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PLANNING COMMISSIONERS JOURNAL / NUMBER 78 / SPRING 2010 CONSUMER PREFERENCES Along with demographic shifts and economic conditions, consumer prefer- ences for housing are changing. Accord- ing to John Caulfield, writing in Builder magazine: “The downturn has given builders time to ponder whether the homes they build match the demograph- ic and financial profiles of current and future customers. Some have adjusted their house plans and construction prac- tices to produce smaller, greener, and less-expensive houses. Builders every- where are rolling out smaller models to meet customers’ demands for efficiency and affordability.”5 The American Institute of Architects’ (AIA) national survey of residential architects found that consumers want lower maintenance, durability, and sustainability. As AIA’s Chief Economist Kermit Baker notes in summarizing the survey results: “Rising home energy costs … have helped to generate interest in smaller, more energy efficient homes in locations that were accessible to trans- portation, commercial activities, and jobs. Infill development, with smaller parcels in more developed areas, has become very attractive.”6 A poll by the National Association of Realtors and Smart Growth America taken in 2007 found: “Eight in 10 respondents prefer redeveloping older urban and suburban areas rather than build new housing and commercial development on the edge of existing sub- urbs. More than half of those surveyed believe that businesses and homes should be built closer together to shorten commutes, limit traffic congestion and allow residents to walk to stores and shops instead of using their cars.”7 The demand for energy efficient housing is expected to increase not only due to federal tax incentives, but also to improve affordability and to do the “right thing” on climate change. WHAT DOES THIS MEAN FOR PLANNERS? Given these trends, planners should consider the following steps: 1. Focus on infill development.Infill development can address trends for smaller lots and homes in already built up areas, access to services and public transportation, and walkability. 2. Enable retrofitting.Retrofitting of existing buildings, including conversion of empty single-family homes or vacant commercial buildings to apartments, can help to meet the demand for rental hous- ing that is likely to dramatically increase as a result of the mortgage crisis. This may require reexamining your building code to make sure it doesn’t pose major impediments. 3. Plan for transit-oriented develop- ment.To meet the demands of house- holds for access to public transportation, shorter commutes, proximity to services, and rental housing, transit-oriented development with higher densities and mixed uses should be planned at major transit hubs. 4. Review opportunities for urbaniza- tion of suburb. Many suburban areas already have access to transit and offer jobs and services. However, housing is often not mixed in with these amenities. To meet the shift in demand for smaller units, access to services, walkability, and greater affordability, planners should consider how to create more urban living in suburban environments. 5. Raise densities. To improve afford- ability and offer more housing types, communities should review their exist- ing densities and look for opportunities to raising them where appropriate. See Beth Humstone, “Getting the Density You Want,” PCJ #74 (Spring 2009). 6. Allow diverse housing types. Aging baby boomers, twenty-somethings mov- ing out of their parents’ houses, and for- mer homeowners will all contribute to the demand to diversify the type of hous- ing offered in a community. Multifamily housing can take the form of duplexes, accessory units, townhouses, and apart- ment structures offering both rental and ownership opportunities. 7. Promote affordability.Lower-priced housing can be created through inclu- sionary zoning provisions and increased densities. Support for developments with nonprofit housing developers, local housing authorities, and community land trusts will help build in long-term affordability to housing projects. 8. Reconsider older, abandoned neigh- borhoods. One of the most difficult issues facing a planning commissioner is what to do about neighborhoods experiencing abandonment and decay. Some are exam- ining demolition in order to “shrink” the size of neighborhoods. Others are look- ing at the potential to rehabilitate hous- ing for home ownership or rentals where neighborhoods are fully served by infra- structure and are near to jobs, transit, and services. Still others are land banking – buying and holding land with or with- out homes on it until such time as the market improves or new programs for revitalization can be put in place. 9. Rethink plans for fringe areas. As fringe housing locations become less desirable, planners must address how they will plan for these areas. There will always be some demand for low-density single-family housing in most communi- ties. However, that demand will weaken. Planners should focus more on the nat- ural resource values, recreation potential, and open space priorities in fringe areas. SUMMING UP During this economic downturn, planners should take the time to rethink the housing plans for their communities. They need to challenge old assumptions about the market and develop strategies that address changing conditions in their communities and regions. ◆ Over the past 35 years, Beth Humstone has worked as a planning consultant on a wide range of projects in rural communities and small towns. She is the author, with Julie Campoli and Alex MacLean, of Above and Beyond, Visualizing Change in Small Towns and Rural Areas (Planners Press, 2002). 13 5 John Caulfied, “Jump Start: Ten ways to get ahead of the market’s recovery and put yourself in the com- petitive lead,” Builder (December 2009). 6 AIA Home Design Trends Survey. 7 Available at:www.smartgrowthamerica.org/nars gareport2007.html.