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I think self-driving cars might not change anything here unfortunately :( If we take silicon valley as an example, the wages going up has just driven rents and
by zaptheimpaler 9y ago
I think self-driving cars might not change anything here unfortunately :( If we take silicon valley as an example, the wages going up has just driven rents and housing costs up. Essentially housing is a good with inelastic demand, so it gets priced more like a tax at "x% of income". Same seems to be true for restaurants, grocery stores - they just raise the prices to match the income level of an area.
- Libbum 9y agoIndeed. One thing we tend to overlook when we get excited about technological progress towards some not-too-distant happier/easier life is the commercial framework these technologies will reside in. Yes, predictions of cheap ride sharing autonomous vehicle pools may become a reality; but cost vs price will still be an issue. All this will be great for those who own the cars in the pool, but not so much for those who must pay to use it.
- slg 9y ago>Essentially housing is a good with inelastic demand I apparently wasn't clear in my post, I think this technology can alter the elasticity of that demand in urban environments. Yes, everyone will still need housing so the demand as a country will not change. However people are going to be willing to live further away from their jobs because commutes will be quicker and easier. Demand will shift from urban areas to suburbs and suburbs to exurbs, getting cheaper at every step of the way.