First-tier suburbs becoming more popular

Demand may outstrip supply

Marci Gilbert, Feb 16, 11.

The appeal of close-in suburban neighborhoods is rising because of their proximity to major employment centers and because of transit options, Patrick L. Phillips, CEO of the Urban Land Institute, said Feb. 12 in a program on “Sustainable Suburbs: Re-Imagining the Inner Ring” sponsored by the North Carolina State University College of Design and the Raleigh Department of City Planning, according to a story in New Urban Network.

While many distant communities are suffering a high volume of foreclosures as a result of the recession, Americans are displaying a growing enthusiasm for living in first-tier suburbs, which offer convenience and time-saving features at a time when urban areas are increasingly congested, Phillips said.

He also made the following statements:

There likely will be a housing shortage over the next few years, he predicted. Housing starts hit a 30-year low in 2009, when 554,000 units were begun. Because demand for housing in sought-after, accessible neighborhoods such as first-tier suburbs is running strong and will continue to do so, the demand in those locations will outstrip supply, he indicated.

“It’s clear that the disconnect between housing and jobs, long daily commutes, and time wasted in traffic is causing more and more people to rethink how and where they are living,” Phillips said. “This bodes well for first-tier suburbs. Not so well for the exurbs.”

Phillips cited findings from ULI’s 2010 publication Housing in America (available here), which shows a desire by both baby boomers and Generation Y to live in more pedestrian-friendly, transit-oriented, mixed-use environments that de-emphasize dependence on automobiles. This preference will hold true for suburban development, he predicted.

“Suburban development in the 21st century cannot mean sprawling development; that simply is not a sustainable growth model,” Phillips said. “In the suburbs, less land will have to be used to accommodate more people.”

Source: New Urban Development