As the U.S. economy recovers, emerging trends in demographics and consumer behavior will become major drivers of new housing opportunities, resulting in a residential market vastly different from the one that existed prior to the recession, according to Housing in America: The Next Decade, a research paper authored by John K. McIlwain, senior resident fellow, Urban Land Institute/J. Ronald Terwilliger Chair for Housing.

According to McIlwain, four major demographic groups: aging baby boomers (55 to 64 years old), younger baby boomers (46 to 54 years old), Generation Y (born between 1979 and 1996), and immigrants all have some characteristics that reflect a desire to live in more pedestrian-friendly, transit-oriented, mixed-use environments that de-emphasize auto dependency, whether the location is urban or suburban. Given that economic and land constraints make it impossible for urban infill development to accommodate all the housing demand, McIlwain notes that suburban development “must adapt or it will be obsolete. The suburban century is over. This is the urban century.”

To read the full report, click here. Look for responses to this paper on this website soon!

Watch a clip of John McIllwain’s presentation of this report at a January 2010 meeting of ULI trustees.