I’m surprised you don’t expect any effect on real estate. I would expect it to be greatly affected by such a transformation, although I’m not sure in which direction.
If unemployment skyrockets because AIs can do everything that most humans can and cheaper, then fewer people would have to live in cities, potentially leading to crashing house prices in cities. The same could also happen if working from home becomes the norm due to VR.
On the other hand, if human employment stay high, and productivity increases and we still have to be physically at work, then city real estate prices would likely increase with productivity.
Disclaimer: I have almost no track record in active investing, so don’t take anything I say too seriously.
VR will likely shift the locations where housing is demanded. I consider that somewhat separate from the effects of AI. A shift away from the most expensive cities will mildly increase total demand for housing, by making it easier for people to get the kind of housing that they want. I don’t know of any publicly traded companies that are focused on housing in expensive cities. Most housing investments are focused on regions where new homes can be built: suburbs and cheap cities that allow new homes.
I’m surprised you don’t expect any effect on real estate. I would expect it to be greatly affected by such a transformation, although I’m not sure in which direction.
If unemployment skyrockets because AIs can do everything that most humans can and cheaper, then fewer people would have to live in cities, potentially leading to crashing house prices in cities. The same could also happen if working from home becomes the norm due to VR. On the other hand, if human employment stay high, and productivity increases and we still have to be physically at work, then city real estate prices would likely increase with productivity.
Disclaimer: I have almost no track record in active investing, so don’t take anything I say too seriously.
VR will likely shift the locations where housing is demanded. I consider that somewhat separate from the effects of AI. A shift away from the most expensive cities will mildly increase total demand for housing, by making it easier for people to get the kind of housing that they want. I don’t know of any publicly traded companies that are focused on housing in expensive cities. Most housing investments are focused on regions where new homes can be built: suburbs and cheap cities that allow new homes.