Smart Growth v. Past Growing Trends

By
Real Estate Agent with Bozeman Montana Real Estate .net

The housing market we see emerging around us more and more is full of life and energy, but when you look deeper, it still bears the faded scars of the market collapse—and it seems consumers are learning from them.

People are actively choosing to control the real estate market. This is an emerging trend never seen before. People and their values are beginning to trump the allure of best deal mentality and this is driving force for the market.

Not visa versa (where the market prices i.e. cheapest supplies are controlling population movement). This break from longstanding traditional norms is the conclusion the report titled “Reset: Assessing Future Housing Markets in the Rocky Mountains” reached. The report took a sampling of housing starts, multiple listing services, and surveys from six communities around the Rockies—Bozeman included—and found, in all the markets studied, there was a strong desire for growth, but not just growth itself as has been seen in the past with trends of urban sprawl. Instead, this idea of ‘smart growth’ has really taken root.

Just What Is Smart Growth:

Smart growth is a logical reaction to the fact that mortgage meltdowns are a catalyst to great economic recessions (spurred on by under regulation of finance and reckless risk-taking). This realization has deeper meaning in its relation to community development and traditional city growth patterns. The divergence between city centers and the suburban fringe allowed the suburban elements to fall into the mortgage hole first and pull the city centers with them as they fell. Since that initial fall, the recovery has seen a structural paradigm changing shift—we are now seeing the reverse of what happened in the 1950’s.  (http://www.nytimes.com/2011/11/26/opinion/the-death-of-the-fringe-suburb.html?_r=0)

The buzz phrases of Generation Y and Baby Boomers are still very real and active agents in shifting the market’s landscape, but these two demographics of people are both undergoing dramatic life changes directly connected to their housing situations. “Our communities are changing and what people want out of life is changing” (Randy Carpenter director of the Northern Rockies program of the Sonoran Institute). This is the great convergence of needs. Baby Boomers are seeking to be near medical centers and other conveniences and Generation Y is just reaching into the market only able to afford the most utilitarian of homes, apartments and condos. The big home with a big lot is, although not gone by any means, a fading trend.

A mass exodus of what is being declared the ‘exburbs’ and a strong revival of city center is the soon to be norm nationally. Bozeman, Montana data reveals we are certainly now immune to this. In the past 11 months, the urban center we have here (near the Emerson Cultural Center, Galligator, and Sourdough Trail) represents the bulk of remodels and renovations totaling nearly $2 million of spending. Over that same time span, $23 million went into communal living spaces such as condos, townhouses and duplexes.

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Topic:
Real Estate Industry
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Montana Gallatin County
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Montana Folks
Advice for Buyers
Market Reports
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Tags:
understanding real estate
market reports
real estate trends
growth
bozeman real estate
real estate in bozeman

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Rainmaker
1,554,732
Captain Wayne Rowlett
Florida Real Estate School
Rowlett Real Estate School LLC

Good Morning Jennifer, this is an excellent blog.  Thanks for information.

March 28, 2013 03:25 AM
Rainmaker
556,060
Cherise Selley
Colorado Springs Realtor
Selley Group Real Estate, LLC

Jenifer,

Appreciate your smart approach blog about real estate.  Usually the Realtors who understand these type of insights are the ones who are also practicing this style of real estate.  Great job... g

March 28, 2013 11:19 AM
Anonymous #3
Anonymous
Bobbi Ellis

Good morning Jennifer,

Great Blog I have been in Real Estate for over 25 years and I have never seen this kind of market before!  We just have to learn and flow with it, thanks for sharing.

March 29, 2013 05:53 AM
Rainmaker
340,512
Nina Hollander
Your Charlotte/Waxhaw/Fort Mill Area Realtor
RE/MAX Executive Realty/Charlotte, NC

I think you may be right in this regard, but in the end, I don't think anyone can control any financial or real estate market. We can just control our decisions and actions.

March 29, 2013 07:32 AM
Rainer
275,327
Kimo Jarrett
Kimo's Lifestyle Solutions
WikiWiki Realty

Interesting perspective, however, it's the state of the economy and the rising inflation which is the root cause of the trend. Developers are adapting to the cost of money and the diminishing population and their financial resources and the consumers ability to maintain a mortgage. When the economy shifts again to being more robust and appears to stabilize moving in a positive direction, the real estate model will turn as it has in the past and will continue to do so in my opinion. regardless, we must also adapt to the winds of change.

March 29, 2013 07:58 AM
Rainmaker
59,603
Sharon Sanchez
Your Number "1" Source For Real Estate.
Ace Home Realty

Hi Jenifer,

My focus is on getting business in any market.  I don't focus on the type of market we're in because it becomes depressing and whether it's good or bad, the market is always changing at some point.  I just adapt and keep it moving.

March 29, 2013 09:18 AM
Rainer
221,333
Lehel Szucs
REALTOR of choice
All Seasons Real Estate, Inc.

it is interesting how things change and trends and likes are different for different people .... here in the greater Los Angeles area we are seeing a resurgence of the downtown areas ... and near transportation hubs ... than again some of us still like the sprawl of the suburbs

March 29, 2013 10:16 AM
Rainmaker
629,608
Stephanie/Bob The Ruiz/Miller Team
The Ocala Dream Team
Keller Williams Cornerstone Realty

Hi Jenifer, we agree.  If only Florida had done so before the bubble, we would not be in this mess today.

March 29, 2013 12:48 PM
Rainmaker
850,881
Lottie Kendall
Serving San Mateo County and San Francisco
Today | Sotheby's International Realty

I think what you're experiencing in Bozeman is being seen around much of the country. It's certainly true in my area, the Silicon Valley, San Mateo County and San Francisco. More and more people of all ages choose to be in areas within walking distance to town centers, willing to forego the big yard for more urban amenities.

March 29, 2013 05:46 PM
Rainmaker
699,059
Sharon Parisi
Dallas Homes
Keller Williams Dallas Premier Realty

There has been a great deal of urban revival in Downtown Dallas.  In the DFW area there is also much growth in all suburbs.

March 29, 2013 08:09 PM
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Rainmaker
297,470

Jenifer Lower

Team Service Above Expectation
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