...the previous model was based on the assumption that the United States could prop up the single family home in a distant location by keeping the cost of oil and mortgages low. But that era is over. "The true cost of transportation and housing is going to start to surface," ...
...Boomers are eager to liberate themselves from the maintenance of house, lawn and car ... They want necessities within walking distance because they know they will not be able to drive forever.
... "Cities need to understand that a great city needs a mix of housing. It creates dysfunction when workers are required to live at great distances," he said.
...Now citizens with real estate savvy are honing in on the cities. Unlike the suburbs, and despite the downturn, homes closer to downtowns tended to retain their value...
In 15 of 20 major housing markets, such as New York City but also Milwaukee, Wisconsin and Durham, North Carolina, higher home prices correlated with proximity to the city center and its restaurants, parks and libraries.
More specifically, walking distance to those amenities generates a home price premium in the range of $4,000 to $34,000, according to a 2009 study of 90,000 homes ...
...Residents of communities like Sacramento and Rockville are ponying up for the urban privilege of public transportation in their own backyards.
... governments reap much more in taxes from urban centers than from malls or "big box" retail like a Wal-Mart, but pay more to build suburban infrastructure such as sewers and streets.
In the city and county of Sarasota, for example, 3.4 acres of urban residential development consumes one-tenth the land of a multi-family development in the suburbs. But it requires little more than half of the infrastructure investment and generates 830 percent more for the county annually in total taxes: that's $2 million from the city structure and $238,529 from the suburban one.
What's more, suburban housing takes 42 years to pay off its infrastructure costs. Downtown? Just three. ... "These (city) centers produce a tremendous amount of revenue and then hemorrhage it out to the suburbs," ... "We don't have a rational discussion on the true costs of the way we manage land."
....cash-strapped governments struggling with the recession's hit to tax revenue are starting to press developers to share the pain of paying for highways and other infrastructure...
As a result, profitability will come to depend on higher-density construction, said Rich,.."Just as they evolved to start, they will de-evolve the product," he said, of suburban developers.
Blue Dress FTW
23 hours ago