How Will Home Values Be Impacted By Rising Oil Prices?

Stefan - I agree that there will be a shift from suburban living.  I attended a conference last year on housing in the Hudson Valley Region of NY and the planners spoke are the very same conditions. Future communities will feature  smaller and greener homes, less sprawl  and access to mass transit.  You will also be able to walk to the coffee shop etc.

Stefan, I agree. We have buyers that want to live close to downtown Ann Arbor. Walking distance actually. Have you seen the new feature on Google Maps? They now have a link for Public Transit and Walking Distance.

Great help to buyers to know this in considering a home.

Stefan - That may be the serious trend, especially with decline of the number of families with children. Safe, ecologically friendly  environment for children and strong school systems drive people from the cities to suburbs so far. We see it in Cleveland. Tremendous efforts to revive Downtown and University Circle attracted many young professionals there. However, with the birth of first child they start selling their fancy urban condos and buying in suburbs despite the higher property taxes, longer commute, etc.

It's hard to say how strong the trend is but prices for high-end houses in young suburban developments are under very serious correction.

I am NOT shocked to not see Atlanta on that list.  Our transportation infrastructure is not designed for an oil crisis.  We have roads...  Transit is not workable for most of us.  And we have spawl. 

I spend a lot of time talking with people about where they might find a better quality of life.  Balancing cost and convenience are very important right now.  Work, recreation and access to amenities are all important.

I live in White Plains about 20 miles north of Midtown Manhattan.  My neighborhood isn't walkable, but we the downtown is.  Frankly - if I  take my car two miles downtown and park - I can walk all day.  This type of suburban area will probably do well because these homes provide easy access to walkable downtowns while providing a yard for families with children.  However, I'm seeing a strong trend AWAY from suburban locations that lack a central walkable district or  are many miles away from a train or shopping.  These homes have been severely affected by the downturn.  Further, I'm seeing a trend away from the McMansion syndrome.  Smaller homes will probably sell better than the barn-like structures that I never understood the need for in the first place.

Stefan,

Right on.  Many cities including Minneapolis/Saint Paul are not equipped, designed nor prepared to cost effectively beef up their rapid transit systems to accommodate any potential oil crisis. Each suburb of the above cities are beginning to scramble and set up their own beefed up infra structures that may actually attract more suburbanites.  Those forward thinking municipalities will maintain their real estate values.  JMHO.  By the way Stefan, I'm looking forward to your Broker Summit here in the Twin Cities.