In the ongoing meltdown of the real estate market a few bright spots point to shifting in tastes. Homes located in the central area of a city or in closer-in suburbs have experienced less of a decline from the values they reached at the peak of the bubble. Neighborhoods where you can enjoy a high-speed Internet connection (for a modern-day equivalent of a commute to work), walk to a store, and access mass transit if need be, seem to be attracting demand.

A massive demographic shift is underway.

The two largest demographic groups in the country, the baby boomers (one quarter of the population) and their children (with both groups making up half of the population) actively seek out urban and close suburban neighborhoods which can both a versatile infrastructure and an immediate proximity to services and shopping.

Generation Y is on the move, too. This demographic group, young adults born between late 1970s and early 1990s, numbers 76 million. Young people striving to strike out on their own in the middle of a stagnant economy are fleeing the suburbs to cut on costly commute, and flocking towards vibrant inner city life and improved access to web infrastructure. Many if not most of them will be renters for the foreseeable future.

In all likelihood, neighborhoods where a couple could comfortably live without two cars will be in demand in the coming years.