The “Maker Movement” could be one of the most disruptive events the U.S. economy has seen in decades. So why has it become so powerful, and what does it mean for San Diego real estate?
The Maker Movement is turning into a major economic force in itself, pulling in support from both public and leading private institutions, and has at least seven ways in which it could directly affect the Southern California, and San Diego County real estate market. But what is it, exactly?
The Maker Movement 101:
Despite the enormity and significance of the Maker Movement, some may still be unaware of what it is all about, and how it is developing. The Maker Movement is essential a return back to making things again. In contrast to the internet and virtualization, or simply focusing on technology in the form of software and the cloud, Makers actually make tangible objects. This ranges from tinkering with wood and metal work and art, to creating new robotic technology, and general manufacturing.
Making has been sorely neglected in schools and business for a while. Now that the economy and the U.S. as a whole desperately needs to be pulled up and anchored by something real, beyond just the real estate market a new appreciation for Making has been born. The government realizes we need real manufacturing jobs, and corporations realizes they need workers equipped to solve real problems, and develop new inventions. Serious educators recognize that incorporating making and the arts is critical for delivering on this, and fully preparing students to survive and thrive once they graduate.
The Maker Movement is Bigger than You Think
The Maker Movement is now far bigger than most realize. G-Code Magazine recently revealed brands like Amazon, as well as the Bill Gates Foundation, have been using Makers Spaces to meet and do business for a while now. In June 2014, the White House kicked off a major Maker initiative announcing dozens of private and public collaborations, grants, events and billions of dollars in support to grow the Maker Movement. Crowdfunding platforms, Disney, the SBA, DoD, NASA, EPA, MIT, Coca-Cola, Chevron, and many, many more are involved, making this a trend which simply cannot afford to be ignored.
What the Maker Movement Means for San Diego California Real Estate
1. Financial Incentives
With billions being poured into the market to support various Maker Movement initiatives, there will no doubt be many incentives, grants and breaks for those investing in commercial real estate which supports the movement. This can range from co-working spaces, to after school centers, community buildings and more.
2. Increased Economic Activity in San Diego
San Diego, CA is a magnetic for this type of activity. Between the year round great weather, international visitors, being a strong secondary tech hub and creative scene, all local real estate could experience a significant lift as the Maker Movement takes off. Both residential and commercial real estate should see increased demand, higher prices, and rising rents.
3. New Inventions & Innovations in Real Estate
With real estate serving as the only viable stronghold in the U.S. economy, there is no question that many Makers will focus efforts on real estate related inventions and innovations. From better drones to interior design and furniture, expect significant developments. Those on top of these trends, and early to adopt them, could find the wings to scale faster and easier than those that ignore what is coming.
4. Better Local Talent
Advancements in education, like STEAM curriculum, Maker programs are likely to help develop a better talent pool in Southern California. Young workers more capable of problem solving, with natural talents exceeding programming will attract more businesses to the area, resulting in higher wages and incomes, and ultimately rising property prices and rents.
5. DIY Makes a Comeback
Real estate and the Maker Movement both converge in DIY. This could make rehabbing even trendier than it is now. However, for real estate investment companies, it can also mean an opportunity to both improve branding, and visibility, and benefit from highly talented, affordable workers in the form of interns and apprenticeship programs.
6. Fluctuating Construction Costs
The Maker and closely related DIY movement could have split impacts on the construction and building industry. When things become fashionable costs often rise. However, the cost of rehabbing could come down on new efficiency. But market position and market share will increasingly show disparity among those that embrace the new inventions of the Maker Movement, versus those that don’t.
7. Economic Strength
If successful, America could find this a major driver in regaining status, economic growth, manufacturing jobs, and exports. The better the country does, the better the real estate market performs, and the better the landscape for real estate investors. Asset values go up, property performance improves, and credit becomes easier to obtain and wield.
