The U.S. housing market has begun to recover, and homes with amenities within walking distance will be those most in demand in coming years, according to a new report from the Demand Institute, a division of the U.S. Conference Board.
The Shifting Nature of U.S. Housing Demand, released May 15, examines the state of the U.S. housing market and the new trends emerging as real estate prices begin to recover from the recession.
Notably, the report predicts that areas with homes within walking distance of amenities and public transportation will recover more quickly and more strongly than those without these features. The report authors refer to these communities as “Resilient Walkables”:
About 15 percent of the population lives in this segment, which comprises populous urban or semi-urban communities well served by local amenities. House prices here fell by less than the national average between 2006 and 2011, in some cases by much less. The same is true of local employment…These localities will be the first to recover. We expect house prices here to rise by an average of 3 percent in 2013, and by up to 5 percent a year between 2014 and 2017.