Distant suburbs hit historic lows in growth
Posted on Friday, April 20, 2012 at 1:20:46 PM
The once constant and steady growth of suburbs splaying out from densely populated metros has hit a wall. No longer is the economy creating a land filled with large homes as consumers move closer to work and buckle down to remain on budget.
As a result of both economic and lifestyle changes in the majority of the U.S. population, suburbs located farther away from metros are seeing a significant decline in new construction and occupancy. This has resulted in drastic reductions in price.
"Suburban housing prices may not recover in our lifetime," said Robert J. Shiller, co-creator of a Standard & Poor's housing index. "With the bursting of the bubble, we may be discovering the pleasures of the city and the advantages of renting, investing our money not in a single house but in a diversified portfolio."
Potential homebuyers not hampered by long commutes to city buildings may wish to consider living in one of these communities. Residential financing opportunities are on the rise and the increased vacancy rate for homes in the suburbs could result in more affordable prices.