Urban renewal is king. Although the fulfillment of the American Dream increasingly took its reality to the suburbs for the past two generations since the end of World War II, there is a healthy and unquestionable market for urban housing gaining steam nationwide.

Even though nuclear family life still sees city outskirts as safer havens for their own personal development, demographically different households are looking toward a new and potentially exciting frontier: America's cities. City life can bring with it an infusion of energy, culture, more diverse shopping opportunities, entertainment venues and better proximity to employment hubs, in addition to a heightened sense of civic pride.

In recognition of the momentum gaining steam for urban housing, the National Association of Home Builders (NAHB) entered into a partnership with the Department of Housing and Urban Development (HUD) and the United States Conference of Mayors (USCM) called "Building Homes in America's Cities," in 1999. The goal of the partnership is to build 100,000 more new housing units than the number that would have otherwise been built from 1999 to 2009. The partnership is meant to strengthen the relationship between home builders, mayors, community leaders and others so that together they can meet the nation's housing demand and revitalize many long-ignored neighborhoods in the nation's cities.

By encouraging in-fill development, brownfield cleanup and development, and the replacement of existing housing, this program can capitalize on existing infrastructure, integrating new housing into the fabric of the community. Market-rate housing can retain and attract more families as well as expand a city's tax base. In a statement by Robert Mitchell, president of the NAHB, it was pointed out that an influx of new housing is usually followed by new businesses, such as the corner deli, the local grocer, and services that provide jobs and amenities that attract even more residents and businesses.

It's clear that the suburbs still reign; no one will deny that the single family home in areas outside the realm of city life is still the more desirable profile for many Americans. Mitchell also cites that a 1999 NAHB survey found that 83 percent of those polled would choose to purchase a detached home in a suburban area over a townhouse located in the city that is near work, public transportation and shopping. He goes on to say that Census Bureau statistics indicate that three homes are built in the suburbs for every one home built in cities. Softening those numbers, however, is the goal of the new partnership.

Major impediments, such as aging infrastructure, cleaning up crime, federal liability laws that increase builder risk for brownfield development, and improving urban school quality will need to be overcome for these goals to see the light of day within the next decade. And Mitchell is quick to point out that not every idea will work in every city. But it is the hope of builders, city officials, and community activists that city housing growth can mean the beginning of the end to forgotten communities. All agree that this new frontier is good business and an exciting prospect, lending as much diversity to the housing market as can be recognized in the ever changing American household.

Published: September 6, 2000

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A veteran of the real estate and homebuilding industries since 1986, Dena Kouremetis first joined Realty Times as a new homes writer in 1998. Since then, she has authored four books, written consumer columns on new homes issues for websites and newspapers all across the country, contributed to builder trade magazines, appeared as a guest expert on several radio shows and even created a ten-chapter podcast for LendingTree.com’s homebuilder website, iNest.com, now available on iTunes, entitled Uncharted Waters; Navigating the Purchase of a New Production Home. Kouremetis recently joined her local Folsom, CA Coldwell Banker office as a broker associate while continuing to write for the real estate industry. For the past three years, she has been training real estate agents for both the resale and new homes industries, putting her experience, research expertise and gift of expression to work to help others entering the business.