Urban cores prove magnetic for more than just hipsters

Source: Globe St.

The American dream has always been to own a big home on a sprawling lot out in the suburbs. However, that dream appears to be drastically changing. The recession, foreclosure crisis and ever-increasing gas prices have slowed demand for housing in many of the nation’s fringe suburbs. Simultaneously, demographic trends are starting to push aging baby boomers, looking to downsize from big, suburban homes, while young Generation Y-ers are also looking to cities as they pursue hip, cool lifestyles. This is all good news for apartment owners and developers building in urban cores and inner-ring suburbs. The National Multi Housing Council reports that the US is on the cusp of a “fundamental change in its housing dynamics.” Changing demographics and the housing crash have shifted more people away from buying suburban homes and created increasing rental demand, particularly in urban core and inner-ring markets. Many of tomorrow’s households, the Washington, DC-based organization says, are looking for more choices and are drawn to the attractive amenities like nearby retail, restaurants, entertainment and mass transit that come with urban living. According to NHMC, up to half of all households created in the next decade could be renters, meaning upwards of seven million new renter households. “There’s a noticeable shift toward an urban lifestyle,” says John McIlwain, senior resident fellow at Urban Land Institute who holds the ULI/J. Ronald Terwilliger chair for housing.” The children of baby boomers are the biggest driving force. Nearly 80 million echo boomers will be entering the housing market, primarily as renters. “There’s a particular interest on the part of these young professionals, the so-called ‘creative class,’ that want to be near the stimulation of urban life,” says Henry Cisneros, executive chairman of urban investment company CityView and former secretary of the Department of Housing and Urban Development. The Los Angeles-based firm has invested $2 billion in city-based projects, of which about half is multifamily. It has several multifamily funds, including a $100-million vehicle to build workforce apartments in the seven-county Bay Area around San Francisco’s bioscience and healthcare institutions…

URL to original article: http://www.builderonline.com/builder-pulse/urban-cores-prove-magnetic-for-more-than-just-hipsters.aspx?cid=BP:051812:JUMP

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