Worst year ever for sales of new homes

Here is another indicator that the American housing market has a long way to go before it is fully turned around: 2011 was the worst year for new home sales with records dating back to 1963.

About 302,000 new homes were sold last year. That’s less than the 323,000 sold in 2010, making last year’s sales the worst on records dating back to 1963. And it coincides with a report last week that said 2011 was the weakest year for single-family home construction on record…

Economists caution that housing is a long way from fully recovering. Builders have stopped working on many projects because it’s been hard for them to get financing or to compete with cheaper resale homes. For many Americans, buying a home remains too big a risk more than four years after the housing bubble burst.

Though new-home sales represent less than 10 percent of the housing market, they have an outsize impact on the economy. Each home built creates an average of three jobs for a year and generates about $90,000 in tax revenue, according to the National Association of Home Builders.

A key reason for the dismal 2011 sales is that builders must compete with foreclosures and short sales — when lenders accept less for a house than what is owed on the mortgage.

While several experts are quoted in this story suggesting this likely means the housing market has bottomed out, I am interested in whether this will become the “new normal.” In other words, perhaps we won’t ever get back to the level of new homes sales that we have seen in the past. This could take place for several reasons:

1. These foreclosures clogging up the housing market will continue to take years to clear.

2. There is less demand for new homes from consumers who decide to do other things with their money.

3. Policy makers turn their attention away from new homes and instead promote renting or rehabbing older homes.

4. Population growth is relatively small, driving down demand throughout the housing market.

The assumption I’ve seen from a number of commentators is that the housing market will bounce back at some point. Is this such an inevitable event?

Designing and building a temple for atheists in London

An author has plans to construct an atheist temple in London:

Author Alain de Botton has announced a bold new plan for a series of Temples for Atheists to be built around the UK.

‘Why should religious people have the most beautiful buildings in the land?’ he asks. ‘It’s time atheists had their own versions of the great churches and cathedrals’…

De Botton has begun working on the first Temple for Atheists. Designed by Tom Greenall Architects, this will be a huge black tower nestled among the office buildings in the City of London. Measuring 46 meters in all, the tower represents the age of the earth, with each centimetre equating to 1 million years and with, at the tower’s base, a tiny band of gold a mere millimetre thick standing for mankind’s time on earth. The Temple is dedicated to the idea of perspective, which is something we’re prone to lose in the midst of our busy modern lives.

De Botton suggests that atheists like Richard Dawkins won’t ever convince people that atheism is an attractive way of looking at life until they provide them with the sort of rituals, buildings, communities and works of art and architecture that religions have always used.

It will be very interesting to see if this idea catches on. It isn’t cheap to design and build such structures and I wonder if the funding will primarily come from wealthy individuals or atheist organizations.

Two other things are very interesting:

1. The argument that having a building for your cause is noteworthy. A building implies permanence and stability. If a group has enough money or followers, a building is a testament to that. Also, the specific design of a building can represent an idea or cause. In this case, the building is intended to help people think about perspective. In the end, a building is not simply a functional place but has a lot symbolic value.

2. More from a sociological point of view, it is interesting to hear De Botton argue that the mechanics of religion are successful even if its content is untrue. In other words, religious practices and behaviors are attractive to plenty of people and atheists need to find their equivalent. Religion’s power, then, is not just in a belief in or experience with the supernatural but is also a social phenomenon that successfully brings people together.

Debating the idea of a “perfect suburbia” in Montgomery County, Maryland

Amidst debates about sprawl and development in Montgomery County, Maryland, one commentator argues that whatever happens, it is impossible to return to a “perfect suburbia” that perhaps never really existed.

In the 1940’s, when much of Montgomery County was farmland, some people were probably upset to see their communities transition from rural to suburban. Others might have been excited at the prospect of new amenities, new neighbors, and the county’s emerging reputation as an affluent bedroom community. But no one really voted for that change to happen. It happened because of market demand for new housing, a lack of buildable land in Washington (and the declining status of the inner city), and a county government who, much like today, saw that people were coming and wanted to accommodate them appropriately.

Sixty years later, Montgomery County is a very different place. It’s a majority-minority county now. The Post did a story just yesterday about the gigantic Asian community in Montgomery County. Though many of those Asian immigrants have settled in so-called “suburban” places like Rockville or Germantown, studies show (PDF!) that they’re interested in a greater sense of community. For people who grew up in dense Asian cities, Montgomery County is the “perfect suburbia,” but not in the same way that Rose Crenca describes it…

Montgomery County became the “perfect suburbia” because people were invited in. We could turn people away who don’t look like us, who don’t think like us, who want to live in apartments, who make less money than us or get around on foot or by bus. But we wouldn’t suddenly go back to 1949 as a result. In fact, the county that would result would be far, far worse than what we have today.

