Wild economic fun in Peoria Illinois. During our recent charrette (Ferrell Madden, Steve Price, Keith Covington, Lee and Colin from Duncan Planning, and Wild Bill from Providence), we were puzzling over exactly what was driving the housing market when growth is relatively slow in the city and has mostly occured by annexing and then building new subdivisions. We discovered a curious thing that we have never seen before: Vacany is doubling, while rental housing is going down!! The key here is where the vacancy is taking place. The older neighbrohoods with declining housing are experiencing rising vacancy and a simultaneous reduction in rental units, without having strong sales. The conclusion? Houses used as rentals are actually going off the rental market and just…sitting there, while households looking to buy are moving into the newer units.

The upshot for neighborhood revitalization — find a way to renovate or demolish to redevelop so that forming households will find the housing they need in the neighborhoods again. The charrette came up with brilliant street designs and gained interest from owners, businesses and developers in revitalization corridors, but the local businesses need those residents for support.

ES