Subdivisions go urban as housing market changes

Changing demographics and shifting consumer demands have deeply impacted the real estate market, causing developers to put a greater emphasis than ever before on the creation of smart growth neighborhoods within easy distance to jobs, shops and schools.

From millenials to baby-boomers, Americans are moving away from large-lot suburban housing and looking to take up residence in areas closer to the amenities and activities they love.

That’s the message of an article published in this morning’s USA Today, which states that “the nation’s development patterns may be at a historic juncture as builders begin to reverse 60-year-old trends.” And it supports the notion that savvy real estate developers are well aware of the market realities outlined in report’s like the one published May 15 by the Demand Institute.

“These are the market signals we’re getting throughout the country,” says Chris Leinberger, president of Smart Growth America’s LOCUS coalition of real estate developers. “The drivable suburban fringe is where the housing market collapsed — 80% of the collapsed market was there. It’s a classic case of the real estate industry overproducing. This is a structural change, not a cyclical downturn.”

To read the full article in USA Today, click here.

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