Monday, May 12, 2008

This Can Not Be Surprising . . .

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The smaller, better home is becoming more and more popular

In a February survey of potential home buyers by the National Association of Home Builders, 60 percent said they would rather have a smaller house with more amenities than vice versa. "In the past, people would say 'Give me space and I'll add the features later,' " says Gopal Ahluwalia, the NAHB's vice president of research. Newly built houses will have layouts that can "live bigger" than their square footage would suggest, with rooms that can do double duty, experts say.

You read here in my postings of May 23rd and July 6th, last, of this trend. If you missed those posts you may wish to read them now. Smaller lives better, greener and more cost effectively and reflects the changing demographics of our society.

9% of buyers are single men, 22% are single women. 60% of all home buyers have no children under 18.

Couple those facts with the trend toward smaller family sizes, and you get compelling reasons why smaller, better homes will become more and more popular.

Yours for the smaller, better home,

Herb

Friday, March 21, 2008

An Incentive for Going Green . . .

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This is a welcome sign . . . .


Countrywide Home Loans, a division of Countrywide Bank, FSB, has announced the retail launch of its Green Incentive Program, which will initially be available to qualified homebuyers in thirteen states, including: Alaska, Colorado, Iowa, Idaho, Minnesota, Montana, Nebraska, North Dakota, Oregon, South Dakota, Utah, Washington and Wyoming.

The program provides an interest rate reduction of .125 percent on a Countrywide loan used to purchase a new home that is built meeting recognized green and energy efficient standards.

The Countrywide Green Incentive Program's interest rate reduction applies to newly constructed homes that meet third-party, certified standards of recognized green building programs, including Energy Star, Earth Advantage, LEED for Homes and Built Green programs of local home builder associations, as well as the National Association of Home Builder's Green Building program.

This 1/8 th of a point in interest will save the homeowner with a $200,000, 30 year loan $1,911.60 over the ten years the average homeowner is now staying in his/her home. These savings when added to the energy and maintenance savings of building green, make going green even more financially attractive. And, of course, saving some money is not the only (or even the prime) motivator impelling more and more people to build green.

Saturday, March 08, 2008

The Next Slum?

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A Provocative Thesis from Someone Not Unqualified* to Provoke Us:

Is THIS the Next Slum?


The universal definition of a McMansion is a house quite a bit larger than any one you'd want to live in.


Chris Leinberber has a written a very provocative essay in this month's (March 2008) issue of "The Atlantic." Leinberger concludes that in 25 years American cities may look very different from the way they look now, with vibrant urban cores surrounded by suburbs where the former McMansions have been broken into flats into which multiple families of the the poor have been crowded.

Looking beyond the current subprime mortgage crisis, Leinberger writes “a structural change is under way in the housing market--a major shift in the way many Americans want to live and work. It has shaped the current downturn, steering some of the worst problems away from the cities and toward the suburban fringes. And its effects will be felt more strongly, and more broadly, as the years pass. Its ultimate impact on the suburbs, and the cities, will be profound.”

In support of his thesis Leinburger cites the work of Arthur C. Nelson, director of the Metropolitan Institute at Virginia Tech. Nelson has looked carefully at trends in American demographics, construction, house prices, and consumer preferences. In 2006, using recent consumer research, housing supply data, and population growth rates, he modeled future demand for various types of housing. The results were bracing: Nelson forecasts a likely surplus of 22 million large-lot homes . . . by 2025—that’s roughly 40 percent of the large-lot homes in existence today." Just imagine the implications of such an over-supply . . . .

This likely scenario, Mr. Leinberger writes, is a result of “the pendulum swinging back toward urban living,” thanks to a set of economic, social, and demographic trends which you can read about in the essay. "Many Americans, meanwhile, became disillusioned with the sprawl and stupor that sometimes characterize suburban life. . . . Most Americans now live in single-family suburban houses that are segregated from work, shopping, and entertainment; but it is urban life, almost exclusively, that is culturally associated with excitement, freedom, and diverse daily life." Clearly, Leinberger does not believe that walkable urbanity will be for every one, but he applauds the greater choices that people will have as we build a greater variety of housing types in denser, mixed-use settings.

