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cover story Building a Better Community Homebuyers look to piece together their dream locales as the recovery takes shape. By Ashley R. Harris N ot long ago, communities looked different. They were robust and sprawling, spreading farther and farther into the outskirts of major metropolitan areas. People were buying houses at a rapid clip . . . and then the infamous bubble began. Eventually—inevitably—that bubble popped, people lost their homes, and communities were destroyed. However, in the last year, Americans have been slowly inching back into the market to buy homes because of the abundance—albeit a shrinking abundance—of foreclosed properties available. But as some work to rebuild communities, others are looking to create communities that reflect the tastes of today. While there is a certain charm and appeal—especially in price—to renovating a home in a distressed community, many people still find building an abode from scratch attractive. Either way, the face of communities today is changing, and that fact will play an integral role in their development. "The rebuilding of some of the devastated areas and so on is sort of like informal watch groups. In many places, you're seeing neighbors know each other and look out for each other . . . going over and mowing lawns," said Dave Liniger, president of RE/MAX. "It's those characteristics that make a community wherever you go." And as those communities band together and begin to bounce back, new ones are taking shape, especially in the areas hit hardest by the lending crisis. Jed Kolko, chief economist for Trulia, points to population growth rebounding in many of the states battered by the decline in homeownership. Those same states—like Florida, Nevada, and Arizona—are also seeing more job growth. "There's such a wide range of new communities—many of them are mixed," he said. "In those that are designed with families with kids in mind, a lot of the new communities will be in fast-growing places, and we'll continue to see development in them." Kolko says the Sun Belt is still rebounding and also nods to the increased construction in Texas and the Carolinas. Moving With the In-Crowd T oday, more and more homeowners are opting to leave the urban sprawl for more densely populated areas. There is a small shift happening that involves moving closer to shops and mass transit, according to Kolko. Rising gas prices are one key factor in many Americans' decision to move closer to work, he notes. "People will start to think differently about the cost of commuting and are arranging their lives to save commuting costs," Kolko said. Making determinations about commuting costs speaks more to lifestyle choices as Americans— and, most especially, the younger generations—decide that going green and staying green often means leaving transportation at home and hitting the pavement. "I think you see a trend towards the walkability factor, the younger they are," RE/MAX co-founder Dave Liniger said. "They want amenities and they want them close by." Being able to walk to the neighborhood bar, theater, or lounge has become increasingly more important for younger homeowners. As those homeowners grow older, their desires will change to parks, schools, and other familyfocused amenities. "Even the older baby boomers who are downsizing all seem to want closer-by amenities," Liniger noted. According to recent data from the National Association of Home Builders (NAHB), however, only a small share of the overall population desires to live in downtown areas. The organization found that only 8 percent want to reside in the heart of town. Many people, the NAHB reports, are still finding appeal in living in cheaper areas outside of the central city. That is, of course, all subject to change, Kolko notes. "Consumer preferences tend to change pretty slowly, and a lot of the shift that we see in what consumers want is from a consortium of what people really want," he said. The M Report | 23