So , when driverless cars become commonplace , we will see our traffic , our lives , and where we live greatly disrupted .
For some time , residential properties that are close to office and public transportation hubs have seen upward pressure on property values .
Millennials tend to have a low car ownership rate as they seek to live closer to work .
Now with the advent of AVs , location becomes less of an issue . With a driverless vehicle , the drive time can become part of work time . Instead of the need to focus on driving , people can make phone calls , send emails , and do property searches to be prepared for their next appointment . They could even read a book that they have found to improve their business .
Traditionally , urban properties have carried lower home values . But this could rapidly change as driverless cars , shuttles , and buses extend the range that buyers will find acceptable as options for home purchasing .
With location becoming less of a concern , we could see downward pressure on home values that are closer to city centers .
The AV disruption will not be limited to residential properties . Commercial properties will also see some major changes . According to the planning and consulting firm Gensler , the U . S . has an estimated 500 million parking spaces , and that consumes a lot of land .
Ford Motor has already recognized that car ownership is decreasing and has announced they are severely curtailing production of cars . They will only be producing two models .
With AVs comes cheaper transportation and the decreasing demand for owning a car . Take the example of a family of four . One parent goes to work early . They call for an AV to pick them up and drop them off at their office . The AV is then sent to pick up the children and take them to school . The next trip is to take the other spouse to their job . At the end of the day , this process is easily reversed . The process was completed without the need to take time to find and pay for parking . In fact , this family will have less need to maintain their own vehicle .
With this scene being duplicated thousands of times in a given community , the need for parking spaces and garages will be drastically reduced . Areas that were previously required for parking will be repurposed to provide for more office and retail space and other emerging needs of the community .
Residential property will see some major changes as well . At present , there is a growing demand for homes with a threecar garage . When car ownership declines , builders will see a decrease in the demand for larger garages . Those with existing homes will begin to repurpose the garage space . It could become part of an expansion of the living space . Many people will see some of the excess garage space as a storage space .
With increased storage space the ever-popular storage facilities will see less demand for their services . Some of these businesses will close and the land will be used for more needed facilities .
Prime real estate will become available for more office and retail space as well as apartments and condos . Not only will the need for parking spaces diminish , but we will have fewer gas stations and auto dealerships that take up acres of land . Driverless vehicles could have a positive effect for the aging population . Many seniors no longer can or want to drive . This often forces them to move to be closer to medical services and shopping . With the availability of AVs they will have access to the services they need and be able to remain in their home . This could impact the availability of resale property inventory which affects property values . Seniors using AVs would be able to extend their time in their home and this could lower the demand for independent living facilities .
As Realtors ®, it would be wise to begin the process of becoming better informed about the trends that affect our business . We may need to adjust our model in order to be prepared for a trend that is sure to come .
Ask yourself : Will AVs change where you call home ?
Are you keeping abreast of what your city and county planners have on the drawing board ?
Soon your customers could be seeking your input on driverless vehicles and how you see them impacting property values in your market .
Will you be prepared ?
RPCRA . ORG | SEP / OCT 2018 19