Few topics captured more newspaper headlines in 2006 than the housing industry. After three of the strongest years ever recorded for the residential real estate market, 2006 proved to be a transitional year.

Builders saw inventories rise, sellers had to adjust to a sharp increase in market times; and speculative investors had to significantly scale back their expectations or exit the market altogether.

As it turned out, however, Chicago fared the real estate "froth" rather well in comparison to other metropolitan cities, particularly those on the east and west coasts. Low mortgage and unemployment rates, combined with a variety of attractive financial incentives from builders and a number of new, high-profile city buildings kept Chicago's real estate wheel in motion.

Exactly what's in store for 2007 is still uncertain. Right now it's anyone's guess as to what exciting real estate news lies ahead. Yet, a number of local housing experts who are on the frontlines of the real estate industry have chimed in on what they believe will be the biggest housing trends in the year to come.

Here are the five trends to keep an eye on:

"Green" Goes Mainstream
A recent report from the National Association of Home Builders says that buy 2010, "green" construction will represent 10 percent of residential housing starts, up from two percent currently. Bob Horner, co-principal of Evanston-based Winthrop Properties, agrees the industry will see an increase and specifically noted that he expects an increased emphasis on LEED (Leadership in Energy and Environmental Design)-certified building.

"Any steps our industry can take toward more socially-responsible building practices are wonderful," said Horner. "Not only is it socially responsible of developers to incorporate "green" practices into their buildings, but buyers also increasingly seek homes that are environmentally efficient.

"I predict buyers will continue to put an even greater emphasis on purchasing homes that have been given the U.S. Green Building Council's LEED stamp of approval," he added. "They want to be assured of the quality and level of a building's environmentally responsible features, which is exactly what LEED-certification provides them with."

The Advent of the "Ruppies"
With more than 78 million people retiring in the next 10 to 15 years, Chicago and cities across the country will be gearing up for a wave of 'Ruppies', or retired urban people, who will be looking for new homes. Notes author and urban planner Kyle Ezell explained in his recently published book, "Retire Downtown: The Lifestyle Destination for Active Retirees and Empty-Nesters," that 'Ruppies' want to stay connected to the community, immersing themselves in a lively, diverse environment that is rich in vulture and entertainment options.

In his book , Ezell features one Chicago community in particular that is attracting "Ruppies"." The Clare at Water Tower, the first high-rise continuing care retirement community (CCRC) in downtown Chicago. The Clare at Water Tower caters to active seniors by providing them with a mix of hotel-like amenities and healthcare services, and connecting them with the energy, activity and vibrancy of city living.

Continued Urban Renewal on the City's South Side
According to the US Census Bureau, few areas in Chicago have experienced greater population growth recently than the Near South Side. The area surround Eastgate Village, a new-construction community by New West Realty, has experienced an annual growth rate of as much as 8.7 percent from 200 to 2006, noted Ted Mazola, the company's president and CEO. Reasonably priced housing, proximity to established neighborhoods and an historic past have all contributed to the expansion of the Near South Side, as well as neighboring communities such as Motor Row, at the south end of the South Loop, and Bridgeport, just west. Mazola added.

"Whether people are rediscovering Bridgeport because of its immediacy to US Cellular Field and the resurgence of the White Sox, or they've taken note of it because of its reputation as a thriving artist's community, the area has become hot," said Mike Kelahan, director of sales and marketing for Dubin Residential, currently marketing "The Lofts at Bridgeport Place. "Due to the fundamentals of low price vs. big space and the convenient location to downtown, I'd look for 2007 home sales in this neighborhood to be as good, if not better, than most others in the city."

Andrius Augunas, founder and principal of Rokas International, Inc. developer of Motor Row Condominiums, agrees with Kalahan's assessment. "Pockets like Motor Row are the next logical step for city development, especially as the boundaries of the South Loop are extended. The neighborhood is easily accessible from the Loop, it's just a few blocks west of Lake Michigan and within minutes of Grant Park, Soldier Field and the Museum Campus. Plus, it's convenient to several transportation options including Interstate 55, the CTA Green Line and the Metra."

Reshaping the Suburbs with Town Centers
According to the International Council of Shopping Centers, there are approximately 170 town center developments scattered across the US And that number is expected to grow significantly, including in the Chicago area. In 2007, construction will be in full swing on two major new town center developments. The Center of the Northshore in Northbrook by EAG Capital and the Downtown Lent Development District by Marquette Companies.

"Town center projects will continue to increase in popularity and number because of the scope of what they offer," said Ward Renko, CEO of Northbrook-baed EAG. "It's more than a place to live or a place to shop, it's a gathering spot for the community. In the case of the Center of the Northshore, our inspiration was the civi plazas of cities like Parks and Rome, with their vibrant energy and pedestrian-oriented designs. Plus there are significant economic benefits for the towns themselves in terms of tax revenue."

"Across the country, there's a growing demand for a walkable urban lifestyle, particularly in the suburbs, " added Bruno Bottarelli, managing director of Marquette Companies. "Our vision for the redevelopment of downtown Lemont is to create this lifestyle through a comprehensive town-building process that will be a catalyst for economic development, while still preserving the area's historic structures, heritage and character."

Rolling Out the Red Carpet
As builders and developers usher in the New Year, took for them to place a stronger emphasis on customer service and making the buying process as easy and enjoyable as possible, noted Leigh Nevers, vice president of marketing for Lennar's Chicago region. "Builders have been focusing on customer service for some time now, but in 2007, many of us will be taking it to a higher level. It won't be hand holding necessarily because today's buyers know what they want, but builders will be more attentive to buyers' needs," she said.

For example, in 2007 all Chicago-area Lennar communities will adopt the builder's national Tickled, Delighted and Happy Customer Care program, which ensures buyers are taken care of from start to finish, and includes a number of fun surprises along the way. Over the upcoming year the builder is also looking at giving buyers more choices in how they purchase their home. "To give buyers the ultimate home-buying experience, we have to be cognizant of their financial needs," said Nevers. "If we're talking incentives, does it make more sense for them to buy down their interest rate, put no money down or receive a discount on a home's price? It's not going to be a one-size-fits-all scenario, but instead addressing buyers' individual needs," said Nevers.

Bob Horner RD Horner & Associates 2708 Grant Street Evanston, IL 60201 847.869.2700	Ibrahim Shihadeh Creative Design Builders 4355 N. Ravenswood Chicago, IL 60613 773.327.8400
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