Linking nicer cars to a suburb on the rise

From the Australian suburbs: one insider suggests seeing nicer cars in driveways signals good prospects for the suburban community.

The gentrification of the driveway happens before the gentrification of a suburb, says the boss of a data analytics company.

Upmarket vehicles beginning to appear in the carports and garages of houses is often a forerunner of a suburb on the rise, as renovators move in...

When more models such as a BMW X5 or an Audi SUV begin appearing in the driveway of houses and apartments in particular suburban streets, it is a reliable predictor of a suburb undergoing gentrification and becoming much more popular with renovators. Extra investment in community infrastructure often followed, and there was a broad flow on to higher property prices…

He said households who were taking out a loan for $500,000 to buy a rundown home in an up-and-coming area were often also purchasing a $30,000 to $40,000 car to fit the aspirational lifestyle.

The article chalks this up to a big data insight as bringing together multiple pieces of information helped reveal this relationship. I can see how this new information might help investors but it is less clear how this would help residents or local governments.

More broadly, this gets at something my dad always said: look at the cars in driveways, on the street, or in parking spots and it gives you a sense of the people who live there. In societies that prize cars, such as in the United States and Australia and particularly their suburbs, a vehicle becomes an important social marker. The one-to-one relationship might not always work as some people buy more expensive cars than their housing might indicate and vice versa (recall the stories of millionaires driving old reliable cars). Yet, on the whole, people of different social classes drive different vehicles in varying states of repair. Hence, various brands aim at different segments of the market. Famously, General Motors did this early in the 20th century with five different car lines to appeal to different kinds of buyers.

UPDATE: I probably did not contribute to this upward trend with long-term ownership of a Toyota Echo. But, it looked good for its age.

 

Consequences of suburbs growing, back to city movement declining

Willing Frey at The Brookings Institution sums up recent trends in growth rates among cities and suburbs:

As we approach the end of the 2010s, the biggest cities in the United States are experiencing slower growth or population losses, according to new census estimates. The combination of city growth declines and higher suburban growth suggests that the “back to the city” trend seen at the beginning of the decade has reversed.

These trends are consistent with previous census releases for counties and metropolitan areas that point to a greater dispersion of the U.S. population as the economy and housing market pick back up, perhaps propelled by young adult millennials who may be finally departing dense urban cores as they make a delayed entrance into marriage and the housing market…

Primary cities vs. suburbs growth rates

In both regions, city growth exceeded suburban growth in the early years of this decade, where Sun Belt growth in both cities and suburbs exceeded Snow Belt growth. As the decade wore on, city growth declined in both mega-regions while suburban growth remained higher. This is evident when looking at the individual metro areas in each region (download Table C). In 2011-2012, city growth exceeded suburb growth in 19 of the 34 Sun Belt metros, and in eight of the 19 Snow Belt metros. However, in 2017-18 the city growth advantage appeared in just nine Sun Belt metros and two Snow Belt metros. Among these 11 areas that still registered city growth advantages are: Los Angeles, Washington, D.C., San Francisco, Denver, and Boston.

It is helpful to see the longer trends in the data, particularly when lots of media outlets want to jump on one-year estimates (such as Chicago’s recent population loss).

While it is helpful to compare cities and suburbs (and these changes do matter for a lot of reasons, including perceptions), I wonder how much this covers up larger changes across metropolitan regions or feeds narratives that cities and suburbs are locked in mortal competition. All of the above data could be true while Sun Belt regions continue to grow at a strong rates. Regions could think about policies as a whole that would enhance conditions for many more people than just those in cities or suburbs.

Finally, I’ve written before about how it would likely take decades to unseat the primacy of suburban life in the United States. Was the back to city movement or great inversion just a blip on the radar screen? Or, will it cycle back at closer and closer frequencies? The global economic system may have something to do with this – what happens with the next major downturn? – yet overcoming decades of expressed preference for suburbs will not be easy.

Non-fiction books can have limited fact-checking, no peer review

An example of a significant misinterpretation of survey data in a recent book provides a reminder of about reading “facts”:

There are a few major lessons here. The first is that books are not subject to peer review, and in the typical case not even subject to fact-checking by the publishers — often they put responsibility for fact-checking on the authors, who may vary in how thoroughly they conduct such fact-checks and in whether they have the expertise to notice errors in interpreting studies, like Wolf’s or Dolan’s.

The second, Kimbrough told me, is that in many respects we got lucky in the Dolan case. Dolan was using publicly available data, which meant that when Kimbrough doubted his claims, he could look up the original data himself and check Dolan’s work. “It’s good this work was done using public data,” Kimbrough told me, “so I’m able to go pull the data and look into it and see, ‘Oh, this is clearly wrong.’”…

Book-publishing culture similarly needs to change to address that first problem. Books often go to print with less fact-checking than an average Vox article, and at hundreds of pages long, that almost always means several errors. The recent high-profile cases where these errors have been serious, embarrassing, and highly public might create enough pressure to finally change that.