Many people worry that plans to encourage urban development in Montgomery County is “imposing” a way of life on them. In fact, the opposite is true. Those, like Rose Crenca, who still cling to a “perfect suburbia” which may or may not have existed, are the ones telling other people how to live.

This is a common issue in debates about development: which vision of a suburbia will win out? There are lots of possible “winning” models: a place with lots of open space and plenty of restrictions on sprawl, places where redevelopment (and perhaps densification) is encouraged, places with a diverse population (Montgomery County is quite diverse compared to a lot of wealthy suburban counties), places that seem frozen in time. Of course, another way to look at this is who has the power to carry out their vision? Overall, this idea of an “ideal suburbia” is fascinating as people likely have some very different views.

Another aspect of suburban development debates is that it often pits “old-timers” against newcomers, people who have enjoyed the community for decades versus those who want to enjoy the community for decades. These groups might be very different demographically and therefore have very different visions of the world. For example, this blog post seems to pit a vision from an older resident who is partly worried about where older residents fit in the vision for Montgomery County. As land and home prices increase, older residents can be priced out of communities to which they have contributed. This is a particularly interesting issue in a lot of suburbs and is often behind what suburbs mean when they talk about affordable housing: how can we promote housing that allows our older residents to still live here? At the same time, communities don’t remain frozen in time and things change. Appealing counties such as Montgomery County are likely to draw a broad group of people looking for their own suburban ideal made up of quality (cheaper?) housing, good schools, and safety. This old-timer/newcomer split can last for quite a while until a community becomes characterized by a more transient population which is often tied to a spurt in growth.

The irony in all of this is that once you move into a community, it is likely to never be exactly the same again. New waves of growth tend to bring about different kinds of development and businesses. Places are not static; they tend to be dynamic as people and organizations move in and out. Managing this kind of growth can be done so it doesn’t turn into incomprehensible sprawl but change itself is inevitable.

I would also suggest that the people criticizing Rose Crenca for her views may just be promoting similar views in a decade or two after they have settled into Montgomery County and want to preserve the best of the county as they envision it. This is the essence of NIMBYism.

Innovative solution to homelessness: taxpayer funded stadiums in Florida have to host homeless

It sounds like this idea has a long way to go in the Florida legislature but it is an innovative attempt to deal with homelessness: insist that owners of taxpayer funded stadiums host homeless residents.

As reported by the Miami Herald, state legislators have unearthed an obscure law that has not been enforced since it was adopted in 1988. It states that any ballpark or stadium that receives taxpayer money shall serve as a homeless shelter on the dates that it is not in use.

Now, a new bill would punish owners of teams who play in publicly-funded stadiums if they don’t provide a haven for the homeless. Affected ballparks would include the Miami Marlins’ new ballpark in Miami’s Little Havana, the Tampa Bay Rays’ Tropicana Field in St. Petersburg and several spring training facilities. It also includes the homes of the Tampa Bay Buccaneers, Tampa Bay Lightning, Miami Heat, Jacksonville Jaguars and Florida Panthers.

The newspaper estimates that owners might have to return $30 million in benefits that were already bestowed if the bill passes and they can’t prove they were running homeless shelters (to the newspaper’s knowledge, no teams have been).

I think the overriding concern here based on one thing: governments (and others) are lacking money. This could be an innovative solution: use an existing structure that often sits empty which then cuts costs for building/renting other homeless shelters. Lawmakers have some leverage here because they helped secure funding for these stadiums. A growing body of research suggest that these taxpayer funded stadiums are not boons to the local community. Research suggests that taxpayer funded stadiums don’t help out communities as much as help line the pockets of owners. In other words, communities don’t get the money back that they put into stadiums in the form of taxes and team owners reap the benefits. Also, when teams leave, certain businesses may suffer but eventually residents spend their entertainment dollars elsewhere in the city so the city doesn’t lose out in the long run. Why shouldn’t stadium owners have to give back a little bit more?

I wouldn’t be surprised if more cities try to pursue similar ideas that attach more strings to accessing public funding.

Overblown concern about Google “replacing” or “destroying” our memory

The headlines read: “Google ousts brain,” “Google replaces the brain,” “Here’s how Google search is destroying our memory.” These are all based on a new study:

The Internet is becoming our main source of memory instead of our own brains, a study has concluded.

In the age of Google, our minds are adapting so that we are experts at knowing where to find information even though we don’t recall what it is.

The researchers found that when we want to know something we use the Internet as an ‘external memory’ just as computers use an external hard drive…

‘The Internet has become a primary form of external or transactive memory, where information is stored collectively outside ourselves.’

