Housing Booms in Urban Cores

Posted by Shayna Pollock on July 13, 2011

CEOs for Cities' Young and Restless, a body of research on the migration trends of the young, college-educated population, shows 24-35 year olds flocking to cities. The number of young adults living in close-in neighborhoods increased by 26 percent since 2000. Thus, it is no surprise that cities are seeing a resurgence of new residential construction that far outpaces that of the suburbs. New apartment communities are booming in high-density neighborhoods near the city core of many major US cities.

According to an article in The Seattle Times, the city of Seattle is home to 85 percent of the current apartment construction and 90 percent of apartment construction in the pipeline for the entire region. This building boom, the largest upswing since 1991, demonstrates that "developers, for the most part, are bypassing the suburbs."

Seattle is not alone. In DC, according to an article in the Washington Examiner, condo sales are up by 44 percent compared to an increase of only 14 percent regionally. This surge in demand is likely due to the opportunities and vibrancy of cities that attract the young and mobile population in hordes.

Nashville’s newest housing market is also indicative of a move toward the urban core. Working to negate its long commute time as reported in CEOs for Cities' Driven Apart, Nashville is seeing a housing boom within the city. An article in the Nashville City Paper reports that 1,119 for-rent units are currently under construction, all within 3 miles of Nashville's Central Business District. The developers "willingness to enter an urban market" is telling of the benefits of building new housing near work, school, restaurants, shopping, and other amenities. Across the country, markets are rebounding with core residential building. The connectivity and vibrancy of urban cores prove to be key factors for developers in attracting new buyers.