Four impacts on real estate we can expect with the arrival of autonomous vehicles (“AV”):
- The cost of construction will be substantially reduced (20%-25% by some estimates) if structural parking is eliminated — greatly improving feasibility.
- Because AV can travel faster and closer together, and substantially reduce the need for street parking, the vehicle, bicycle and pedestrian carrying capacity of existing streets will increase.
- AV will change public transportation, causing rendering light rail systems less useful as buses become more efficient and popular, especially during peak demands.
- Longer commute times will be acceptable because AV riders can work, compute, talk on the phone, text and nap — allowing households to access less expensive housing in the outer reaches of metropolitan areas.