The collapse of the housing market during the Great Recession illuminates the future landscape of America’s real estate market. A recent article in the New York Times confirms CEOs for Cities’ findings in Walking the Walk: homes in more walkable neighborhoods are worth more than similar homes in less walkable neighborhoods. According to the article, today’s most expensive housing, as contrasted with the most expensive housing of the 1990s, is located in high-density, pedestrian-friendly neighborhoods. The collapse of the exurbs and the revitalization of inner cities are attributable to the converging desires of two segments of the population: baby boomers and millennials. Together, these two demographics represent half of the population, and they are both seeking walkable urban downtowns. In fact, only 12% of future homebuyers desire drivable suburban-fringe houses.
This massive market movement represents “a profound structural shift — a reversal of what took place in the 1950s, when drivable suburbs boomed and flourished as center cities emptied and withered.” In the future, consumer preferences will force floundering suburban areas to restructure and to include infrastructure for biking, walking, and transit. Dense and connected urban areas “will support the knowledge economy, promote environmental sustainability and create jobs.”
