Prediction that the 2017 housing market in the Chicago region will be country’s worst

Realtor.com just released a prediction that the Chicago housing market will not do very well next year compared to the country’s other largest markets:

Both prices and sales will increase, but at a stunted rate compared with other areas, according to a forecast by Realtor.com, a website for the National Association of Realtors. The prices of homes throughout the Chicago metropolitan area are expected to climb just 1.95 percent, and sales of new and existing homes are expected to increase 2.27 percent…

Chicago’s problem is a combination of slow growth in both population and jobs, said Jonathan Smoke, an economist at Realtor.com. The area’s population is expected to increase only 1 percent next year.

Given the size of Chicago, the city should be among the nation’s top three markets for job creation, Smoke said. Instead, Chicago is ranked eighth, with job growth much stronger in areas such as Dallas and Phoenix…

Nationally, Chicago has been among the slowest areas to recover from the housing market crash. According to the S&P CoreLogic Case-Shiller Index released this week, Chicago’s home prices on average remain about 20 percent below July 2007 levels. Meanwhile, the average price for the largest 20 metropolitan areas is now above pre-crash levels.

Not good news for a region that is still the third largest in the country but suffers from a number of problems: its central city is losing residents, the state government is a mess with no long-term budget deals in sight, it doesn’t seem to have enough innovative companies or industries, and there are negative perceptions about violence. Add a slow housing recovery and both the people living there as well as those who might consider moving there may not see much to celebrate.

Actually, this is an interesting question to consider: what positives would Chicago region residents note compared to other regions? What would attract those who have the ability to choose where they want to live? Chicago may be an important global city but it doesn’t want to slowly slip into being a center solely for the Midwest.

One important trait of the Chicago region isn’t going away anytime soon: even in the world of the Internet and jet travel, it has a prime location in the middle of the United States and is a key piece of many transportation and freight networks.

Buying vacant Chicago lots for $1

Many Rust Belt cities have plenty of empty land and the city of Chicago is selling some of these lots for $1 a piece:

In an effort to combat urban blight and the illegal activity that often follows, the City of Chicago has announced a major expansion of its Large Lots program that offers empty city-owned parcels to nearby homeowners for just $1.

After debuting in Englewood and East Garfield Park in 2014, more than 550 homeowners have so far taken advantage of the program. Now, thanks to its recently expanded scope, Large Lots will extend to 33 Chicago communities on the West and South sides, offering 4,000 empty properties at the extremely discounted rate…

Not just anyone can swoop in and grab real estate for a buck, however. To purchase a lot, buyers must reside on the same block, be current on their property taxes, and be in good financial standing with the city in order to be eligible. Large Lots will be accepting applications on its website through the end of January.

The city tells the Chicago Tribune that all lots in the program are reserved for residential uses such as extended side or back yards, gardens, parking pads, or landscaped green space. In addition to improved neighborhood aesthetics, the Trib also cites a study that found the program yielded a notable drop in nearby littering, drug activity, and prostitution.

Eliminating empty properties is probably a good first step. But, what is the next step? What is the long-term solution to reviving both these properties and neighborhoods?

I will occasionally get questions from students as to why people or businesses don’t see vacant land like this as opportunities. On one hand, the Chicago metropolitan region is in desperate need of affordable housing. On the other hand, these properties are often located in poorer neighborhoods. But, a collection of residents or organizations could really make something interesting out of cheaper properties and the city would benefit from better uses.

Trying to replicate Times Square in places like Atlanta

Large cities often borrow ideas from each other. But, is it possible to design places like Times Square into being by adding lights?

Some smaller American cities have recently been attempting to mimic this aesthetic, albeit on a lesser scale, in the hope of spurring economic development and a more pedestrian-friendly downtown. Denver’s theater district, for instance, now features an enormous video screen and lighted advertisements peddling the latest in products and entertainment, and Atlanta is in the process of planning such a district for a section of its downtown.

