For the hip home seeker who longs to be near great food and culture, neighborhoods in a city’s downtown area hold a nearly irresistible attraction. The “urban core” typically has a higher crime rate and less favorable schools than the suburbs, but many downtown areas across the country are undergoing a revitalization of sorts, as cities invest in projects and amenities to attract new residents. And as more people look for alternatives to long commutes and urban sprawl, homebuyers are flocking to the urban core. Homes in urban core neighborhoods come in a variety of styles, such as these brownstones in Boston.
Advantages of Urban Core
Professional writer Toni Kamins has owned a co-op in Manhattan’s trendy West Village for 16 years. “What I most appreciate is the constant availability of just about anything you want,” she says. “I know I miss that when I go out of town.” In a centrally located urban neighborhood, you can typically walk or take a bus, taxi or subway to restaurants, bars, shops, museums, libraries and parks — not to mention use public transportation or your own two feet to get to work each day.
About the Neighborhoods
Homes in the urban core can be skyscraper apartments, converted lofts in old warehouses, spaces above operating businesses, row houses, brownstones — if someone can build it, someone else will figure out a way to live in it. Neighborhoods often vary widely in demographic and socioeconomic development, sometimes even from block to block. Bob Eychner, a real estate broker and owner of Eychner Associates, Inc., in Greenwich Village, remembers trying to sell homes in a very different West Village in the early 1980s. “I can vividly remember the last block of West 12th Street,” he says. “I’d drag customers over there to try to sell them something. There was a banner up that read, ‘Hookers and johns beware! We are taking your license plate number.’ So I trumpeted the strong neighborhood watch system. Sometimes it worked, sometimes it didn’t.”
But the West Village experienced a fairly common phenomenon for cities: a series of historical landmark designations began to prohibit old buildings from being torn down and new high-rises from going up, preserving the neighborhood’s architectural character. This move eventually attracted buyers and crime rates fell. “We moved to the West Village because it’s charming,” Kamins says. “It’s sort of got a small-town feel within Manhattan. It was, at one point, a lot quieter than other parts of the city.”
Climbing Popularity — and Prices
Trouble is, urban core neighborhoods by nature have defined geographic limits, so it’s difficult to keep a great little spot all to yourself. “In the last eight to 10 years, this area has become white-hot,” Kamins says. “It’s absolutely ridiculous. We get a lot of TV and movie crews — Sex and the City was always filming here.” Demand for such unique space can attract crowds and everything that comes with them: noise, congestion and skyrocketing prices.
“Prices are nuts,” Kamins admits. “We paid high prices 16 years ago for this place but nowhere near what they’re paying now.”
Cost of living in the urban core is a major issue to consider, because the real estate market there may not reflect what’s going on in other parts of the country — or even other parts of the same city. “The average number of days on the market for homes in Manhattan has increased in the last year,” Eychner says, “but our inventory has not increased.” Translation: prices aren’t rising as fast as they were, but they’re rising. In vibrant cities, someone will always covet access to great spaces.
Living downtown can sometimes mean getting rid of your car and all the expenses it entails, but the savings can be more than offset by steep mortgages, monthly condo or co-op fees, and increased living expenses. “Co-op and condo fees in Manhattan generally run anywhere from $1 to $4 per square foot per month, depending on the level of service provided by your building,” Eychner says. (In smaller cities, fees tend to be less than $1 per square foot.) “You should also budget for more expensive restaurants. And if you do have a car, parking can be insane.”
In smaller metropolitan areas, core neighborhoods often feature a diverse selection of properties with a wide price range. But be advised that in a given neighborhood, converted lofts and condominiums may arrive long before the amenities do; you may buy into the urban aesthetic but end up waiting a few years for jobs, restaurants and shops to follow your lead.

In 1979, builder and developer Robert Davis founded the town of Seaside, Fla. on 80 acres of land he inherited from his grandfather. He hoped the new development would recapture the idyllic feeling of his childhood vacations by the Florida shore. Seaside is now cited as the first example of new urbanism, a design movement that strives to create walkable, sustainable communities with a diverse range of housing and jobs. As people react to the suburban sprawl prevalent in the United States, more new urban towns are cropping up around the country.

Photo courtesy of Steven Brooke Studios New urban towns attempt to provide a solution to suburban sprawl with compact, multi-use (residential and commercial) neighborhoods. Made up of closely spaced bungalow-style homes, Seaside encompasses the small-town atmosphere of the late 19th and early 20th centuries that new urbanism strives for.

If you want a traditional small-town feel without moving to the middle of nowhere, consider a place like Promenade in the city of Hercules, Calif.

