What Impact Will Elon Musk’s Hyperloop Have on Real Estate?
If all goes to plan then the Hyperloop will hands down by the most disruptive thing to happen to real estate in our lifetime.
As NYC is in the midst of the notorious “Summer of Hell” a glimpse of travel heaven was bestowed upon the commuting world yesterday as news broke regarding Elon Musk’s verbal “OK” to build his multi-state underground Hyperloop.
If Musk and team continue down this path of green lights from key stakeholders, then passengers would be able to go from New York to D.C., with stops in Philadelphia and Baltimore, all in under 30 minutes. This is in line with the average commute time in the U.S. which, according to the U.S. Census Bureau, is around 26 minutes. The key here: instead of living just a few miles from work, with the Hyperloop, living 200 miles away from your job could become the norm.
“We’ll be able to move between cities as if cities themselves are metro stops,” Shervin Pishevar, the executive chair for Hyperloop.
If the Hyperloop lives up to the hype, it will most certainly disrupt not only the job and housing markets, but the economy as a whole. In terms of real estate disruption, home values and “hot markets” could change drastically.
Historically, home values in cities and areas close to a train line are typically inflated. People sacrifice the size of their home for an easier commute, valuing their time over the luxury of space and/or location. With the Hyperloop, people who felt handcuffed to a train line or airport could have a whole new world of living options opened up to them. As of May, the Hyperloop team plans to connect 35 US states spanning over 4,000 miles.Bottom line? This could be the largest real estate disruptor that we have and will ever see in our lifetime. All I can say is it is a great time to be in real estate.
Want to stay in the loop on all things Hyperloop? Check out their IG.