Smart Moves

Housing analysts theorize that millennials -- people born between 1981 and 1996 -- have turned their backs on suburbia. It’s true that many in this generation would choose a smaller, older house in a vital city neighborhood over an oversized manse in suburbia.

But recent statistics show that large, newly built suburban houses remain a favorite among a subgroup of this age cohort. Especially eager to buy new in suburbia are those now in their early 30s who’ve already started families or intend to do so soon.

For home builders, this eagerness is translating to an upsurge in orders in recent months.

“(A)ttractive mortgage rates are contributing to positive builder outlook,” says Robert Dietz, chief economist at the Washington, D.C.-based National Association of Home Builders (nahb.org).

Are you interested in buying a new house in a suburban enclave? If so, these pointers could prove helpful:

-- Seek a neighborhood where property values are likely sustainable.

James W. Hughes, an expert on housing demographics, says that in the event of an economic downturn, the real estate recovery will come earliest in areas long popular with families who have school-age children, a large segment of the suburban home-buying market.

This principle was evident in the aftermath of the housing downturn that hit the nation around 2008. The first neighborhoods to bounce back were those that remained popular throughout the recessionary period, says Hughes, a professor at Rutgers University in New Jersey.

-- Avoid neighborhoods that are logistically challenged.

For years, many families seeking very large homes have been willing to accept lengthy commutes so they could enjoy the benefits of extra living space and a big yard. Prices per square feet of living space tend to be lowest in distant suburbs. The idea, real estate agents say, is to “drive until you qualify.”

But as Hughes says, mounting traffic congestion has caused many homebuyers to question the desirability of living in an outer suburb.

Perhaps you’re willing to endure a long commute. Still, for work/life balance in the long run, Hughes advises against buying a house that’s more than a 30-minute drive from an employment center where the economy is relatively steadfast. Those who choose a closer-in suburb also stand a better chance of selling well when it’s their turn to move.

-- Pick a neighborhood with an excellent elementary school.

Much has been made of the power of strong neighborhood schools to hold up real estate values over the long run. Hughes endorses this view and says a top-rated elementary school is especially important.

“Even more than the middle or high school, an excellent elementary is something families seek out when they’re moving,” he says.

How can you be sure the house you purchase will be served by a high-performing elementary? Real estate agents are reluctant to characterize schools with descriptive adjectives. But they can quickly assemble reams of statistics, such as test scores, that will let you compare one school to another. Or you can find these data yourself by going to the local school system’s website.

-- Search for a solidly built house.

Abraham Tieh, a longtime Texas real estate broker, says there’s no reason to accept second-class construction when you choose your new suburban house. But how can you identify subdivisions where the builders took extra care? One way is to closely examine the interior detailing in a house as one indication of its construction quality.

“You can’t see behind the walls of a house that’s already built. However, you can see if the cabinetry and wood trim were well-finished. Also, you can judge whether the builder used long-lasting roofing materials or the cheapest available shingles,” says Tieh, a past president of the National Association of Exclusive Buyer Agents (naeba.org).

To further assess construction quality, he recommends you go door-to-door in any subdivision you’re considering to ask questions of residents.

“People already living in the neighborhood will tell you straight out if there have been lots of problems with the builder or if major construction flaws have surfaced,” Tieh says.

While you’re at it, he says you should survey the neighbors on the energy efficiency of their homes. For instance, ask them how much they must typically pay monthly for gas and electric service and whether their homes were outfitted with airtight, energy-efficient windows.

-- Make sure you have solid reasons for seeking an oversized property.

Families with young children typically favor large houses because of all the advantages they offer in terms of lifestyle.

“They want loads of bedrooms, bathrooms, walk-in closets, a game room for the kids and a country kitchen where everyone can hang out,” Tieh says.

Hughes says it’s only a minority of young buyers who are willing to accept a property in the suburbs in exchange for extra space. But if you’re among them, you can probably count on the appreciation potential of your large property, so long as it’s solidly built and not too far from a town or city center.

“A segment of the population will always prefer big houses, just as they’ll prefer big cars if they can afford them," he says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

Stacy Berman has sold homes for nearly two decades, and numerous times each year, she helps clients move through heart-wrenching transitions to let go of a beloved property.

One recent case involved an accountant in her 40s who’d long resided in a small bungalow with her professor husband, two school-age daughters and her elderly mother. In the wake of the grandmother’s death from cancer, the family, who’d outgrown their small abode, realized it was time to upsize their living quarters.

But the accountant found it terribly difficult to let go of the bungalow. Why? Because she had such happy memories of living there during her mother’s healthier years.

“Irrationally, she feared that the happy memories of her mother would be gone forever after the bungalow was sold,” Berman says.

While it’s relatively rare for people of middle age to experience despair upon the sale of a property, it’s common for senior citizens to go through a rough housing transition when they downsize. That’s especially true for those who’ve lived in a family home for decades and raised their children there. For them, downsizing often feels like the end of their vital years and independence.

Even so, there can be significant advantages for older homeowners to step down to a smaller place, especially if this liberates them from arduous and expensive home upkeep requirements and lets them extract equity at a favorable time for the real estate market.

Here are a few pointers for sellers:

-- Launch a broad search for your next home before selling.

With more than 20 years of experience selling real estate behind her, Ashley Richardson, of the Long & Foster realty firm, has gained a key insight into the emotional bond that many people have to a longtime residence. She says it’s often possible to transfer this attachment to another home.

