The Impact of Autonomous Vehicles on the Real Estate Housing Market in the United States

Abstract

The mode of transportation has a significant impact on the design and layout of cities, and the advent of autonomous vehicles (AVs) is expected to bring another shift in transportation that will likely impact the way cities are designed. The initial adoption of AVs is likely to occur in the form of shared autonomous vehicles (SAVs) or driverless ride-hailing services. This thesis analyzes the impact of AVs on the housing market, examining it at both macro and micro levels. The macro level analysis examines the complementary impact of SAVs on public transportation systems and identifies the metropolitan areas that are most likely to experience significant changes as a result of the deployment of SAVs. The micro level analysis examines the demand side of specific housing price change in San Francisco, utilizing a historical rent gradient model, by considering changes in commute cost and time. Additionally, the supply side of the analysis explores the potential conversion of parking spaces into housing.