I'm Back!

Urbanity Today is returning from a not-so-surprising break. Unless you have been living under a rock for the past year or two, you are aware that we've been going through a global economic crisis. Those who know me also know that the economy has taken a toll on me personally. With the economic conditions, there has been less going on in the world of development, and a bit less to talk about.

Now that the economy is officially in a recovery phase, there must be more to talk about, right? Well, not so fast. Yes, by official definitions, we're in recovery. The world of real estate, development, and urban planning, though, is still in intensive care. So, what's happening right now?

• Residential real estate's free-fall has stopped, and prices seem to stabilize. So, for those interested in buying a home, now's a great time - if your credit hasn't been crushed to pieces
• Commercial real estate is now the asset class that's having issues. Lots of properties are not just up for sale, but many are being sold at auction following foreclosure. One interesting sign of the times was a non-foreclosure auction of the Pontiac Silverdome, which sold for only $583,000.
• Urban planning is also in a lull. Many municipalities have tightened their spending, and developers are licking their wounds after many projects have been scrapped.

So, great time to come off a break, huh?

Actually, yes. If you recall, my purpose here is not just to talk about real estate development. I feel strongly that we need to develop more responsibly, and now's a great time to start the discussion again.

For developers who have managed to retain cash or access to funding, this is a unique opportunity. Central, urban properties that were previously too expensive to make sense for development are now, suddenly, much more accessible. Cost of construction is also much lower than in 2006, due to the available labor and materials supply. It's still possible to find redevelopment and infrastructure grants from state and federal sources that reduce the cost of infill development.

My hope is that more developers will see the opportunities with infill development, and will seek to be responsible by implementing mixed-use, walkable designs.