Megapolitan Areas: America’s New Market Geography April 10, 2006 Robert Lang, Ph.D. Virginia Tech NMHC Research Forum Houston, TX What’s in This Talk? z z z z z Review of American Megapolitan Area Geography Close Up Look at Arizona’s Sun Corridor Population, Employment, Construction and Investment Projections for the Sun Corridor Projections of US Housing Demand Implications of the Research Talk Overview z z z z We Have a New Market Geography—The Megapolitan Area We Can Project Housing Demand to 2040 by Type and by Megapolitan Area Megapolitans Comprise About a Fifth of the US but have 70 percent of US Population Megapolitans are Projected to Receive About Three Quarters of New Development by 2040 Megapolitans in The News USA Today July 2005 Megapolitans in The News Business 2.0 November 2005 Business 2.0 Megapolitan Area Centerfold 2005 Megapolitan Geography “Megapolitan 2.0” Geography Megapolitans 2.0 at a Glance Megapolitan Area Megapolitan States Anchor Metros Signature Industry 00 and 04 Pres. Vote AZ Phoenix/Tucson Home Building Republican OR,WA Seattle/Portland Aerospace Democratic FL Miami/Orlando Tourism Dem./Rep. Front Range CO,WY Denver/ Colorado Springs Trade Republican Great Lakes Crescent IL,IN,KY,MI, OH,PA,WV,WI Chicago/Detroit Manufacturing Democratic AL,FL,LA,MS,TX Houston/ New Orleans Energy Republican KS,MO,OK,TX Dallas/ Oklahoma City Telecom Republican CT,DE,MA,MD,ME,N HNJ,NY,PA,RI,VA,WV New York/ Washington, DC Finance Democratic CA,NV San Francisco/ Sacramento High Tech Democratic AL,GA,NC,TN,SC,VA Atlanta/Charlotte Consumer Banking Republican CA,NV Los Angeles/ Las Vegas Entertainment Democratic Arizona Sun Corridor Cascadia Florida Peninsula Gulf Coast I-35 Corridor Megalopolis NorCal Piedmont SoCal Megapolitan Area Population and Growth Rates Megapolitan Area 2004 Population* 00-04 Growth Rate Arizona Sun Corridor 5.0 12.6 Cascadia 7.6 5.5 14.9 9.2 Front Range 3.9 6.6 Great Lakes 40.6 1.9 9.9 5.8 I-35 Corridor 15.5 7.4 Megalopolis 54.5 3.1 NorCal 15.1 4.6 Piedmont 19.3 6.7 SoCal 22.5 7.5 Megapolitan Total 208.8 5.0 United States 293.7 4.4 Florida Peninsula Gulf Coast *Population in Millions Source: Census Bureau Types of Urban Complexes Types Description Examples Twin City Two principal cities that physically connect to form a binary core to a metropolitan area Minneapolis/St. Paul, Tampa/ St. Petersburg Metroplex Two or more metropolitan areas that share overlapping suburbs but the main principal cities do not touch Dallas/Ft. Worth, Washington/ Baltimore “Corridor” Megapolitan Area Two or more metropolitan areas with anchor principal cities between 75 and 150 miles apart that form an extended linear urban area along an Interstate Arizona Sun Corridor (Phoenix/Tucson), SanSac (San Francisco/ Sacramento) “Galactic” Megapolitan Area Three or more metropolitan areas with main principal cities over 150 miles apart that form an urban web over a broad area that is laced with Interstates Piedmont, Great Lakes Crescent Megapolitan Pair Two megapolitan areas that are proximate and occupy common cultural and physical environments and maintain dense business linkages Megalopolis and Great Lakes Crescent, Sun Corridor and SoCal 20th Century Metropolitan Form 21st Century Metropolitan Form Virginia’s Dominion Corridor Arizona’s Sun Corridor Sun Corridor Types of Urban Realms Types Description Realms Urban Core Original core of metropolitan development. Cores are dense and often built out. Central Valley Tucson Valley Favored Quarter The most affluent realm containing upscale housing, retail, and office space. Northeast Valley Foothills Maturing Suburbs Rapidly developing suburbs with mature older sections and booming edges. East Valley West Valley Emerging Exurbs The most scattered and detached urban development in the region. Exurbs contain the most affordable housing. Mid Corridor Northwest Valley Santa Cruz Valley San Pedro Valley The Sun Corridor’s “Trillion Dollar Question” Projection Sun Corridor 2040 % Change/Added Population 9.3M 109.7 Employment 4.9M 93.4 No. of Housing Units 3.7M 146.2 Com./Public Sq. Feet 2.4B 226.4 Housing -- $541.1B Commercial/Public -- $482.3B Demographic Construction Investment Source: Arthur C. Nelson, Virginia Tech Megapolitan Projections US Future Housing Shares Housing Type Apartment Owner Attached Small Lot (<7k sf) Large Lot (>7k sf) 2003 24% 11% 15% 51% 2040 30% 20% 30% 20% From Arthur C. Nelson, Virginia Tech Source: 2003 data from American Housing Survey 2003. 2040 figures derived from preference surveys. US Demand in 2040 50% Attached (apartment, TH, condo) 30% Detached small/cluster/zero-lot 20% Conventional subdivision 80% = Traditional Urban Density True in all the Megapolitans Implications z z z z There is a New Scale for Planning and Investment Understanding Where the Cores will Develop Within Each Urban Realm is Essential Understanding Demographic Trends and How they Play Out at the Megapolitan Scale is Also Essential. Multifamily Housing Will Play a Key Role in the Megapolitan Future www.mi.vt.edu
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