Home prices in urban areas have not fallen by as much the last few years as they have in the suburbs. And prices in urban areas are recovering much faster too, according to John McLain of the Urban Land Institute. Why? Some say it’s because of new moving patterns among the baby-boomer generation.
An increasing number of baby boomers are reportedly leaving their big homes in the suburbs and heading to urban areas for retirement, drawn by walkability, proximity to public transportation, diversity, and being closer to their children.
“[Boomers] want to buy something that’s secure, and it’s been pretty well demonstrated that suburban housing is not as secure an asset as anyone thought it was or that it used to be,” McClain said.
Developers are taking note of the trend and beefing up construction in urban centers. Condos and apartments near downtown areas are popping up to accommodate more baby boomers.
The nation’s largest home builders are still investing in active-adult communities in the suburbs but confidence in the sector has been recovering at a much slower rate than the overall housing market, according to the National Association of Home Builders.
“The idea of living out in the suburbs, just with older people, has really disappeared,” McClain says.