I love spotting longterm trends, and after several months/years of reading and observation, I now feel confident to share what will be the biggest, most revolutionary trend of all.....and yes, it will impact everything about real estate too. Intelligence - both real and artificial - will truly revolutionize HEALTHSPAN..... yes, the somewhat extreme obsession right now with merely extending life seems to be giving way to extending QUALITY of life in our later years.
In the A.I. space, the ability to have extreme volumes of data to diagnose and prevent serious illness will be exceptional. A.I. could also help develop preventative methods, drugs and treatments for multiple ailments.....fast! A.I. will accelerate learning and fuel more reliable successful outcomes. Combine this with the rapidly growing awareness of preventative measures that may not extend life much, but are almost certain to IMPROVE quality of life and overall health. There is not a single drug on the market that almost guarantees a 40% reduction of serious illness like heart attack, stroke, diabetes, etc. Yet simply by exercising 25-30 minutes per day can achieve this. If 80% of the US population is not exercising right now, imagine the growth potential of this as the awareness of this ONE simple item multiplies.
Now add in revolutionary drugs: Ozempic has opened a window into what possibilities exist to reduce obesity, and by doing so how this can reduce the consumption of food. Over 40% of Americans are obese. And over 11% have diabetes. Diabetes costs the US over $300 billion every year. Now back to real estate....how will this impact us? Here are some ideas:
1. People could be more productive longer and work longer, well into their 70's and 80's. They already are. The median age of billionaires is 67. Already about 6% of leaders of the country's largest publicly traded companies are over age 70. The two leading US presidential candidates are approaching 80. The average US millionaire is 57.
2. While aging now requires lots of time and capital related to health issues, healthier people may have (much) more money to spend on other things.
3. Homes will include many more fitness and wellness-related aspects, from infrared saunas to gyms, walking trails, etc. High-tech health monitoring has already crept into homes including blood tests.
4. People may stay in their (bigger) homes longer. They already are. Even with lots of stairs. Some might install a simple elevator.
5. The longer you work past age 65, the more income and savings you can accumulate to spend.....on homes too! Like compound interest on a savings account, the multiplier reaps much more exciting rewards later, especially when you continue adding to the kitty.
Knowledge is power. Once more people know they have the power to improve their QUALITY of life - not just the length - they will adopt rapidly. If the average American spends over $300,000 in their lifetime on healthcare, imagine what would happen to the economy - and home prices (and demand) - if they spent a third less.....
Ken interprets market data, staying in constant communication and offering valuable insight that then translates into an informed decision.Contact Us