University of Southern California Lusk Center for Real Estate released Tuesday a discussion with Chairman Emile Haddad on what he believes are game changers for the industry.
According to Haddad, technology advances and demographic shifts are generally ignored, but he believes those factors are among the most important for real estate professionals to consider.
Haddad noted that government regulations need to be quick to keep up with technology advances, and how that impacts the housing market.
“The world is moving in nanoseconds and we can’t wait 15 years for regulation to catch up,” Haddad said. “Government moves slowly, which is evidenced by the fact that rules governing development approvals are determined by a 1990s view of transportation.”
Haddad encourages forward thinking, as he believes with a modern view of transportation, the industry could flourish. Within 20-years, he predicts most renters will no longer own a vehicle. If his predictions are right, this means that current developments are still catering to an outdated world.
“If the need for vehicle ownership becomes obsolete, that’s a 50 percent increase in multifamily living space,” he said. “In essence, transportation technology is a key factor in solving the affordability riddle.”
In addition, Haddad encourages real estate companies and regulators to rethink 5-year plans with 15, 20, and 30-year plans instead, as a way of having more long-term future improvements.
“Things are changing rapidly and we must anticipate what real estate will look like 15 years from now,” Haddad said. “We do ourselves, our economy, and our industry a disservice by waiting 15 years to assess where we are.”
Instead, he advises that regulatory and legislative bodies, as well as real estate leaders, “forecast future needs and adjust practices and policies with urgency.”
As a result, the real estate game could be in better shape for the future.