Real estate

New research highlights rising demand for homes and businesses in walkable neighborhoods

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A new report from The George Washington University’s Center for Real Estate and Urban Analysis, in partnership with LOCUS: Responsible Real Estate Developers and Investors and ULI Washington, reveals how walkable urban places and projects will drive tomorrow’s real estate industry and the U.S. economy, and outlines what actions are needed to take advantage of these market trends.

The report was released at an event yesterday in Washington, DC. Governor Parris Glendening, President of Smart Growth America’s Leadership Institute, gave the kickoff keynote of the day-long event. Glendening discussed the megatrends shaping the real estate market today, including changing demographics, new demand among consumers and emerging economic factors. These trends are all influencing the real estate market, Glendening explained, and are shaping how developers think about the built environment and economic development.

LOCUS

Walkable neighborhoods now the most coveted in real estate

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Washington, DC’s Foggy Bottom neighborhood was one of those included in a new study from the Brookings Institution. Photo by Flickr user Dewita Soeharjono.

The most valuable real estate today is in walkable urban locations – and that’s a stark change from only a decade ago.

That is one of the principal findings of a new report from the Brookings Institution. Walk this Way:The Economic Promise of Walkable Places in Metropolitan Washington, D.C. is an economic analysis of the neighborhoods in and surrounding our nation’s capital.

“Emerging evidence points to a preference for mixed-use, compact, amenity-rich, transit-accessible neighborhoods or walkable places,” the report explains, noting that consumer preferences have shifted and that demand for walkable housing is outpacing supply, thus contributing to higher property values.

LOCUS

Subdivisions go urban as housing market changes

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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 … Continued

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Register today for LOCUS' 2012 Leadership Summit

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Real estate developers, investors and professionals are invited to join LOCUS: Responsible Real Estate Developers and Investors for the first annual LOCUS Leadership Summit from June 5-7, 2012 in Washington, DC.

This three-day event will provide real estate professionals from across the country the opportunity to meet with Congressional leaders and smart growth industry leaders, to network with fellow professionals, and gain in-depth information about the federal financing of real estate and other innovative solutions to challenges facing the real estate industry.

LOCUS

“The Death of the Fringe Suburb” and the next wave of real estate development

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This past weekend, Christopher Leinberger wrote a provocative op-ed in the New York Times about why exurban America – which has been hard hit by foreclosures in recent years – won’t rebound, even if the economy does.

Leinberger, who is President of Smart Growth America’s project LOCUS: Responsible Real Estate Developers and Investors, went on to explain why the future is so dim for these places, and what Americans are looking for instead.

High home values and low vacancy rates in the country’s city centers and inner suburbs mean that Americans want to live in mixed-income, pedestrian-friendly areas that “support the knowledge economy, promote environmental sustainability and create jobs.” Outer fringe areas are failing to offer these features – and they will fail in the marketplace as a result.

LOCUS

Shifting demand spurs new development in downtown Las Vegas

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Real estate developers in Las Vegas are seeing growing demand for homes downtown.

An article in the Las Vegas Sun this week chronicles the change, explaining that offers for homes in the heart of the city are coming in above asking price, and as new amenities are created in the city developers expect demand to rise even higher.

“That’s what you need for a city to grow is rental housing,” said New York developer Barnet Liberman, as quoted by the Sun. “There shouldn’t be any barrier for lower-income people to be able to grow and prosper. The only question for developers, guys like myself, is they’ve got to know that there’s a real solid, almost certainty that if they do A, B and C, then they get D. When you see that the city is behind you in terms of a common goal, it helps eliminate some of the risk.”

LOCUS

Value capture: an innovative strategy to fund public transportation projects

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Officials in Shenzhen, China, this month announced a $900 million project to expand the city’s metro system in anticipation for the XXVI Universiade Games. City officials hired the Mass Transit Railway (MTR) Corporation – best known for running and managing Hong Kong’s mass transit system – to build and operate the ten-mile-long, ten station extension.