The organization Central Atlanta Progress (CAP) is spearheading the effort to relax signage restrictions so that property owners can go bigger and brighter. “At this point, downtown Atlanta’s zoning doesn’t allow signs that are over 200 square feet, and our billboards are stuck in time,” says Jennifer Ball, CAP’s Vice President for Planning and Economic Development. “We’re anticipating an increase in size as well as the ability to do large-screen video and LED boards.” Atlanta’s City Council will likely vote on the measure in January…

But the larger aim is to bring more people downtown—and for them to experience the area on foot rather than in their cars. Atlanta is known for its incredible sprawl, with its more walkable neighborhoods scattered throughout the city and thus only easily accessed via automobile. The city is aiming to make itself denser and more pedestrian-friendly, and the district is, according to Ball, “a piece of the puzzle.” To further that goal, the bright lights district would also include more housing and ground-level retail outlets and restaurants. “Atlanta wants to have a strong core that is walkable and bikeable and has the level of density to support a lifestyle where you don’t have to be in your car all the time,” Ball says.

Such a multi-pronged strategy is important, as urban lighting scholars caution that illumination on its own doesn’t guarantee an increase in business or foot traffic. Margaret Petty, Head of the School of Design at Australia’s Queensland University of Technology and a historian of electric lighting, says that there’s no evidence to suggest that lighting alone attracts people to an area, unless that area, such as Times Square, is “iconic.” Josiane Meier, lecturer at the Technical University of Berlin and co-editor of Urban Lighting, Light Pollution, and Society, adds that the “if you build it, they will come” model doesn’t really work in terms of lighting and density. “The interdependency runs the other way,” she says. “Density is a prerequisite for the existence of bright lights districts.”

It sounds like the Atlanta plan isn’t just about lights; it is about creating denser, vibrant places with a variety of uses and lights (which both can attract people and highlight existing activity). New Urbanism and Jane Jacobs come together to possibly reshape Atlanta.

Will it actually work? This reminds me of the number of cities that tried to replicate the High Line after it proved very successful in New York City. It isn’t hard to build things to look like someplace else – look at Las Vegas – but it is difficult to create legitimate neighborhoods that aren’t just tourist destinations. Times Square is interesting not just because of the tourists but also because it is at the center of the number one global city (New York City) and and is located in one of the most densely settled places in the United States (Manhattan). A bar/entertainment district with some housing above and nearby may be nice but it can’t exactly replicate the conditions of a New York City or London or Tokyo.

What could a city like Atlanta create that would be more authentic to itself while also increasing density and vibrancy? What is unique to Atlanta that can’t be found elsewhere (besides the sprawl)?

Chicago looked good for the Cubs parade and rally…but was it the real Chicago?

For many, the city of Chicago looked good yesterday: the weather was beautiful for November 4th, the buildings gleamed, the lake was beautiful from the air, everything looked pretty clean, and joyful millions descended on the city (I’m skeptical of the 5 million figure but that may be a subject for another post) to celebrate a win for the whole city.

Yet, I want to continue some thoughts from last week: a championship, even one as unusual as that of the Cubs, does not lead to a transformed city. On the television coverage, they talked of the day’s events bringing the city together, how the team embodied different aspects of the city, and how so many hearts had been lifted. Will the poverty rate decrease? Will the uptick in shootings and murders subside? Will economic opportunities start arriving in poorer neighborhoods? Will the public schools start providing a good education for all students? Will residential segregation lessen? Will the wealthy share more with those with less?

If anything, this win will provide more money for those who already have a lot. The Cubs were already quite profitable before the win and the championship supposedly adds $300 million to a multi-billion dollar commodity. The team’s development work around the ballpark is supposed to help the neighborhood but it also follows the pattern of other teams who are using their sports franchises to make more money in local real estate and development. I know the team gives to charities – pretty much all major businesses do – but does the wealth help others?

And does a win provide Cubs fan Rahm Emanuel – alongside other city leaders who were to receive tickets to World Series games until the public got wind of it – a reprieve from tough questions?

And which Chicago is the real Chicago: the skyline, Loop, and North Side or the other areas of the city?

And how about the pretty white fan base (at least it appeared this way by who was attending the World Series games at Wrigley and those who attended the parade and rally)? How many of those who poured into the city to celebrate are from the suburbs and from outside the region?

It could still be a very good day for Chicago if that same passion and energy displayed in celebrating the winning of a game – men playing with bats, balls, bases, and gloves – could be regularly channeled into improving communities.