This an example of “distributed cognition,” the idea that humans use other sources to extend their brain’s capacity. In this case, memory space in the brain may be freed up by relying on Google and computers to store certain information. Instead of “replacing” the brain, Google is extending the brain and helping humans offload certain information that can helpfully be stored elsewhere. Google isn’t the first technology that allows this; so does the printed page. Rather than storing a bunch of arcane and typically unhelpful information in our head, we could look up basic information in a reference book.

Perhaps people are more concerned about Google itself and the idea that a corporation, an organization more interested in profit than our well-being, may be behind changes in our brain.

Claim that Putin plagiarized a sociological monograph disputed by its author

Here is an odd sociological story: ahead of an upcoming election, bloggers accuse Vladimir Putin of plagiarizing a sociological monograph when writing about “ethnic issues” in Russia.

Putin’s article, titled “Russia: The National Question,” was published in the influential daily “Nezavisimaya gazeta” on January 23 and was the second in a series of publications by Putin in the run-up to the March 4 presidential election…

Bloggers, however, allege that approximately one-third of the publication was lifted from a monograph by sociologist Valery Tishkov and two other researchers.

Aleksandr Morozov, editor of “Russky Zhurnal” (Russian Journal), posted the allegations on his blog, generating more than 100 comments and sparking follow-up stories on widely trafficked online news sites like Lenta.ru and Polit.ru. He spoke to RFE/RL’s Russian Service:

“When I read Putin’s strange article on the national question, I noticed that special terminology was being used that is only used by professional cultural anthropologists — words like ‘socio-cultural code,’ ‘poly-cultural,’ and ‘poly-culturalism.’ There is a standard set of [commonly used] political words such as ‘multiculturalism’ and ‘civil nation.’ But [the language of Putin’s article included] some pretty specialized expressions — even though speechwriters usually watch closely to stop scientific jargon from making its way into political statements by politicians of Putin’s level.”…

But in comments to RFE/RL, Tishkov, who is a member of the Russian Academy of Sciences, said he was unconvinced that his work had been plagiarized:

“As for [Putin’s use of] ‘poly-culturalism,’ he also got this a little confused. Everything there is a little vague. The article is sort of eclectic; [it is written in a] purely pre-election style…so that it appeals to everyone who is voting. As for those who aren’t voting, what does he say about them? Migrants… and so on — ‘Are they responsible for everything?’ I didn’t write that kind of book. It is different from this article.”

In this day and age, wouldn’t it be fairly easy for people to determine whether Putin truly plagiarized the monograph or not? Perhaps it is not simply a case of cutting and paste text but rather using reworded ideas that seem to come from another source. Using technical terms doesn’t necessarily mean someone is plagiarizing, particularly if that person could have had plenty of speechwriters or experts write the article or help him write it. It would be a different story for a student who had never shown the ability to use such terms before.

I wonder how much sociological work is plagiarized. From my grad school days, I remember one academic talking about work being plagiarized in other countries and the difficulties one might encounter in trying to reprimand the plagiarizer. Does an increased number of  instances of plagiarism reflect positively on the popularity or value of an idea or text?

Argument: land restrictions lead to the American cities with the “most and least affordable housing”

A new survey names the “most and least affordable housing” markets in the United States. Not too many surprises here. The top ten most affordable markets: Detroit, Atlanta, Phoenix, Cincinnati, Cleveland, Las Vegas, Rochester, Columbus, Kansas City, and Minneapolis-St. Paul. The top ten least affordable markets: San Jose, San Francisco-Oakland, New York, San Diego, Los Angeles, Boston, Seattle, Richmond, Providence, and Portland.

What is particularly interesting is the reason given to explain the differences in affordability:

The authors specifically call out new construction that is significantly controlled by comprehensive plans or through more restrictive land use regulations “referred to as ‘compact development,’ ‘urban consolidation,’ ‘growth management’ and ‘smart growth.’” The thesis is that these places create housing that is unaffordable. And conversely, the places ranked as affordable – Phoenix, Atlanta, Las Vegas – tend to be areas associated with sprawl development.

These two authors are known for their market-based preferences for land use and housing development, so their argument is no surprise. And though there is certainly a case to be made that restrictive land use policies can limit supply and drive up costs, these aren’t the only factors in play. That New York City is less affordable than its upstate neighbor Rochester has more to do with the fact that it is a much more vibrant and attractive city, and that people are willing to pay more to live that lifestyle than people who prefer Rochester living. Taking this and other factors into account would expand the understanding of why some places are less affordable than others. And while the picture painted by Cox and Pavletich is not wrong, per se, its limited scope offers a less-than-comprehensive analysis that could benefit from more context.

This sounds like an argument from the urban ecology school that argued sprawl could be explained by a search for cheaper land. If governments or other agencies restrict the amount of land available for development, then prices will have to go up.