In the meantime, don’t trust shocking claims with a single source, even if they’re from a well-regarded expert. It’s all too easy to misread a study, and all too easy for those errors to make it all the way to print.

These are good steps, particularly the last paragraph above: shocking or even surprising statistics are worth checking against the data or against other sources to verify. After all, it is not that hard for a mutant statistic to spread.

Unfortunately, correctly interpreting data continues to get pushed down the chain to readers and consumers. When I read articles or books in 2019, I need to be fairly skeptical of what I am reading. This is hard to do with (1) the glut of information we all face (so many sources!) and (2) needing to know how to be skeptical of information. This is why it is easy to fall into filtering sources of information into camps of sources we trust versus ones we do not. At the same time, knowing how statistics and data works goes a long way in questioning information. In the main example in the story above, the interpretation issue came down to how the survey questions were asked. An average consumer of the book may have little idea to question the survey data collection process, let alone the veracity of the claim. It took an academic who works with the same dataset to question the interpretation.

To do this individual fact-checking better (and to do it better at a structural level before books are published), we need to combat innumeracy. Readers need to be able to understand data: how it is collected, how it is interpreted, and how it ends up in print or in the public arena. This usually does not require a deep knowledge of particular methods but it does require some familiarity with how data becomes data. Similarly, being cynical about all data and statistics is not the answer; readers need to know when data is good enough.

Leader who does not like “Mayor 1 percent” label joins Wall Street investment firm

Former Chicago Mayor Rahm Emanuel does not like one of the names applied to him during his mayoral tenure:

Dellimore also pressed Emanuel on the “Mayor 1 percent” tag that has dogged him for years, a nickname critics use to tie him to wealthy supporters and downtown development they say he favors at the expense of struggling outlying neighborhoods.

Emanuel first responded by taking a swipe at wealthy Blackhawks and United Center owner Rocky Wirtz, who has publicly ripped Emanuel for raising entertainment taxes at big venues such as the United Center: “Go ask Rocky Wirtz what he thinks about being part of the 1 percent.”

When Dellimore said the criticism comes from poor and working-class neighborhoods that feel like they’ve been left behind while the Loop and adjoining neighborhoods have boomed under Emanuel, the mayor changed tacks. He defended investments downtown.

“You name me one world-class city in the world with a decaying central business district,” Emanuel said. “Name one. They don’t exist. I’m proud that we have a thriving, successful central business district that gives us the revenue to also fund from 14 to 33,000 kids in summer jobs.”

Few local governments would argue that downtown development is a bad thing. After all, growth is good and stagnation or decline is terrible.

Yet, if a leader wanted to counter an image of working for the wealthy or the better-off neighborhoods in a city, would joining a Wall Street investment firm be a good next move?

Former Chicago Mayor Rahm Emanuel is joining the Wall Street investment firm Centerview Partners LLC, whose leaders include long-time friends and campaign donors…

“Rahm’s leadership and vast experience providing strategic advice, coupled with a track record of successful planning and execution, will bring tremendous value to our firm and our clients,” Effron said. “Establishing a presence in Chicago is a logical next step for Centerview as we continue to grow, and it positions us to better serve existing and new clients throughout the Midwest.”…

Emanuel on Wednesday rejected any notion that his work as mayor affected the hiring…

Emanuel previously spent more than two years as a Chicago investment banker at Wasserstein Perella & Co., from 1999 to 2002, a job he took after serving as a top aide to President Bill Clinton.

So perhaps this is little surprise given Emanuel’s track record as mayor and roles prior to becoming mayor. Or, maybe he thinks providing commentary for The Atlantic and ABC News will help balance out or help people forget about the Wall Street work.

Online courses open opportunities…to study close to home

The spatial dimension of taking online courses provides a surprising finding in a new survey:

While studying online theoretically gives students who are place bound for work or family reasons more geographic flexibility than does in-person study, the Online College Students research shows that ever larger numbers of fully online students are staying close to home.

As seen in the graphic below, 67 percent of respondents said they lived within 50 miles of a campus or service center of the college where they are studying, up from 42 percent just five years ago. Meanwhile, the proportion who said they are studying at least 100 miles from where they live has dropped by more than half, to 15 percent in 2019 from 37 percent in 2014.

The report’s authors offered this analysis: “The growing number of schools offering online programs provides students with more options closer to their home. Local schools have greater visibility among employers and others in the community, which is valuable to students.”

The explanation offered makes some sense: nearby colleges are known in the community. A degree from a local school may mean more than a school from elsewhere.

But, this could lead to some interesting connections:

1. Does this suggest that students have a hard time differentiating from all of the online course options out there? One way to filter all of those options would be to stick to recognizable nearby names.