 

How much do we know about cities today because of photographs and visual images?

It didn’t take long for photography to become a tool for preserving major cities:

The idea of capturing something in photography before it disappears dates back almost to the dawn of the medium. In 1875, a group called the Society for Photographing Relics of Old London formed in response to the imminent demise of the 17th-century Oxford Arms. Like many coaching inns, the Arms was facing destruction as the city, coming out of the Industrial Revolution, was in a state of major redevelopment. Photographers documented the inn and other soot-stained alleyways, Gothic façades, and rambling wooden structures in glass plate negatives, printed in carbon to make them last…

Ramalingam added that the photographs demonstrate “what parts of London were considered worth preserving” to 1870s Londoners, and about half of these sites are still part of its built environment. A map on one wall plots their current or former location. A teetering house in an 1883 photograph is now replaced by the glassy Gherkin skyscraper, and Christopher Wren’s Temple Bar, pictured in 1878, was later taken apart and then reinstated not far from St. Paul’s Cathedral. More than just preserve a visual memory, the images represent the beginning of the photographic medium being a deliberate part of our historic record.

The photographs here are very interesting. Yet, I would love to see more on the larger question: did photography fundamentally transform how people and societies viewed their major cities? The visual age and the age of megacities are intertwined. Photography arrived around the same time as major change: industrialization and urbanization had arrived in many Western cities by the late 1800s. What if the transformation of London or the phoenix-like rise of Chicago or the changes in Paris weren’t accompanied by photographs? If we just had paintings or text descriptions, would we understand those changes differently? While photographs help us know what we are missing in current cities, they also remind us of how much has disappeared from all the major cities of the world over the centuries.

Naperville marathon fastest-growing? Economic boost?

Two pieces of information about the just-run Naperville marathon caught my eye:

The Naperville marathon has been one of the fastest-growing events in the country, more than doubling in size over the past few years. Still, it maintains a sense of smallness that is attractive to some runners like Jennifer Maierhoffer, of Seneca. Running a marathon was on her “bucket list,” she said, and she chose the Naperville event due to its size…

Naperville Mayor Steve Chirico said the race is great event for Naperville as it provides not only an economic boost to the city, but also serves as a time in which the community can come together as volunteers to help run the event. This year more than 1,000 volunteers participated, he said.

Several quick thoughts:

  1. Naperville claims to have a small town feel despite its size (over 140,000 residents). So, what will they do to keep this event small?
  2. Keeping the event small could be at odds with the purported economic boost. If you had more runners, there would be more visitors. I suppose the spots in the races could become more lucrative, especially if this is tied to good causes (according to the end of the article, $1 million was raised for charity).
  3. Just how much of an economic boost could a relatively small event like this be? I’d be interested in seeing the figures.
  4. Naperville’s rapid population growth has slowed now that large parcels of land have disappeared but the marathon gives the suburb something fast-growing to hold on to.
  5. What is the saturation point for hosting marathons? Are there suburbs and other places that have stopped hosting marathons in recent years because they didn’t have enough interest or participants?

The origins of Chicago’s residents-only parking

An article on rethinking Chicago’s residential parking permits system reveals how it all started in the first place:

The first residents-only parking signs were put up in 1979 to protect North Side bungalow-belt homeowners who were tired of fighting Northeastern Illinois University students for spaces. Since then they’ve proliferated across the city, with 1,466 zones currently on the books. Aldermen often don’t want to say no to residents who ask for a parking zone, fearing the political backlash.

Two quick thoughts:

  1. It is not surprising that such a program might spread. What was intended for one particular problem suddenly appeared appealing to all sorts of people and before you know it, permits were applied everywhere. This is a good example of the ease of creating such regulations – they spread really quickly – but the difficulty of putting the cat back into the bag when such regulations become normal and institutionalized.
  2. Chicago is often touted as a city of neighborhoods but what this means is that a lot of people are able to keep cars as the neighborhoods have plenty of lower density residences as well as single-family homes. The underlying issue here isn’t necessarily whether there are permits or not; rather, how do encourage people to have fewer cars? Is this even possible in a city that wants people to be able to own detached homes?

