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
| Metric | PropTech | RegTech |
|---|---|---|
| Monthly churn | 2.5% | 1% |
| Annual churn | 26.2% | 11.4% |
| Median ARPU | $195 | $420 |
| Typical customer base | 200-8,000 | 50-1,000 |
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%
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%
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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