Millennials are moving to the suburbs after all, reports Bloomberg. This has always been a strange battle between the demand side (industry) and the supply side (policy-makers). Of course the more rational answer is that it’s both, but identifying an underlying cause for why Boomers embraced sub-urbanization and why millennials haven’t (thus far) hasn’t been as straightforward as many would think. My answer has lain in the demographics – millennials are starting families much later than our parents did, so the desire for a suburban lifestyle has been more delayed than completely replaced. Additionally, it’s also been less an issue of personal choice, as the economic fallout of the Great Recession has definitely played a major role in many young people’s abilities to afford the suburban lifestyle (buying a house and a car). As the economy has recovered and young people are finding gainful employment again, they seem to be embracing the suburban lifestyle.
Japan, ever struggling with an aging population, also has to contend with rising urbanization and what it means for smaller towns and rural areas.
The NYTime wrote a piece on “co-living spaces” – communal housing units where resident apartments are limited to the basics (bedroom+bathroom?) and other spaces, such as kitchens, dining, living areas are all shared. The most interesting bit of the article, for me, though is “You won’t find much of that outside the building, which is why this Urby is essentially a vertical — and interior — neighborhood.”
I’ve often wondered about the intersection of the technology industry and urbanism – will we have a resurgence of the old “company town”? Considering many of North America’s major technology hubs are in existing cities, it might be a different evolution. In that theme, the Seattle Times wrote about Amazon’s footprint on the city.
Bloomberg reports that London’s housing prices have flat-lined. The article puts forward quotes from several authorities on real estate economics, but the gist of it is that housing prices went well beyond normal ranges in the last few years and are slowing to “normal” levels. In another article, Bloomberg reports that luxury properties are taking a hit as well.
In the realm of today’s infrastructure that will be obsolete tomorrow, consider gas stations. We all envision a world of autonomous electric vehicles, so what happens to the gas stations? Likely they’ll be redeveloped and reclaimed by the city, or become electric charging stations, but in the meantime, how about art?
Consumer values are crossing geographic boundaries, as marketers are increasingly seeing similar tastes and preferences in demographic cohorts in a globalized world. I suppose this is something new for marketing, but in broader demographic analysis I always found it frustrating how these cohorts/categories are made. “Millennial” preferences really just refer to things young people do, and whether one is young (in terms of tastes and preferences) is increasingly more a product of one’s life stage than age. Single 35-year-olds share more in common with single 25 year-olds than coupled 35-year-olds, and the same applies in the other direction. Tastes and preferences are more influenced by major life events than people realize.
The Guardian took a brief look at the “future gazing industry” (that includes people like me) and how it’s grown in the recent past. I really enjoy the process of forecasting and the insights it brings. People mistakenly assume it’s some black-box calculator when in fact it’s just a way of doing research and synthesizing information, together with a healthy dose of probability analysis. Something to really appreciate about this work, though, is how a good forecast has less to do with fancy insights and mathemagic (of the sort pundits become famous for) but more for its ability to build consensus. There’s a lot to say, but I should save it for a separate post.
In light of the many measures the Province of Ontario is taking to cool the housing market here, some rather interesting measures are being proposed in California. The state, particularly the San Francisco Area, has seen housing prices skyrocket in the last several years. In the face of a major affordability crisis, homeowners are facing off against municipalities and those who have been priced-out of the market in a battle between maintaining character and increasing densities and housing supply (sound familiar?). This is an interesting echo of what is happening in the GTA, though Ontario is contemplating amending the OMB to give local communities more say, while California is contemplating a fast-track process for affordable housing developments that will circumvent the rezoning process.
Not content enough with selling books, electronics, knick-knacks and soon fresh produce, Amazon is allegedly moving into online residential real estate services. The page which tipped GeekWire off has been taken down, but it would be an interesting move at a time when the realtor industry is rapidly digitizing (from searching for properties online to doing property showings on Snapchat and Instagram).
More exciting news as Elon Musk tweeted that he has “verbal” approval to start digging a tunnel between New York and Washington D.C. Initial thoughts on it sound like a legitimate test for his tunnel boring project as well as the Hyperloop. I’ve been very skeptical that the Hyperloop really was anything more than a pipe dream, but Musk has accomplished some rather extraordinary things since he got into the transport business, so I’ll remain cautiously optimistic.