VARbuzz: City growth outpacing suburbs (for the first time in a century)
I hate repeating the headline in the first sentence, but… for the first time in 100 years, America’s cities are growing faster than suburbs. Well, most of the larger cities are.
Urban areas are where the jobs are, where the apartments are, and where the inexpensive public transit is. Commutes are shorter, the environmental impact is less, the social life is better… you get the picture.
Driving the resurgence are young adults, who are delaying careers, marriage, and having children amid persistently high unemployment. Burdened with college debt or toiling in temporary, lower-wage positions, they are spurning homeownership in the suburbs for shorter-term, no-strings-attached apartment living, public transit and proximity to potential jobs in larger cities.
And Realtors®, take note of one Jaclyn King, 28, who remembers her parents’ 45-minute daily commute into Denver. “I will never live in the suburbs,” she said. “I just like being connected to everything down here — concerts, work, restaurants, all of it. This is where everything’s at.”
Businesses are starting to cater to them, which makes city living even more desirable. And S&P Capital IQ in New York
has a “positive fundamental outlook” on residential real estate investment trusts, particularly those with holdings in multifamily apartment buildings, citing in part a demographic shift.