8 Big Changes Thanks to Driverless Cars

The combination of widespread ride-sharing and self-driving cars will reshape housing in 8 significant ways:

  1. Prime real estate will be unlocked for new home construction (parking lots, auto dealerships, gas stations).
  2. Outlying drive-until-you-qualify housing markets will eventually reemerge once the majority of core infill markets have repurposed their prime real estate.
  3. Urban employment should continue rising as prime real estate is repurposed for housing, allowing more people to live closer to city centers.
  4. Density will increase, with the days of wide streets, massive driveways, and two-/three-car garages a thing of the past.
  5. Construction costs will decline as transportation costs plummet for moving building products from manufacturing facilities/warehouses to new home construction sites.
  6. Fewer home sales will occur, as the elderly will be able to stay in their existing home long after losing their driving rights.
  7. Assisted-living facility demand will be less than most people expect.
  8. Repair and remodeling will flourish due to seniors remodeling their homes to age in place. Millions of garages will also be converted to fully functioning livable space.
  9. Fully autonomous vehicles (AVs) should become commonplace within 10–20 years, disrupting entire industries while triggering structural shifts in housing and the economy. The path to government approval and consumer acceptance of AVs will have hiccups no doubt, so we expect ride-sharing along with semi-autonomous vehicles to kick-start the movement towards AVs.  So what impact will AVs and ride-sharing have on the housing market? We think a big one. Here are some of the additional housing shifts we anticipate as a result of AVs:
  • Prime real estate will be unlocked for new home construction as parking lots, auto dealerships and gas stations become obsolete
  • Outlying drive-until-you-qualify housing markets will eventually reemerge once the majority of core infill markets have repurposed their prime real estate and consumers become more accepting of commutes given the option of working, sleeping, etc., while driving.
  • Urban employment should rise as prime real estate is repurposed for housing, allowing more people to live closer to city centers.
  • Get ready for more homes per acre, with the days of wide streets, massive driveways, and two-/three-car garages a thing of the past.
  • Construction costs should decline as transportation costs plummet for moving building products from manufacturing facilities/warehouses to new home construction sites.
  • Longer-term housing turnover will likely be suppressed as AVs enable the elderly to stay in their existing home while aging in place, maintaining independence despite losing their driving rights.
  • Bullish case for repair and remodel industry, as AVs enable more retirees to age in place.

To read the article in full about big changes thanks to driverless cars, please click on the link.

To read a selection of intriguing articles, check out our blog at SETCO Services, LLC!

Click to View Blogs