Freeway views are hot: Homeowners cozy up to urban eyesores

Living near highways, train tracks and other urban eyesores has long been an unfortunate fact of life for residents of big, crowded cities around the world, including in tightly-packed cities in the U.S. Now the rising popularity of urban living across the country, along with a shortage of land in desirable locations, has made these dingy corners of cities hot properties for developers and home buyers, despite loud and ugly neighbors and the potential health hazard of living closer to pollution.

"Land is so scarce that the properties that are available for residential development tend to be those fringe properties," said Tim Barden, senior vice president at Land Advisors Organization, a national land brokerage.

Developers buy the land, demolish what was there and remove contaminants that may have leeched into the soil, something common with industrial properties.

Trash-filled lots, older buildings, churches, factories, bowling alleys and parking lots are all making way for new housing.

Southern California builder Olson Homes has bought land from at least five churches the past couple of years, in addition to building on the former sites of warehouses and other commercial properties, and right along highways.

While many buyers may not want to live next to a highway, those who do balance the downside with being walking distance to public transportation, restaurants and shops, said Olson Homes CEO Scott Laurie.

According to the Environmental Protection Agency, people who live near major roads appear to experience health problems associated with air pollution more often and more severely, including asthma, cardiovascular disease and impaired lung development in children.