The Value Of Your Home Could Get A Big Twist From Autonomous Cars Posted on : Jun 23 - 2018

Much has been made about how autonomous vehicles will impact parking. To allow for alternative uses once autonomous vehicles become more pervasive, new commercial parking facilities are now frequently being designed and constructed with flexibility in mind. Developers are even going so far as to explore ways to repurpose existing parking garages. Far less has been made about how autonomous vehicles could change residential real estate, rendering the two-car garage obsolete and increasing livable square footage and home values.

While no one can predict the future, some of the more prevalent thinking in the field suggests that after dropping off passengers, autonomous vehicles have four options. First, they could return to where the trip originated. Second, they could circle the neighborhood and wait to be called back. Third, they could head to a remote but still somewhat proximate parking location and park there. Fourth, they could wait for another passenger, similar to what a taxicab or ride-sharing service does, and proceed accordingly. While all of these options are discussion worthy, we’ll focus on the fourth one for purpose of this discussion.

The reasoning behind this option is basic: if people are presented with an autonomous vehicle service that is available to meet their needs on demand, they will forego car ownership and/or leasing in favor of that system. Proponents point to the success of current ride-sharing platforms and the behavior of younger generations as evidence that this future is already unfolding. They cite numerous statistics showing younger generations are less likely to own cars and that teenagers often wait to get drivers licenses.

It’s a persuasive position, especially when you consider the appeal—autonomous vehicle ride sharing could very well offer the same mobility as car ownership/leasing without the major capital outlay, the hassle of maintenance, insurance and depreciation or the underutilization inherent to car ownership/leasing. Whether this is the future that actually unfolds is a great debate and one that will likely rage on for some time.

If autonomous vehicles are adopted in this manner, though, it could very well lead to some interesting and unexpected impacts on residential real estate. A decrease in car ownership/leasing will likely translate to a decrease in the need for garage space. Two-car homes could become one-car homes, rendering the two-car garage obsolete. On its face, this could seem inconsequential. In fact, it could be a really big deal, particularly in congested metropolitan areas, such as Los Angeles, where square footage sells for a premium. There are two basic premises View More