Urban centers draw more young, educated adults

[EL Jimbo]

This is good news and hardly unexpected. There's no question that American cities are benefitting from an influx of young, educated folks.

There's no reason to get too excited, though. The big picture is still pretty fuzzy.

Two major caveats-

One, folks are waiting longer to get married and to have kids. This logically means the cohort of "urban-friendly" young folks has expanded. It dosen't really mean that something has fundamentally changed in terms of locational preference.

Two, the "urban friendly" portion of most big cities is quite small, and rather inconsequential in the greater scheme of things. For example, there's no question that Detroit's downtown and midtown areas are improving. There's also no question that the city, overall, is more challenged than ever.

It might not be much in the grand scope of things, but it is definitely a start. If you look at what has happened in some neighborhoods in Chicago as an example, there seem to be certain steps in the rise of an urban neighborhood.

1. Hipsters move in and make a neighborhood "funky and cool".

2. Young professionals move in, bringing re-development dollars and price out the hipsters [[who move on to a new neighborhood and make that "funky and cool").

3. The young professionals grow up, get married and some of them stay, making the neighborhood stable.

[wolverine]

It might not be much in the grand scope of things, but it is definitely a start. If you look at what has happened in some neighborhoods in Chicago as an example, there seem to be certain steps in the rise of an urban neighborhood.

1. Hipsters move in and make a neighborhood "funky and cool".

2. Young professionals move in, bringing re-development dollars and price out the hipsters [[who move on to a new neighborhood and make that "funky and cool").

3. The young professionals grow up, get married and some of them stay, making the neighborhood stable.

You got it. And then trend where families stay is the next big thing to pick up. Sales of 3 to 4 bedroom condos have been some of the highest ever. The market for 1-2 bedroom condos has been sluggish, and rentals have skyrocketed.