Smart Growth Principles

In previous posts, I have tried to outline what could happen with the real estate development industry as the economy recovers. I do not believe the industry will go back to its old self. We have to think differently and pursue unconventional ideas. A proactive position will provide leadership OR government (at all levels) will dictate how we build, where we build, and what we build. The following smart growth principles may guide our future real estate development patterns.

• Create Range of Housing Opportunities and Choices
• Create Walkable Neighborhoods
• Encourage Community and Stakeholder Collaboration
• Foster Distinctive, Attractive Communities with a Strong Sense of Place
• Make Development Decisions Predictable, Fair and Cost Effective
• Mix Land Uses
• Preserve Open Space, Farmland, Natural Beauty and Critical Environmental Areas
• Provide a Variety of Transportation Choices
• Strengthen and Direct Development Towards Existing Communities
• Take Advantage of Compact Building Design

It doesn’t seem the “Livable Communities” act will make it through the lame duck session. Its future will go with Sen. Dodd as he leaves Washington, DC. This doesn’t mean that government will stop their pursuit of “sustainable” growth policies that will guide our industry into the future.

The “sustainable” real estate development approach may in a significant way direct future development toward the urban core. Jobs, buyers and services will be channeled to urban centers. Urban cores or urban centers will be defined by the availability of existing water and sewer facilities and not by population! I expect local governments will not approve of extending existing facilities beyond urban core areas – simply because they can’t maintain what they own now.

After all, how would your life change if gas went up to $5 per gallon or gas was rationed and your daily commute was sixty miles?

Would you move closer to your work?
Buy a more fuel efficient car?
Find a new job?
Take public transportation?
Car pool?
Retire at age 30 like workers in Europe?
Go on unemployment for three years and hope gas prices go down?

Shifting job centers, housing, services, shopping, and recreation facilities to urban centers will become the norm. This shift in real estate development philosophy and the new reality of higher prices and cost of living will ultimately have a dramatic impact on our urban centers. This week, I will outline one of the impacts.