Could rising gas prices kill the suburbs?

Wed, 2006-08-16 20:31

Marilyn Lewis, MSN Real Estate
When a high-cost commute reaches the point of no-return, home buyers will start finding houses closer to work. In fact, some already are.
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Rising fuel costs are being blamed for everything from soaring utility costs to lower retail sales and higher airline tickets. And now, experts say high gas prices could reshape U.S. cities.

"Most analysts believe that crude oil prices in the $50s and $60s will be with us for some time," says Stuart Gabriel, director of the Lusk Center, a think tank at the University of Southern California devoted to studying real estate forces and trends. There's even talk of crude hitting $100 per barrel -- or 10 times what it sold for in the summer of 2005.

Once the realization soaks into the American consciousness that high-cost gas is here to stay, Gabriel predicts, those high commute prices will pull more homeowners -- even young families -- to live in central cities and create a push for more public transportation.

Gabriel already sees change in car-centric Los Angeles, where the commuter culture has for years pushed mile upon mile of city sprawl into neighboring towns and farmland. But now Gabriel says KB Home is leading the way to a new type of neighborhood.
(Aug 2006)


Could rising gas prices kill the suburbs?

Ethanol

Submitted by Guest on Thu, 2006-08-17 02:12.

Hi,

Isn't the good part of ethanol is that it leaves the plant protein intact?

Jean Baugh

High Gas Prices - Its the Schools not the Commute

Submitted by Esoj1211 (not verified) on Thu, 2006-08-17 14:15.

I don't think that high oil prices will kill the suburbs - they will return young adult families in place there. I feel that you will see less residential mobility e.g. less younger families purchasing new homes in further-and-further new developments. More and more parts of the nation including the inner ring suburbs and first collar-county suburban ring will be like the Bay Area and the outer bouroughs of NY where there is less "shame" in living with your parents as an adult. You may have your young adult urban hot spots, but if those same young adults came from the good schools of bucolic suburbs why shouldnt they just return to those areas and maintain their old house, especially if grandpa and grandma's pension is in jeopardy as is the norm more and more. The accordion/sandwhich family will be the norm, just like in many parts of Europe and Asia.

Could rising gas prices kill the suburbs

Submitted by Guest (not verified) on Fri, 2006-08-18 11:14.

What really hurts everyone with the rising gas prices is that there has been carborators designed to produce high mileage even in our SUV's, but the oil companies have bought the patents and don't allow them to be made in the US. I know a man that got on of them in a new car he bought. The car was suppose to go over seas, but got missed placed. They did every thing to try and get that car away from him. Why don't we use these on our own cars - oil giants are just to greedy. I hope we get totally away from under the thumb of the oil giants, just like Brazil is doing. Barb Iowa

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