Whether Mr. Leinberger has described the exact vision of the future is not the main question and should not defocus us into argument with him on the finer points of his thesis. Rather, we should be asking ourselves what are the implications of the key concerns he has raised, even if his predictions come only partially true? We need to know if much of what we've been building over the last half century is destined to decline or even decay. We know how to do better now. When the next generations ask us why we made so many bad buildings in so many bad places, what will we say?




*Christopher B. Leinberger, a land use strategist and developer, is a Visiting Fellow at the Brookings Institution in Washington, DC. He focuses on research and practice that help transform traditional and suburban downtowns and other places that provide “walkable urbanism” Leinberger is also a Professor of Practice and Director of the Graduate Real Estate Development Program at the University of Michigan. This program trains the next generation of real estate developers in the building of sustainable walkable urban places. Mr. Leinberger is also a founding partner of Arcadia Land Company, a New Urbanism development firm dedicated to land stewardship and building a sense of community. His partners are Robert Davis, the developer of Seaside, Florida, and Joe Duckworth, who has run two Builder 100 home building companies and was the National Home Builder of the Year in 1992. Arcadia Land has developments in the Philadelphia metropolitan area, a 1,400-acre development in Independence, Mo., a joint venture with Forest City Enterprises, and was the catalytic developer for the revitalization of downtown Albuquerque, N.M. See www.arcadialand.com.

Sunday, September 23, 2007

Leytham Life Slogan?

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Leytham is not a conventional subdivision. It is not a development as we have come to know that term. It is much more than just a real estate project. It is a new neighborhood where people will work, learn, play, shop and, of course, live. Since Leytham embodies so many of the aspects of life, the idea of Leytham can best be summed up as "Leytham Life."

Click below for the next Leytham Life marketing tag line.

Leytham Life Slogan Generator

Once at the Slogan Generator, you can click on "Generate My Slogan" over and over again to get new tag lines. If you like one of them, let me know.

Herb

Thursday, September 20, 2007

"Things are bad and they're getting worse"

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What cost $78.2 Billion Dollars (in 2005), took 4.2 Billion Hours and wasted 2.9 Billion Gallons of gasoline?

Traffic congestion, that's what . . . according to the Texas Traffic Institute’s "2007 Urban Mobility Report" released this week.

"Things are bad and they're getting worse," says Alan Pisarski, a transportation expert and the author of "Commuting in America."

On the way to finding one of those 11 parking stalls per family (see last week's posting here), average driver in 437 U.S. urban areas (and all of his/her passengers) spent 38 hours locked up in traffic congestion. This wasted 26 gallons of gasoline, and cost $710. By comparison, in 1982 the average annual delay was 14 hours, consumed 9 gallons of gasoline and cot $260 (in constant 2005 dollars.)

Here's a list of cities where the institute found the worst traffic jams, along with the number of hours in a year drivers spent stuck behind the wheel:

Large Cities

Los Angles-Long Beach-Santa Ana, 72 hours
San Francisco-Oakland, 60
Washington, DC-VA-MD, 60
Dallas-Fort Worth-Arlington, 58
Houston, 56
Detroit, 54
Miami, 50
Phoenix, 48
Chicago, 46
New York-Newark, NY-NJ-CT, 46
Boston, 46
Seattle, 45
Philadelphia, NJ-DE_MD, 38

Medium Cities

San Diego, 57 hours
San Jose, Calif., 54
Orlando, Fla., 54
Denver-Aurora, Colo., 50
Riverside-San Bernardino, Calif., 49
Tampa-St. Petersburg, Fla., 45
Baltimore, Md., 44
Minneapolis, St. Paul, 43
Indianapolis, Ind, 43
Sacramento, Calif., 41
Las Vegas, 39
San Antonio, Texas., 39
Portland, Ore., 38
Columbus, Ohio, 33
St. Louis, 33

But, what about Omaha? What about our "20 minute city?" According to the study, the average driver in Omaha wasted 25 hours in traffic congestion and in doing so, wasted 15 gallons of fuel. What if you add all that up? In Omaha alone, the study's authors conclude, in 2005 we collectively wasted 8,784,000 hours and 5,344,000 million gallons of gas for a combined "all in cost" of $154,000,000. What was YOUR share?

