Digital Nomads Will Usher In The Globalization Of Real Estate
One of the areas that will see enormous change over the next decade is real estate. It is going to see a shift like we never saw before.
This article is not going to delve into housing bubbles, markets, or anything like that. Instead, we are going to look at the long-term implication that will affect the real estate market.
Essentially, we are going to see the globalization of real estate.
It is a shift that will be brought on, not surprisingly, by technology. The advancements being made in this area are really going to have a major impact upon this market. We already saw part of the process. However, as was laid out in The Layout For The Globalization Of Real Estate, this is only the fist phase.
To briefly recap, the three phases are:
Moves within a certain geographic area due to more people being able to work from home. For example, one might move three hours away from the office is attendance is only required once a month.
Migration within an individual country (mid 2020s and on) as the remote work idea truly takes hold.
Movement throughout the world as people move to lower cost countries (2030s).
Source
Digital Nomads
We are seeing innovation advancing at a pace whereby we could see many become digital nomads. This is the concept that people can live anywhere because their work is done digitally. It is one of the main pieces of the remote work movement we are seeing.
If one spends his or her day looking as a screen that is tied to the cloud, this can basically be done from anywhere. Over the next 5 years, many knowledge workers will find themselves in this realm. They will not be tied to an office.
Of course, this is extending beyond the worker-employee relationship.
One area that could radically advance it is cryptocurrency. Through the monetization process of content creation, infrastructure provider, or gamer, we can see many alternatives opening up. As they generate income via rewards or crypto payouts, the need to be in an office diminishes.
Digital nomads understand the transition that is taking place. They realize that, through cryptocurrency, perhaps both sides of the income statement can be altered. Obviously, the increase in payouts means the income side of the equation increases. However, one can reduce expenses by looking to those areas that are less costly.
While they are rare now, it is likely we see these people gain in number. Over the next decade, more than a billion people could be earning some part of their income from cryptocurrency related activities. If that is the case, digital nomad membership will increase dramatically.
Globalization Of Real Estate
When will countries grasp onto this concept? And how will all this look?
So far, national governments has a monopoly on the population. Our present governance system is based upon geography. Where you were born is the main criteria.
That is going to change as people have options. When one is not tied to an area financially, the ability to relocate becomes even more attractive. Here is where governments might have to start thinking about competing for people.
We can expect this to start with the lesser developed (read cheaper) countries. They are in the driver's seat since they have the financial advantage. If their cost of living is drastically lower than developed counterparts, then the ability to attract outsiders is increased.
Of course, a quality "product" needs to be delivered. For this reason, there will have to be investments in infrastructure, hospitals, and a host of other things that people from developed nations come to expect. However, if the investment is made, hundreds of thousands could be attracted.
This will obviously play havoc with real estate pricing. Some of the over-inflated areas that have a great attraction at the moment could find less demand in the future. In a country like the United States, this could mean that iconic cities like New York and Chicago might be struggling a decade from now.
At the same time, underdeveloped areas could see higher demand as people move around seeking lower cost alternatives.
Ultimately, we will have a situation similar to the globalization of manufacturing. There the lowest cost of labor was sought. With the globalization of real estate, the lowest cost of living will be sought out, as long as some minimal requirement are met (a non-warzone is a good start).
All of this is going to have a tremendous impact on the global real estate market. By the mid 2030s, we will see many people living as digital nomads. Their allegiance to any one area will wave over time.
This is going to have enormous impacts upon the real estate market especially if we see hundreds of millions of people in this position.
Also check out:
If you found this article informative, please give an upvote and rehive.
gif by @doze
logo by @st8z
Posted Using LeoFinance Beta
PIZZA Holders sent $PIZZA tips in this post's comments:
@pixresteemer(1/5) tipped @taskmaster4450le (x1)
Please vote for pizza.witness!
I certainly think the mega cities like NY, LA and others are going to have considerable issues retaining people in them for many reasons but the real estate markets there are going to collapse. College-heavy cities like Boston might fare better because of needing to have students all over it but I certainly think that many people are going to move out of those areas and not a lot of working people will be moving in.
Distance learning over the internet could change that trend as well. I suspect we'll see much more online education in the future. I would hope that would help bring down the costs of a college education too.
