Most people who live in American suburbs are not seriously thinking of moving to the nearest city, but as articles in Atlantic Monthly, The New York Times and Newsweek point out, the cost of living the Pleasant Valley Sunday kind of life is making urban dwelling seem more attractive from a dollar and cents perspective.
The Times piece profiled a family living in a suburb of Denver. The Boyles, who live an hour commute away from their jobs in southern Denver, have seen the cost of filling up their SUV rise to $121 while the price they pay for heating their home is more than double what it was five years ago.
While not looking to move to the city or more closely to it, Phil Boyle can see the logic in it. "Living closer in, in a smaller space, where you don't have that commute. It's definitely something we talk about. Before it was 'we spend too much time driving.' Now, it's 'we spend too much time and money driving.'"
Another factor impacting suburban living is the real estate market. According to Moody's Economy.com, home prices in Atlanta, Minneapolis, Philadelphia and San Francisco markets are falling more slowly than in outlying suburbs. Another study by Impresa, Inc. found that housing prices in Chicago, Los Angeles, Pittsburgh, Portland and Tampa were holding up better than in suburban areas outside these cities.
According to Coldwell Banker, more than three-quarters of prospective homebuyers are more inclined to live in urban areas today to cut down on commuting times and costs.
"It's like an ebbing of this suburban tide," said Joe Cortright, an economist at Impresa. "There's going to be this kind of reversal of desirability. Typically, Americans have felt the periphery was most desirable, and now there's going to be a reversion to the center."
Denver's mayor John Hickenlooper can see high gas prices causing some to move to city centers. "It can be an accelerator," he said. "It's not going to be the dagger in the heart of suburban sprawl, but there's a certain inclination, a certain momentum back toward downtown."
Discussion Questions: Do you expect to see larger numbers of consumers moving from suburban to urban areas? How will a change of scenery affect how consumers shop? What will it mean for retailers?