2. I wonder how the marketing of local institutions matters. Media outlets in the Chicago area are full of advertisements from universities and colleges pushing online programs. Of course, there are national voices advertising in there as well but some of these can be unknown institutions (I’m thinking of Southern New Hampshire University).

3. Could this be linked to decreased geographic mobility among Americans? If Americans like to be rooted in a place, choosing a place to take college classes – whether online or not – may matter.

4. I’m reminded of findings that suggest social media users often make online connections with people they already know offline. In other words, social media users are not always seeking out random connections or unknown people to interact with. Could the same principle apply to colleges?

In the long run, what if the online world ends up leaning local in terms of the connections people make and maintain?

The factors that keep stop some Americans from moving even when they have opportunities elsewhere

Richard Florida summarizes survey data that looks at why Americans are resistant to moving:

The survey identifies respondents’ most recent move, their probability of moving in the next two years, and other data related to moving including job opportunities and income prospects, housing costs, the distance from current home, costs of moving to various locations, crime rates, taxes, community values and norms, and proximity to family and friends. The researchers use these data to estimate the overall costs—what they call the “willingness to pay” or WTP—for people to move different locations. They then use statistical models to examine the importance of these psychological factors compared to other mostly financial explanations.

A significant reason for the decline in mobility is that many of us are highly attached to our towns. Nearly half of those in the survey (47 percent) identify as rooted. The rooted are disproportionately white, older, married, homeowners, and rural. Their reasons for not moving are more psychological than economic: proximity to family and friends, and their involvement in the local community or church.

Another 15 percent identify as stuck, lacking the resources or ability to move. The stuck have less formal education, are in worse health, and are less satisfied with their jobs, the survey finds. In addition, they are more likely to live in cities and live relatively close to family members. Their reasons for not moving are mainly economic: the costs of moving, the affordability of housing in other locations, the difficulty of qualifying for a new mortgage, and the perception that there is less opportunity for them elsewhere…

It turns out that the personal costs of moving—and leaving family members, loved ones, and friends behind—are quite high. According to the study, the average American perceives not moving as worth a sacrifice of more than 100 percent of income. The psychological cost of leaving family and friends alone equates to 30 percent. As the study reads: “The median person in our sample will forego 30 percent of his or her income in order to stay close to family.”

I’m guessing there is a lot more to explore here with more data collected from a variety of angles.

Why does Florida talk of these factors as primarily psychological factors? The survey results do not sound like Americans are afraid of moving but rather there are broader social and economic forces that both tie them to their current communities and limit their perceived options elsewhere. Together, these sound like sociological conditions.

How does this fit with suggestions that local ties and interactions are fewer in number or weaker in intensity in America today compared to the past? Or, do Americans now have tools that allow them to maintain and stay in certain social networks without a need to move across networks or join new ones?

How can researchers get at a different cultural milieu regarding mobility? Over time, how could Americans shift from fairly mobile to less mobile?

Bringing the cool parts of suburban life to urban settings

Can the suburban life be imported to residential units in the heart of the biggest American cities?

Your own slice of suburbia within city limits is a concept that developers and retailers across the country have been pitching a lot recently, subtly or not. The pendulum swings of socio-economic and demographic changes over the past two decades in some thriving cities are partly behind this shift…

The dividing line between urban and suburban limits has always been a little murky in most cities, many of which have their own vast stretches of single-family homes with attached garages. But the general idea was that the suburbs offered comfort and personal space, private backyards and a bedroom for each kid. City living was more exciting and offered culture and a more diverse mix of everything, but required some sacrifice. Apartments were smaller, parking a headache and a backyard unimaginable…

One of the Dahlia’s biggest selling points? It has its own parking garage. “You can pull in with your S.U.V., unload and take your things in a private manner,” said Shlomi Reuveni, the president of the company that is handling sales for the building. “That’s very appealing.” And very suburban.

In some high-end buildings, architects are giving apartments the feel of single-family homes by replicating the layouts of suburban houses. At the Quay Tower, which overlooks Brooklyn Bridge Park, there are just five condos on each floor, two of which have private elevator access. Inside, the larger units have something you see a lot of on HGTV suburban house renovation shows: large mudrooms off the back door with locker-like cubbies and sturdy ceramic-tile floors.

As the article goes on to note, more suburban features like mall food courts and white people are headed to cities.

On one head, the melding of lifestyles is not too surprising. In the suburbs, a “surban” lifestyle helps developers and residents differentiate their product and life from the typical suburban lifestyle. Both producers and consumers can seek out new niches.

On the other hand, that the suburban lifestyle may be a selling point is kind of funny because of all the flak the suburban life takes. I thought the suburbs were about exclusion, homogeneity, wastefulness, and individualism? It is not just that some of these features of suburban life have urban analogues. After all, they are both situated within American culture. The idea that certain suburban features, such as garages or mudrooms, will be replicated in cities flies against the claims about tacky suburban life. Suburban consumer goods and lifestyle markers are now cool?