Sell the Single Family House

On the Ben Jones Blog, someone pointed out that a popular real estate trade in the NYC area is to sell (or not buy to begin with) the single family home in the suburbs and buy a smaller townhouse or condo in the country (or down the Shore); and also buy or rent an apartment in, or very near, the city. From my own observations, this does seem like it is becoming a more popular trade compared to buying a big house in the burbs and commuting at least an hour and a half to the city every morning. Hoboken has become much more family friendly over the past 3 to 5 years, (as opposed to frat-boy friendly) and it seems as if many of these families disappear on the weekends, presumably to the Shore or the Hamptons etc. In addition, the increase in the number of private schools in Jersey City, Weehawken and Hoboken area has probably compelled fewer families to run screaming to less incompetent school systems in the suburbs when their kids turn kindergarten age.

I am actually thinking about doing this trade myself. The appeal to me is to have a place at the Shore for the weekends, but also have a place close to where I work so that I am not spending four hours a day on NJ Transit. In my case though, and especially because I think housing prices are going to collapse, I would rent both in the city and at the Shore instead of buying. Given the relative “cheapness of rental properties at the Shore in the off season, I think it would actually be cheaper to rent in Hoboken and say Long Branch then to actually own a three bedroom in a quiet town like Little Silver or Shrewsbury and still face a minimum of an hour and a half commute every morning.