The Teachings of the Pandemic: Real Estate and Home Life

www.ozy.com [OZY]() Your World. Bold & Bright Sponsored by The newsletter to fuel — and thrill — your mind. Read for deep dives into the unmissable ideas and topics shaping our world. Mar 12, 2022 Today From the she shed to the lawn chair, the yoga ball to the beach towel, where we park our bums has occupied our minds more than anything outside the virus itself these last pandemic years. But will the lessons learned stick, and how are real estate tycoons and property gurus alike responding to these tectonic shifts? Join us as we explore unlikely booms in real estate and new opportunities to monetize real estate assets in post pandemic life. Real estate is being reshaped — so buckle up, and enjoy the ride. — with reporting by Stephen Starr UNLIKELY BOOMS Virtual Real Estate on the Rise They have a bridge to sell you: a virtual one, that is. Digital assets are all the rage, as [non-fungible tokens]( (NFTs) have proven. The next space for expansion using digital currency? Virtual property on platforms like Decentraland, a multiplayer metaverse that calls itself the “first fully decentralized world” built on the Ethereum blockchain, can [be bid on and bought]( using cryptocurrency. With its total parcels capped at 90,000, Decentraland is incorporating the same scarcity model that helped Bitcoin rocket to the high valuations it sees today. With the ability to transform plots to everything from casinos and art galleries to music venues, some users are already seeing returns on their investments: Land sold in Decentraland for $500 in 2019 was [reportedly trading]( for over $7,860 in September 2021. But it’s still not the most expensive piece of digital property sold, that honor goes to a planet in [Entropia Universe that sold for $6 million in 2011](, which has existed in the digital real estate space since 2003. Almost Heaven Once known for its cramped coal camps, rural West Virginia is blooming as an Airbnb hot spot. A recent redesignation of the stunning New River Gorge as a national park and preserve has led to an explosion of interest from outside buyers in southern [West Virginia](. Small residential homes once used as squat housing for coal workers are now being swallowed up and converted into Airbnb rentals, leaving fewer options for locals. “In the past, you might have had to wait a while for a house [to come up on the market], but you could always find something,” Haynes Mansfield, who works at a local adventure resort, told OZY. But these days, folks like Mansfield are being approached by strangers asking if they can buy their houses outright — before they hit the market. Sight Unseen The pandemic has made buying sight unseen palatable, leading to a surge in sales everywhere from Salt Lake City to Atlanta. In recent years, sites like Zillow and venture-funded upstarts such as Opendoor and Offerpad tried to axe the middleman, while [owning the entire home buying process](. Buying properties themselves to flip — and offering their own agents and lenders. Although Zillow’s experiment in the [homebuying business ultimately failed](, the pandemic accelerated the trend by making buyers more comfortable with [virtual video tours]( and other remote services. Senior Living Retirement homes were devastated by the pandemic, leaving [more than 200,000 residents and staff dead]( in America alone — a number that exceeds total COVID deaths in [all but five countries](. While one might assume that would lead to seniors fleeing elderly living hubs, that’s not the case in India. When there was a deadly COVID spike in the country it was sure to slow things, at least temporarily, but Indian customers were still keen to have access to on-site assistance and health care, industry leaders say. “We have already sold one-third of our inventory after the COVID-19 pandemic broke out,” Tara Singh Vachani of Antara Senior Living [told the Indo-Asian News Service]( at the time of the surge. “In Dehradun as well, where we had already sold 70 percent of the inventory, both [inquiries] and sales have risen.” He’s Grabbing a Pitchfork Once the world’s richest man, Bill Gates is now [the largest owner of farmland in the United States](. Even as he gives much of his wealth to charity, [Farmer Bill]( is gobbling up new land assets. From Louisiana to Arkansas and his home state of Washington, Gates has built an empire with about 242,000 acres of American farmland, [according to The Land Report](. He even coughed up a reported $171 million for a 14,500-acre