Andy Esbenshade remembers a time when county Realtors dreaded selling property in the city.

"The city had a very bad reputation," said Esbenshade, a Realtor who mostly deals in city properties. "People thought when you crossed under the bridge on New Holland Pike you would be murdered.

"The market was that bad."

High crime rates, urban blight and a lack of a vibrant downtown night life made the city housing market unpalatable to many, Esbenshade said.

"That's really changed," he said.

The market for urban housing is now fueled by the convergence of the two largest generations in the history of America, defined by a local as the 82 million baby boomers born between 1946 and 1964, and the 78 million millennials born between 1977 and 1996.

These two demographics are breathing new life into Lancaster city's real estate market, despite national concerns over the economy and credit.

"We're only off by a little bit [in sales volume] this year in the city," said Esbenshade.

According to the most recent statistics provided by the Lancaster County Association of Realtors, about 60 fewer houses were sold from August to October this year in the city compared with the same period in 2007.

As baby boomers have aged and become empty-nesters (older couples with children who have moved away), their impact on urban housing demand has substantially increased, according to a 2006 report issued by the James Street Improvement District.

"Boomers, particularly affluent boomers, are rediscovering the merits and pleasures of urban living," the report says.

And on the other end of the spectrum, young professionals in their 20s and early 30s are also making an impact on the city housing market.

"It's a tale of extremes in the city," Esbenshade said.

The report continues: "The convergence of two generations of this size — simultaneously reaching a point when urban housing matches their life stage — is unprecedented."

By 2015, the report forecasts that millennials ages 20 to 29 will grow to about 44 million. Similarly, boomers ages 50 to 59 will reach that same number by the same year.

The report estimates there will be an additional 8 million potential urban housing consumers nationwide.

'The stars have aligned'
Frank Christefel III, executive vice president of the Lancaster County Association of Realtors, said a confluence of factors have combined to keep the city market strong.

"The stars have aligned," he said. "The city is once again an attractive place for several different demographics."

City night life, good housing values and city revitalization projects are important components of the revived market, he said.

"You have a lot of things you can do with other people," said Charles Lane, a 74-year-old Lancaster Township resident looking to move into the city. "We're taking advantage of what the downtown has to offer."

Jack Soost, 68, who recently retired to the city with his wife, Joni, would agree. They lived in Adamstown for 17 years.

"Our whole social life started to come down here," Jack Soost said. "There's so much to do, and we can walk everywhere."

Now a part-time consultant for the chemicals industry, Soost said the city offered more life.

"We didn't want to move to a retirement community because we'd have felt sequestered," he said. "There are people of all ages and walks of life here."

Make no mistake, while older residents are making up larger percentages of urban populations, interest in city living is driven by the young.

"Lancaster is a young town," said Eric Kerns, 28, co-owner of the Revival board shop on North Queen Street.

Kerns believes the close proximity of three colleges, Millersville University, Franklin & Marshall and the Pennsylvania College of Art & Design, make Lancaster an ideal spot for the young.

"A lot of them don't leave" after graduating, Kerns said. "It's very diverse. It's all from the college crowds."

Danielle Rapp, now 24, moved into Lancaster city while she was an undergraduate at Millersville.

"Lancaster is such an old city, yet has modern appeal," she said. "It really sometimes feels like it's just a small section of a bigger city; it's just not so busy."

But value may be the city's strongest selling point for people looking to move here.

"The bang for the buck is huge," Christefel said.

Housing values in the city vary widely depending on the area.

Some go as low as $54,000 and as high as $800,000, according to the Lancaster County Association of Realtors multilist system.

Thirteen four-bedroom/one-bathroom homes are on sale in the city. Prices on those properties range from $54,000 to $120,000. The smallest unit is 2,000 square feet.

"You don't even get something like that in the suburbs," Esbenshade said. "Where else can you get a 2,000 to 2,500 square-foot house for the prices here?"

In addition to affordable housing costs, experts say revitalization projects and neighborhood improvement groups such as the James Street Improvement District contribute to the city's continuing appeal.

"The arts district and Gallery Row really turned things around," Esbenshade said.

Still worries
But it would be premature to dismiss the effects of the economic slump despite newfound optimism in city markets, said Melissa Brosey, a city Realtor.

"A lot of buyers are on the fence," she said. "People are trying to figure out what's going on in the economy.

"They're a little more cautious about making moves."

While Charles Lane enjoys the amenities of the city, he still lives in his home in Lancaster Township on Columbia Avenue.

"We think it's a worthwhile idea moving into the city," Lane said, but "it's not a foregone conclusion."

"People are shopping a lot harder," says Esbenshade.

Brosey agrees.

"People are holding tight," she said. "People are generally scared and waiting to see how things stabilize."

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Paul Franz is a Sunday News staff writer. Contact him at pfranz@lnpnews.com or at 295-5063.