Yeah definitely. I did a good portion of one of my degrees online several years ago which was a good test to it. One avenue that I think will be tricky is sports, since that's a major part of colleges. How are they going to make sports still attractive without charging the players exorbitant money over online learners.
I would say that over the next couple decade, most sports become less popular. Younger generations are shifting away from that.
They are still big business but it will be interesting to see the transition. More options today as compared to decades past for entertainment/interest.
Posted Using LeoFinance Beta
That is also true. I believe the education area is going to really be upended by technology. This is something to really consider when looking at the real estate equation on a multi-decade spectrum.
Posted Using LeoFinance Beta
That could certainly be the case. Many feel those areas will bounce back because "they always do". However, the real estate will get killed if migration happens on a large scale.
The urban areas has an monopoly on good paying jobs for the past 30 years. Will this continue? Remote work is going to change things I believe. This is going to cause an issue.
Posted Using LeoFinance Beta
The truth is that the real estate world will continue to undergo changes in the coming years and even more so with this new concept of "Digital Nomads" we can take work anywhere without having to be in the big cities. We can practically do it from anywhere
Digital nomads can usher in the changes quicker. We will see how rapidly the remote work concept takes hold.
I envision it will be in full force by 2025.
Posted Using LeoFinance Beta
perhaps even before 2025 most of the jobs will be done at home and every day the "Digital Nomads" will be more
True but mindset takes a while. People are still talking about having to be pulled back into the office. It is going to take a true shift in the workforce for that to take place.
Remote work is still a concept to many.
Posted Using LeoFinance Beta
Very true points, I also expect these kind of developments. In addition to the effects of digitalization there is the effects of global warming. People will migrate in cooler regions and leave those heavily impacted by climate change. You can see first examples like in California (people move since there is more and more wildfires threatening the cities and a lot of heat during the summer). What do you think?
I think the media lies and anything that is being heavily promoted, especially using the science claim, should be re-evaluated.
Posted Using LeoFinance Beta
I think digital nomads will only grow as automation takes over labor-intensive jobs. In a way, I don't think it will fully start to transition until VR/AR takes over because then you might not even need a physical location to show what your store offers.
Posted Using LeoFinance Beta
Online shopping will continue to evolve. Of course, if we want to step further out, 3D printing can affect manufacturing.
Thus we can localize a great deal of our supply chain. This makes remote work and living, even more appealing.
Posted Using LeoFinance Beta
Look at Splinterlands, there, there is no more land for sale, and our planet, unlike the game, will not be able, over time, to draw new territories). The war in Ukraine and the huge number of refugees is another proof of this, the loyalty of your beliefs and vision of the overall picture of the real estate market. Although, the gas crisis may make some adjustments for countries that are heavily dependent on heating systems in winter. There may be a serious outflow of population from cities to the land, for the sake of the possibility of using alternative heat sources. In part, cities may fall into disrepair.
Posted Using LeoFinance Beta
They were doing that already. Migration will only make it worse.
Posted Using LeoFinance Beta
Residing in Orange County California where the weather is nice year-round but the cost of living and real estate is very high.
Post-2030 a big chunk of the population has become digital nomads and traveling around as the mood hits them.
Do you think this will have a drastically negative effect on the real estate values of places like Orange County?
Yes I do. My view is that many of the ultra expansive areas are going to see a huge migration out, meaning simple supply and demand enters. We need to be mindful of two factors: digital nomads (ie technology) and whatever people do not like such as over regulation or crime.
The reality is going to be a lot more people with options. Our delving into the digital realm is only increasing, meaning geography means a lot less.
Ultimately, I see this migration (concept) extending beyond national borders.
Posted Using LeoFinance Beta
The world has been changing since there has been a world but lately, I think we are coming to a change where Countries will have a different meaning, so will money and wealth.
I feel like an old-timer that is watching the end of his era, and the beginning of a new world.
Thank you for expanding my worldview. 👍
It is actually a time that has existed for decades, but we werent allowed to participate. People are conditioned to believe it is their government or perhaps the central bank when it was actually the banking system that was controlling the money and wealth. Once we understand that, we can being to build upon their success but on our own.
Posted Using LeoFinance Beta