Urban Mansions
Migration From The Suburbs
With long commutes living in the suburbs of U.S. cities, wealthy American families are moving back to cities by building mansions in urban areas. "What's happening across cities is that land prices have increased really fast, so that the land becomes so expensive relative to structure that it makes sense to tear down the house and build bigger," says Morris Davis, an economist at the University of Wisconsin. The trend to build these giant urban mansions has created tensions with local housing review boards and zoning laws. The mansions building trend is being pushed by a libertarian movement, promoting property rights. "Arizona's Proposition 207, a homeowner protection referendum, will in January allow home sellers to petition the government if local zoning boards limit their ability to profit from the use of their land," states Patrik Jonsson.
Trend Themes
1. Migration to Cities - The trend of wealthy families building mansions in urban areas highlights the growing movement towards living in cities and away from suburbs.
2. Giant Urban Mansions - The trend of constructing large mansions in urban areas indicates an opportunity for architects and builders to cater to the demands of wealthy clients seeking luxury living in cities.
3. Libertarian Property Rights - The promotion of property rights by the libertarian movement opens up innovative possibilities for companies that can provide services and solutions to help homeowners protect their rights and maximize their property value.
Industry Implications
1. Real Estate - The trend of wealthy families building mansions in urban areas creates opportunities for real estate developers and agents to capitalize on the demand for high-end properties in cities.
2. Architecture and Construction - The construction of giant urban mansions presents a disruptive innovation opportunity for architects and construction companies to design and build unique, luxury homes that cater to the preferences of affluent urban dwellers.
3. Legal and Consulting Services - The emerging trend of advocating for property rights through initiatives like Arizona's Proposition 207 opens up avenues for legal and consulting firms to offer expertise and guidance to homeowners navigating zoning laws and regulatory challenges.