There are a number of trends changing urban luxury. Depending on what study you read, the experts are saying 66 to 75% of the worlds population will live in cities by 2050. While much of this growth will be coming from areas outside of the US, the trends changing urban luxury are going to be felt throughout North America.
Let’s take a look at some of these factors:
There are a variety of trends changing urban luxury that are driving this growth. Population explosions around metro areas being one of them.
But let’s take the example of the impact of autonomous driving and ride sharing.
If you look at pictures of New York City in 1910, horses and buggies abound. Ten short years later, the streets are lined with Ford’s Model T. In ten years, the primary mode of transportation not only changed, but became widely accepted.
There are billions of dollars flowing into R&D from a variety of companies racing to perfect the autonomous driving car. Even as this race rages, people are already shifting away from the need to have multiple cars. According to car manufacturers, individual car ownership will peak in 2020 then start to decline.
The average car is only used 5% of the time. This impacts parking and storage spaces in both the use of space as well as in architectural design. Studies are predicting 75% of the population will use ride sharing as primary transportation by 2030. As this happens, parking ratios will change, so will garage space. Experts are saying parking will be reduced 25-85% depending on the area.
Right now, 60% of all the trips in the US are less than 5 miles. The same studies are predicting 95% of us passenger miles will be done by some form of ride share by 2030. Crazy you say?
Permits have already been issued in several metros for drone and autonomous helicopter taxi service coming in 2023.
How is this changing urban luxury? Developments are changing. More green space is designed in, reclaiming the current hard top ground areas. Streets will be turned into parks further beautifying the urban landscapes. The younger generational shifts are also pushing for work life balance leading to more mixed use projects being commissioned.
Population is changing urban luxury.
Growth in India, China and in Africa is driving a significant amount of future wealth. These countries will also be bringing their own cultural flair to the luxury scene. The historic European and North American definitions will open up and start including a far more inclusive luxury elements. You can see this playing out now in design in the ultra luxury hotel properties which are moving away from the opulence of times past. Grounded, simpler designs that accentuate the peaceful zen are being borrowed from the Far East.
Production is changing urban luxury.
Automation and efficiency is reducing the need for vast amounts of people to work in rural areas. Mining, manufacturing and farming technologies are bringing things to market faster, cheaper and at higher qualities. As jobs disappear in these sectors they will be moved into other industries inevitably based closer to urban hubs.
Amenities are changing urban luxury.
5G mobile infrastructure brings speed and bandwidth akin to the move from dial up to DSL and Cable connections. This will change how we interact with media, people and the amenities around us.
Demographic shifts are changing urban luxury.
Cultural shifts between the post modern first world and the developing world will be accentuated in the next thirty years. The first world is doing more with less and shrinking organic growth will force immigration policies to change.
Wealth likes to move in a contrarian way to the masses. As more people move into urban areas, the UHNWI’s will retreat to their enclaves.
Age demographics are changing urban luxury.
North America is just now starting the greatest transfer of wealth in human history. As the Baby Boomers age, their kids and grandkids will be the recipients of tens of trillions of dollars, most of which is represented in real estate.
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Thanks to Raconteur for the graphics.