Chicago area housing starts up 37%; still one-fifth of “normal”

The good news: Chicago area housing starts are up. The bad news: housing starts had slowed so much in recent years that this is nowhere near “normal.”

Housing starts in the first quarter in the Chicago area rose 37 percent, which puts the local housing market on track to build 4,000 homes this year, the best performance in three years, according to Metrostudy, a housing research and consulting firm.

Still, a normal number for new-home starts in the Chicago area is 18,000 to 20,000. “We’re one-fifth of that. We’re a long way from being normal,” said Chris Huecksteadt, director of Metrostudy’s Midwest markets…

A lack of quality inventory and bidding wars among resale homes have caused some consumers to change their focus and consider buying newly constructed homes. Several local builders report that they’ve started homes as spec or model homes and the properties have gone under contract before the drywall is up…

Because of that kind of demand, as well as a recent spike in lumber prices, some local firms are raising prices by $5,000 to $20,000 per home to help offset the cost of materials and to maintain or improve their profit margins. No one is getting too aggressive with price hikes, though, because it might lead to problems with appraisals and mortgage financing.

This may be the new normal for quite a while. As the end of the article notes, it may be difficult to generate consistent demand until there are more jobs.

When I see figures like this, I always think about the existing housing stock. Does this automatically mean that the available number of houses is really low? Or, is there a growing interest in recent years among buyers to forgo the problems existing houses may have and instead pay a little more to get a spot-free home? If some of the existing housing stock is going unpurchased, what then happens to those homes? Some people may not be able to move while other houses, particularly those in more disrepair and neglect, could become a drag on some neighborhoods.

Seeing Houston as the quintessential American city of today

A sociologist who has spent decades studying Houston argues that it illustrates the big changes in American society:

The essential thing to know is that Houston is at the forefront of America’s demographic revolution. Through most of its history, Houston was a biracial Southern city dominated by white men, who were riding the oil boom to continued prosperity until 1982.

After that year’s economic collapse, Harris County’s Anglo population stopped growing and then declined. All the growth over the last 30 years has been due to the influx of Latinos, Asians and African-Americans.

Houston has now become America’s most ethnically diverse metropolitan region. It is even more diverse than New York, coming closer than any large metropolitan area to having an equal division among Anglos, blacks, Latinos and Asians…

The first lesson is all of the United States will look like Houston and Texas in about 25 years.

So this is where the American future will be worked out. How we navigate that transition will be important not only for the future of Houston and Texas but for the American future.

Even as the shift in American population has been to Sunbelt metropolitan regions in recent decades, cities like Houston don’t seem to get attention proportionate to their size. On one hand, they don’t have the history of global influence as New York, LA, and Chicago. They are not viewed as cultural or media centers. On the other hand, Houston, Dallas, Atlanta, Austin, Miami, Phoenix, Las Vegas, and others may better represent where America is headed. There are a lot of opportunities for sociologists to study such cities as they continue to grow, attract immigrants, and face new challenges.

Countering blanket statements about cities and suburbs

A Dallas columnist argues typical views of the city and suburbs are outdated:

Yet we seem to cling stubbornly to outdated city-vs.-suburb cliches and mutual suspicions that serve no purpose other than to make people think ill of one another.

On one side are quasi-racist Dallas baiters for whom “urban” is thinly veiled doublespeak for poor, minority, crime-plagued neighborhoods where government is unfailingly corrupt and public schools actually make kids stupider. It’s a segregationist stereotype that by now should be eroded by three decades worth of urban revitalization, crime reduction and development of spectacular public spaces.

On the other are sanctimonious hipsters who use “suburban” as an insult that describes selfish, conformist commuters who drive everywhere in super-sized SUVs, spend their leisure time at the mall, vote like the people next door and think “art” is a Thomas Kinkade print. It’s a myopic definition that hasn’t budged since Richard Yates wrote Revolutionary Road in 1961.

The truth is that the places we live are as individual as we are, and we choose them based on our individual priorities — entertainment, safety, good schools, friendly neighbors, what we can afford, what we want to see when we look out the window.

I agree with one conclusion but not the other. First, individual communities, whether they are urban neighborhoods with a sense of place or far-flung suburbs, are unique and have different characters. This is particularly true for a number of the people who live there and buy, in terms of housing but also symbolically and culturally, into the place. Both cities and suburbs are assumed to be all alike and this is simply not the case. There are distinguishing differences between these different types, such as population density, the number of nearby jobs and business, the kinds of housing, the history, etc. but it is silly to lump them all together.

