New Urban Centers Sub for the Suburbs in the American Dream

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The makeup of the American household is changing. The birthrate is falling, people are getting married later, baby boomers and senior citizens are aging America. Millennials don't want the neighborhood their parents had, but they might move back in with their parents until they can afford to live in the one they want. These factors are changing where and how we want to live, and reversing the trend of half a century ago of leaving the city for the suburbs. But there's also a third way -- it splits the difference between the choice of living in a traditional suburb or the central city.

"Suburbs were built because people wanted yards and a pool for their kids," says Leigh Gallagher, author of the recent book, The End of the Suburbs. "When that becomes a priority for a smaller percentage of the population," then that changes our need for the suburbs, she adds.

The suburbs evoked a certain way of life -- white picket fences and cul-de-sacs, soccer moms and bake sales. The 'burbs are where the upwardly mobile lived. They fled the inner cities for a better life -- to fulfill the American dream. But the price could be 30-minute, 60-minute, and in some places 90-minute commutes to work. For many, life became more about the drive and less about the family and the community.

"The suburbs were poorly designed to begin with," Gallagher says in her book. "People live far from each other and far from their jobs." Sure, some people still want a front yard --- and backyard, and two- or three-car garage, but many others want to be able to walk to stores and walk along a Main Street. "The size of the house is not as important today," she tells AOL Real Estate. "A walkable neighborhood is more important than a three-story foyer."

As home prices fell after 2006, more people started moving back to the cities -- closer to work. Changing family demographics aided the shift. Since 2000, building activity has decreased in the suburbs and risen in the cities. In Portland, 38 percent of building permits were in the city compared with 9 percent in the early 1990s. The Toll Brothers development company says its "suburban move-up" houses are about 50 percent of what it builds and sells, down from 70 to 80 percent a few years ago.

"The suburbs are built for life with kids," Gallagher writes, "and we're not having nearly as many of them." Families with children used to make up more than half of the U.S. households, but will comprise only about a quarter in 2025, she predicts. The number of households in the ages 30 to 45 have decreased, and so have the number of households of married couples with children. Together they have decreased in number by 3.5 million, and the number of single-person households are multiplying. According to Gallagher, 61 percent of households now have just one or two people and the number of households age 55 and older grew by 9 million between 2000 and 2010.

About the same percentage of people want to live in cities as suburbs, but far more currently live in the latter, according to the Pew Research Center. "The result has been skyrocketing rent and property values in places like San Francisco, New York, and Washington, D.C., wrote the Daily Beast. Millennials may be the most city-loving generation in recent history -- 77 percent want to live in an "urban core," according to an oft-cited survey from real estate firm Robert Charles Lesser & Co. -- but they're also the generation most likely to be living in their parents' basements.

Many of America's 80 million millennials, those born between 1977 and 1999, still live at home -- even as adults -- and when they do leave, they flock to urban areas, Gallagher says. Millennials are also eco-friendly, as are a growing number of Americans. This means the idea of commuting by car in rush-hour traffic for over an hour is not how many want to spend their time or their gas money.

A National Association of Realtors study found that 62 percent of millennials said they'd rather live in a neighborhood near transportation and entertainment than in a community with large lots and no sidewalks. "We don't hate the suburbs we just hate to be bored," said one millennial Gallagher wrote about in her book.

Small apartments in New York City, San Francisco and Chicago, Seattle and Boston are being built to appeal to millennials who prefer urban areas but might not be able to afford much space. One researcher whom Gallagher spoke to predicts that by 2025 there will be a surplus of 40 million large-lot homes. Also by then, an estimated 72 percent of American homes will not have any children living at home, and that figure could be as high as 80 percent in the suburbs.

But as more Americans move back to the cities, prices there naturally continue to rise. One solution: Make suburbs more "urban." "There are hundreds of communities where they are trying to urbanize. ... have a walkable, pedestrian feel," says Gallagher, who lives in Manhattan's West Village but grew up in in a 1923 stone Colonial in the Philadelphia suburb of Media, Pa. (where her parents still live).

AOL Real Estate took a look at some of the communities Gallagher highlights in her book. These are the new urban areas. "New Urbanism" consists of walkable communities in smaller towns and even suburbs, but they are built to focus on a city center -- a Main Street.

New Urbanism
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New Urban Centers Sub for the Suburbs in the American Dream

The SchoolStreet Lofts in Libertyville, Ill., about 45 miles northwest of Chicago, offer an opportunity to live an urban lifestyle within a historic downtown. The architectural gem that was once Central School is being brought back to life and will be home to 15 loft-style condos and 26 front porch-style revival homes. These homes are conveniently located one block from quaint shops and restaurants in downtown Libertyville and within just a couple blocks to the Metra station. Developer John McLinden and his team have transformed the street into an urban, walkable community where front porches hug the sidewalks and residents are connected to their neighborhood," wrote Libertyville Patch.comThis loft, pictured above, which the listing says "will be like nothing you have ever seen in Libertyville," is a three-bedroom, two-bath asking $399,000.

More homes for sale in Libertyville.

