An extensive report in the Atlantic that concludes many suburban developments may turn into slums discusses the role reversal occurring between the city centers and their outlying communities. They attribute a wide range of factors leading to this conclusion. These include a shift in demographics and life styles, the economy and sub-prime loan debacle, driving times and fuel prices, and the over supply of product and tighter lending practices.
The post war baby-boomers are an ever decreasing factor in the home market as their kids move out. Those kids are getting married later in life and having smaller families so demand is shifting.
Traffic congestion and commuting long distances is right up there with taxes and mosquito's in terms of being unpleasant, so those that can afford to move closer to work are doing so. This is also being stimulated further by the rapid increases in gas prices affecting all of us. For many years developers have been building homes in the suburbs because of cheaper land costs, but rarely has there been parallel growth in local jobs so most people had to hit the roads.
Comfort Zone Investing: The unmighty dollar
Five winners of a weak dollar
For a quick-read on the U.S. economy, check the price of gasoline