Built near the waterfront of the San Francisco Bay and about 20 miles northeast of San Francisco, the houses have a historical look with Victorian, Craftsman or Italianate design. All have front porches to encourage neighborliness, are built close together and garages are, in many cases, located in the back of the houses or accessible by alleyways. Streets are narrow to slow down traffic.
“In contrast to many suburban towns, we know our neighbors. And we feel it’s a very safe place for children,” says Robert Reber, a city planner for Hercules who lives in Promenade with his wife and 4-year-old.
The New Urbanism Movement
Promenade is an example of a type of city planning called the new urbanism, which seeks to build or restore suburban towns to resemble small towns of the late 19th and early 20th century. A reaction against the suburban sprawl common today, new urbanist towns are planned communities near large urban centers. They have historical architecture, front porches and picket fences and are reminiscent of a time long gone. Built to encourage walking and biking rather than driving, they often have parks or a town plaza in the center of town and restaurants and small businesses within easy walking distance.
“New urbanist towns are gaining in popularity,” says David Kooris, director of the Connecticut office of the Regional Plan Association, a nonprofit that promotes improved community design in the New York metropolitan area. “The philosophy goes back to the historical patterns of development of the 1920s and 1930s — before the automobile dominated — and it was possible to walk and bike to see your neighbors and do your daily chores.”
When Promenade was completed in 2000, homebuyers snatched up the available 217 houses. In fact, all the houses in the community sold within 18 months for prices ranging from the low 400s to the mid-600s. While the pace of buying for two similar neighborhoods in Hercules has slowed a bit, the houses still have an appeal for homebuyers who want to live within commuting distance of San Francisco but also appreciate the advantages of a small town.
How It Began
The first new urbanist development in the United States was founded in 1979 by builder/developer Robert Davis on 80 acres in the planned community of Seaside, Fla., a town on the Florida Panhandle between Fort Walton Beach and Panama City. Many of the houses in Seaside are built in a bungalow style with wraparound porches and picket fences. The town has a central square surrounded by a post office, an amphitheater that hosts everything from yoga classes to theater performances and small businesses such as restaurants, ice cream shops and retail clothing shops.
“There is a certain character to houses in Seaside. But the idea of Seaside is more than cute houses; it’s also a pleasurable place to inhabit, where any resident can find things happening within a quarter-mile radius of their home,” says town architect Leo Casas, who notes that the commute from his Seaside home to his office is “150 yards with dog in tow.”
A Growing Trend
New urbanist towns are more common in the West and Midwest, where land is more plentiful, but there are examples of small towns on the East Coast that have rebuilt themselves based on new urbanist values. In towns such as Connecticut’s New Canaan, East Rutherford, N.J., and Newton, Mass., city planners have tried to revitalize their historic downtowns to provide a sense of community and more walkable neighborhoods, Korris says.
Seaside and Hercules are planning further development. In Hercules, a network of small neighborhoods interconnected by nature paths, parks and a transit center is in the works. Seaside’s plan calls for slowly increasing the size of the town in a series of buildouts. But the character of the place won’t be sacrificed, Casas said. “We’ll continue growing, but at a slow pace. Like many small towns, nothing happens too quickly here,” he said.

One of the more recent developments in the Austin real estate market are the multitude of loft condominiums springing up smack-right in the middle of downtown. This new push towards urban living reflects an interest in a pedestrian-oriented community, optimal for those who work in Austin’s business center, but also attractive to others who appreciate an abundance of amenities offered within walking distance. Downtown Austin has much to offer Austin residents, whether they work, live, or visit this area which truly represents the cultural heartbeat of the city.

Austin’s downtown is bursting with shops, cafes, galleries and nightlife. Whether looking for antiques at the beloved Whit Hanks, seeking esoteric ethnic treasures at Tesoros, or shopping for home furnishings at Bella Home or Zanzibar, the shops are local, and the wares are unique. In addition to Starbucks, there are plenty of cafes around, including Little City, and Drogo’s Cafe do Brazil. Art galleries, including Art on Fifth and Artworks, are scattered throughout the area, and the nightlife – well, it can’t be beat.

Most of the new lofts are far enough away from the entertainment districts to provide relative quiet, but are close enough to make a night out on the town just a short walk or cab ride away. The bars, music venues and restaurants of the famed Sixth Street district now have competition from the bustling young crowds of the Red River scene. The Warehouse District continues to be one of the most vibrant entertainment areas in the city, although the new 2nd Street shopping and dining area is thriving as well.

Downtown Austin is home to some of the finest restaurants in the city. Louie’s 106 has enticed downtowners with its Mediterranean tapas and steaks for years, and the Driskill Grill offers another close fine dining experience. Eddie V’s and McCormick & Schmick offer superlative seafood, and Sullivans, Ruth’s Chris Steak House and Fleming’s are top-notch steak houses. The varieties of food run the gamut as well – from Spanish food at Malaga, to Italian at La Traviata, from sushi at Kenichi or Kyoto to Southwestern cuisine at Z-Tejas.

One the most attractive parts about Austin’s downtown is its proximity to the nature and beauty found at Lady Bird Lake, as well as the Town Lake parks and trails. The plentiful outdoor activities provide the urban dweller with opportunities to walk, run, bike, and boat – all within walking distance of the sleek and sophisticated apartment buildings springing up. Waterloo Park, Republic Square, and other smaller patches of green add to the options for outdoor activity.

Downtowners will find their grocery needs admirably met by the flagship store of the Whole Foods Market chain. This Austin-based business launched their enormous new store in 2005, making fresh and organic produce, dairy, meats and seafood available. In addition to staples, an on-site bakery and international groceries, Whole Foods offers an abundance of prepared foods, from soups, salads and sandwiches, to pizza, seafood and a raw foods stand.

With all of life’s necessities within walking distance, it is no wonder that Downtown Austin real estate is thriving as a residential community.

Ki is an Austin real estate agent. He runs a site with information about Austin real estate and a search of the Austin MLS. He also talks about current events on Austin real estate blog.