“Self-Driving Vehicles Are Also Likely To Help The Suburbs Most”

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Don’t know if Uber is driving city dwellers to move to suburbia or if ridesharing is simply there to convenience those squeezed out of urban areas by rising costs. Globalization has meant, among other things, increased competition for square feet in popular cities from non-locals, which has helped drive real-estate prices sky high. That’s true in New York, of course, but also in less-obvious locales like Vancouver. Exacerbating matters, Airbnb enables landlords (if illegally) another avenue to collect rent sans leases, elevating prices in the thinned-out stock of residences available to longer-term tenants. 

Zoning laws are often blamed for lower-income folks being routed out of cities, but I’ve witnessed segments of NYC build new houses with abandon, without the necessary corresponding infrastructure projects to support the expansion, which can severely limit livability. These new buildings also are not a realistic option in major metropolises for those who aren’t already doing very well financially.

Regardless, it seems presently that some Americans are headed to less-dense places, though it’s not yet clear if that’s a long-term trend, since a significant percentage of us are drawn moth-like to bright lights. Tyler Cowen, who was among the first to announce that average is over (which may be more true in demand than supply), believes Uber and Lyft and the like have played a role in the shift, and he anticipates driverless, when it arrives, will further this reverse migration. Perhaps, but that would signal that people flocked to cities mainly to avoid commuting, which likely has never been the primary attraction of the urban enclave. The economist further feels that drones, VR, the IoT and other new tools will soup up the suburbs, exurbs and rural spots, making them more desirable.

From Cowen’s Bloomberg View column:

Self-driving vehicles are also likely to help the suburbs most. One of the worst things about the suburbs is the commute to the city or to other parts of the suburbs. But what if you could read, text or watch TV – safely — during that commuting time? What if you could tackle your day’s work just as you do on a train or plane? Commuting would seem a lot less painful. As driverless vehicles evolve to accommodate work and leisure uses of the automobile space, pleasure will replace commuting stress. 

What about drones? They too would seem to favor remote areas where it is harder to access useful goods and services. Drones may do more for exurbs and rural areas than for the suburbs, but it seems cities will gain least. Walking or biking to nearby shops is a potential substitute for drone delivery. Rolling sidewalk drones might find it harder to negotiate crowded cities, and cities with a dense network of tall buildings may be less friendly to flying drones. Population density may increase the risk of a drone falling on someone.

Now think about virtual reality. Its advocates claim that it will be used for sex, to simulate travel and to watch sporting events and concerts with an intense 3-D accompaniment. You will be able to do all that in the comfort of your living room or basement. So you won’t need a city for vivid cultural experiences.•

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