Could it be that the meteoric rise of fuel prices has resulted in reversing a trend of exodus from big cities to the suburbs and is bringing people back in order to avoid long, expensive commutes?
The is the notion I just heard on the network news and it's an interesting topic to ponder.
Recently, it's been theorized that many snowbirds were tiring of the trek from north to south, and vice versa, with the seasons, and likewise, were tiring of trekking anywhere for entertainment, foods sports, name it, also resulting in a shift with older, empty nesters, if you will, looking for urban lifestyles and a home in the large, mostly northeastern cities.
Now, with oil prices and congestion in the 'burbs comes the theory that many younger, working types, will also start to look for homes closer to their place of work, presumably in or near cities. Hmmm.
In Pennsylvania there is talk of serious consideration being given to abolishing the statewide real estate school tax which is the lion's share of the real estate tax burden. This would result in dramatic reductions in real estate taxes (to be replaced by other tax adjustments presumably aimed at evening out the burden imposed for educating our young) especially in areas with high taxes such as Coatesville and Downingtown in Philly's western suburbs. While this would seem to foretell of a coming economic shift in some of that areas desirable communities, the previous two conversations present an interesting dynamic that is sure to paint a new, unexpected picture over the next 20- 40 years.
Surely you grasp how this is relevant to investors....
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