Realtor ®-The Woodlands Real Estate

I think that many are still living in denial, or just hoping that gas prices come down. But I do feel that this will impact prices for homes further out very soon. Excellent post.

Love the subject! Some time ago Kristal Kraft wrote about something similar.

Kristal used the term "go burbs". Meaning that we are a transient society but with fuel costs what they are we may revert to what once was. That is large cities where you walk to work, school and shopping. The only people who would live in out laying areas would be ranchers and farmers. Evidence of all this is happening now. Downtown areas of Los Angeles are growing because there simply isn't enough time, money or fuel to get it all done. Drive into Denver and you see new large building that are either parking lots or apartments. With the train system Denver has it makes sense to live in an area where you can walk to the train.

I look to see people buying closer to transportation and to their jobs, schools and shopping.

Tucson has a new downtown development area called Rio Nuevo.  It will include, among other things, high rise condos above retail businesses downtown, and a Mercado district west of downtown which has the same idea on a two-story level.  Business downstairs, residence upstairs.

Hi Al,  that is what I am afraid of.  Will the 'burbs not be as popular?  Hmm....   I don't know about people being in denial.  I think we are all just hoping for a miracle.  :)

Hi Dena!  I did not see Kristal's post.  We, in The Woodlands, have many large companies including Anadarko, Chevron, etc.  I can't wait to see what happens....Kinda Scary.  :)

Hi Mike,  That is an interesting concept and I expect to see that come up around here also.  I would love to hear more about that project!

Stephanie, Since our two cities are not that large in area, it is not affecting us in any way.  About the longest commute inside the cities would be a 20 minute drive only because of traffic, not distance.  I can see where it might possibly be a concern for some metro areas, but when it comes down to it, people want to live in a neighborhood that is compatible with their/family needs, especially if they have children.  They will want their children to live where they can attend the schools of their choice and have friends of their choice.  So I don't think it will matter.

Interesting thought Kay. So you think buyers prioritize schools and children over jobs? Or is it more balanced than that?

Stephanie - I find it interesting that the employers are moving to the 'burbs effectively creating a new small metropolis which could develop it's own retail center and sustain itself. Very similar to  the little town of Coopersville that I live in. We are 20 minutes outside the big city and most of our basic needs can be met by retailers in town. Our land used to be less expensive...not so anymore. Also, our tax base is pretty high to pay for our blue ribbon school, among other things. Less people contributing to the tax base thus higher taxes to support it.

Dena - interesting question! I would say I put the kids over the jobs but now that they have graduated it would not be a factor for me. The job location has never really come in to play for me. 

I'm heading out for a meeting, and I'll come back to everyone BUT....

Mary,  since Coopersville is catching up with the city, do you see growth outside of Cooopersville popping up?  Maybe where Coopersville used to be the burbs, it is not so much anymore? 

I see us growing wider and wider here.  We are already the largest city in the western hemispere LAND wise...hard to imagine tacking on another 50 some odd miles to that....

So if Coopersville is spreading out to where the population is then can I assume the problems of the city go with it? Are they exchanging one "city" for another "city"?

Stephanie--Communities that were further out of the Twin Cities metro saw the housing prices drop much more quickly than communities nearer downtown and jobs. I think gas prices do affect housing in MN.

Stephanie, It's hard to tell with the mortgage "crunch". For my area, one of the areas with the most construction was at least 30 miles outside of Detroit.

Stephanie, I work in Redding, CA and we have out lying areas which are more rural. I still see everybody driving these huge pickup trucks that guzzle gas. I don't know how they can do it. That has to change I would think. I have to think twice now about driving 1 hour in each direction to show property. I did not consider that two years ago. People buy out in these rural area and stay a couple of years and then move back in closer to the city. It is hard for them to get their properties sold in the current market. I see this affecting people's lives. It will affect the way we do business, as well. Thanks for a thoughtful post.

Stephanie, it has really hurt out out of the city suburbs. Now that it is more affordable in Ann Arbor people are staying there, gas etc....

We have a saying " When Ann Arbor gets a cold, the rest of the county gets pneumonia". It is true.

The commute is already a killer in LA!  As we sit in bumper to bumper traffic and inhale dollars gas fumes from the cars surrounding us I'm sure road rage will increase...Whether businesses will leave the city or workers leave the suburbs--my guess is it will be a little of both and a lot of the status quo.

