Green Living

I previously discussed the movement towards “walkable urbanism” or New Urbansim.

Wikipedia describes New Urbansim:

Its goal is to reform many aspects of real estate development and urban planning, from urban retrofits to suburban infill. New urbanist neighborhoods are designed to contain a diverse range of housing and jobs, and to be walkable.

New Urbanism can include (neo)traditional neighborhood design and transit-oriented development.

Although the CNN article discussed the movement in a younger demographic, a reader admitted that she’d love to see more walkable urban areas like when she grew up (thanks Pat):

I’m almost 60 yrs old. Growing up, we walked to mNowost of our destinations. The movies, an ice cream cone, a few groceries, the dentist, the playground, etc. Our parents walked too. TOday, walking is just for exercise. The concept of building up, not out, makes sense. With energy costs so high, having businesses and shops within walking distance would be like turning back the pages of time when people used their legs (and bikes) as a form of transportation. Nice.

The movement seems to be picking up steam and only continues to grow with things like light-rail.

The Arizona Republic reported that over $6 Billion in investment has already occurred along the light-rail lines. More and more, real estate developers are attracted to areas around light-rail because their buyers are becoming more and more attracted to areas where they can walk to get groceries, walk to eat dinner, walk to see a game or easily hop on an efficient public transportation option such as light-rail.

I for one am pumped for the light-rail to makes it’s debut in Phoenix in December. I continue to mull over moving towards an urban area that will provide me and my growing family with recreational activities without always having to hop in the car. Being along the light-rail line - whether you are in Mesa, Tempe or Phoenix, means you are only a short ride away from Diamondbacks games, Suns basketball games, all the festivals that occur at Tempe Beach Park, Arizona State football and basketball games and so much more.

Of course, it’s only a prediction of mine, but I think that once the real estate market is over it’s slump in the Phoenix Valley - and it’s pretty evident that some areas already are seeing life and balanced inventories - the areas around light-rail will see a good amount of sales activity and appreciation. I believe this because not only is there a bunch of future investment in these areas, but also because when the Phoenix real estate slump is over, high energy prices will still be there.

As buyers reevaluate what’s important to them I think more and more will decide that spending their time behind the wheel driving an hour to work each way could be better spent with their families - not to mention their gas money could be better spent being invested in other areas of their lives.

Chandler also announced today that they will be increasing bus service by 50% to allow for more routes that drop off at light-rail stations. Not only that, the next portion of the light-rail track to be built is looking more and more like it will be somewhere along Rural Road - thereby connecting Chandler to Tempe.

It’s exciting to me the things that have resulted from high energy prices. Although I hate paying $50+ to fill up the tank just like anyone else, I do think that suburbia is out of control and causing issues like global warming, gridlock and the brown cloud we see hovering over the Phoenix Valley floor.

I’m not sure how this post went from light-rail investments to a “hippy global warming” post … but it did. It wasn’t too far of a stretch … but the point is simple:

Light-rail is good for the Phoenix Valley. It’s good for the environment. It’s good for New Urbanism and Walkable Urbanism. And it might be good for real estate appreciation!

Ah, progress. You gotta love it!

A recent article at CNN discussed how suburbia as we know it may be changing …

Long story short, those interviewed in the article predict that because of things such as energy prices and a movement towards “walkable urbanism,” McMansions will soon be multi-family housing for poor families and once blighted areas of urban cores will become the “new American Dream.”

To me, the article has much relevance to the Phoenix area. More than any other city I’ve visited, the Phoenix metro area has taken the concept of suburbia and taken it to new levels. A drive from the center of Queen Creek, AZ to downtown Phoenix is just under 40 miles - each way. From Surprise, AZ to downtown Phoenix? 30 miles each way. That makes it just under 70 miles from one suburb of Phoenix to another.

To put it in an even crazier light:

The Phoenix metro area encompasses 514 square miles. The Los Angeles metro area, often the worldwide definition of a city whose suburban sprawl is out of control, encompasses 469 square miles.

It’s pretty crazy when you think of it that way, in my opinion. My wife and I, who are expecting our first child in October, have been considering a move within the next year due to our changing conditions. We’re torn between wanting to look further out to get more house or paying the same (or possibly more) and getting less house but closer in to the action. And by action I mean shopping, entertainment, etc. We’ve even considered one of Tempe’s downtown area which would allow for “walkable urbanism.”

When we found out we were pregnant we were paying gas prices of under $3 a gallon in Phoenix (the average in February was about $2.80). Now, a little over four months later the average price has soared to $4.14.

In my opinion, “high” energy prices are here to stay. As nice as it was while it lasted, America has been living in a dream world with such low energy costs compared to the rest of the world. As a result, we haven given a second guess to continued development and pushing the edges of suburbia further out. Moving “up” versus “out” would not have allowed for a large backyard, pool and 3,000 square foot McMansion.

But, as I’ve said before, I think that due to the surge in energy prices we’ll start to see real advancement in alternative fuels and mass-transit.

Because that’s my opinion on energy prices, my wife and I are taking our search for a new home not outward but inward. Giving up space to be a part of a walkable neighborhood like downtown Tempe. Saving on gas and reducing our carbon footprint is also a plus.

