The Changing Landscape of Suburban Real Estate in 2017
It’s not too late to ring in 2016 with an ill-advised pun (you’ll forgive us, we’re sure), but in all seriousness, 2017 is set to bring about a good deal of changes to the real estate market after the whirlwind that was 2016. The good news is that, now that influential events like the presidential election and the Federal Reserve’s long-anticipated rate hike have passed, 2017 will be more an adjustment to their effects rather than speculation as to their respective outcomes.
The biggest change expected is a new delineation between urban and suburban growth. The move from suburban-style sprawl to more dense communities of different housing arrangements – such as town houses, apartments and single-family homes – has been fairly obvious and consistent. While the trend is expected to continue, there are some real changes on the horizon.
Existing suburban neighborhoods are adding amenities that are characteristically urban, which are more common in densely populated areas (more people means more cost-effective distribution of community resources). There are now communities popping up outside the core of urban areas which incorporate urban facilities to create an environment where people can live, work and play.
It goes a little further than simple hybrid communities where the blend of urban and suburban living provides the best of both worlds; it’s possible to walk to work, like in a city, as well as enjoying pedestrian access to groceries, entertainment and youth- and sport-friendly parks — plus reliably strong public schools.
While suburban growth as a percentage of overall residential growth is expected to actually increase from its 2016 benchmark, this growth will be driven by the expectation new and transplanting homeowners have that their communities will be suburban in location but urban in style.
These neighborhoods are designed to be inclusive, rather than exclusive, which is yet another decidedly urban trait. As modular and shipping container home plans become more desirable – not to mention a renewed interest in urban gardening – we may even see an effect on city codes and HOA rules for certain suburban communities that, up until now, wouldn’t consider anything other than McMansion-style homes and perfectly manicured lawns.
Exclusive development is rife with problems including traffic congestion, air pollution and sprawl, while inclusive communities with urban amenities and conveniences may just be what the doctor ordered for some of these issues. For more inside information on the real estate market as 2017 develops, sign up for our Priority Access List for advice, market trends, and advance access to listings and more!