The Autonomous Taxi Revolution and Its Impact on Real Estate

Autonomous taxis, or robotaxis, are no longer a futuristic concept. They are here, and they are already reshaping how we think about transportation. Waymo, a leader in the field, began offering fully driverless taxi services to the public in 2020 and now provides over 150,000 paid trips and covers more than 1 million autonomous miles per week. With operations currently in Phoenix, San Francisco, and Los Angeles, and expansion plans for Austin and Miami, the autonomous taxi revolution is accelerating quickly. For multifamily real estate investors, this transformation isn’t just fascinating—it could fundamentally change where and how we invest.

The Rise of Autonomous Mobility

Robotaxis offer significant advantages over traditional ridesharing and car ownership models. For starters, they are statistically safer, reducing accidents caused by human error. They also are highly preferred by statistically more vulnerable groups such as women and the elderly by eliminating the human driver component. With fewer concerns about personal safety or driver mistakes, ride-sharing is slated to become much more popular.

One major byproduct will be a reduction in car ownership. As autonomous ride-sharing becomes more cost-effective and convenient, many individuals and families will either reduce the number of cars they own or opt out of ownership altogether. This will free up significant household budgets previously allocated to car payments, insurance, and maintenance. Furthermore, the time spent commuting will no longer feel like wasted hours. With the ability to work, read, or engage with your kids while in transit, longer commutes will become far more tolerable.

What This Means for Multifamily Real Estate

From an investment perspective, the ripple effects of robotaxis could be profound. One of the most immediate impacts will be on location dynamics. Properties in exurban areas—those an hour or more from major cities—stand to benefit as commuting becomes less of a chore. Quality towns with strong amenities but previously seen as "too far" could witness increased demand as people take advantage of affordable housing and improved lifestyle opportunities.

Conversely, first-ring suburbs that rely heavily on proximity to urban cores but lack walkability might see reduced demand. These areas—popular primarily for short-drive access to jobs and services—may lose their competitive edge when driving distances become less of a concern.

That said, walkable urban locations will remain attractive. The combination of convenience, lifestyle appeal, and the ability to use robotaxis for trips beyond walking distance will continue to make these areas desirable.

Another intriguing opportunity lies in the repurposing of excess parking spaces. With fewer people owning cars, many existing parking lots and structures will become obsolete. For multifamily property owners, this represents an opportunity to create additional units, build amenities, or even lease the space for alternative uses. This is particularly compelling in urban areas where land is at a premium.

Looking Ahead

The era of autonomous taxis is upon us, and the implications for multifamily real estate are both exciting and profound. As commuting transforms and car ownership declines, new patterns of housing demand will emerge, creating winners and losers in the market. By anticipating these changes and positioning our investments accordingly, Ridgeview Property Group is committed to staying ahead of the curve.

-Ben Michel

Ben Michel is the founder of Ridgeview Property Group, an investment firm specializing in multifamily real estate. Register Here to be notified of available investment opportunities.