This explanation also seems to suggest that the affordability sprawl allows should be a primary goal. Of course, sprawl comes with other problems including increased costs, longer commutes, more environmental concerns, and a loss of space that could have been used for other purposes or left open. If the affordability of a home was the only thing that mattered for public policy, policies would be quite different. But when doing urban and regional planning, there are a number of other concerns that must be taken into consideration.

Also: I’ve always wondered why lists of affordable or unaffordable places don’t try to overlay other data on the prices. At a quick glance, it looks like the more affordable places tend to be in the Rust Belt, the South, and foreclosure centers while the more expensive places are on the coasts. Some other factors that may matter: perhaps “creative class” cities more expensive on the whole, even controlling for other factors; demographics; the particular industries and companies located in each place; where cultural centers are located; the historical context.

Lots of American cultural values on display in State of the Union speech

While State of the Union Speeches can contain specific information and plans, they are often great places to spot American cultural values and ideals. Democrat or Republican, the themes are often similar. (Of course some topics are more contentious than others but these speeches tend to try to appeal to a broad demographic.) Here is the text of the full speech.

Some of the ideas contained in the speech:

-Americans who work hard should be able to get ahead

-There is an American Dream of a middle-class lifestyle

(Here is a summary of these first two: “They understood they were part of something larger; that they were contributing to a story of success that every American had a chance to share – the basic American promise that if you worked hard, you could do well enough to raise a family, own a home, send your kids to college, and put a little away for retirement.”)

-American will win out in the end

-American workers are the best in the world

-More and better education will help our country move forward

-Our troops are heroes and embody the best of America

-May God bless the United States of America

Any other big common ideas you can spot?

Indicators that loyalty among family members is up in America

Even though we supposedly live in a disconnected and fragmented age, there are some indicators that suggest Americans feel more loyal toward their families than in the past:

“There’s been a social and economic change that’s actually made us more dependent on family loyalties,” says Stephanie Coontz, author of “Marriage, A History” (Penguin).

“You don’t know your neighbors. It would be crazy to be loyal to your employer in the same way you used to be because your employer’s not going to be loyal to you. All of those things have simultaneously made us want more loyalty — long for more loyalty — and try, I think, to have more loyalty in our personal lives.”

Loyalty itself is difficult to measure, but likely indicators such as family closeness appear to be on the rise. A 2010 Pew Research Center study found that 40 percent of Americans say their family life is closer now than when they were growing up, and only 14 percent say it is less close. Another Pew study showed that the percentage of adults who talked with a parent every day rose to 42 percent in 2005 from 32 percent in 1989.

The family loyalty picture is complex, with Bradford Wilcox, director of the National Marriage Project at the University of Virginia, saying that though couples who marry today are less likely to get divorced than couples that married in the 1970s, more people are forgoing marriage or delaying it.

The article suggests several reasons why people would be feeling more loyal toward their family today: rapid economic and social change, different expectations about family life, and people are entering intimate relationships more cautiously.

There could also be a few other factors at work:

1. I wonder if there is some social desirability bias in answering a question about family closeness. What adult today would say they are doing a worse job in creating family closeness than their parents did? Also, there is a memory issue here: how many current adults can accurately remember or assess the closeness of their family when they were younger? Their current family status is much more immediate.

2. I’m surprised this wasn’t mentioned in the article: it is relatively easier to communicate in families with the advent of email, cell phones, and text messages. However, I wonder if these easier methods of connection mean that people are confusing connected with closeness or if they are indeed one and the same.

Even if loyalty isn’t truly up compared to the “golden era” decades ago (at least in our popular culture we have this image of an era where the nuclear family never let each other down), the perception that loyalty is more important or stronger matters. This is an expectation that many people will bring to relationships and affect their actions.

(A side note: Wilcox and Coontz get interviewed for a ridiculous number of news stories about family life and marriage.)

Thief caught stealing used sociology textbook at IPFW

Here is a story you don’t see everyday: a thief was caught stealing a used sociology textbook from the Indiana University-Purdue University Fort Wayne bookstore.

A Fort Wayne man is facing a charge of felony theft for allegedly stealing a used sociology textbook.

Surveillance video at Follett’s bookstore at IPFW showed Neil W. White leaving the store without paying for the book, “Sociology in Our Times: The Essentials,” which cost $139.50, according to court papers.

White, 29, told an IPFW police detective that he stole the book, and he also admitted taking textbooks from the store 10 to 12 other times, court papers stated.

A few thoughts:

1. This guy needed a sociology textbook so bad that he stole it?

2. The bookstore was asking nearly $140 for a used copy of a intro to sociology textbook? It looks like you can buy this new at Amazon for $110 and used for around $70.

3. Have sociologists really ever gotten behind a cheaper textbooks movement or even gone so far to use the “steal this book” marketing campaign? If not, you would think sociologists might support this given their ideological commitments.