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Energy Prices Hammer Suburban Housing Market

Reversing trend, buyers look to stay near city center

By Jason Farago,  Newser Staff

Posted Jun 25, 2008 8:17 AM CDT
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(Newser) – The soaring cost of energy has started the buck the half-century-old trend of migration to suburbs and exurbs, the New York Times reports. The cost of reaching a far-off home, let alone heating and cooling it, is becoming untenable for many. From Atlanta and Philadelphia to San Francisco and Minneapolis, prices of homes outside the urban core have fallen faster than those downtown.

The trend threatens to exacerbate the housing crisis as more than 3 in 4 buyers say they want to live close to an urban center. "Typically, Americans have felt the periphery was most desirable, and now there’s going to be a reversion to the center," said one economist.

A carpenter works on a new house in a Little Rock, Ark. subdivision Tuesday, June 17, 2008. The Commerce Department reported Tuesday that the number of new housing projects started in May fell by 3.3 percent as builders pulled back further given the market's deep slump.
A carpenter works on a new house in a Little Rock, Ark. subdivision Tuesday, June 17, 2008. The Commerce Department reported Tuesday that the number of new housing projects started in May fell by 3.3...   (AP Photo/Danny Johnston)
A sign indicating a reduced sale price is seen outside a home for sale in Moreland Hills, Ohio, Thursday, May 8, 2008. A home-price index considered to be the most comprehensive reading of the U.S. market posted the sharpest quarterly decline in its 17-year history on Thursday, May 22,...
A sign indicating a reduced sale price is seen outside a home for sale in Moreland Hills, Ohio, Thursday, May 8, 2008. A home-price index considered to be the most comprehensive reading of the U.S. market...   (AP Photo/Amy Sancetta)
Rising energy costs are hurting the suburban housing market.
Rising energy costs are hurting the suburban housing market.   ((c) gutter)
Treasury Secretary Henry Paulson waits to be introduced before speaking on the markets and the economy, Thursday, June 19,2008, at the Women in Housing and Finance Annual Meeting in Washington.
Treasury Secretary Henry Paulson waits to be introduced before speaking on the markets and the economy, Thursday, June 19,2008, at the Women in Housing and Finance Annual Meeting in Washington.   (AP Photo/Pablo Martinez Monsivais)
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The worst housing slump in 50 years
San Jose Mercury News

US • Money

 
energy • housing market • gas prices • exurbs • urban planning • suburbs

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