Everything new is old again

One need only look at the reappearance of tower cranes in downtown Chicago to get the sense that the real estate market has made at least a moderate comeback since the lowest point of the recession. For years, common logic has told us that the 5,000+ square foot suburban mansion displayed the ultimate in luxury and status, but now we see a different story. We have returned to a circumstance where close proximity to other community members and necessary services provides the highest value.

The typical suburban development layout grew from a philosophy that those seeking luxury did not want to live in something that resembled the city. Instead of adhering to a street grid, developments prevailed with a limited number of entry points, plenty of cul-de-sacs, and winding streets with plenty of distance between houses. In some cases, these developments did not include sidewalks because the design assumed the residents would rarely use them. Those living in these “luxury” neighborhoods would have access to two or more vehicles, so planners assumed the residents would substitute cheap gasoline for proximity when obtaining their necessities. This allowed suburbs (and eventually, even major cities) to build large strip malls with huge anchor retailers like WalMart, Target, or Home Depot to which the locals – and hopefully others outside the suburb – travel to get what they need. In many cases, a trip to a retail development requires driving as much as a mile when a resident lives only a block or two away from the building…except they have no way to get there because of the obstacles that separate these retail corridors from the residential areas.

As transportation costs rise, salaries decrease, and people value their personal time more, a new definition of luxury has come to the forefront. Beginning in the mid-1990s, and except for the downturn in the late 2000s, luxury living has returned to the urban environment. The classic urban neighborhood puts people in close proximity to each other and basic services. The corner grocery store sits within half a mile of every resident, as does a dry cleaner, a hardware store, and several restaurants. The new luxury high-rise developments bring most of these services to the residents in the form of first-floor retail that residents access with only a brief elevator ride. For those seeking a little more variety, they need only walk a block or two to find several other, similar developments containing their own similar retail development. These developments also contain community meeting space, fitness centers, and storage space that mimic services the residents would find in a more conventional urban neighborhood. Those who live in these developments do not need one car, much less two or more, allowing them to afford the level of luxury they desire.

Someday, we will need to revitalize the suburbs and return them to a more traditional, urban or “main street” communities where residents live near services. When we do, we will wonder why we ever built them in the first place.