plot in the idyllically named Horse Heaven Hills region, not far from Microsoft’s headquarters. When asked why on Reddit, [Gates said]( his investment group had chosen the investments but cited seed science and biofuel development as major drivers. [WANT TO SAVE THE PLANET: WALK THE WALK WITH THESE SHOES]( [Cariuma]( has always been a leading brand when it comes to sustainable footwear. These shoes are good-looking, crazy comfortable and, best of all, consciously made. With each purchase, two trees are planted in the Brazilian rain forest. Stylish, sustainable and saving the planet — what more can you ask for? [Get an exclusive $15 off]( when you buy these one-of-a-kind sneakers with code OZY2022. [Shop Now]( YOUR YARD: PRIME REAL ESTATE Park Your Profits There was couch surfing, and then there was Airbnb. But COVID led to countless other ways to monetize living spaces. With RV sales and rentals [through the roof]( as people hit open highways, Americans are renting their driveways for a few Franklins to those looking to store campers. Check local zoning laws before trying this at home. In space-strapped Toronto, home prices have shot up by 20 percent in the last year, leading homeowners to push zoning officials to let them convert parking spaces into [residential units](. Ripe With Opportunity The shift from keyboard warrior to pandemic gardener came replete with cherry tomatoes and hanging herbs. While great for budding basil growers, attempts at living the bucolic dream led to [seed shortages](, which were exacerbated by [severe outbreaks of COVID-19]( among farmworkers. In response, many new at-home gardeners sowed the seeds to meet demand, investing in household horticulture. This created a vicious (but delicious?) cycle that has seen backyard seed businesses bloom from [England]( to [Wisconsin](. Taking Charge Would you [charge electric scooters]( in your hallway, or sign your parking space up to become a [Tesla charging station](? Bird, Lime and other e-bike companies offer lucrative side gigs [for the savvy]( scooter spotters (spend time in any major U.S. city and you’ll see pickups full of scooters whizzing by). They are available in dozens of cities across the world. And if that doesn’t sound appealing, you could always simply rent out your shed or garage as storage space through the [Neighbor app](. [YOU DON’T WANT TO MISS THIS SNEAKER DROP]( We’re always telling you the next big things in names, trends and ideas, so listen up: Cariuma’s newest launch is [SALVAS](, a timeless sneaker designed to look and feel even better with age. They’re the blue jeans, the white tee — a staple for the sneaker age. These SALVAS are made to last, for any occasion and for everyone. With both comfort and style, these shoes are all the rage! If history is an indicator, these shoes will sell out quickly! Stay ahead of the curve and get [$15 off a pair of these kicks using the code OZY2022.]( [Shop Now]( PLACES FAR AND AWAY They Could Have Used Amazon “There’s no risk,” said Fabricio Guimarães, a middle-class Brazilian who purposefully burned a patch of the Amazon and posted the cleared plot on Facebook with an asking price of $35,000. He wasn’t the only one. As deforestation abounds in the world’s largest rainforest, Facebook Marketplace ads are selling the illegally cleared land to prospective farmers. Anybody can find the deals by searching terms such as “forest,” “native jungle” or “timber,” [the BBC reported](. Some of the advertised land spans as much as 1,000 soccer fields, but Facebook said it wouldn’t take down the ads because its policies already require buyers and sellers to follow local laws. Basecamp Bitcoin Cryptocurrency mining uses lots of electricity, so crypto farms rarely are built close to urban areas. But Russian energy giant Gazprom is [taking isolation to the extreme]( in Siberia’s Khanty-Mansiysk, a place connected to the outside world by a single road. “The CO2 that gets freed during the oil drilling is normally a liability for oil companies as they have to burn it into the atmosphere, which results in fines,” reports [CoinDesk](. “However, there are ways to utilize it instead of wasting it, and electricity generation is one of them.” It could offer a brand new way to fuel electricity-guzzling crypto farms, while cutting emissions produced through the flaring of natural gas. Shaky Markets Housing prices rose in North America thanks in part to pandemic-fueled lumber and labor shortages. But in Turkey, shifting [tectonic plates]( are causing an even more dramatic