To check out the study, go here: http://tti.tamu.edu/documents/mobility_report_2007.pdf

So while you are stuck in traffic on your quest for your next parking stall, just think about it for a bit, and consider the benefits of the walkable, mixed use residential neighborhood.

Herb

Source: "2007 Urban Mobility Report," Texas Transportation Institute (09/2007)

Thursday, September 13, 2007

Your New Urban Factoid(s) of the Day

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"Do we need this much parking space?"

Purdue University researchers surveyed the total area devoted to parking in a midsize Midwestern county and found that parking spaces outnumbered resident drivers 3-to-1 and outnumbered resident families 11-to-1. The researchers found the total parking area to be larger than 1,000 football fields, or covering more than two square miles.

Source: Purdue University News (09/11/2007)
http://news.uns.purdue.edu/x/2007b/070911PijanowskiParking.html

"Even I was surprised by these numbers," said Bryan Pijanowski, the associate professor of forestry and natural resources who led the study in Purdue's home county of Tippecanoe. "I can't help but wonder: Do we need this much parking space?"

The Purdue University News article goes on to note that large churches and "big-box" retailers . . . often feature parking lots that take up more than twice the area of their buildings . . . .

“Parking lots at big-box stores and mega-churches are rarely filled," Pijanowski said. A different approach to development planning could mitigate the monetary and environmental costs associated with parking areas, he said.

"In many areas of the world, particularly Europe, cities were planned prior to automobiles, and many locations are typically within walking distance," Pijanowski said. "This is just one different way to plan that has certain advantages."

"People can help by first realizing that our land is not unlimited and that we need to use it prudently," Pijanowski said. "They can seek a lifestyle that requires less automobile use.”

Yours for the walkable residential mixed use neighborhood that does not require 11 parking spaces per family,

Herb

Monday, August 06, 2007

Omaha by Design Cites Leytham

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There is a "Walkable Residential Neighborhood" in Your Future . . .

For the past several years Omaha by Design has been working to improve the physical and social environment of Omaha. The goal is to help create "an Omaha that's connected, smart, significant, sparkling and fun." The "Urban Design Element" implements the Omaha by Design concepts and goals and will result in "long-term improvements to our streetscapes, signage, landscaping, building design, pedestrian networks and public spaces. It will improve the connections between our neighborhoods, commercial centers and civic districts."

Omaha by Design's "Urban Design Element Implementation Measures" were summarized
in a special supplement to the Sunday, August 5th, edition of the Omaha World-Herald. (My supplement was in the big mass of flyers and advertising inserts that comes all wrapped together with the Sunday paper. If you throw all that away enmass like I usually do, then you missed this special supplement from Omaha by Design. You may want to dig it out of the recycling bin before it is too late.)

See page 10 on Walkable Residential Neighborhoods. Leytham is mentioned as an example of the type of neighborhood that Omaha by Design seeks to promote. I have highlighted the parts below that are in bold type.

Here is the quote from this section:

Walkable Residential Neighborhoods

Recent studies have shown that Americans feel increasingly disconnected from their communities, and the consequences of this disconnection are far-reaching. Some cities have attempted to address this issue by encouraging denser housing developments that are pedestrian-friendly and designed for active use. The Walkable Residential Neighborhood (WRN) (§55-208 to §55-215) designation will bring this concept to suburban parts of Omaha, offering homeowners a safer, more appealing outdoor environment that encourages physical activity and social interaction.

The WRN will be voluntarily initiated by developers. It sets out site development standards that are modeled after old style, pedestrian-oriented neighborhoods such as Benson and Dundee. While the current zoning codes tend to separate uses, the WRN encourages a mix of uses so that people can walk from their homes to shops, libraries and other civic amenities. The intent is to stimulate new residential development patterns in Omaha that contain a mix of housing types like Leytham at 168th and State streets.

