Across the country, real estate agents are reporting that many home buyers are looking to move closer to cities. Gas prices are shaping their decisions. A May study that examined housing values in five cities found prices had fared worse in more-distant neighborhoods. "The collapse of America's housing bubble — and its reverberations in financial markets — has obscured a tectonic shift in housing demand," wrote economist Joe Cortright in the study, sponsored by CEOs for Cities, a nonprofit group that promotes cities. "Housing in cities and neighborhoods that require lengthy commutes and provide few transportation alternatives to the private vehicle are falling in value more precipitously than in more central, compact and accessible places."
— With reporting by Maya Curry