spike in real estate prices. The Izmir province has seen the costs of temporary housing facilities double following a devastating 7.0 magnitude earthquake that killed 114 people in 2020. Such prefab housing is especially crucial in Turkey, [home to the world’s largest refugee population](, with around 4 million people, many of whom live in nearly two dozen Turkish camps. Higher-priced temporary living is bad news for those without a home and could lead to a spike in homelessness. Thai Malaise From Shanghai to San Francisco, residential real estate is skyrocketing even as others flee cities in droves. But the picture is more gloomy in Thailand, when the travel restrictions halted cross-border travel. Condo sales in Bangkok and coastal Thai cities have been decimated, making it one of the few property markets to see prices fall in 2020. That’s because 43 percent of the foreign money buying up Thai condos — [some $293 million]( — comes from mainland China and Hong Kong, from shoppers priced out of their home markets or looking to retire. That’s potentially great news for Thai millennials, who for years [have been priced out of owning]( in urban real estate markets. CATCH THE NEWEST EPISODES OF The Carlos Watson Show, season 4! PAST IS PROLOGUE? Spanish Flu: Casting Light? The 1910s were dark: a world of stale air, crowded, smoky parlors and multigenerational housing. In fact, the wealthy shunned the outdoors and natural light in an effort to keep their skin pale — a status symbol separating them from the poor who toiled in the fields. The Spanish flu pandemic of 1918 [changed all that](, raising demand for natural light and cleaner air. Architects responded by incorporating more open areas, bright light and large windows into living spaces. What Can be Learned From the Past Residential properties have been slow to hit the market in recent months, inflating prices and rents alike. How long will that last as renters face increased pressures to find new places to live? If the 2003 SARS pandemic in Hong Kong (and elsewhere in Southeast Asia) is [anything to go by](, things will return to normal much faster than after other recessions, such as the 1929 and 2008 fallouts driven by faulty economic trends. A Future After the Modern Black Death If the post-COVID world is anything like the aftermath of the 14th century bubonic plague, it will see massive investment that [changes health care and the sciences](. The Black Death, as the global epidemic that struck Europe and Asia was called, forced hospitals to evolve from sick-only sites to institutions with more holistic care options. Major changes are brewing again. “Contagion-control and safety protocols put in place at the onset of the pandemic are becoming standard for new projects and renovations,” [according to John Caulfield](, a senior editor at Building Design + Construction magazine. The next medical care revolution will focus on remote, digital and telehealth: Germany has already passed laws [allowing doctors to prescribe health care apps]( to patients. Artificial intelligence will play a key role in streamlining mundane tasks (say goodbye to messy insurance claims), while research from the four corners of the globe will be [shared more easily than ever before](. A Catalyst for Change The pandemic taught people to think more deeply about their homes and where they live. That has led to [innovative ideas for future cities]( built around sustainability, such as parking garages converted into urban farms autonomously feeding locals. COVID and other animal-borne infectious diseases are often caused by human destruction of wildlife habitats. Knowing that, some of the world’s [most respected scientific outlets]( are pointing out the merits of stopping deforestation in preventing future pandemics, with the World Health Organization calling last week for a [ban on the sale of live animals at wet markets](. If changing where we live means living in a more humane world, that would be one positive from a tragic phase in modern history. COMMUNITY CORNER What is your alternative real estate investment strategy? Share it with us at OzyCommunity@Ozy.com. ABOUT OZY OZY is a diverse, global and forward-looking media and entertainment company focused on “the New and the Next.” OZY creates space for fresh perspectives, and offers new takes on everything from news and culture to technology, business, learning and entertainment. [www.ozy.com]( / #OZY Curiosity. Enthusiasm. Action. That’s OZY! 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