In Lakewood, Colo., outside Denver, developers are turning dead suburban shopping malls into urban residential villages. The enclosed and outdated Villa Italia Mall in Lakewood was demolished and replaced with Belmar, a thriving open-air center that has 900,000 square feet of retail and for-sale homes. The complicated project included division of a 104-acre chunk of land into 22 city blocks, according to the Urban Land Institute.

More homes for sale in Lakewood.

Plans were drawn to replace the demolished mall with a 3.5 million-square-foot mixed-use, pedestrian-friendly "downtown district" to include  an open-air mall, office space, green areas, a public arts program, and 1,300 for-sale single-family residences, townhouses, and condominiums, as well as loft-style rental apartments.

This home pictured has four bedrooms and is listed for $408,000.

More homes for sale in Lakewood.

Morristown, N.J. has been given "a dose of urban chic" with penthouse lofts and a walkable promenade, says Leigh Gallagher. It is penthouse NYC-style living without the cost of New York. This $399,999 unit is a two-bedroom, two-bath condo minutes to Morristown city center. There is a spiral staircase, hardwood floors and ceramic tile. Enjoy a variety of cultural & recreational experiences, museums and galleries, restaurants, and retail shopping, all within 32 miles of New York City.

More homes for sale in Morristown.
This spacious three-bedroom townhome across the street from Lewis & Clark Park in Bend, Ore., has two master suites and a loft area upstairs. It is listed for $315,000. Additional room on main level can be a third bedroom, office or formal dining room.There are hardwood floors, granite tile counters, a gas fireplace with a slate surround and breakfast bar. There is also a covered front porch and a two-car garage.

More homes for sale in Bend.

As the country resettles along more urbanized lines, some suggest the future may look more like a patchwork of nodes—mini urban areas all over the country connected to one another with a range of public transit options, wrote Leigh Gallagher in an article for Time magazine.

More homes for sale in Bend.

Gaithersburg, Md.,  has the Crown and the Kentlands  -- anti-sprawl communities with narrow streets and smaller homes.

The Crown neighborhood takes planned communities into the future where modern style and a vibrant social scene mesh with neighborhoods and parks, it says on its community site. Crown was originally an 180-acre farm dating to the early 1800's, but today it's surrounded by office parks and cul-de-sacs. Most of the over 2,000 homes being built here will be townhouses or apartments. Instead of big backyards, the homes have roof decks.

More homes for sale in Gaithersburg.

Loudoun's Premiere New Community on River Creek Parkway by K. Hovnanian Homes is a master planned community.

More homes for sale in Leesburg.

This three-bedroom, 2.5 bath home is listed for $449,900.

More homes for sale in Leesburg.

"The size of the house is not as important," Leigh Gallagher tells AOL Real Estate. "A walkable neighborhood is more important than a 3-story foyer."

Look at how many sites nowadays have "walk scores" or discus walkability. You plug in your address and it gives how walkable a neighborhood is. That walkability is built into broker websites now. "Think about location location location but it is also about access access access," she says.

This pictured home has 3 bedrooms and 2.5 baths. It is listed for $525,000.

More homes for sale in Prospect, Ky.

New Town is a community in the St. Louis metro area designed to accommodate a wide range of homes and businesses in a setting that emphasizes an active and engaging lifestyle, according to the town's website.

New Town combines old with new, ultimately creating a town reminiscent of the past where children can ride their bikes to the corner market or ice cream shop and residents can walk to restaurants, bars and services.

More homes for sale in St. Charles.

New Urbanists designers advocate walkable, mixed-use neighborhoods, like New Town, with relatively high population densities, as an alternative to the urban sprawl of conventional, automobile-centered suburbs.

New Town is divided into five pedestrian-friendly neighborhoods, each with a distinct town plaza.

When complete, New Town will cover 755 acres, will contain up to 5,700 dwellings, and will be one of the largest new urbanist communities in the United States. 

More homes for sale in St. Charles.

The homes in New Town have garages accessed from an alley, like ones found in traditional urban areas like Chicago or Detroit.

When complete, New Town will cover 755 acres will contain up to 5,700 dwellings, and will be one of the largest new urbanist communities in the United States. 

More homes for sale in St. Charles.

Serenbe is a 1,000-acre community located in Chattahoochee Hills, Ga., less than 30 minutes from Atlanta’s Hartsfield-Jackson International Airport. It is lauded as a place where life resembles a simpler time. 

Walking trails connect homes to nature and lead to modern amenities like good food, art galleries and shops. Children can walk to the bakeshop or navigate a stream.

 This pictured 3-bedroom home with a main level master is listed for $599,000.

More homes for sale in Chattahoochee Hills.

Serenbe has been recognized as a national model for the future of balanced development in the U.S. and is focused on land preservation, agriculture, energy efficiency, green building, walkability, high-density building, arts and culture, and community living for multiple generations. Serenbe demonstrates how urban development models can succeed on the edge of a metropolis.

More homes for sale in Chattahoochee Hills.


More about housing market trends:
Most Young Consumers Want to Buy a Home
Millennials Forge Fresh Trends in Homebuying
Should Young People Buy Homes?

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