What do you think? Do you think much of suburbia is on the verge of flip-flopping from a slice of paradise to an area for financially-challenged families?

Feel free to leave comments and let me know!

That’s right. I said it. Well, Chris Pummer over at MarketWatch actually said it. Take a read and see if you agree or not. Here are reasons to be “happy” about the possibility of gas prices DOUBLING over the next year:

1. Say ‘goodbye’ to the outdated internal combustion engine.
2. Economic stimulus in alternative technology research
3. Reduce the power the Middle East has on us
4. Give oil less of a ’strong arm’ with other countries
5. Promote mass transit
6. Reduce suburban sprawl
7. Encourage financial discipline
8. Ease global tension
9. Development of plastic, pesticide and other alternatives

It sounds crazy. I know. But Chris brings up some very good points. I’ve bolded the ones that really relate to real estate, since this is a real estate blog, afterall!

Promote Mass Transit

Here in the Phoenix valley we are just starting to *barely* embrace mass transit. Our bus sytems are not designed to be convenient enough for everyday use by professionals. There simply aren’t enough busses. But, busses still promote gasoline use.

The light rail in Phoenix is a great start - although it barely touches the reaches of our huge metropolitan area. But, it’s a start. Phoenix traffic continues to get worse and worse and for 95% of the people in the valley, light rail won’t be an option without first driving to a parking lot and jumping on the rail (which still is a positive as it will reduce carbon emissions and gas use).

Phoenix and it’s suburban cities should start now on creating viable connections to the light rail and building additional tracks. For many people in the valley, $8 a gallon gas will bust their budgets easily.

Reduce Suburban Sprawl

Phoenix is probably the worst offender of suburban sprawl. I’d say to a point, even worse than the city known for sprawl - Los Angeles. The Phoenix Metroplex actually consumes more square miles than Los Angeles. A drive from the far reaches of Gilbert into downtown Phoenix and back is easily a 60 mile trip. If you’ve chosen an SUV as a mode of transportation then the “goings just gonna get tougher.”

There’s a start to correcting this issue. Areas like downtown Tempe and Phoenix have seen high-rise condo projects sprout up over the past couple of years. Sales have been slow but I’d imagine as gas prices continue to rise through the $4 and $5 marks … sales of condos may start to increase. Suddenly, the $400,000 condo in the center of it all and next to light rail and entertainment become more appealing than the $400,000 home in south Gilbert.

Phoenix has a long way to go … but in the long term, increased gas prices will force us to start thinking like parts of the country and the rest of the world has been thinking for years and decades. We’ll focus on smaller cars that get better gas economy while also promoting less drive time with true urban cores.

So, we can “kind of” rejoice for $8 a gallon gas - but we’ll have to get out of our comfort zone to do so!

Unless you’ve been living in a hole - you should be well aware of Apple’s iPhone. I have one myself - partly because I’m a technology nerd who happens to be an Apple fan and partly because it’s the only smartphone out there that helps me with my work and play.

And it’s just going to get better.

On or about June 9, Apple’s CEO, Steve Jobs, is set to announce Apple’s new iPhone model(s) and make available the iPhone’s new software - iPhone 2.0. By the end of July, real estate agents should strongly consider this piece of technology to add to their arsenal. Here are a few reasons why:

• Full Web Access at Broadband Speeds: For those readers in Phoenix (and major metro areas), the new iPhone will feature a technology called HSPA - commonly called “3G” or third-generation wireless data. Rumored to offer speeds of up to 42 megabits per second (mbps), the iPhone has the potential to offer data speeds beyond what your typical cable connection offers. The word “potential” is key here because AT&T’s current network only offers speeds of up to 1.4 mbps in Phoenix. By the end of the year, those speeds are expected to be boosted to 7.2 mbps which would mean browsing on your iPhone would be as speedy as browsing on your home computer. By the end of 2009, speeds are expected to near 20 mbps on AT&T’s network.Of course, speed is one thing, but “content is king” as they say. The iPhone offers Apple’s fantastic Safari web browser giving users full HTML access on their device - meaning web pages look just like they do on your laptop or home computer. Nothing is watered down like on most smartphones’ WAP browsers. Which brings me to one of the most important points:
• Full ARMLS Access on iPhone: The Arizona Regional Multiple Listing Service is about to transition to a completely new system - FLEXmls. Besides some other great new features that are a long time coming, this new platform allows for full compatibility with Apple’s web browser, Safari. Right now, there are some issues when Safari users log-in to ARMLS. Although most functions work currently through Safari, many important ones do not. That will not be the case come July 28th, the day ARMLS converts to the new system. This means not only will the rest of the web be on REALTORS’ iPhones, but so will their most important tool - the ARMLS. Really, the value in this is priceless. Being able to quickly pull up current listings for buyers without lugging around a laptop (and pay for an additional wireless aircard for said laptop) adds real value to an agent’s service.
• Push Email: BlackBerries are great. I used one for many years. I’d never say a bad thing about Research in Motion’s products because like Apple’s products - they just work. A big issue with many business users in regards to the iPhone has been that there was no “Push Email.” This means that email is automatically sent to your smartphone without having to manually connect to your inbox. An email pops up on your phone at the same time as it would your computer. This is the “killer application” that has made BlackBerries so popular.
• Calendar, Contact + Notes Sync: Along with Push Email comes support for real-time synchronization of your calendar, contacts and notes. This means that when you add an appointment to your iPhone’s calendar, it will also appear - within a couple of seconds - on your computer’s calendar. The same goes for adding and deleting contacts and notes.It should be noted that Push Email and Calendar/Contact/Note synching will most likely require one of two things: a .mac email account or Microsoft Exchange Server. Mac users may be familiar with the .mac service which costs about $100 a year. This service offers a xxxxx@mac.com email address in addition to syncing data between multiple computers, 10 GB of online storage/web hosting and more. It’s been rumored that when the new iPhone software is released, this service will include push email to iPhones as well as synching of calendars, contacts and notes.If you aren’t a Mac user - don’t fret. There are many third-party companies out there that offer shared Microsoft Exchange Servers for less than $15 a month. Since most real estate brokerages don’t have the money to invest in a true server for their agents, this is a very viable option. Some popular options include Intermedia, MailStreet and 123Together. These services will give your email the power of Exchange support for a very inexpensive price. And who knows, Apple may have something up their sleeve that won’t even require these services for the general public!
• GPS Directions: There’s a strong indication that the next iPhone will include true GPS. GPS, or Global Positioning Systems, offer support for turn-by-turn directions on an iPhone. Many smartphones already have this in addition to other handheld devices like Garmin or TomTom. Again, a killer application for the real estate industry. Whether you’re taking around a buyer to view homes or previewing homes yourself, Apple will surely make GPS directions even easier than current systems. That’s because on an iPhone, data is usually interconnected. That’s my own term, interconnected. I’m sure there’s a real term for it. What I mean is that when you are looking on the internet - say at the ARMLS - and there is an address, you can just click on the address and the iPhone will pull it up on it’s mapping system - Google Maps. I’d imagine that with GPS, it would do the same and offer directions via GPS Mapping software. Again, an invaluable tool for the real estate industry.
• Third-Party Software: The real estate industry has relied on Palm for years. Palm handhelds offer third-party software for the real estate industry including support for Supra eKEYs. This means that if you have a Palm with an Infrared Port, you can pay about $20 a month for additional software on your Palm that will allow you to open lockboxes. The software also offers limited ARMLS access.The iPhone’s new software will offer support for true third-party applications. It’s inevitable that software developers have already started creating applications for the real estate industry for the iPhone. Applications like mortgage calculators, MLS access and more must be on the way (and if they’re not I’d like to hire some software developers to create some!). These applications will offer even more functionality to an already great product. Imagine being able to surf the MLS with a very easy to navigate software application fit for the iPhone. Pulling up statistics, virtual tours and photos will comes as easy as swiping your finger across a piece of glass - it really is like magic!

iPhone 2.0 software is expected to be revealed on or around June 9th, when Apple begins it’s annual developer’s conference in San Francisco. AT&T, Apple’s partner in the USA, has already announced that it’s retail staff cannot take time off for about a month starting on June 15. So expect the new iPhone and software to be released shortly thereafter.

Besides all these great “work” features, the iPhone is a great device for personal use as well. It keeps your life organized in an amazingly stylish and easy-to-use package. It’s not as much as a head-turner as it used to be because there’s more than 4 million used in the USA already (in less than one year since it’s release last June).

REALTORS: get an iPhone if you want to offer cutting-edge service, simplify your life and honestly, look cool!

“Five Minutes Later” Update: Ah, proof that you never know everything. Now, rumors are surfacing that Apple is completely revamping their .mac service in preparation for the new iPhone software including a name change. More proof that a .mac email address may come in handy and be cost-effective for the real estate industry.

Ahh, you have to love RSS and the internet.

We don’t necessarily even have it “bad” yet in the Phoenix valley in terms of gas prices. Our prices are anywhere from $3.50 - $3.60 a gallon for economy gasoline. Other parts of the country are seeing over $4 a gallon - with speculation we could see up to $5 a gallon by summer’s end. I think I just puked a little in my mouth just tying that.

Many people are starting to wonder if a Hybrid vehicle is starting to make sense. Generally speaking, a Hybrid car costs at least $5,000 more than it’s traditional counterpart. But, what if there were cars available that cost the same as a traditional vehicle (if not less) and got over 100 mpg?

Enter the “Air Car.”

In a city whose suburban sprawl is out-of-control (although we’re getting better at building vertically lately - thank you Tempe, Scottsdale and Phoenix), where smog alerts are all-too-often and temperatures are rising due to the “heat island effect,” a car that runs on compressed air and possibly bio-fuels makes so much sense.

What makes it even better is it costs less than $18,000. Better yet is that it is nearly pollutionless (if that’s a word).

Check out the Air Car for yourself. Production is expected to start soon - but we’ll see. You can add yourself to an e-list for news updates and availability!