Unlike most transit operators around the world, MTR maintains a robust development portfolio that produces revenue far greater than its transit fares. Most of MTR’s properties surround the company’s rail lines, and in many instances – such as in Hong Kong – MTR received the properties from the city in return for financing and operating a transit system. In essence, MTR provides metro service below ground in return for property above. This strategy is called “value capture.” Although it’s not yet clear whether Shenzhen’s expansion will use this model, the speculation about using value capture there reaffirms the idea’s financial viability.

In Latin America, value capture has been utilized to help fund Bus Rapid Transit (BRT) in cities such as Bogota, Columbia and Sao Paulo, Brazil. Property values have increased dramatically along BRT corridors as a result of the improved transit, and the local government has been able to recoup public funds used to finance the system through increased value of government-owned properties along the line. Both Bogota and Sao Paulo helped pay for new transit lines by betting property values would increase along those corridors.

LOCUS

LOCUS members gather for 2011 annual summer meeting and advocacy day

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Members of LOCUS: Responsible Real Estate Developers and Investors, representing some of the leading transit-oriented development companies in America, gathered in Washington, DC on June 15 and 16 to meet with each other and visit representatives on Capitol Hill.

LOCUS members met representatives from nearly 40 Congressional offices to discuss how federal transportation investments can better support one of the fastest-growing segments of America’s housing and real estate market: walkable, mixed-use development.

If you or your organization are interested in advocating for sustainable real estate at the federal level, consider joining LOCUS today. Learn more >>

LOCUS

National association releases smart growth course for real estate professionals

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The National Association of Realtors (NAR) officially launched a new course offering at their mid-year meeting last week. “Smart Growth for the 21st Century” is designed to bring real estate professionals up to speed on the basics of smart growth – what it is, why home buyers want it, and how it can build their business. The four-hour course is now available to Realtors® associations nationwide.

“Our Smart Growth Program Advisory Group asked us to create this tool to help our membership lead conversations about their communities’ futures,” explained Joe Molinaro, the Managing Director for Smart Growth and Housing Opportunity at NAR. “Realtors® are deeply rooted in and knowledgeable about the places where they live and work. They are in a position to make a strong case for smart growth.”

The course uses the ten smart growth principles to explain how different elements of community design and public policy work together to create the communities demanded by a growing market sector. The course also lays out economic arguments for smart growth and engages participants with opportunities to practice explaining and promoting smart growth approaches based on their community’s needs.

A recent NAR poll found that the majority of Americans define their ideal community as including a mix of houses, places to walk, and amenities within walking distance or a brief drive. These ideal communities included cities (preferred by 19 percent of respondents), mixed-use suburbs (28 percent), and small towns (18 percent). According to Mr. Molinaro, developing a national course that could address each of these contexts was a priority for the Advisory Group. Course instructors are trained to tailor the materials and exercises to the specific needs of different communities, using case studies and examples that are especially relevant to the hosts’ geography, community size and market conditions.

Robert Johnston, Vice President of the Anne Arundel County Association of Realtors in Maryland, attended the first training and said, “I really appreciated the balanced perspective. So many times those discussions are one sided, and not realistic. This course is really grounded in the realities of the market.” NAR also provides interested Realtor® associations with a list of instructors and an application to apply for an NAR Smart Growth Action Grant to help defray the course implementation costs.

For more information visit www.realtor.org.

LOCUS

New LOCUS resources now available

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LOCUS: Responsible Real Estate Developers and Investors and Smart Growth America are pleased to announce new resources now available for LOCUS members and advocates interested in responsible real estate policy.

LOCUS is a network of real estate developers and investors who advocate for sustainable, walkable development in America’s towns and cities. By providing members of Congress with expert advice on current consumer demand and the many benefits smart growth strategies, LOCUS members can help more communities across the country develop in ways that are sustainable for the environment and the economy.

Visit the new LOCUS section of this site for information about LOCUS’ steering committee, the issues we work on, upcoming events and additional resources and publications.

If your company or organization is interested in joining the fastest growing network of smart growth real estate developers and investors, click here to learn more about becoming a LOCUS member today.

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