Driverless cars are predicted to ease traffic and make travel safer. The externality of inexpensive, safe, convenient travel is that people will be willing to live farther from their destination. Commute times can be used for
being productive surfing Reddit. We’ve already seen the sharing economy changing real estate development investment strategies.
Increase in Automobile Travel
KPMG predicts autonomous “mobility-on-demand” services – think Uber and Lyft without a driver – will result in double-digit increases in travel . . ..
Instead of taking airplanes to destinations people will opt to drive. Imagine having a camper pick you up one evening and when you wake you are at your destination. No hotel needed.
Increase in Convenience
Instead of running an errand, the items in the store can automatically be driven to you. It will matter less where you live. The time to receive your items will be cut in half — it will be the time from the storage point (likely the store) to your house instead of you having to travel from your home to the destination and back.
Driverless Cars will Increase Rural Real Estate Prices
It will be easier to live farther away from population centers. Access will still be important, but “drive until you qualify [for the mortgage]” will be much less painful.
This reduction in pain will create an increase in demand.
This increase in demand will create an increase in home prices.