How Technology Impacts Real Estate
There is no doubt that the invention of the internet has completely changed the real estate industry, especially in New York City. What is already a fast-paced market and profession has become even quicker. Transactions are now seen across multiple platforms in ways that fifty years ago no one thought possible.
Real Estate agents all over the world are utilizing the advantages that technology has provided. With social media, websites, multiple listing services, online publications and email communication it is a lot easier to keep in touch with a customer base, reach new potential clients, and gain exposure for either yourself or a real estate investment. As an agent, connecting to people and creating a brand has never been more accessible (yet can be challenging if unaware of potential client reach and the optimal consumer).
Social Media can be a huge tool in selling new properties, and it directly affects the real estate industry in New York City. With social platforms, word travels fast, as articles and photos are easily shared within seconds through a couple of clicks, a re-tweet, or a direct message. A recent article by CNBC highlights the importance of having a strong audience base for selling apartments (it also helps to have a technology-saavy client base). “Real estate agents show followers inside apartments for sale or rent across the city. Those looking to rent or buy can send agents messages arranging viewings or challenge them to find apartments to suit their budget, location and size needs” (1). The article also shows just how fast-paced the real estate industry has become since the rise of technology. New Yorker Dolly Meckler tells CNBC that there are people “who [have] lost apartments in minutes just because their applications came in two minutes after somebody else’s. So the beauty of ‘Snaplistings’ is that you can DM agents in real time saying ‘I want to come and see this place, where are you? I will come and meet you’ ” (1). This shows the sense of urgency of both the industry and the generation.
The tech bubble as a whole also has an indirect affect on technology. Konrad Putzier from The Real Deal Magazine writes that most industries now are dependent on technology because it has become an integral part of everyday life and business transactions. Not only that, but the real estate market in New York is also directly affected by the financial services markets. “It’s universally acknowledged that the health of the financial sector is a big factor in the health of the New York real estate market as a whole” (2). According to a study conducted by the Center for an Urban Future and the Department of Labor in New York, “It’s just night and day how much more important the tech sector is to the city’s economy today compared to 10 or 15 years ago. Tech is one of the key drivers of economic growth today,” said CUF’s executive director Jonathan Bowles” (2).
Even though technology is a major player, the New York City real estate industry is as independent and stronger than ever. The first quarter of 2017 looks to be a strong one in both the real estate and finance industry as technology continues to be one of the driving forces for sales and transactions.