Will Urban Revitalization Leave Some Cities Behind?

At one point, the suburbs looked so much "nicer" because that's where the building was - that's where stuff was brand new. That's not necessarily true anymore. Now, some of the newest, shiniest stuff is right in the heart of the city.

In high-cost cities, like DC... a $200,000 rowhouse rehab might be well worth the cost when you can turn around and sell the house for half a million or more. A similar job simply doesn't make any financial sense in a city like Cleveland. In fact, the Plain Dealer article specifically says that developers aren't building in downtown Cleveland without government incentives because the rents are too low to support the kind of investment they need to make.

I think the more realistic assessment of suburbs and cities is that some suburbs will see a precipitous decline, some urban neighborhoods will experience a renaissance, and the degree to which each happens will be highly dependent on local market conditions. In other words, it will happen, but it won't be as clear cut as the magazine articles might lead you to believe.