Real Estate in the Future.....

3 Replies

I read a couple of interesting articles this evening and thought I would share. It's interesting to think about the new real estate market trends, niches, and possibilities of the future. Even in the last few years we've seen a tremendous increase in the popularity of short term rentals like AirBnB. What changes do you foresee in the future in the world of real estate? Are there any changes that you are really excited about? Why?

3D printed houses:

Start-ups replacing Realtors:

Kelly, I'm very interested to see how AirBnB continues to operate.  I have heard some municipalities are coming down on AirBnB rentals through zoning restrictions.  Essentially the argument is that you are now operating a hotel which requires commercial zoning, compared to the residential zoning that most AirBnB locations have.

That being said, I think AirBnB is just starting to scratch the surface of a new industry.  Already lock manufacturers are adapting to the demand of increase electronic locks for homes.  Additionally, property management companies are starting to build out a staff comparable to a hotels.  Overall, though I think most property management companies are not equipped to handle AirBnB.

One article I read years ago (prior to AirBnB) was about super-economic motel chains in Asia where each "guest" rented a recliner with a blanket and got a pair of ear plugs and an eye mask.  They could then pack dozens of guests into warehouse spaces.  The guests also had access to communal showers and toilets.  Could we see that here?  How would it affect demand to warehouse space and traditional hotel/motel accommodations?

One fad I don't see gaining a whole lot of traction is tiny homes.  I think they are great for young people for a few years.  But as soon as you add a child into the mix I think it wreaks havoc on the model.  Although, it would be interesting to see a tiny home community similar to an RV Park.

Being a hotel developer I see Air BnB not being a true competitor. As @Joshua Fulenwider stated, many cities and municipalities are coming down on them because of complaints from neighbors and the cities don't receive the bed tax revenue like they do from hotels. Additionally, it caters to a different market of people who are looking for the absolute cheapest. With nearly all new hotels built today, they are designed for 2 travelers, the business traveler who is most concerned with consistency of their stays and being used to what they are receiving regardless of where they are, and the family, which typically does not use BnB due to needed multiple rooms and safety, a big priority (not sharing a house with the owner or other occupants). If you take into account of renting an entire house on BnB it's pricing is hard to compete with a hotel room(s) in major destination areas.

As for small houses, I looked at a couple projects and thought about a desig for the "micro house" and it is extremely difficult to get them to pencil from the construction perspective on a large scale. Yes people can individually pay for them but again, very small market. I don't see it thriving and taking place of traditional sfr or even town homes or RVs. 

The difference I can see with a rv park vs the tiny homes is a rv parks income is based on temporary lot rentals while a tiny home is permanent, if you talked about a tiny home that is mobile, it is virtually a glorified trailer.

I don't think either make a dramatic impact on real estate, if anything air BnB in a neighborhood may hurt the areas pricing due to people who want do not want new occupants ever couple of days. I even saw a news story out here in California a week ago about a community in LA that is stating it is difficult to sell homes that are located close to air BnB homes.

Very intriguing articles though and how creative people in this industry are to be successful and make a $$$