Stephanie, In Southern California you have to drive to go any where no matter where you live. The mass transportation, especially in the 'burbs is almost nonexistent. In our case, I think most people move out to where we are (the suburbs) to get away from LA.

No mass transit here, we are more of a rural area to begin with.

I personally have changed my driving habits in response to the gas prices.  I hope everyone does - better for the lungs!k

Stephanie,

Excellent post...with the mass exodus out of the cities to the burbs came exhorbitant school taxes with no commercial tax base to offset the burden on each homeowner...if rising fuel costs trigger employers to seek out locations in the burbs to utilize good employee pools...this could turn lemons into lemonade...and solve a lot of our current problems...think about it!!! Thanks,   Fran

Hi Kay, I agree, that is very interesting.  Maybe more will focus on their home being more efficient?

Mary,  where I am...Houston was surrounded by several 'small cities' about 30 years ago.  Tomball being one of those.  Now,  the city is so large, it is nearly impossible to know where one ends and the other begins.  The city is constantly trying to annex the burbs....it just keeps going.  The Woodlands is SO big and has SO much, one would only have to leave to go to the airport.  :) Seriously.  Mall, shopping, retail, hospitals, dr's ,  everything.  This is becoming more and more common but many still commute downtown.  Just to explain a little more.  :)

In Silver Spring, Maryland I find that the closer the house is to a METRO Station, the higher the price and the faster it sells.  Also if a house is inside the "Capitol Beltway", it doesn't take as long to sell. 

The areas of Silver Spring that are outside the Beltway (The suburbs) are not doing as well - WAY longer marketing time and Way Lower Prices. 

Hey Dena,  I hope she comes back to answer.  :)

I haven't heard much from my clients, as for having gas prices be a factor in their home purchase decision. But our entire area is pretty closely packed. I bought my own house because of it's close proximity to my travels. But it had nothing to do with gas. I just like convenience =)

Hi Teri,  thanks for the input!  That is very interesting!  And scary.  :)

Hi Gary, kinda the same here..the burbs are doing better than downtown.  :) Good to hear!

I haven't heard comments of gas prices affecting buying decisions here.

Gas prices are definitely devaluing the socalled Inland Empire area of southern Calif. (Riverside & San Bernardinos) which are basically far flung suburbs of employment centers in Orange and Los Angeles counties.

The homes that are selling the fastest in our area are closer to town or public transportation.  I couldn't help but look today when a super size SUV pulled in to the gas pump next to me the fill up cost $75.  I really wanted to ask how long it would last but refrained.  

Yes, gas prices are effecting costs of rentals here in California by the research I have seen

Hi Jeanean,  I find myself showing MUCH closer to home also.  When before I would show on the other side of town, I question it now.  I have to admit.  That is very interesting, everything you said.  It will be interesting also to see how it goes in the next 2 years...  Thanks for stopping by!

Hi Missy, Wow.  It is so strange how things are changing.  Glad to hear Ann Arbor is doing well!  :)

Hi Norma, That's a good point.  I'm sure it will do a little of both.  And you make an excellent point about status quo.  :)  Thanks for stopping by!

Hi Mana,  that is so true.  The city is everywhere.  :) 

Hi Jayne,  Better for the lungs.  :)  I put Nitrogen in my tires trying to get a few more miles per gallon, drive a little slower...I doubt everyone will though.  :)

Fran,  DING-DING!!!!!  You get it!!  :)  Business moving to the burbs is good in more ways than one.  :)  Awesome comment as always my friend!! 

Hi Debbie,  WOW!  Really?  That is amazing.  I do not notice that here-actually sometimes quite the opposite.  Just goes to show, Real Estate is local..  :)  And shows how folks in Silver Spring need YOU as their professional.  :)

Hi Lisa,  through your posts it does seem that many things are close together.  I like convenience too.  :)  Thanks for letting us know about your area.

Thanks Alayna!

Hi Paul-  Well, that is not good news.  I was hoping for good news in the comments.  :)  Thanks for sharing.

Hi Cindy,  $75?!?  Wow.  I went to look at cars a few weeks ago and one caught my eye.  When I looked at the gas mileage it got....13 MPG!  Holy Cow.  I kept walking.  :)   That's interesting about being near public transportation....it's almost the opposite here.

