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Real Estate News and Advice |
December 2, 2009 |
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Unlikely Trio Promote Density In Housing
by Blanche Evans
If real estate developers and tree-huggers can agree on it, maybe it's an issue Realtors should get behind -- that higher density in housing is a good thing, but not necessarily for the same reasons. But first, they have to get over the notion that the single-family detached home is the gold standard of real estate. It's the self-fulfilling prophecy -- that's what sells because that is what is sold, but a dramatic change in the demographics of homebuyers over the last few years shows that married couples with children account for only 25 percent of potential homebuyers, according to a report by the 2004 annual report by the National Multi Housing Council. In addition to the nuclear family (two parents, two children), which is the ideal buyer most single-family housing is designed for, there are all kinds of households that would gladly live in alternative housing, namely condos and townhomes, if they could purchase without a stigma. These are "young professionals, couples without children, empty nesters and single parents" as well as other nontraditional households, says the NMHC. These groups may choose housing for a different set of amenities than those designed for children. The NMHC predicts that demand for high-density housing will continue to grow and hit new highs by 2015 due to the influx of:
If the growing number of buyers interested in attached housing isn't enough of a reason, Realtors should be embracing density because condos and townhomes are rising in price and cost more today than detached homes. According to April housing sales as computed by the National Association of Realtors, existing condominium and cooperative housing sales hit a record, 10.7 percent above last year's pace for a seasonally adjusted annual rate of 899,000 units, accounting for 12.5 percent of market activity. The median condo price was $223,600 -- up 18.4 percent from a year ago, while the median single-family home was $203,800, blowing any notion out of the water that people buy condos or townhomes because they are more affordable than detached homes. Single-family home prices rose 15.1 percent over a year ago. As consumers eye their gas-guzzling SUVs, they may decide the commutes to sprawled-out bedroom communities aren't worth the time and expense, which may boost condo and townhome sales near employers and city centers even more. So Realtors can't assume that selling a condo or townhome will be less profitable than any other type of housing. In fact, it can be more so because of new demand. It's time communities, including developers, city planners, and real estate professionals, overcome their fear of high density housing, and embrace it for the benefits it can bring. That's why a new public outreach initiative by the National Multi Housing Council (NMHC), the Sierra Club and the Urban Land Institute (ULI) is designed to launch a "Re-Thinking Density" education effort designed to help citizens and local leaders build stronger, healthier communities. "To some people, 'density' is a four-letter word," admits Doug Bibby, NMHCPresident. "They mistakenly associate it with crime and traffic and a host of other urban problems. But the truth is that well-designed higher-density development creates vibrant neighborhoods with housing, shopping and jobs all nearby. We are seeing that all over the country with successful urban revitalization projects and a return to village-based living in the suburbs." "Despite these successes, local citizens all too often oppose proposed new, higher-density development in their communities," said Maureen McAvey, ULI's Senior Resident Fellow for Urban Development. "This, unfortunately, perpetuates the low-density, sprawling development patterns that have created long commutes, bedroom towns with no sense of community and worsening pollution. Compact development with the right mix of uses, good access to transit and well thought-out parking systems actually reduces traffic and enhances the total environment." Realizing that embracing density isn't going to happen because it is the "right thing to do,' the triumvirate is planning to "show people how they can personally benefit from higher-density development, even those living in nearby single-family houses." Adds Neha Bhatt, Associate Washington Representative of the Sierra Club, "This partnership is about giving communities the tools they need to make better choices. By building smarter, we can fight smog, protect natural areas, reduce traffic, and create more housing that people can afford." The key is good design and showing communities "what's in it for me." What's in it for them is that higher-density, mixed-use development can:
In addition to producing PowerPoint presentations to make these points, the groups have published a companion book -- "Higher-Density Development: Myth and Fact," which debunks eight typical misconceptions about higher-density development. The groups will spend the coming months urging their members and others to start a public dialogue about community development by reaching out to local chambers of commerce, community groups like Rotary and Lions clubs, and planning commission meetings. "We hope to create an 'army' of grassroots activists that can help get people excited about the opportunities we have ahead of us," explained Bibby. "About half of the homes, office buildings, stores and factories we'll need in the next 25 years don't exist today. That means we have an unprecedented opportunity to re-think the way we build. We hope that these presentations will help us get from thinking that density is fine as long as it's somewhere else to thinking that higher-density mixed-use development is something that we want in our hometowns." This is a great time for real estate associations to step up to the plate and take advantage of this new information to learn about housing diversity and the joys of density. The presentations and the companion publication are posted here. Visitors to the website can also order an interactive CD with both presentations, scripts and other resources as well as the DVD version at no charge. Interested associations and brokers can contact the NMHC at 202.974.2300, e-mail the Council at info@nmhc.org, or visit NMHC's website. Published: June 7, 2005 Use of this article without permission is a violation of federal copyright laws. Related Articles:
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