Location! Location! Location! The Exodus from the ‘Burbs to Downtown

By Heather Faucher | Posted on May 21, 2009 | Filed Under Real Estate 

Photo of San Francisco courtesy of FreeFoto.com.

Real estate agents have been chanting the “Location!  Location!  Location!” mantra for decades.  The difference in price between a house outside a real estate hotspot and a similar house inside the “zone” can be staggering.  And those who want to live in prime locations will pay top dollar to do so.  For a long, long time, the ‘burbs have been King when it comes to market growth as millions of people flocked from the overcrowded Big City to the suburban good life.  But now, most market and demographic indicators suggest that many Americans are moving away from the suburban and exurban areas and moving toward cities and close-in suburbs.  What’s behind this surge?

Several factors play in to this shift.  For one, many empty-nesters who no longer need big houses or want to mow sprawling yards are seeking out the benefits of city living.  The skyrocketing costs of fuel are also encouraging commuters to move closer to their workplaces in order to keep down travel costs.  Plus the spirit of urban renaissance sweeping across the nation is making city life seem vibrant and action-filled compared to the slower pace of suburban Dullsville, USA.

Of course, this changing trend has a big impact for retailers.  Suburban shopping malls have long reigned supreme, offering consumers plenty of (usually free!) parking, newer, nicer buildings, and millions of mallrats with disposable income to spare.  Adding the skydiving economy to this demographic shift may spell doom for shopping malls and big retail chains in the ‘burbs.  Even those who weather the economic storm may well find the lure of downtown customers too tempting to pass up.

And as developers and downtown revitalization groups promote urban renewal, downtown retail spaces may actually become more affordable for business owners looking to capitalize on the suburban exodus.  After all, we are a social creature, and in a world where more and more work is being conducted over the Internet, telephone, and fax lines, it’s only natural that people are seeking out homes where they feel more tapped in to the world at large.  Where they can walk a block or two to find great shops, pubs, clubs, or other forms of entertainment and give in to the need for companionship.

Now just may be the perfect opportunity to consider making “Downtown!  Downtown!  Downtown!” the new real estate mantra for your family or business.

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