One thing that will surely affect our orientation to the city mouse/suburban mouse real estate and economic divide are new forms of mobility. It’s said that ride-hailing apps are already having a flattening effect on residential real estate values in NYC. Because getting around is so easy, one-percent New Yorkers are doing the unthinkable: cross-shopping properties in the East 70s with those in the West 80s!
But ride-hailing will be gentle kneading compared to the rolling pin of autonomous vehicles (AVs). Locations that were unthinkably far away when accessed in regular vehicles will become thinkable in AVs—it’s the difference road-raging during your 1.5 hour commute or binge-watching Narcos.
Quantifying this changing orientation to location is exactly what Phil Levin’s new consultancy 99mph is doing. He expects a $1 trillion movement of capital due to AVs flattening effect on real estate. And though full autonomous vehicles are a few years off, the long horizon of real estate investment makes this a timely concern.