Consequently, she recommends that sentimental sellers start looking for their next residence as soon as they put their property on the market or even earlier.

“This way, you’ll more quickly detach from the house where you’ve been living for a long time,” says Richardson, who’s affiliated with the Residential Real Estate Council (crs.com). However, she urges those making a housing transition to restrict their property search solely to neighborhoods with homes they can afford, so as not to set themselves up for disappointment later.

-- Confirm your housing plans with your grown children.

Mark Nash, a real estate analyst and author of “1001 Tips for Buying and Selling a Home,” says many empty-nesters fear that letting go of a long-held property will mean fewer visits from family members. Yet lots of would-be sellers are also anxious to liberate themselves from the carrying costs a large property requires.

To address their fears of fewer family visits after downsizing, Nash says it can be wise for sellers to discuss these anxieties with their offspring. Perhaps future multi-generational family visits could be centered in a resort area where all could spend quality time together.

-- Depersonalize your property by removing memorabilia.

To break the emotional ties to their property, it helps many people to sort through and remove sentimental items. Nash says you’ll want to cull through your family memorabilia, eliminating all but the most precious of items.

“I can’t tell you how many people save their kids’ cribs in hopes that one day they’ll be used by their grandchildren or great-grandchildren. But those old cribs probably don’t even meet today’s standards for child safety,” Nash says.

Nash suggests you also give away or pack away many other family-related items, including toys and children’s books. And he recommends you remove family photographs from your walls.

“While you’re at it, you’ll need to paint the interior walls of your house. Be sure to repaint that purple room where your son lived as a teenager in a nice neutral tone, and cover over those pencil marks you made on the wall as your children grew up,” he says.

Neutralizing your property will not only help you detach from the place emotionally. It will also make it easier for you and your listing agent to attract buyers.

“People aren’t going to pay more because your house is filled with memories. In fact, having lots of memorabilia on display will only slow the sale of your property, because it keeps people from picturing themselves living there,” Nash says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

For young homebuyers from the millennial generation, choosing between an urban and a suburban lifestyle is often an excruciatingly difficult decision, says real estate analyst Christopher Leinberger.

A professor at George Washington University’s Center for Real Estate and Urban Analysis, Leinberger allows that the suburban lifestyle still offers many advantages for young buyers, especially those with small children.

In the burbs, it’s typically easier to afford a large house and a substantial yard, with access to quality schools and other amenities.

In contrast, urban living -- based more on an older, European city-centered model -- appeals to many millennials as a stimulating, walkable and community-friendly lifestyle.

Leinberger says that homes in walkable town and city centers will gain and hold value more strongly than will those in outlying suburban enclaves.

“There is substantial pent-up market demand for walkable urban development. Our research shows it will take 20 to 30 years to satisfy this demand,” he says.

Although many millennials grew up in suburban settings where the car was king, an increasing number don’t prefer the lifestyle their parents pursued, says Mark Nash, a longtime real estate broker based in Illinois.

“For young buyers, the struggle between city and suburb comes down to this: Which of the two options has the most pros and the fewest cons? This is a personal choice no one can make for you,” says Nash, the author of "1001 Tips for Buying and Selling a Home."

Here are a few pointers for young buyers:

-- Take the decision-making process seriously.

If you grew up in the suburbs, you may be programmed to think that’s the best habitat. Likely your parents aimed for a suburban abode as soon as they could afford their initial home.

But much has changed since your parents first went house shopping. Among other factors, many downtown neighborhoods have been revitalized in recent years, making them more appealing.

“The access and amenities of city living can outweigh the smaller size of the home you can afford there. Anyway, a suburban house doesn’t have the same status it did before,” says Ray Brown, co-author of “Home Buying for Dummies.”

Keep in mind, however, that the urban life is not for everyone.

“But others would find the noise and congestion exceedingly upsetting, not to mention the trash that can accumulate on the streets. They want a suburban setting, where life is calmer yet they can blast their stereo without neighbors’ complaints,” Nash says.

-- Consider the implications of commuting from your city abode.

How will your housing choice affect your daily commute?

“Living downtown could be wonderful -- a huge time saver -- if you also work downtown. Maybe you can walk to work or take a short trip by light rail or subway. Possibly, you could save an hour or two each day, time that could go to better purposes. Then, too, there’s the saving on gas,” Nash says.

But suppose you work in the suburbs and are counting on easy sailing to work from your downtown place due to a “reverse commute.” If so, make sure you test-drive your route to ensure that congestion won’t pose a major problem. Because many employment centers are now suburban, you might be surprised how many downtown residents head out of the city each morning.

-- Factor in downtown parking in light of your social life.

Most potential buyers of downtown properties ask about the availability of parking within or around any area they’re considering. And for most people, one or two spaces for their own cars seems like enough. But will your friends and family members have easy access to on-street or off-street parking? This question could be important to your social life.

“If people have to walk more than 10 minutes from where they park, you’re dead in the water socially, unless most of your friends also live downtown and can walk over,” Nash says.

-- Try to buy with your future plans in mind.

“Once people reach a certain age, usually by their mid-30s, they start falling like flies to family life,” Nash says.

If you plan to have your first child in the next few years, he urges you to consider making your initial purchase a suburban house rather than a small city place.

“You’ll save lots of time, energy and money if you skip the downtown stage and go straight to the suburban house. It’s one move instead of two,” Nash says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)