How The Sharing Economy Has Changed The Way We Transact Real Estate?
I work and live in Downtown Toronto where my real estate business primarily services the Metropolitian area. Like many cosmopolitan cities, the modern social economic ecosystem in Toronto has been increasingly influenced by the multi-billion dollar sharing economy offering alternative goods and services to consumers and redefining how we live and transact business.
According to Investopedia, the sharing economy is "an economic model in which individuals are able to borrow or rent assets owned by someone else." This type of sharing model is becoming more popular due to the internet and mobile apps revolution, allowing peer-to-peer connection much easier. This type of consumer behaviour also altered the way we transact in buying and selling.
Virtual platforms like Uber has been in the forefront for shaking up the monopoly of taxi cab operations. Airbnb, another champion of the home sharing economy not only impacts the hotel industry, but shifts the supply/ demand from real estate broker listed properties. How about segmenting your unused parking spot at your property to rent out by the hour or by day through Rover Parking. Spinlister smart bikes made by Vanmoof first purchased then rented out to consumers through Spinlister's bike sharing program, eliminates the need to rely on a vehicle or public transportation in the inner city without going through the public bike sharing system.
It is certain that the sharing economy changed the traditional real estate landscape, turning homes into an income supplement commodity. Airbnb for home-sharing, BeMate for luxury home-sharing, Workplace One and 8Space have brought in a new type of residential and commercial source that eliminates any interaction with a real estate broker, from sourcing to transacting from just a smart phone. This is just the beginning of the real estate industry impacted by technological change.
We are living in the sharing economy boom and it's here to stay. Consumers no longer go directly to the big brands and organizations to access goods and services...essentially any commodity related to buying and selling including property sales and leasing. One might think that the role of the traditional real estate agent and organized real estate will be diminished as the sharing economy gains momentum. However, this also gives birth to a new kind of business model for real estate brokerages.
The birth of the value-added boutique real estate brokerages: The new breed of real estate brokerages with the willingness to adapt to the demographic shift and the new way of doing business from the service-based to a solution-based business model in the sharing economy will be more sustainable in the long run. Value-added brokerages have the propensity to attract more creative and entrepreneurial real estate agents.
This is my 7th month since joining Blue Elephant Realty. The Blue Elephant business model has helped me redefine how I approach my real estate practice in providing value-added modern solutions for my clients.
Let me help you find a creative solution for your next home.