Could Fuel Crisis Spur More Downtown Residential Growth?

Alan P. McDonald, Senior Managing Director over at INCAP Fund, says yes. And I’m sure many other downtown developers feel the same way. Museum Tower had a “salon” event Wednesday evening with artist Dan Rizzi, and now the folks at REAL Trends, Inc. say high fuel prices just may be a giant nail in the suburban growth coffin.

REAL Trends, Inc. report: Nearly 78 percent of surveyed Coldwell Banker sales professionals working in urban markets across the United States indicate they are seeing interest in urban living increasing because of the high cost of gasoline. While 96 percent of the 903 sales professionals surveyed report that rising gas and oil prices are a concern to their clients, 78 percent report that higher fuel costs are increasing their client’s desire to consider living in an urban setting.

According to the Coldwell Banker survey, the primary reasons for this interest in urban living are related to work commute and energy-efficient modes of transportation:

· 81 percent cite minimizing a reduced work commute as a reason for the interest in urban living
· 54 percent agree that access to public transportation is appealing
· 75 percent agree that the ability to walk to more places is a positive

“Over the past several years we have seen a boom in downtown living all over the country and this is not just reserved to major cities,” said Jim Gillespie, president and chief executive officer of Coldwell Banker. “It is interesting to note that the study showed that 53 percent of our surveyed sales associates have seen an increased interest in urban living compared to five years ago.”