Thanks Allen!!

Hi Stephanie, haven't talked to you for awhile.

Definitely think people are thinking twice about how far they will need to travel. In an area like our's, there's really not much public transportation, so without a car....

As far as a new car? They're so expensive now that it's ridiculous, and I hate buying a little tiny one. I'm a big car sorta gal......feel safer with all of those crazy drivers on the road. :-)

With constant new streams of incoming population and the Californication of Las Vegas people do choose areas in close proximity to where they work & play.  It's not that the valley is huge, it is because the freeways and side streets close to the centers of fun can be a nightmare certain times of the day.  

North Las Vegas has the least expensive real estate because that is the furthest from downtown and the strip.  Henderson has the most expensive real estate because of it's proximity near the strip.  The southwest (same proximity as Henderson) is growing in popularity and will some day catch up with Henderson when it has the same growth (restaurants, shopping, local gaming, movie theaters, etc) as Henderson.  I am talking price per square foot.

Naturally North Las Vegas is growing because the more people that move there, the more jobs will be created there (grocery, restaurants, shopping, local gaming, etc) so some day it will all catch up to them.  They will always be lower price per square foot than other areas of the valley that have closer proximity to the strip because the strip will never move unless an earthquake shakes it down!

I think it is the wave of the future Stephanie.  As gas prices continue to climb more and more people will be looking to be close to work...even walking distance if practical.  It's not for nothing that Europeans have such good mass transit and walking paths.

Here in Atlanta (or at least the general area), we have a big problem with time and distance.  But, we also have a residential donut.  Developers are trying to plug the hole, but it isn't working.  Homes in town (in reasonably good neighborhoods) are expensive.  Crappy neighborhoods are cheap, but since the government can't leave well enough alone, they won't get better (it is referred to as "gentrification" down here).  

We have the longest commute times in the country (sorry L.A.).  And there are no boundaries to growth, such as lakes, oceans or mountains... and it is easy to see the result. 

But, we have built several "centers" that contain industry, commerce and residences.  Sooner or later the centers will link up and...

It's kind of like playing SIM City... except with real people. 

BTW, look for a technology to extract oil from oil shale.  The US has more barrels of petroleum in this stuff than has been used before... ever (a couple trillion barrel).  Costs about $70/barrel to extract.   

Gas prices make a huge difference in how much money a person is able to end up keeping. If they use so much money to buy expensive gas, in effect they are making less at their job. As gas becomes more expensive, people will want to live closer to work more and more. Just my 2 cents.

Hi Stephanie! I'm going to check back and read this in the morning! My lands girlie! look at all the comments! I was going to drop a quick comment down but I see you have started a tremendous conversation I need to catch up on before posting my answers! See you in the AM. You go girl!

I think that they most certainly have. I have had several people in my office sitting accross my desk from me reference the price of gas as a consideration as to where they will shop for a home. Gas prices are affecting everything from food prices to the housing market. It'd be nice if our current administration would actually kept their eye on the ball instead of looking wild eyed and bewildered.

not a major issue with gas here in Houston area yet...but the mortgage business has slowed down the bottom of our market.

This is a big topic in my office. For the last 30 years - or forever- Realtors have had big cars for consumers.  Either the clients start driving so the agents can focus on the clients or something has to change.  My two cents.

Stephanie, around the DC area, there are a lot of government contractors, law firms and some federal agencies moving out of town.  

And I'm driving a gas guzzling Lexus that is comfortable and full of all the gadgets, and even though I can afford to pay for the gas, my next car will definitely be a hybrid of some sort.   I could see doing a Honda Accord hybrid with a leather interior, navigation system, super sound system - and with my clients, the green factor would probably mean more than riding in a so called luxury car.

Green development consultant and land use strategist Chris Leinberger discusses the "new American Dream" of walkable cities in addition to drivable suburbs at: http://blog.islandpress.org

And check out his book, The Option of Urbanism: http://islandpress.org/bookstore/details.php?isbn=9781597261364

Green development consultant and land use strategist Chris Leinberger discusses the "new American Dream" of walkable cities in addition to drivable suburbs at: http://blog.islandpress.org

And check out his book, The Option of Urbanism: http://islandpress.org/bookstore/details.php?isbn=9781597261364