Downtown Living Blog

By Lauren Baier Kim

Here's a look at what's new in real-estate markets across the U.S. from around the Web. (Some links may require registration or subscriptions.)

McMansion neighborhoods -- slums of the future?

Are Americans becoming disenchanted with car-based suburban life and McMansions out in the middle of nowhere? That's the premise of an article by Christopher B. Leinberger in the Atlantic. Mr. Leinberger points to research by Arthur C. Nelson, director of the Metropolitan Institute at Virginia Tech, who forecasts a surplus of homes built on a sixth of an acre or more by 2025.

Developers have responded to this trend, Mr. Leinberger says, by building mixed-use developments with faux town centers -- like Virginia's Reston Town Center and Belmar in Lakewood, Colo. -- and  condo and loft complexes in major cities.

Mr. Leinberger points to recent research that found that one in three homeowners said they would prefer to reside in a community with a walkable urban center. The article also notes that urban residential space tends to sell for a 40% to 200% premium over traditional suburban houses, and that in places like Windy Ridge in Charlotte, N.C.; Florida's Lee County; and Franklin Reserve in Elk Grove, Calif., a rash of vacant houses has resulted in a rise in suburban crime.

As more wealthy families opt for a more-urban lifestyle, there will be trouble ahead for the suburbs, Mr. Leinberger says. Dwindling tax bases can result in a decline in safety and school quality, he adds.