How Uber & Self Driving Cars Will Change Real Estate

How Uber & Self Driving Cars Will Change Real Estate

With a relentless technological drive, the sharing economy is changing how we use certain services. There is a utopian ideal that the sharing economy will drive down prices & obliterate middlemen.

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However, there are concerns around Uber, and how AirBnB does nothing for the growing inequality of the world. Change is coming, and we’re taking a look at how Real Estate could change along with it.

Driverless Cars

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Driving a car is a modern nightmare if you commute to & from urban centres. Looking at specifically at you Auckland with your ridiculous commute times.

In the regions however, a car is a necessary way to get around our vast & beautiful countryside.

While we are definitely a while away from full scale driverless functions, driverless cars will no doubt have an impact on real estate in our major urban centres. Those lifestyle blocks become a lot more attractive when you can start work as you jump in the car.

69% of bus users spend over 30 minutes commuting, with almost half of that proportion spending over an hour commuting per day.

The overwhelming majority of journeys to work are by car, sitting at approximately 70% of us. This shows that we like to reach point A to B in the most efficient manner possible.

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This is why cities sprawl. The car allows for a commute, and thus more liveable space in the suburbs.

Transport is a major concern facing property ownership in urban centres. Commute times factor in as a major decision making point for prospective renters and buyers. If driverless cars were widely adopted, perhaps commute times would become a passing thought for a buyer.

Shared Driverless Cars

With taxis that don’t require people drastically reducing their cost, the option becomes available to use rather than own. Does this mean we’ll see an end to the garage? Possibly. If driverless cars become a semi-continuous service for the masses, we could see the need for fewer cars overall.

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Garages free up space in a home. We could see this space become part of the share economy like AirBnB, much in the same way old heritage homes had to be converted with modern plumbing and furnaces.

What does this mean for the future of Real Estate?

Intensification in Cities

Without garages and the need for cars in city centres, we can free up more space for housing.  It could also change how cities are laid out, as the cost of owning a self driving car would surely be an unnecessary cost, thus changing the need for people to own a car in the city.

maartenholl/fairfaxnz
maartenholl/fairfaxnz

This could mean more pedestrian friendly zones in cities. Cars looking for parking account for almost 30% of traffic in this NY Times piece.

Sprawls could reach even farther

Lets go iRobot. Ultra fast self driving cars could negate the necessity of a house with a short commute. Proximity to motorways may not alter a home’s value.

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This means that rural areas could become a realised possibility for homeowners to commute into the city. Is it worth buying that rural property before driverless cars become widely adopted?

Who knows what the future holds.

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Fiona D'Silva Moiyadi

About the author

Marketing Manager at homes.co.nz (Brand & Strategy Consultant)

Fiona is a passionate strategic marketer, brand specialist, entrepreneur and writer. She is a perfectionist at heart, very enthusiastic and has successfully launched and marketed several products, both locally and globally.
Fiona enjoys cooking, reading, going for long drives with her husband and is currently writing her first book - and it's all about love!
To connect with her or know more, find her on LinkedIn.