On the second conclusion, it isn’t quite as simple as suggesting people make individual choices. This may feel like it is the case, particularly for those with means (money, status), but even those people are constrained by the lifestyles they desire. But, people with less means have fewer choices and then are restricted by cheaper housing options or what is close to jobs. In other words, residential choices tend to fall into patterns based on class and race, whether in the cities or suburbs.

Sitting in a McMansion at the Kentucky Derby?

An overview of the seating arrangements at the Kentucky Derby suggests some spectators will be treated to a McMansion-like setting:

For those who may wonder what sorts of seating arrangements (and pecking orders) have been established in the 138 years of this aggressively social event, here’s a breakdown: Industry types settle into third-floor boxes at the finish line. Hot-shot corporate leaders plant their flags in fifth-floor suites. The celebrity headliners for Friday night’s charity fundraisers can usually be seen on the fourth-floor Skye Terrace or the Turf Club.

Prime stalking ground this year is “The Mansion,” a new luxury hideaway with a dedicated elevator and private wine cellar designed to feel like a McMansion.

Major sponsors such as Yum! Brands (Taco Bell, KFC) and Brown-Forman (the spirits company behind Jack Daniel’s and Woodford Reserve), have fifth-floor “Finish Line” suites. Prominent Louisville figures buy seats at large tables within the dining areas on “Millionaire’s Row,” which some dismiss as “Thousandaire’s row.”

Horse-industry insiders lock in seats, tables or boxes with personal seat licenses, the best of which can cost up to $75,000 for multiple years or $46,000 for one year. The heart of the industry is in the third-floor numbered boxes: sections 316 to 318 are closest to the finish line. Owners with runners in the Derby are given an assigned box here.

Sounds like there is plenty of money thrown around. But, I wonder what exactly makes “The Mansion” similar to a McMansion: just the elevator and wine cellar? Is there something about the flashiness of the space? Its poor design or architecture? Its appeal to the nouveau riche? Here is an inside look at the newly opened space:

And while the name inspires thoughts of Gone With the Wind’s Tara, or maybe PBS’ Downton Abbey, The Mansion decor better resembles a high-rise suite in a Las Vegas hotel for high rollers, with oversized couches and striking chandeliers…

“This is an experience that’s unlike anything else in sports,” track spokesman Darren Rogers said. Where someone at the Super Bowl or World Series is constantly watching a game, horse racing has periods of 30 minutes or more between races for Mansion customers to be pampered in “the finest amenities that these exclusive customers are used to.”

Churchill’s paddock can be seen from a balcony that also has a prime view of the almost 120-year-old Twin Spires. Mansion patrons who want to watch the races can walk out onto another three-tier balcony that, from the lower rows, affords some of the best views of the track.

“When we started with the design process, we started with a theme. And really the theme of this venue is ‘past meets present,’ ” Churchill track General Manager Ryan Jordan said. “So you’ve got a great historical venue here, and we wanted to bring it up to the modern times with this (Mansion) venue specifically.”

I’m seeing why it is labeled “The Mansion” but still not seeing the McMansion piece which implies some negative aspects…

Sociologists = people who look at “boring data compiled during endless research”

If this is how a good portion of the public views what sociologists do, sociologists may be in trouble:

Anthony Campolo is a sociologist by trade, used to looking at boring data compiled during endless research.

Data collection and analysis may not be glamorous but a statement like this suggests sociologists may have some PR issues. Data collection and analysis are often time consuming and even tedious. But, there are reasons for working so hard to get data and do research: so sociologists can make substantiated claims about how the social world works. Without rigorous methods, sociologists would just be settling for interpretation, opinion, or anecdotal evidence. For example, we might be left with stories like that of a homeless man in Austin, Texas who was “testing”  which religious groups contributed more money to him. Of course, his one case tells us little to nothing.

Perhaps this opening sentence should look something like this: time spent collecting and analyzing data will pay off in stronger arguments.

 

Social psychology can move forward by pursuing more replication

Here is an argument that a renewed emphasis on replicating studies will help the field of social psychology move beyond some public issues:

Things aren’t quite as bad as they seem, though. Although Nature’s report was headlined “Disputed results a fresh blow for social psychology,” it scarcely noted that there have been some replications of experiments modelled on Dijksterhuis’s phenomenon. His finding could still out turn to be right, if weaker than first thought. More broadly, social priming is just one thread in the very rich fabric of social psychology. The field will survive, even if social priming turns out to have been overrated or an unfortunate detour.

