Bozeman, MONTANA -- The Community Builders Summit recently held in Bozeman underscored the power of bringing people together to share ideas and information regarding the region's changing economy and evolving consumer demand - and how local leaders can use this knowledge to shape the future of their communities.
In late January, about 140 individuals representing the development community, planners, local government officials, and business leaders came together with conservation groups in Bozeman, Montana, to discuss the "business of building strong communities," and to share ideas on what types of communities are likely to be successful as we move forward in a new, and very different, economic and demographic landscape.
In the West, many communities continue to suffer from the fallout of the housing bust. Overbuilt and saddled with debt, local governments are facing new economic realities that call for a new way of thinking about how they grow. Communities are becoming more diverse. Offering more choices beyond conventional large-home-on-a-large-lot subdivisions may be one idea for future success.
A Goal for All Western Towns to Thrive
Hosted by the Sonoran Institute, we invited experts to share their insight on development trends impacting cities and towns today, and what it means for community development in the future.
Joe Minicozzi, a recognized national real estate development analyst, brought hard economic data to the Summit, showing that mixed-use, urban development can generate three-to-five times as much revenue, per acre, for local governments in comparison to single-use, commercial developments.
"It's amazing to see what happens when you cut through the noise and say, here's the math, here are the numbers," said Minicozzi. For more information about Minicozzi's work, check out our About Town pages on our website.
Adam Ducker, of RCLCO,a leading nationwide real estate analysis firm , gave a fascinating talk on national demographic trends, such as the "Great Convergence," defined as the emergence of the "Y Generation" into the housing market, coupled with retiring baby boomers seeking to downsize their homes. Ducker presented evidence that these demographic trends are driving a shift in homeowner and renter preferences toward downtown, mixed-use development, and toward new types of suburban neighborhoods that offer convenience and walkability.
"It's not a 180 degree change in homeowner preferences," said Ducker. "But, we think it's structural and long-lasting. Why this matters is that relatively subtle changes have a dramatic impact on the opportunity for development."
Andy Knudtsen, of Economic and Planning Systems (EPS), also shared results from new regional research entitled Reset: Housing Market Trends in Rocky Mountain Communities.This research shows that intermountain West communities in many ways reflect the national demographic, economic, and consumer preference shifts presented by Ducker, and that they would do well to offer more choices for residents, especially walkable neighborhoods with a strong community identity. Commissioned by the Sonoran Institute, the EPS research examined the residential real estate market in six cities in Montana, Idaho, and Colorado.
Montana State University architecture professor Ralph Johnson,shared specific examples of his research examining the market performance of smart growth projects featured in his 2006 book, Building from the Best of the Northern Rockies. His study showed that, compared to conventional development, these projects weathered the real estate crash of 2008 - 2010, and remain successful today.
Greg McCall, developer of Josephine Crossing, a new residential neighborhood in Billings, Montana, described the challenges and rewards - especially financial rewards - in building a compact, walkable subdivision in Billings, which is not known for smart growth development. Today, Josephine Crossing is the site of one of every five new home starts in Billings. McCall noted how offering new and different housing choices for an evolving city is the key to his success.
Paul DelRossi, a residential developer in Sheridan, Wyoming, showed that compact, walkable development can be successful even in a small Wyoming city. As DelRossi put it, "I eventually learned that I was not building and selling houses - I was selling a different, more convenient lifestyle to my customers". His development, Bridge Creek, is located two blocks from downtown Sheridan and features small lots, small craftsman homes, and the ability to walk to shopping, schools, services, and parks.
An Informed Discussion of the Future
I observed nodding heads and knowing smiles at the Summit when Joe Minicozzi quipped, "each community has its own DNA." Joe's candor underscored a very important point, which is that each community has its own economic needs and aspirations, and will likely approach future development in its own unique way. Our society is becoming more diverse and complex, and communities will need to understand their DNA better, and be ready to offer more choices
As communities face a changing future, they benefit from the sort of dialogue informed by the data, trends, and ideas shared at the Summit. At the Sonoran Institute, we are big believers on how good information and solid research can inform a conversation at the local level. We have seen positive results of this across the West.
If you missed our Summit, all the presentations, and continued analysis of these issues, can be viewed at our new website, www.communitybuilders.net. More insight on these issues, as well as in-depth reports from the Sonoran Institute and our partner organizations, is also available on the site.
Sincerely,
Randy
Randy Carpenter
Director, Northern Rockies Program
