Reshaping the housing market?
Portland Streetcar image by PlanGreen
The Urban Land Institute Oregon recently advertised a workshop to the Oregon development community: "In the wake of the financial crisis and the great recession, sweeping structural changes are reshaping the housing market. Generation Y and the retiring Baby Boomers will be the catalysts for the next wave of housing development." The workshop promoters asked, “Are you ready to meet this demand?”
The speakers from the development community all pointed to the market demand being urban and transit-oriented; and for the time being, rental rather than homeownership. Some quotes:
"They have less money than any generation, but are well-educated, well connected and very urban. The cities that do it best for young creatives will thrive." –John McIlwain, ULI
"Gen Y has no interest in the suburbs! They value being close to friends and don’t want to commute. You can bet on transit-related locations." –Clyde Holland, Holland Partners
"Gen Y wants smaller, greener housing. They want to live in the city and take responsibility for their carbon footprint." –Jim Winkler, Winkler Development
A few months earlier, ULI’s Young Leaders Group had attested to this same wave in its sessions and focused all its conference field trips close to the urban core along transit corridors of Portland, Oregon. At least one of that conference’s participants brought his suburban developer dad along as well—perhaps to learn new skills.
In April 2011, ULI Oregon sponsored two of its national leaders at talks held at Metro on such impressive topics as: "Carbon, Development & Growth: Navigating New Frameworks for Real Estate, Planning, Transportation," and "The Economy: Finding Certainty in Uncertain Times" (ULI is the preeminent think tank of the real estate industry). Ed McMahon and Michael Horst both indicated that the pendulum is swinging re: how we invest housing dollars. The trend is towards walkable, mixed use neighborhoods with transit—and towards green building.
Comments
as I have stated clearly for the last 10+ years THE NAHB HAS HURT AMERICA. building larger homes in the suburbs.it does not take a genius to figure out that energy prices will continue to increase with no american energy policy after the last 10 presidents.and the war started by a republican over energy.
in addition you can see the cars are getting smaller and more efficient.americans are not in love with their cars.
and as we look at the top ten homebuilders they are all asleep at the wheel...meritage is not specializing in tods. period. and kbhome is loosing money concerned with the total number of units constructed..this is the antiquated thinking of ceos today....as we move forward accountability and responsibility will take center stage and it will get ugly as the green expert moves on to the field and starts calling these antiquated ceos on the carpet in the public forum...
Hi Mary - I work for a home builder here in Houston, Texas and am always trying to keep up with what is going on in the housing market. Public transportation isn't as mature here or in much of the South as it is up north but we too have a Gen Y population that needs to be listened to. Adapting our business model to best serve the next generation is what will keep us at the top of the heap.
Anyways, thanks for sharing! - Aly
I think two things need to happen: Local leaders need to set aside land for new housing to meet the demand. Additionally, local realtors should create workshops in the area to teach residents about the way they can work toward purchasing their first home. Portland property is some of the best in the country. We just need more of it! It is possible, Portlanders!
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