What do outer space and real estate have in common? These days, more than you’d think.
With billionaires like Richard Branson, Elon Musk, and now Jeff Bezos taking an interest in space travel, space tech companies like SpaceX and Blue Origin are taking notice — and according to NAR, they and other private aerospace companies will likely expand to accommodate the budding interest in private rides to space.
So what does that mean for real estate?
If NAR’s prediction is correct, the space tech boom could also mean a housing boom, which would create opportunities for builders, buyers, and real estate agents alike.
A recent article from Realtor.com quotes NAR’s Chief Economist Lawrence Yun telling Fox Business, “Given that SpaceX and Blue Origin employees have sophisticated high-tech skills with presumably high income, the impacted small community real estate market will clearly benefit.”
To his point, markets where aerospace companies are putting down roots are starting to see some traction. According to Elon Musk, SpaceX alone is expected to acquire “thousands” of new employees over the next few years.
How Tech and Aerospace Are Already Impacting the Real Estate Market
As tech companies grew exponentially over the last 20 years, so have the housing prices around them.
In fact, a quick glance at housing prices between 2000 and 2020 show percentage increases in the double and triple digits.
- Prices in Cameron County, TX and Santa Barbara County, CA experienced a 51% and 108% increase
- Sierra County, NM, and Kern County, CA, experienced an 80% and 114% increase
- And prices in Brevard County, FL grew by an impressive 128%
If these trends are any indicator of what’s to come, then the rising interest in and popularity of private space rides in these areas will likely drive up prices even further.
However, Realtor.com also quotes Yun telling Fox Business that price growth may be tempered as demand increases.
For now, it seems SpaceX and Blue Origin are forging ahead with big plans to normalize private space travel in Texas, California, and Florida.
By 2024, SpaceX plans to transport passengers to Mars from its locations in Cameron County, Texas and Santa Barbara, California.
Meanwhile, Bezos’s Blue Origin company is actively hiring, and is working from its location in Van Horn, Texas. Both companies also leverage launch sites at Kennedy Space Center and Cape Canaveral Space Force Station in Brevard County, Florida.
What Does This Mean For Real Estate Agents?
The new construction tied to new housing markets could create great opportunities for new real estate agents looking to break into the industry representing buyers.
Partnering with builders is typically a mutually beneficial way to connect with prospects, and considering thousands of roles may need fulfillment at companies like SpaceX and Blue Origin, there may be plenty of prospects to go around once building starts.
On the other hand, depending on how quickly new housing is filled, new homes may take some pressure off inventory and make it easier for existing agents to get their buyers relocated.