Technological change is placing increased pressure on the real estate industry. It has reduced the market edge of the real estate professional by democratizing information and allowing other settlement service providers to occupy priority positions in the transaction. It forces real estate firms to create new ways of adding value for consumers and thus has raised the cost of doing business, leading to consolidation of the industry. Finally, by creating a vast array of investment vehicles, technology has drawn household wealth away from owned housing toward financial markets, thus decreasing demand for real estate services. This article describes how each of these impacts will play out in the future.
Topics: Real estate industry, Financial investments, Housing, Industrial real estate, Business structures, Consumer economics, Multiple listing service, Industrial market, Consumers, Internet