Starlink is going to change one of the largest industries in the world: real estate.
This is another example of something happening right before our eyes yet most people miss it. Being able to look ahead with some sense of where things are going is crucial in this era.
The last 25 years saw the great period of technological advancement in human history. What took place will be dwarfed over the next 25 (perhaps the next 10).
Whether you like Elon Musk or not, he is in the middle of transforming most parts of society. Since he appears to be leading the satellite Internet race, we will see what this affects.
Satellite Internet Will Completely Disrupt Real Estate
This is going to be an idea that I utilize in another article regarding network-states. For now, we will keep the focus upon real estate.
A couple of years ago I wrote an article for The Layout For The Globalization Of Real Estate. In it, I described how we are going to see the idea of digital nomads taking over.
Starlink, and associated services like this, will bring all areas of the planet into the digital age. This means that commercia activities can occur regardless of where someone is. This is a crucial point to consider.
When it comes to the cost of real estate, for much of the world, prices keep going up. demographics are starting to affect some rural areas in countries like Japan and Germany. Much of the push in higher real estate prices is due to the increase in populations along with the idea of urbanization.
This is going to reverse.
To start, most developed countries are seeing fertility rates below replacement. This means that, over the next few decades, their numbers could start to shrink. We are seeing this already in Japan and China.
A Reversal of Urbanization
The move to urbanization was the result of a monopoly. This was not done by a company but, rather, by the cities themselves.
What monopoly did they have?
Basically, we got to the point where, if one wanted a good paying job, it was only found in the urban areas. In most of the developed world, the rural areas were gutted due to globalization. Now we are going to see a reversal.
There is little doubt costs are outrageous in most major cities around the world. Even the second tier cities are to the point where it takes a small fortune to survive.
Satellite internet is the first step in completely altering this process.
When people are able to work remotely, this alters the power structure in negotiations. It also affects real estate in a significant manner.
If someone spend their day looking at a screen, once the Earth has total coverage with internet service, that can be done from anywhere. For many, this means going to those areas that are less expensive.
On an individual basis this might not mean much yet it does open up possibilities for larger changes when we start dealing with groups. That, for now, is outside the scope of this article.
New York. London. Tokyo. Shanghai. San Francisco.
These are some of the highest real estate prices in the world. They are also in danger of seeing massive outflows in population over the next couple decades.
For now, the migration is going to be confined within individual countries. Over time, especially if demographic issues become a larger problem, countries will start to get aggressive with their plans to attract people. This is going to be done out of necessity.
What does this do to real estate values?
Ultimately, it will smooth things out. While some areas will certainly go up in price, as more people relocate, others will see a decline.
One thing we can count on is the urban real estate bubble due to the monopoly on jobs will certain collapse. Those areas that flourished under the present system will find technology disrupting things completely. There will be a major paradigm shift.
Of course, this is not going to happen instantly. Some areas, however, are starting to see the effects. There are some markets, such as Tokyo, which we have to question whether we will ever see real estate prices like we did in the past?
Here is an example of an industry that is going to see a massive shift due to technology, yet few are aware of it. Unlike the past where one could see the disruption from a competitor, now it is an unseen force.
Over the next decade, things will become clearer as we see the technology advance. By the end of this decade, some countries might actually start a massive promotion campaign to try and lure people. The writing is on the wall for many nations and technology is going to offer up a solution.
This will have a massive impact upon real estate. We will have to see who the winners and losers are.