Kiplinger Letter Special Edition: Imagine the Future
Looking 10 years ahead to 2027, Kiplinger predicts extraordinary changes in new technologies, new habits, and new ways of working, creating a higher standard of living in America that will impact our lives, bring new challenges, and perhaps a major shift to the real estate industry.
Top projected highlights for 2027 according to Kiplinger:
- ECONOMY: US GDP will increase 1.9% per year on average, giving Americans a GDP per capita of $66,385 up from $59,332 now. The 2017 average savings rate of 3.5% per American is unlikely to rise, increasing consumer spending significantly by 2027. However, much of the growth in GDP will skew heavily toward the upper end of the income scale, as it does now.
- TECH: Artificial intelligence and business automation will grow leaps and bounds by 2027. Augmented and virtual reality will enhance our experience in many aspects of life, including real estate purchases. Although many jobs will diminish or disappear because machines can do them better, these advancements will lead to new education and human workforces focused more on those skills and traits that aren’t ripe for automation: Judgement, creativity, social awareness, and general intelligence. The human workforce will not decrease, but shift towards different skills and perhaps more fulfilling work.
- HEALTH CARE: Advancements in medicine and technology means Americans will be healthier overall in 2027. Breakthroughs in genetic research will help cure devastating diseases like cystic fibrosis, Huntington’s disease, hemophilia, sickle cell anemia and others. Genetic advancements will also bring up ethical dilemmas we will need to solve.
Read the full report: The Kiplinger Letter – 12-22-2017
What could this mean for real estate and RE agents? In my opinion, buyers will continue to go online to search for homes and do their homework. Big data will provide more accurate home valuations, and AI will give buyers instant information that is most relevant to their needs and wants. Sellers will have more options to list their homes with self-driven and discounted listing services.
Rather than competing with advanced technology and automation, agents who use these tools to complement their offering over the next decade will continue to be in high demand. A home is still the single largest purchase for most Americans, and represents 87% of their net worth. Enhancing the buying and selling experience through augmented and virtual reality will appeal to buyers and sellers who will gladly pay for it. Expert advice from an agent still can’t be automated considering all the options and possibilities.
Imagine your office as a showroom with VR goggles that allow your buyers to walk through homes, make changes to wall colors and fixtures, and even look at renovation updates in real-time. Not only could you broker the home purchase, you could facilitate the entire experience from preparing and listing their current home, to purchasing, furnishing, and perhaps renovating their new home. Integrating your service more fully with a lender, contractors, vendors, and other affiliates through technology will also enhance the overall homeowner experience.
Not to get too far ahead of ourselves, there are small steps you can take along the way to stay ahead of the curve and on top of the leader board. A+ Agent provides weekly updates on real estate tools, technologies, trends, and opportunities that will keep you relevant and in high demand. Please reply with any suggestions or comments.
Let’s make 2018 an even better year for our growth and our clients’ experience.