How 5G Technology Will Change the Real Estate Industry
5G technology is coming. It’s already being used in select cities like Chicago, Atlanta, Minneapolis, and New York city; soon it will be used everywhere. 5G will affect all aspects of life, and real estate is not excluded. Here is how 5G technology will change the real estate industry.
What is 5G technology?
Our current smart devices are supported by 4G technology. 5G, or fifth generation, drastically speeds up the transfer of data. NAIOP says that 5G speeds will be 100 times the speed of 4G. Data will transfer almost instantly and more devices will be connected at once. Everything will be done with better connectivity, high speeds, and cheaper costs.
Remote Areas Will Become More Accessible
5G technology will be able to hit parts of the country that 4G cannot. Rural and remote areas will be able to reap the benefits of 5G. People will have much better and faster connections than the little bit of shotty 4G they once had.
Businesses tend to stay in areas with good 4G connections, but with new areas getting connections they’ve never had because of 5G, businesses will pioneer rural and remote parts of the country, and they will do it at less costly rate than having a business in a major city. Where businesses move, people move. Investors will have new opportunities in the remote areas when 5G becomes available nation-wide.
As 5G becomes more widespread and the new frontier of real estate development arises in remote areas, investing apps like Tellus will be a relevant way to invest in property. Investors on Tellus can invest at least $200 on properties and receive daily returns. 5G will make the process faster and easier.
With 5G comes more innovative technology, such as self-driving cars. These smart cars can drive people to destinations with little to no effort from the driver. Most people who work in big cities like to live close to their job so they don’t have long commutes. However, with self-driving cars, people will start moving to the suburbs and use their commute to get work done on laptops since they won’t have to concentrate on the road. This will open up expansive real estate opportunities for investors.
Impact on Neighborhoods and Homes
Cities, neighborhoods, and homes will need to go under major infrastructure reforms to adapt to 5G technology. Gray cable boxes that are scattered throughout neighborhoods will be a thing of the past. They will be replaced with 5G cell towers on every structure including street lights, stop lights, and rooftops. These cell towers will improve the aesthetics of neighborhoods and will provide better connectivity during bad weather. Rooftop 5G cell towers give homeowners opportunities to rent out their rooftop spaces.
Financial Effects for Landlords and Investors
Making homes 5G accessible will be expensive for landlords. Since 5G signals cannot pass through walls, homeowners would need to install fiber optic cables through walls and floors. Retrofitting existing buildings would cost 30% more than average renovation.
Renovating homes to be 5G accessible could be a good investment for landlords, though. Landlords could raise the rent of accessible homes by 8%. Renovating homes automatically raise the property value by 2.8% on average.
Final Thoughts
Nation-wide 5G accessibility won’t happen overnight. It is still in the beginning stages, and more of the country needs to be onboard in order for cars and cities to adapt, but it is coming. With more people moving to suburbs and remote areas, and renovating houses to adapt to 5G, investors will have new and fresh opportunities to make profits.