Even if this one particular line of work is under a shroud, it is important not to lose sight of the fact many of the old standbys from social psychology have been endlessly replicated, like the Milgram effect—the old study of obedience in which subjects turned up electrical shocks (or what they thought were electrical shocks) all the way to four hundred and fifty volts, apparently causing great pain to their subjects, simply because they’d been asked to do it. Milgram himself replicated the experiment numerous times, in many different populations, with groups of differing backgrounds. It is still robust (in hands of other researchers) nearly fifty years later. And even today, people are still extending that result; just last week I read about a study in which intrepid experimenters asked whether people might administer electric shocks to robots, under similar circumstances. (Answer: yes.)

More importantly, there is something positive that has come out of the crisis of replicability—something vitally important for all experimental sciences. For years, it was extremely difficult to publish a direct replication, or a failure to replicate an experiment, in a good journal. Throughout my career, and long before it, journals emphasized that new papers have to publish original results; I completely failed to replicate a particular study a few years ago, but at the time didn’t bother to submit it to a journal because I knew few people would be interested. Now, happily, the scientific culture has changed. Since I first mentioned these issues in late December, several leading researchers in psychology have announced major efforts to replicate previous work, and to change the incentives so that scientists can do the right thing without feeling like they are spending time doing something that might not be valued by tenure committees.

The Reproducibility Project, from the Center for Open Science is now underway, with its first white paper on the psychology and sociology of replication itself. Thanks to Daniel Simons and Bobbie Spellman, the journal Perspectives in Psychological Science is now accepting submissions for a new section of each issue devoted to replicability. The journal Social Psychology is planning a special issue on replications for important results in social psychology, and has already received forty proposals. Other journals in neuroscience and medicine are engaged in similar efforts: my N.Y.U. colleague Todd Gureckis just used Amazon’s Mechanical Turk to replicate a wide range of basic results in cognitive psychology. And just last week, Uri Simonsohn released a paper on coping with the famous file-drawer problem, in which failed studies have historically been underreported.

It is a good thing if the social sciences were able to be more sure of their findings. Replication could go a long way to moving the conversation away from headline-grabbing findings based on small Ns to be more certain results that a broader swath of an academic field can agree with. The goal is to get it right in the long run with evidence about human behaviors and attitudes, not necessarily in the short-term.

Even with a renewed emphasis on replication, there might still be some issues:

1. The ability to publish more replication studies would certainly help but is there enough incentive for researchers, particularly those trying to establish themselves, to pursue replication studies over innovative ideas and areas that gain more attention?

2. What about the number of studies that are conducted with WEIRD populations, primarily US undergraduate students? If studies continue to be replicated with skewed populations, is much gained?

Combining urban planning and urban informatics

The Chief Technology Officer for the city of Chicago argues urban planning and urban informatics need to be combined:

“This is a plea – and I make it frequently – for a discipline that doesn’t really exist yet,” Tolva says, “a merger of urban design and urban planning with urban informatics, with networked public space.”

Tolva is touching here on a number of ideas we’ve broached before. The unevenness of digital information has real-world implications in cities. The tools that we use to access it (smartphones, laptops, WiFi) will demand changes to the physical environment. And social norms about privacy in public space are all evolving as a result. But it’s helpful now to pause and think about who should be addressing all this uncharted territory (and whether those people exist yet).

“The real opportunity is in thinking about how many points of tangency with the online world are actually becoming embedded in physical space,” Tolva says. He is specifically not talking here about government data portals that contain information about the physical city. “This notion of e-government – even coming out of my mouth, it seems quaint – is you interacting with your city in front of your computer. But that’s not how we experience cities. Or, it’s not the best part of cities.”

The best part of cities is on the street. And in the future, your experience of the street life of cities could be enhanced if buildings and stoplights and bus stops and parks all gathered information and spoke to each other (and to anyone who wanted to listen). So what do we call this new job, the architect of everything?

While this may make some quite nervous, there is a lot of potential to put together real-time information and information about urban patterns with real-time devices. Imagine city infrastructure that works by dynamic algorithms rather than strict schedules. Perhaps this could be described as “urban big data” with an “urban big data officer”?

