Piazza Alta, in Northern Liberties outside Center City Philadelphia, is an example of a property ... [+]
Ever notice how quickly pundits pronounce a phenomenon dead, only to watch it resurrect itself not long after? Over the past few five decades, talking heads have repeatedly relegated lumbering gas guzzlers to the mists of memory, following surges in gasoline prices. But last we looked most 2024 drivers weren’t in shopping cart-sized gas sippers. They were in bloated SUVs or pickups.
We also heard forecasters pontificate that electric vehicles would be in everyone’s driveway by the middle of this decade. A couple years later, after the American public proved unwilling to accept range anxiety and slow-growing charging infrastructure, automotive makers hurriedly redirected their budgets toward internal combustion.
The pandemic ushered in a similar phenomenon regarding dense, cramped cities. Big metros from New York City to Seattle were destined to be rendered ghost towns, we were informed, once their denizens completed a mad rush to the wide-open spaces. Four years on, it’s high time to announce cities haven’t vanished, but instead evolved.
Both Worlds
In place of center cities, folks are flocking to increasingly popular edge cities, enclaves that seem like suburbia but are actually within city boundaries. Experts report edge cities reflect the ongoing attractiveness of city life, offering proximity to downtown while providing both urban amenities and suburban comforts. Developers have leveraged the availability of obtainable land to create spaces appealing to urbanites.
The result: Edge cities that attract folks who want an urban lifestyle at a more affordable price point than central city locations.
Edge cities’ emergence represents the next evolution in urban living, says Michael Pestronk, co-founder of developer Post Brothers. “This increased interest in areas outside the center of cities has been brewing for some time and can’t be considered without taking into account the rise in what we’ve coined the ‘forever renter,’” he adds.
“Nearly three million households earning well into the six figures annually are opting to rent versus buy. This demonstrates a massive lifestyle shift. [It is] driving a newfound appetite for luxury amenities, cultural access, job opportunities, access to quality education and proximity to nature, without the responsibility of home ownership. Areas ripe with opportunity for this type of environment are located outside the heart of cities, toward the edges.”
Choosing Rentals
An example of the phenomenon is found at Northern Liberties, an enclave a couple miles from Center City Philadelphia.
After creating The Poplar, Northern Liberties’ first luxury rental building, an adaptive reuse of a pre-war department store, Post Brothers went on to develop an array of other luxury rental buildings in Northern Liberties.
The latest, Piazza Alta, demonstrates the increasing demand for high-quality residences within city boundaries, appealing to Millennials, Generation Z and other demographic groups intent on remaining part of the city but a bit removed from its nexus. “When looking at who is renting at Piazza Alta . . . we found over half of residents are from out of state, in their early 30s or older and have six-figure incomes,” Matthew Pestronk, Post Brothers co-founder says.
“They’re choosing to rent with us because they want bigger, high-quality apartments that are virtually unheard of in densely populated urban areas. All of this points to the larger idea that cities aren’t dead, they’re simply evolving.”
The edge city phenomenon is also seen in such settings as The Woodlands, tucked just outside the urban core of Houston, Texas, and Summerlin, nestled on the western perimeter of Las Vegas, Nev. Two of the best-known master planned communities in the nation, both are the work of national development firm Howard Hughes Holdings, which notched a record year in 2023 for home sales, land sales and office leasing.
