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"Proximity matters more than it ever has," Larson says.
That has made close-in neighborhoods significantly more appealing.The same is true in Boise, Idaho; Columbus, Ohio; and Nashville.Even in Sunbelt cities such as Phoenix and Houston.for city living have changed — that millennials are more drawn to it than their parents were, or that people who one shunned cities have changed their minds. In many ways, it's the that has changed, not us, Larson argues."Data suggests that you don’t need changing preferences in order to arrive at the patterns we see," Larson says. "It would take very strong evidence to persuade me that [changing preferences are] what’s going on, because there are so many other explanations going on that are economic related and not preference related," Larson says."This is really new confirmation about the shift in demand for the urban core of America away from the urban periphery," says Harvard economist Ed Glaeser.
"The thing about the resurgence of central cities is not that suburbia is dead – as much as people love that story line, it's not true.
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The very nature of central cities also means that it's harder to add new housing there.
There's less empty land to build on, relative to the suburbs and exurbs, and so rising demand is more likely to result in higher home prices than more new housing. And at least some people have accrued more wealth to spend on high-end restaurants.
In a set of working papers using the data, Doerner and colleagues show that housing in the heart of big cities has enjoyed the greatest appreciation, at least since 1990, suggesting a growing demand to live there.