Back in the 1950s, cities emptied out as a car and a backyard came to exemplify the American dream.  In succeeding decades, McMansions took root in exurbs, as homeowners sought more and more house on more and more land. According to Leinberger, demand for this type of housing has collapsed and will not recover, due to generational shifts. Baby Boomers (born from 1946-64), are retiring at exactly the same time as Millenials (born from 1979-96) are ready to strike out on their own; neither group is looking for a large house in outer suburbia. Boomers are downsizing from their suburban homes, and Millenials tend to favor urban environments, both for the cultural attractions and the convenience of not needing a car.

Leinberger cites Pasadena, CA and Bellevue, WA as examples where mixed-use developments with good public transit access have been built where strip malls once stood. He also calls for greater public investment in bus and light-rail systems, bike lanes, and pedestrian walkways. His suggestions would provide jobs and help the environment, both of which the U.S. could really use.

For those of us living in Montclair, Maplewood or South Orange, we are fortunate to have much of this infrastructure already in place.  For those who are not, would you give up your 2 acres for a smaller lot and a shorter commute?  Would you trade your Olive Garden for Osteria Giotto? How about your Multiplex for the Wellmont Theatre?

On January 24, the governor conditionally vetoed a bill that would have replaced New Jersey’s Council on Affordable Housing with simpler ways for towns to meet their affordable housing obligations. He feels that the bill places too much of a burden on towns and builders; I believe that his proposed solutions will endanger the building of any new housing for middle- and working-class New Jerseyans. These are often the very people who provide the services essential to any community–the firefighters, police officers, shop owners, schoolteachers, etc. Without this economic diversity, walkable suburbs such as Montclair may become richer in terms of per capita income, but we will almost certainly become poorer in terms of our civic spirit. Hopefully this will never happen.

A recent New York Times article discusses the rise in short sales in Manhattan due to the recession. One market analyst said “2010 might well be dubbed the Year of the Short Sale nationally. ‘A short sale is going to be the only way for many people who bought at the peak and who are now underwater to move on with their lives if they have to relocate or downsize.’” Like Manhattan, Montclair, Glen Ridge Maplewood and the rest of Essex County have seen the number of short sales rise. When the alternative is foreclosure, selling a house through a short sale is a way for the owner to come out of the deal relatively unscathed. I discuss the issue of short sales further in Short Sales for Buyers and Short Sales for Sellers. If you have any questions about short sales, either because you’re thinking of selling your house short or you’re interested in buying a house that’s  a short sale, please email me for more information.