CHICAGO—Americans no longer prefer to live in spread out suburban communities. Instead, walkable urban neighborhoods have become popular, both among millennials and baby boomers looking to downsize, according to a report from the Regional Plan Association, a New York-based research and advocacy group.

But this demand is having an impact far from the nation's urban cores. Suburban developers and municipalities also sense opportunities. Transit-oriented developments clustered around suburban train stations can offer lifestyles, and access to jobs, similar to those near a major CBD. But the supply of new-construction, for-sale housing in such areas is limited. Some Chicago-area homebuilders, however, have launched for-sale TOD projects in the heart of several suburban downtowns.

Lexington Homes, for example, recently began sales for Lexington Pointe, a new community of 58 townhomes in downtown Des Plaines. Located at 781 Lee St., the community puts residents within walking distance of the Des Plaines Public Library, post office, coffee shops, automotive repair shops, churches, a yoga studio and fitness centers. And commuters have a short, two-block walk to the Des Plaines Metra station and a short drive to I- 294 and I-90.