New Yorkers feeling cramped with three kids in a two-bedroom apartment but who are not so sure about saying goodbye to the city are increasingly giving the suburbs a test drive. According to the New York Times, more families are renting in the suburbs before deciding whether to buy. And beyond any mere reluctance to give up city living, the uncertain economic environment has made the decision to buy even more fraught.

“Given the dismaying economic news over the past few years, people are afraid,” Roberta Baldwin, a Keller Williams Realty parter who recently rented out four houses in Montclair, N.J., said. “This is the biggest purchase they’ll ever make, and for many people it’s too daunting until they’ve immersed themselves in the fabric of a place.” [more]

As the recession clears, sprawl is set to make a comeback in the housing market, the Wall Street Journal reported, citing findings coming from the Harvard Joint Center for Housing Studies annual State of the Nation’s Housing report released yesterday.

Household growth in the 2000s was primarily concentrated outside of cities. While city cores took 21 percent of growth during this period, suburb growth accounted for 38 percent and the more distant exurbs for 41 percent. This growth was mainly fueled by prices, the Journal said, and it is likely to continue. Recent studies have found that property prices increase as they get closer to walkable city centers.  [more]

Most people have come to understand that real estate hastened the recession, but according to the Atlantic, few have identified exactly what kind of real estate sent the economy spiraling downward.

Enter Christopher Leinberger. The University of Michigan professor has singled out the 19 standard types of real estate that proliferated across post-war America, became standardized, easily financed and, eventually, over-saturated. They are largely hallmarks of suburban America, including the detached starter home, the multi-tenant bulk warehouses and self-storage facilities. … [more]