to new jurisdiction or regulatory body16%
Full RegTech benchmark

Why regtech retains better than proptech

The 1.5-point gap between RegTech and PropTech reflects differences in switching cost, value density, and purchase motivation. RegTech customers face higher integration and data-migration friction, which extends tenure. PropTech tends to have more fragmented alternatives and weaker lock-in. Details in each benchmark page above.

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