According to the 2022 report Foot Traffic Ahead: Ranking Walkable Urbanism in America's Largest Metros by the George Washington University School of Business, urban real estate development is gaining considerable market share over its suburban equivalent in 30 of the largest U.S. metro areas.

This means that the metros with the highest levels of walkable urbanism are also the wealthiest, which is driving up rental premiums, in addition to being the most educated and socially equitable, the report states. Those 30 metro areas account for 46% of the country's population and 54% of the GDP.

Real Estate Statistics For Cities

The percentage of people who reside in urban areas has increased from 30% in 1950 to 54% today. According to the UN's most recent predictions for global urbanization, that percentage will reach 66 percent by 2050.

In their 2023 report Global Cities: The Future of Real Estate in the World's Leading Cities, New York-based property consultancy Newmark Grubb Knight Frank and its London partner Knight Frank stated that "the implications for real estate could not be more far-reaching."

According to Adam Ducker, managing director and director of the urban real estate specialty area at the Washington, D.C.-based real estate consulting firm RCLCO, there has been a significant shift in capital investment over the past few years.

Developers and investors who have focused on suburban growth for the past 50 years are now applying their skills to creating cities, he claimed. "Even large-scale real estate owners are reshaping their portfolios to incorporate urban assets because the data demonstrates their superior long-term performance.

Young adults with high salaries and empty nesters, who are all too frequently forgotten, have been the main drivers of growth in metropolitan areas, according to Ducker. White-collar firms are finding it difficult to recruit high-quality staff in noncitizenship, non-walkable places, thus the jobs are also returning to the cities, which is an intriguing connected occurrence. The futuristic suburbs are attempting to resemble cities as a result.

Trends In Urban Real Estate

Here are some patterns in inhabitants' behavior that Ducker has noticed:

• Instead of purchasing, many are renting.
• Single-stacked flats are more popular and well-accepted than single-family residences. "They are willing to accept more density and less square footage" for walkable areas with retail, a street life, and a social atmosphere they can't find in the suburbs, he added. It involves trade-offs.
• More and better-finished, smaller residential units are in demand. Cleaner, lighter, and more minimalist elements are among the trends.
• Buyers are willing to make improvements to a fixer-upper.

What information must agents have in order to sell urban properties?

• They need to be quite knowledgeable about the area. "The experience sells in urban communities in part. A competent real estate agent needs to know a lot more about the area. Cities cost more money and are more difficult.
• When it comes to what they can afford versus what they desire, agents should talk with their clients.
• According to Ducker, it's important to comprehend the clientele's racial and cultural backgrounds, as well as their varied needs, problems, and objections, as well as how they intend to use the space. Younger buyers, for instance, might not be as worried about how to fit all of their accumulated goods into a smaller space as middle-aged buyers do.
• The most recent in multi-use developments break the mold of conventional designs to cater to the needs of city dwellers.

According to Knight Frank's Global Cities study, the majority of mixed-use complexes have a "significant office and/or residential element, with a complimentary but understated retail and leisure offer comprising a convenience store, a coffee shop, and a couple of branded restaurants."

The developers are envisioned by the property consultants as upending the "artificially engineered boundaries" of conventional mixed-use real estate planning principals and zones, fusing residential, office, retail, and leisure in an irregular manner with "a sense of vitality and diversity which are prerequisites for every successful location."

The Expansion

"The 'battle for talent' has been a key motivator, with towns vying harder than ever to create the finest working environment. Simply put, you are in demand if you are on the right side of 40, educated, tech-savvy, and interested in art and culture. While not every city has a setting that instantly appeals to this demographic—somewhere between San Francisco, New York, and east London—many are discovering that they can make one."

Take Miami and Dubai, for example: "By focusing on innovation and creativity Dubai and Miami are strengthening their millennial appeal, reinvigorating their residential markets," the survey claims.

In addition to schools and institutions, the research notes that the business sector is increasingly working with the public sector to support innovation hubs and incubators in the city that is undergoing redevelopment.

"One of the biggest growth areas we see is health and fitness, an industry that has moved far beyond the obvious gym and swimming pool offer, with the smart use of the city as the enabler of fitness -- most visibly through the encouragement of cycling," the report stated.