Kotkin: “The Triumph of Suburbia”

Joel Kotkin argues the suburbs have clearly won in the United States:

But the simple fact remains that the single-family home has remained the American dream, with sales outpacing those of condominiums  and co-ops despite the downturn.

Florida has suggested that simply stating the numbers makes me a sprawl lover. While he and other urban nostalgists see the city only in its dense urban core, and the city’s role as intimately tied with the amenities that are supposed to attract the relatively wealthy members of the so-called “creative class,” I see the urban form as ever changing, and consider a city’s primary mission not aesthetic or simply economic but to serve the interests and aspirations of all of its residents.

Clearly the data supports a long-term preference for suburbs. Even as some core cities rebounded from the nadir of the 1970s, the suburban share of overall share of growth in America’s 51 major metropolitan areas (those with populations  of at least one million) has accelerated—rising from 85 percent in the ’90s to 91 percent in the ’00s. There’s more than a tinge of elitism animating the urban theorists who think that urban destiny rides mostly with the remaining nine percent matters. Overall, over 70 percent of residents in the major metropolitan areas now live in suburbs…

While they’ve weaved a compelling narrative, the numbers make it clear that the retro-urbanists only chance of prevailing is a disaster, say if the dynamics associated with the Great Recession—a rise in renting, declining home ownership and plunging birthrates—become our new, ongoing normal. Left to their own devices, Americans will continue to make the “wrong” choices about how to live.

Kotkin has been saying this for a quite a while now. On one hand, he appears to be correct: a good number of Americans like suburbs. On the other hand, others would argue there is much more going on than just individual preferences. Perhaps the whole system, from funding for highways versus mass transit, government programs intended to help people purchase homes, to a culture that idealizes autonomy and driving, is rigged in favor of the suburbs. And if this system is rigged, then people aren’t exactly making completely unconstrained choices.

The key here is that one doesn’t have to argue Kotkin’s individual choice argument is necessarily or completely wrong just because the system may be set up in a certain way. Yet, urban sociologists would tend to put the emphasis on the second explanation, that there are a number of larger social forces that promote the suburbs and have helped convince many Americans that the suburbs are the place they want to be.

Help needed in measuring online newspaper readership

The newspaper industry is in trouble and it doesn’t help that there is not an agreed-upon way to measure online readership:

It’s no longer uncommon for someone to own three or four devices that can access news content at home, work or almost anywhere. This array causes headaches for newspaper publishers and editors and sows confusion for advertisers who want to know how many readers a newspaper has. How should they be counted? Where should advertisers put their dollars? How many readers does an online advertisement reach? What’s an ad worth anymore?

Perhaps as vexing is who is counting readers and who counts them best. Unlike the methods Arbitron and Nielsen use to develop radio and TV ratings, the science of counting online and digital news consumers has existed only for a short time. At least nine companies have crowded into the business of measuring digital audiences over the past 15 years. Each company employs its own methodology to collect data. And because digital technology seems to leap forward almost every day, measurement techniques that were acceptable yesterday may not be adequate tomorrow.

With the money at stake in advertising and prestige, you would think there would be more agreement here. Without agreed-upon standards, newspapers can claim very different numbers and there is no way to really sort it out.

Why can’t newspapers themselves pick a provider or two they like, perhaps one that is more generous in its counting, and run with it as an industry?

Dana Chinn, a lecturer at the University of Southern California’s Annenberg School for Communication and Journalism, said newspapers haven’t kept up with other industries that do business online.

“There is a stark contrast between the news industry and e-commerce, in that e-commerce is saying analytics is do or die for us because we are a digital business,” Chinn said. “News organizations don’t say that, because if they did they would use the right metrics. All the news organizations I know are usually using the wrong metrics to make the decisions that are needed to survive.”

This is a reminder that money-making today is very closely tied to measurement, particularly when you are selling online information.

Claim: a McMansion might kill you

I’ve seen lots of critiques of McMansions but I can’t recall seeing one that suggests they are bad for your health:

https://i0.wp.com/homeinsurance.com/images/McMansion.v2.png

Quite the infographic but I think it (perhaps intentionally) invokes McMansions to introduce some negative connotations and avoids the bigger context: these are problems across American society, whether you live in a big house or not. Some of these are tied to sprawl more broadly with its dependence on cars, on a shift toward eating out and more sedentary jobs, building homes in general, and a growing emphasis on media. This could fit with a common critique of McMansions: they are part of larger patterns of excessive consumption.

In the end, your McMansion is not killing you much more than “average” American contexts are.