Comparing the architecture of Chicago and LA

If baseball teams from two cities square off, why not use it as an opportunity to compare the architecture of the two locations? “Chicago vs. Los Angeles: Which city has the better architecture, public art, and parks?” Here are the comparisons in the iconic skyscraper and landmark categories:

Willis Tower

During much of the twentieth century, Chicago was a merchant city and the biggest name in the business was Sears. In the late ‘60s, the company decided to build a new headquarters and tapped Skidmore, Owings & Merrill to design what would become the tallest building in the world. Designed by Bruce Graham and Fazlur Rahman Khan, the building’s “bundled tube” design not only allowed it to reach new heights, but to also make a grand gesture in the Chicago skyline. With an official height of 1,450 feet (1,729 feet if you include its antennas), the tower held the world’s tallest title until 1998 when the Petronas Towers in Malaysia were completed.

US Bank Tower

The tallest building on the West Coast—until about six weeks ago, anyway—is strong and mighty—it was built to withstand an 8.3 magnitude earthquake. But that hasn’t mattered much to filmmakers. It’s such a standout building that director Roland Emmerich targeted it in no less than three of his blockbuster disaster films; Aliens destroyed it in Independence Day, Tornadoes swept through it in The Day After Tomorrow, and it was felled by an earthquake (presumably above 8.3) in 2012. Completed in 1989, it was designed by architect Henry N. Cobb, who outfitted the structure with its signature crown. This year, the tower unveiled a terrifying glass slide that suspends riders above the street 1,000 feet below. (Even the engineer admitted it’d be “scary as hell” to ride in an earthquake)…

Chicago Water Tower

The Chicago Water Tower in many ways is a reminder of Chicago’s ability to endure through difficult times. The 154-foot tall limestone structure is a physical connection to the city’s early days as it is one of the rare buildings that survived the Great Chicago Fire of 1871 which wiped out most the city’s downtown. Today, it is surrounded by towering skyscrapers but remains a popular tourist destination and symbol of Chicago’s strength and determination.

Hollywood sign

Perhaps the most recognizable landmark this side of the Pyramids at Giza, the Hollywood Sign has come to stand in for so much—show business, fame, excess—but is locally a symbol of the city’s complicated relationship with growth and change. The sign originally read “Hollywoodland” and was merely an ostentatious billboard advertising a new subdivision during a 1920s development boom. Later, when it had become a recognizable local landmark, preservationists sought to restore and preserve the sign. And now, with tourists from around the world flocking to Beachwood Canyon to get a closer look at those giant letters, it’s apparently become the bane of local residents’ existence—some of whom have proposed dismantling the sign entirely.

If we are comparing the most iconic representatives of each categories, the cities may be closer than many realize. Chicago is widely recognized as a capital of architecture yet Los Angeles has a good number of interesting and well-known buildings and designs. Additionally, the “feeling” of each place – spatially, culturally – is quite different so it could be hard to make direct comparisons. Yet, I would guess that if we went with quantity as well as history, Chicago would be a more clear cut winner.

I would be interested to see how many architects worked in both cities. In other words, were they separate architectural worlds or was there a lot of back and forth? Given that the two cities are so different, I wonder how much overlap is possible and then how much either the cities or architects would want to broadcast such overlap.

Updating the last few years of (private sector) history of Chicago’s public housing

By now, a number of scholars have effectively explained the problematic history of Chicago’s public housing. But, as this new piece from Curbed Chicago suggests, the most recent years have involved a lot of change. Here are some interesting tidbits from this recent history-in-the-making:

Holsten’s answer is emphatically yes. He specializes in mixed-income and affordable housing, and has developed $500 million worth of it since 1975. But building a mixed-income building is one thing. Forming an actual community across racial and class lines is another. “Our job as developers is much more than financing buildings and property management,” he says. “It’s trying to build community. That’s the hardest part.”…

One sticking point is the issue of density. Chicagoans feel burned by their past experience with high-rises. And the city has a tradition of homeownership that’s different from other very large American cities. Chicago’s famed “bungalow belt” of brickworker cottages built in the early 20th century offered waves of immigrants affordable single-family homes, and preservationists have formed a nonprofit to protect them.So the CHA’s residents would prefer a house and a porch of their own, but that desire often runs counter to the need to accommodate the thousands who have been displaced…

Between 2008 and 2012, the CHA issued about 14,000 fewer vouchers than HUD funded, building up a surplus of $432 million and earning a rebuke from HUD Secretary Julian Castro. (The CHA says its reserves have since been cut and will be spent down by the end of 2017.) A Chicago Sun-Times and Better Government Association investigation found that four out of 10 voucher units have been cited for building code violations in the last five years.

