17 Nov The ULI Trends Report Calls For Redevelopment
It is predicted that out future economy will be collaborative, social, and compact. This is why so many economists predict that that our future economy will thrive in urban settings as they harbor more of these characteristics than rural and suburban settings.
The recent 2011 version of the popular and authoritative ULI “Emerging Trends in Real Estate” report calls for a movement for compact real estate. There is the believe that the real estate industry spurred this recession and it will take its recovery to get America out of it.
If you ignore the predicted economy and focus specifically on consumer generations you will see that a move to more urban settings is a result of millennial desires. There has been a large decrease in potential homebuyers from the age of 35 to 40. Historically, this is the age group that was buying larger suburban homes from the older baby boomers. The problem is that there has been a 3.6 million-person reduction in the 35 to 40 year old age group. In addition to this reduction, a lot of them aren’t having as many kids as the boomers.
There are also taste shifts away from “wide-open spaces” and extra bonus rooms to more vibrant, compact and social communities. America’s urban cores are becoming extremely popular as a result of millennials desiring to live in Walkable communities. While the ritzy suburbs will always have their place, taste and demographics are leaning more toward urban settings. With an increasing attention on reducing carbon emissions, health, and climate change, extra density needs to be added to existing neighborhoods.
The good news is that there is something that can be done with existing neighborhoods that may lack some of these desired characteristics. According to experts, the remodel era is upon us. Existing structures need to be redeveloped around transit stops and jobs need to be created closer to home.