The WRN is intended as a separate zoning option—it is not an overlay. It carries several criteria that developers must meet regarding the set-back of units from the public right-of way, the width of lots and the height of buildings. Projects will be approved on the basis of meeting these quantitative guidelines as well as the overall quality of the site plan.

Copyright (c) 2007 Omaha World-Herald 08/05/2007

The page also featured this rendering of Leytham showing the market hall and the farmers' market.
















For more information see: www.OmahaByDesign.org

Yours for the improved physical and social environments that Omaha by Design seeks to foster,

Herb

Friday, July 06, 2007

A Sign of the Times . . . JUST as I have foretold . . . .

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KB Home building smaller homes

KB Home is discovering that less could be more when it comes to luring skittish buyers in a housing slump. In recent months, the company has rolled out a new line of smaller, more affordable homes that it hopes will jump-start sagging sales. The move by one of the nation's largest homebuilders comes amid a worsening housing slump that some analysts now say could last for several more years.

"Smaller homes generate lower revenues, but they sell faster, therefore the cash returns are better," said KB Home's chief executive, Jeffrey Mezger.

Other major builders, including Fort Worth (TX)-based D.R. Horton Inc., also have started downsizing some home offerings. But KB Home has led the way, said Greg Gieber, an analyst with A.G. Edwards & Sons Inc. "They understand the balance, what they can take away and how much they can reduce price having taken that amenity away," he said.

The company declined to disclose national figures on how the smaller homes were selling. But KB said it sold 48 units in the past eight weeks at a Las Vegas community where homes range from 1,267 square feet to 1,608 square feet, and prices start at $195,590. The homes are as much as 500 square feet smaller than homebuyers might have preferred a year ago, Mezger said.

Prices vary, but the smaller homes are as much as 20 percent cheaper than larger versions. Buyers can still opt to add a bevy of amenities, which can drive up the final price.

"Affordability is a real issue today in most of the markets that we operate in," Mezger said. "Across the company we're going to an average smaller-size home."

Source: RealTrends, July 3, 2007

These homes are located in a subdivision called Huntington in southwest Las Vegas. The smallest home at 1,298 square feet is about half the average size of new homes currently being built. Offered at $199,590 it is a two bed room, 1.5 bath two story with a one car garage. See the homes and learn more about them here:

http://www.kbhome.com/Community~CommID~00850727.aspx

See my posts of May 23rd, "Is Small the Next Big?" and March 29th, "Buyers Choose Better Quality Over Bigger Space" for an in depth discussion of this "smaller new house phenomenon."

We will see smaller houses capturing a larger segment of the market as the home building industry confronts the trifecta of new realities: affordability, energy and demographics:

1. Housing is becoming less and less affordable for more and more people. A big driver in the housing affordability problem is bloating in the sizes of the new homes being built.

2. Energy will continue to cost more and more and more. And as energy costs go up both to heat, cool and run a house and to drive to and from it for every little need, both houses and people's habits will have to change.

3. The married couple with 2.2 children comprises only about 25% of all households, yet nearly all the conventional subdivision lots in sprawl America are aimed at this shrinking demographic segment.

The principles of new urbanism and traditional neighborhood development address these new realities very handily and that is why the new traditional neighborhood will do so well in the coming years.

To learn more, visit Leytham.com here:

Thursday, July 05, 2007

Great Press for Leytham . . .

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Leytham? What's a Leytham?

Leytham gets some great front-page press in the July 5th edition of the Omaha World-Herald:

http://www.omaha.com/index.php?u_page=2798&u_sid=10071055

Wednesday, July 04, 2007

New Urbanism MeetUp Group in Omaha

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Hello, All and a Happy 4th of July to you! There is a New Meetup Group in Omaha . . . .

About a month ago I started a new MeetUp group called the "Omaha New Urbanism & Sustainable Development Meetup Group." So far our small group has had its first meeting. It occured to me to let the readers of NewHerbanism know about this new group in the hopes that some of you might care to join the group. Just log on here and sign up.

http://newurbanism.meetup.com/106/?gj=sj5

I hope to see some of you at our next meeting.

Yours for advancing the New Urbanism,

Herb