As reported in Architectural Record, foreclosures and weak home sales are just two effects that the recession is having on the home/real estate industry. Although we may hear about home sales and foreclosure rates most frequently in the news, there are other forces at play that should not be overlooked.
For instance, there is the fact that rural areas of the country are suffering more than urban areas as people continue to downsize from their multi-acre plots of land and 3,000 sq. ft. homes to more compact living quarters closer to the city.
According to Architectural Record, the Woodstock Institute reported that the Cook County suburbs just outside of Chicago saw almost twice the rate of new foreclosure filings as the city proper in the first quarter of 2009.
So what is really behind this shift? While the recession is obviously the driver that is forcing people to make a move, there must be other reasons why urban living is growing in popularity among once suburban residents. Additionally, the trend begs the question as to whether the current mindset is here to stay or if people will go back to “sprawl” when the economy improves.
From our perspective, the trend in urban migration is here to stay for a number of reasons, including:
- More and more people are looking for ways to live greener lives, so it only makes sense for more Americans to downsize to smaller homes that are closer to their jobs, use less energy to heat/cool and steps away from mass transportation
- Baby Boomers are reaching the age where they are looking for smaller homes that require less maintenance compared to homes with acres of land that demand constant up-keep
- Younger Americans are spending more time getting advanced degrees and enjoying their “young professional status” while also waiting to settle down. That said, city living for the 20-30-somethings is very appealing and something that this group is not rushing to escape

Photo Courtesy of Washingtonian.com
We would love to hear your thoughts. Feel free to send us a quick email about the trend in urban migration and if you think its here to stay.