Driverless cars will spur an exodus from high-tax cities to inviting suburbs

ARLINGTON HEIGHTS, Illinois — More than at any time in world history, technological advancements are having an immediate and significant effect on the way people are living their lives. Just 30 years ago, few would have imagined it would be possible for every person to own their very own pocket-sized super computer on which he or she could do virtually anything—from finding a date to buying a house.

In the same way the internet and smartphones were once exotic technologies few knew anything about—the driverless car stands today as one of the society-shifting innovations that has the potential to become an everyday reality in the not-so-distant future. In April, Volkswagen’s Johann Jungwirth predicted the first self-driving cars could appear on the market as early 2019. In May, General Motors’ Richard Holman said driverless cars could become a reality in 2020. State governments have already started preparing for the new technology’s imminent arrival. California, Florida, Michigan, and Nevada have recently passed laws governing their use, and Stanford University’s Center for Internet and Society reports more than a dozen other states are considering similar legislation. Traditionally, technological innovation puts more products in the hands of consumers, but many industry experts predict driverless cars will actually limit private car ownership.

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Instead of spending thousands on a new car, the tech-savvy consumer of the future will open an app on a computer or smartphone and call for his or her very own driverless chauffeur. Not only does this technology have the potential to radically change the way people spend time with their families and commute to and from work, it will very likely alter where and how people live. Recent data show there has been a clear trend in favor of urban centers, but surveys suggest virtually all demographics, including millennials, still prefer to live in affordable, convenient, spacious suburbs. The Wall Street Journal reported in 2015 that one poll showed as many as two-thirds of young people would choose suburban living over life in the city. If Americans still prefer the suburbs over urban city centers, why are so many choosing to live in cities?

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While a number of factors are responsible for the shift from suburbs to cities that has occurred over the past two decades, one of the most important considerations is the increasingly globalized economy. As emerging financial and technological industries have grown throughout the United States, international centers of tech-commerce have developed in regions such as California’s Silicon Valley, the Research Triangle in North Carolina and in major urban areas such as Chicago and New York. Professionals who want to work in these growing fields or in related industries often need to be close to where the action is—or else face hours-long commutes. This doesn’t mean, however, urban areas typically offer a better quality of life. In most cases, they don’t. Combined city and state sales and income taxes are highest in some of the country’s most influential cities, such as Chicago, New York, San Francisco and Seattle. Crime and pollution remain significantly worse in cities as well. And according to the Kauffman Foundation, regulations that limit businesses—especially small businesses—are worse in states with large urban centers, including California, Connecticut, Rhode Island, Illinois, Massachusetts and Pennsylvania, among others. Driverless cars have the potential to completely change the way Americans think about where they live. No longer will people need to pay the high rents, taxes and fees common in urban centers to work comfortably in those cities. While traffic congestion may still be an issue for many; “driving” to work in the future could look and feel more like sitting at home on the couch watching a favorite show on Netflix. And if that’s what the future looks like, who wouldn’t mind spending more time commuting?