During the past year, urban real estate prices have increased faster than suburban prices, leading some to speculate there has been a Renaissance in city living. However, the suburbs continue to outpace cities in population growth in light of the fact that there is more room to build and grow in the suburbs than a dense city.
Making sense of the story
- Overall, urban home prices increased 9.8 percent over the past year, according to Trulia. Suburban home prices grew 9.4 percent.
- However, the suburban population increased by 1.1 percent and the urban population by 0.9 percent. Urban living is defined by apartments and condos, while suburban living is primarily single-family homes.
- As for prices and growth in some of the country’s ultra-dense downtown neighborhoods, prices rose 11.4 percent, which outpaces other urban and suburban neighborhoods.
- According to the data, city populations are also growing faster than they were during the boom years. However, they are just not growing as fast as other suburbs. Jed Kolko, Trulia’s chief economist, commented, “The suburbs are far from over.”
- Asking prices year over year are up 10 percent nationally, and up in 97 of the 100 largest metros.
- Census population estimates show that the most urban counties grew by 0.8 percent between 2012 and 2013, after growing less than 0.2 percent in the boom years of 2003-2006. The secondmost dense quartile of counties grew even faster.
Read the full story from the source: the Wall Street Journal at blogs.wsj.com/economics/2014/04/10/urban-real-estate-prices-are-booming-but-most-people-livein-suburbs