Driverless Vehicles Driving the Future of Real Estate?

Driverless Vehicles Driving the Future of Real Estate?

(Image Source: Google Images)

Autonomous vehicles, once a science-fiction fantasy, are rapidly becoming mainstream. Giants like Google and Uber are testing more and more sophisticated versions of driverless vehicles. Soon they may become as commonplace on our roads as traffic lights and utility poles. What impact will this coming technology have on us in the real estate industry?

The biggest consequence may be a complete reversal of suburban property values vs downtown property values. Right now, owning and living downtown is prohibitively expensive, which is why today’s typical scenario is an expensive downtown surrounded by affordable suburbs from where people commute hours to get to work. The hardship of the long commute is traded off by the affordability of a suburban home. But what if this trade-off is turned on its head?

Imagine this scenario. You crawl out of bed at 6 am (your usual time) to go to work. But instead of driving yourself, you get into a driverless car, punch in the destination, and go back to sleep. In a couple of hours, you arrive at work rested, refreshed and ready to take on the day. This is not a far-fetched scenario but an imminent reality. What does it mean for real estate values? We may see suburban property values rise as more people buy into this hassle-free mode of commuting. And downtown property values and rents may start to shrink.

(Image Source: Google Images)

Remember that extra 1000 sq. ft. that used to be a part of every home? What was it called? Oh yes, the garage. With driverless cars, garages are going to be a thing of the past. And it’s not just garages, even car ownership will take a hit. Who wants to own a high-maintenance car when you can rent a driverless vehicle? All of this is going to impact the design of single family homes of the future.

The wheel is turning and the real estate landscape is reshaping yet again. Those who adapt to this new technology are the ones who will come on top.

What are your thoughts and comments on autonomous cars and disappearing garages? Leave your ideas down below in the comments section!

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