Robert Gibbs, president and CEO of Gibbs Planning Group

ATLANTA—One of the hottest trends in the Southeast—and nationally, for that matter—is the renewed and growing focus on new urbanism and transit-oriented developments. It doesn't take a seasoned pundit to understand what's driving the trend, but the implications are noteworthy.

“Although they may not know these communities by name, many Millennials and Baby Boomers are seeking New Urban Traditional Neighborhoods (TNDs) and Transit Orientated Developments (TODs),” Robert Gibbs, president and CEO of Gibbs Planning Group, tells GlobeSt.com. “TNDs are compact walkable mixed-use neighborhoods that include a wide range of residential and commercial typologies.”

As Gibbs explains, it TND can include everything from a starter studio—sometimes located above a garage—to starter homes, to apartments, to large single-family residences and senior housing. This housing variety, he says, accommodates the trend for US families to move into larger or smaller homes every five years without leaving the neighborhood and their friends.

“The better-planned TNDs are clusters of neighborhoods, each with a full range of housing types, clustered around parks and convenient retailers and restaurants,” Gibbs says. “TNDs require careful planning and design details to be sustainable.”

Gibbs points to clear needs, including rear-facing garages, front porches, properly sized squares and parks. Of course, we've witnessed how close proximity to retail positively affects home values and multifamily occupancy rates.

“Research has shown homes located within a five-minute walk of a Starbucks or Whole Foods are actually worth more than comparable homes a farther distance away from these entities,” Gibbs says. “This type of lifestyle appeals to approximately 50% of the US housing market. Unfortunately, less than 2% of the new housing market is developed as TNDs or TODs, frequently resulting in steep home values, and often unaffordability.”

TODs are dense walkable residential developments located along a transit stop. These communities typically include rental apartments, for sale condominiums with supporting retail and restaurants. Gibbs says densities of over 50 units per acre are common.

“In fact, with TODs more is more,” Gibbs says. “The more residents, the more sustainable the adjacent retail and there is more ridership for the transit. TODs appeal to working demographic groups, frequently singles or marrieds without children. TODs also include major employment centers and are sought out by many Fortune 500 firms seeking to reduce transportation costs for their employees. For example, Volkswagen of America recently moved its headquarters from suburban Detroit to a Washington DC transit stop.”

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