High gas prices burst the housing bubble, says an economist from Oregon. The economist’s detailed report goes much further than this, saying that high gas prices have led to “a tectonic shift in housing demand,” namely that suburban homes are now worth less while central city homes are worth more.
Based on this claim, the economist concludes that cities that promote more compact development will be more “successful than places that continue to follow sprawling development.” He urges cities to “promote land use patterns that enable mixed-use development and provide more bikeable, walkable neighborhoods served by transit”
This is, of course, a repeat of James Kunstler’s “the suburbs are doomed” argument. “Vehicle miles traveledâ€â€a key driver of energy demand and greenhouse gas emissionsâ€â€are
down,” says the report breathlessly, “reversing a 20-year upward trend.”