I am skeptical that the private sector alone can solve these housing issues. The free market tends to lead to exclusion and profit-seeking. It doesn’t provide many solutions to correcting existing inequalities, which in the United States tend to connect race, social class, and housing. See an earlier post for a number of the bad outcomes that can result from a free market approach to housing.

On the other hand, the Chicago Housing Authority has done little good. And Americans from the beginning have been ambivalent about involving government in housing. There is little chance that the government will do much more to provide housing – even as the need for affordable housing is great in many cities – because it is a difficult issue in which to find much support.

Perhaps there is a third approach: the US government props up the mortgage industry! Probably not a good long-term solution but this is what we have and it is a system that privileges homeownership.

The Chicago of today influenced by 1920s zoning decisions

A new study suggests the beginning of zoning in Chicago had long-lasting effects:

Walsh and two other urban economists investigated zoning’s long-term effects in Chicago, using 1920s parcel-level data on land use and market values prior to, and immediately after, the adoption of the city’s first comprehensive zoning ordinance in 1923. They compared these early quilts of land use to that of the present day (or, at least, to the most recent complete dataset available, which came from 2005).

Contrary to what many economists may believe, they first found that zoning did not merely ratify existing land uses. Lot by lot, they found significant variation between the activities that predated zoning and those that came after, especially as years went by. For example, some factories and shopping areas that didn’t conform to the 1923 code were allowed to stay in their respective locations, thanks to a “grandfather” clause. But over time, the vast majority of them disappeared. The powerful force of zoning can be seen on a citywide scale, too: Whereas 82 percent of Chicago’s developed blocks had some form of commerce happening in 1922, that share had dropped by about half by 2005, researchers found.

In other words, the way Chicago looks in the 21st century tracks much more closely with the desires of its planners in 1923 than it does with the city that preceded zoning. This fact has had a huge effect on economic patterns, too. For example, the researchers found that exclusive residential zoning had a significant impact on home prices, driving up values in neighborhoods cordoned off for single-family homes. On a citywide level, they used a regression analysis to find that the zoning code of 1923 had bigger role in shaping economic patterns—i.e., where commercial and industrial activity is going on today—than either pre-existing transportation networks or geography, two factors you might think would best explain why there’s a factory by the old railroad tracks, or a shopping district near downtown…

Although the present paper didn’t explicitly analyze how Chicago’s old zoning codes have influenced racial segregation, a companion paper published in Julyby the same researchers found that the laws drawn up in 1923 were discriminatory: Areas with more black residents were zoned for higher-density housing, and “neighborhoods with larger populations of blacks or recent immigrants were zoned disproportionately for manufacturing.” Chicago consistently ranks as among the most segregated cities in the U.S., and its present-day economic divisions track closely with race (as well as with municipally recognized community boundaries). It wouldn’t be surprising to learn that zoning laws (much like housing policy) dating back a century are in some ways responsible. That’s a theory that needs investigation, Walsh says.

Zoning decisions are political ones. The suggestion here is that if the decisions are good ones, they can have positive effects for decades. The converse – particularly when used to limit options for particular groups – is also true.

The last paragraph of the article hints at recent suggestions regarding significant changes to urban zoning. It would be interesting to see what average Americans think of such ideas: would they trade predictability for flexibility? Continue with the example of Chicago: would more flexible zoning allow for the construction of more affordable housing or would it mean that more land would be converted to non-residential uses, limiting housing options? New Urbanists have touted mixed-use zoning for a long time but their vision of this is often limited to particular kinds of businesses or offices as well as nicer housing (even if it includes different price ranges).