What do space and real estate have in common? These days, more than you might think.
With billionaires like Richard Branson, Elon Musk and now Jeff Bezos interested in space travel, space tech companies like SpaceX and Blue Origin are taking note – and according to National Association of REAL ESTATE AGENTS® (NAR), they and other private aerospace companies are likely to expand to meet the burgeoning interest in private journeys to space.
So what does this mean for real estate?
If NAR’s prediction is correct, the boom in space technology could also mean a real estate boom, which would create opportunities for builders, buyers and real estate agents.
A recent article from realtor.com® quotes Lawrence Yun, chief economist of NAR, telling Fox Business: “Since the employees of SpaceX and Blue Origin have sophisticated high-tech skills with presumably high incomes, the market Small community real estate affected will clearly benefit. “
In his opinion, the markets where aerospace companies are established are starting to emerge. According to Elon Musk, SpaceX alone is expected to acquire “thousands” of new employees over the next few years.
How technology and aerospace are already impacting the real estate market
While tech companies have grown exponentially over the past 20 years, housing prices have also risen.
In reality, a quick look at housing prices between 2000 and 2020 show two- and three-digit percentage increases.
– Prices in Cameron County, Texas, and Santa Barbara County, California, saw increases of 51% and 108%, respectively.
– Sierra County, New Mexico, and Kern County, Calif., Saw increases of 80% and 114%, respectively.
–And prices in Brevard County, Fla., Went up 128%.
If these trends are any indicator of what’s to come, then the growing interest and popularity of private space rides in these regions will likely drive prices up further.
However, realtor.com® also quotes Yun telling Fox Business that price growth may be tempered as demand increases.
For now, it looks like SpaceX and Blue Origin are continuing their big plans to normalize private space travel to Texas, California and Florida.
By 2024, SpaceX plans to transport passengers to Mars from its sites in Cameron County, Texas, and Santa Barbara, California.
Meanwhile, Bezos’ Blue Origin company is actively recruiting and working from its location in Van Horn, TX. The two companies also operate launch sites at the Kennedy Space Center and the Cape Canaveral space station in Brevard County, Florida.
What does this mean for real estate agents?
The new construction linked to new housing markets could create great opportunities for new realtors looking to break into the industry by representing buyers.
Partnering with builders is generally a mutually beneficial way to connect with prospects, and given that thousands of roles can be filled at companies like SpaceX and Blue Origin, there can be plenty of prospects to browse once the construction started.
On the other hand, depending on how quickly new homes are filled, new homes can ease some pressure on inventory and make it easier for existing agents to move their buyers.
McKissock apprenticeship is the nation’s premier online real estate school, offering continuing education and professional development courses to hundreds of thousands of real estate agents across the country. As a member of the Colibri Real Estate family of leading educational brands, McKissock apprenticeship, with its sister schools Express Real Estate, Higher School of Real Estate, Allied schools, The Institute for Luxury Home Marketing, Schools of the Côte d’Or, The Rockwell Institute and Hondros Education Group, helps real estate professionals achieve lasting success at every stage of their real estate career. Learn more about mckissock.com/immobilier.