Homebuyers fight high gas prices by going urban

From the afternoon e-mail ... Realty giant Coldwell-Banker discovers an interesting trend wrought by high gasoline prices.

INTEREST IN URBAN HOMEOWNERSHIP "FUELED" BY HIGHER GAS PRICES

Nearly 78 Percent of Surveyed Coldwell Banker Sales Associates Report Increased Interest in Urban Living is a Result of Energy Costs

Properties with Home Offices Also Appealing

PARSIPPANY, N.J. (June 18, 2008) - Coldwell Banker sales associates working in urban markets across the United States indicate they are seeing interest in urban living increasing because of the high cost of gasoline. While 96 percent of the 903 sales associates surveyed report that rising gas and oil prices are a concern to their clients, 78 percent report that higher fuel costs are increasing their desire to consider living in an urban setting.

According to the Coldwell Banker survey, the primary reasons for this interest in urban living are related to work commute and energy-efficient modes of transportation:

-"81 percent cite minimizing a reduced work commute as a reason for the interest in urban living
-"54 percent agree that access to public transportation is appealing
-"75 percent agree that the ability to walk to more places is a positive

"Over the past several years we have seen a boom in downtown living all over the country and this is not just reserved to major cities," said Jim Gillespie, president and chief executive officer of Coldwell Banker Real Estate. "It is interesting to note that the study showed that 53 percent of our surveyed sales associates have seen an increased interest in urban living compared to five years ago."

Coldwell Banker Chicora Real Estate has seen an increase in downtown living in The Myrtle Beach Market Common development located on the former Air Force Base.

"The trend of downtown living is alive and well in Market Common said Don Smith, President of Coldwell Banker Chicora.  "Several projects have been recently completed or are in the works and interest is great, not only in Market Common, but surrounding new home developments marketed by Coldwell Banker Chicora - The Cottages at Farrow, The Highlands at Withers Preserve and Balmoral at Withers Preserve. Locally, while gas prices are increasing, we are seeing more interest in the urban type lifestyle and the upscale stores and restaurants in Market Common are popular reasons for this trend."

Coldwell Banker surveyed sales associates who also reported they have seen an 84 percent spike in interest for properties with a home office, as compared to five years ago, indicating a trend towards telecommuting.

While the study also found that 64 percent of surveyed sales associates nationally report their clients increasingly look for homes with "green" amenities that could save on heating, cooling and electricity costs, only 42 percent surveyed believe saving on energy costs are a reason for their client's interest in urban living.

Methodology: Coldwell Banker conducted an online survey on trends surrounding urban living and rising gas prices. The survey yielded responses from 903 Coldwell Banker brokers across the United States.

Comments?

Comments

[PREFAB SPROUT]

This has SOME merit to it but I am not ready to call it a trend. The "drive till you can qualify" move to the outskirts is still in play. Additionally, size of familes, leisure activities, and local schools still dictate home location for most folks. You have to save a lot in gas to make up the difference between a $240K townhome in Market Commons and a $169K home in Conway.

By the way I live "in town" and wouldn't have it any other way.

[Denney Clements]

OK, it's a trend-ette. It's interesting though that this phenomenon, however you label it, is happening. Shows you the power to the market to "solve" problems that federal, local and state policy can't solve, due to lack of consensus.

Sprout makes some good points about the local situation. Market Common IS a long way away from the rest of the Strand, and folks who live there no doubt do put in windshield time if they, say, want to go to Wal Mart.

dc