The Real Deal Miami

Suburban home prices decline as energy costs climb

June 25, 2008 10:34AM

Energy prices are rising fast, making commutes to suburban homes expensive. In the suburbs around Denver, housing prices fell 7 percent in the last three months of 2007. Economists and real estate agents believe the rising fuel costs are accelerating the decline of suburban home prices, slowing the traditional migration from cities as larger, costlier homes lose appeal. Over three-quarters of prospective home buyers say they are now more likely to live in urban areas because of fuel prices, according to a recent survey of 903 real estate agents with brokerage Coldwell Banker.