The real estate market will only recover once developers start building the types of neighborhoods and places people are demanding, according to Patrick C. Doherty and Christopher B. Leinberger.
Car-dependent neighborhoods are in oversupply, and there is a need for more walkable and compact neighborhood developments, according to Doherty and Leinberger.
"At the heart of this opportunity are the underappreciated implications of a massive demographic convergence. In short, the two largest demographic groups in the country, the baby boomers and their children-together comprising half the population-want homes and commercial space in neighborhoods that do not exist in anywhere near sufficient quantity. Fixing this market failure, unleashing this latent demand, and using it to put America back to work could be accomplished without resorting to debt-building stimulus or layoff-inducing austerity. At least for the moment, Washington has an opportunity to speed up private investment for public good and launch what could be a period of long-lasting prosperity. It is a market-driven way to make the economic recovery sustainable while addressing many of the most serious problems of our time: the health care crisis, climate change, over-reliance on oil from countries with terrorist ties, and an overextended military."
FULL STORY: The Next Real Estate Boom
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