Elk Grove Receives Favorable Classification in Study of 2,000 American Cities

March 5, 2014 | Cosmopolitan suburb.  That was the classification the City of Elk Grove was placed in by a study recently released...


March 5, 2014 |

Cosmopolitan suburb. 

That was the classification the City of Elk Grove was placed in by a study recently released by the Demand Institute. The study, titled a Tale of 2,000 Cities, examined the American city's future prospects through the lens of  the recent housing crash. 

The study established nine categories including affluent metroburbs, cosmopolitan suburbs, traditional suburbs, vacations/retirement destinations, historic skyline cities, transitional cities, deflated bubble communities, challenged communities and endangered communities.

A cosmopolitan suburb is defined as a "fast growing, contemporary suburbs that offer distinctive services and wide-ranging amenities." Nearby cities such as Galt received the same classification while Roseville was classified as a traditional suburb and Sacramento was a transitional city.

Cosmopolitan suburbs are described in the study as "small towns located on the outskirts of large metropolitan areas, represent some of the fastest-growing communities in the country. Some tripled in size between 2000 and 2012, and together they have grown by a median of 67 percent since 2000—eight times faster than the median for the 2,200 cities and towns analyzed." 

The study also noted that "Cosmopolitan Suburbs grew so fast during the housing bubble— 51 percent from 2000 to peak—that the foreclosure rate when prices crashed was higher than average. Today, more than one household in ten says it owes more on its mortgage than the home is worth, compared with one in 17 nationally." 

Initiated three years ago, the study sought to examine how the housing market has affected American communities.  

Among some of the conclusions of the study are that the upswing in housing prices over the last two years were investor driven and not indicative of future trends, housing prices increases over the next five years will be modest with a supply and demand equilibrium being established, and about 50 percent of the communities studied are still struggling to recover from the effects of the Great Recession. 

According to their estimates, California will register a six percent housing price gain between 2012 and 2015 and a 15 percent gain between 2012 and 2018. California is forecast for the 45th spot out of 50 states and the District of Columbia.

The Sacramento-Arden Arcade-Roseville area ranked better coming in 15th place out of the 50 largest American metropolitan areas. The study predicts housing prices will increase 13 percent between 2012 and 2015 and 25 percent between 2012 and 2018.

The complete study can be viewed here. A more complete description of cosmopolitan suburbs can be found starting on page 37.  







   


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