Great Quotes in Homeownership #2: Herbert Hoover on the value of owning a home in 1931

Herbert Hoover is not a well-regarded President. But he did have a lot to say about home ownership even as the country was going through the Great Depression. Here are some of Hoover’s thoughts from 1931:

“Next to food and clothing, the housing of a nation is its most vital problem. . . . The sentiment for home ownership is embedded in the American heart [of] millions of people who dwell in tenements, apartments and rented rows of solid brick. . . . This aspiration penetrates the heart of our national wellbeing. It makes for happier married life. It makes for better children. It makes for courage to meet the battle of life. . . . There is a wide distinction between homes and mere housing. Those immortal ballads, ‘Home, Sweet Home,’ ‘My Old Kentucky Home’ and ‘The Little Grey Home in the West’ were not written about tenements or apartments. . . . They were written about an individual abode, alive with tender associations of childhood, the family life at the fireside, the free out-of-doors, the independence, the security and the pride in possession of the family’s own home. . . . Many of our people must live under other conditions. But they never sing songs about a pile of rent receipts. . . .”

Over these warm words and some 1,900 others like them President Hoover had worked with a full heart for two months. One evening last week he took them all, in the form of a keynote address, to Constitution Hall and there, in a voice brimming with emotion, delivered them to the assembled delegates of the President’s Conference on Home Building & Home Ownership. At this great gathering President Hoover again demonstrated his ability and leadership in an unofficial activity outside the constitutional realm of the Presidency.

The conference’s major purpose, President Hoover said, was “to stimulate industrial action,” not “to set up government in the building of homes.” To promote home owning the President urged a better system of home financing, thus keying his program in with his proposed Home Loan Discount system (TIME, Nov. 23).

Of course, Hoover gets some of the blame for not being able to move the country out of a position where it was difficult for many Americans to imagine homeownership, let alone a steady job. But these and other quotes from Hoover suggest he was a President who was committed to helping average Americans move from a monthly rent to a mortgage even in dark economic times. He suggested homeownership would lead to better social outcomes plus lead to feelings of nostalgia, “independence,” “security,” and “pride.”

This is also a reminder that the American value of homeownership was not just a post-World War II phenomenon. The rate of suburbanization was impressive in the post-war period but there had been a wave of suburbanization in the more prosperous 1920s that was interrupted by the Great Depression. I have occasionally found it interesting to think about how suburban growth patterns would have been different without the Great Depression and World War II. Several things might have happened earlier, like the building of interstates or the mass building of suburban communities (exemplified by the Levittowns). Perhaps the whole process might have simply taken longer, giving citizens and politicians more time to react and adjust.

I also wonder how Hoover’s goals of homeownership are viewed by today’s scholars who look back at this period: did these sentiments directly contribute to prolonging the Great Depression? How many of Hoover’s ideas ended up getting implemented in some form by subsequent leaders?

The educational level of immigrants in America

A new report suggests that there are more immigrants with college degrees than immigrants without high school diplomas:

“There’s more high-skilled (immigrants) than people believe,” said Audrey Singer, senior fellow with the Metropolitan Policy Program at the Brookings Institution and co-author of the report, which contends that the economic contribution of immigrants has been overshadowed by the rancorous debate over illegal immigration.

Singer and Matthew Hall, a sociologist at the University of Illinois-Chicago, analyzed census data for the nation’s 100 largest metropolitan areas and found that 30 percent of working-age immigrants had at least a bachelor’s degree, compared with 28 percent who lack a high school diploma.

The article suggests that the report is intended to influence the national immigration debate, presumably by suggesting that many immigrants are an asset to the country.

But it would be helpful here to compare these figures for immigrants to the statistics for American adults overall to know whether these figures are impressive or not. Here are the 2010 educational attainment figures for Americans 18 and older of all races: 27.28% have a bachelor’s degree or higher while 13.71% have less than a high school degree. It looks like the figures for immigrants are more polarized compared to the general population with a higher percentage, about 2-3% more, having a college degree while a much higher percentage, about double, having less than a high school diploma. (Figures for Americans 25 and older change a little: 29.93% have a college degree or greater while 12.86% have less than a high school degree.)

The value, then, in the figures about immigrants are probably in the field of public perceptions, particularly the statistic of immigrants with a college degree which matches up well with comparisons to Americans 18+ and 25+ years old.

(The article doesn’t address this and I don’t know if the report does either: does it matter that the figures for immigrants are drawn from the 100 largest metropolitan areas? Would the figures be different if looking at all immigrants?)

The difference between a sociologist and a geologist, the “soft” and “hard” sciences

Comments about sociology can come from anywhere. See this example from a House member discussing FDA guidelines:

The most intense reaction was generated by a provision offered by Rep. Denny Rehberg (R-Mont.) that would block the FDA from issuing rules or guidance unless its decisions are based on “hard science” rather than “cost and consumer behavior.” The amendment would prevent the FDA from restricting a substance unless it caused greater harm to health than a product not containing the substance.

“The FDA is starting to use soft sciences in some considerations in the promulgation of its rules,” said Rehberg, who defined “hard science”, as “perceived as being more scientific, rigorous and accurate” than behavioral and social sciences.

“I hate to try and define the difference between a psychiatrist and a psychologist, between a sociologist and a geologist, but there is clearly a difference,” he told the committee.

Three sets of comparisons are made here: between psychology and psychiatry, sociology and geology, and “hard” and “soft” science. I think it is pretty easy to make the first two distinctions, particularly between geology and sociology. But the third comparison seems a little strange: does Rehberg want to suggest that soft sciences are less true or that they matter less/are less valid for FDA decision making?

Overall, it sounds like Rehberg is suggesting that the “soft” sciences (psychology and sociology) are not as important in crafting FDA policies as the actual science that says whether certain products are good or bad for humans. But it seems somewhat silly to suggest that perceptions and behaviors shouldn’t influence policy decisions. A lot of legislation is driven by perceptions and values in addition to the actual influences in the physical world. Think about some of the major issues being discussed today such as the deficit or taxes: less of the conversation is about the actual impact on the country and more involves ideologies about who should be responsible for funding the government and what is the proper role and/or size of the government. One of the problems presented in this article is instructive: cigarettes are not illegal and yet government bodies are interested in limiting the consumption of them. Therefore, while menthol cigarettes may not be that much more harmful, if it is attractive to younger kids who then take smoking, why not regulate this? Of course, the smoking example is a loaded one and it would be hard to find someone who would suggest more smoking among teenagers is a good thing.

Based on this discussion, would either political party be willing to create legislation only based on “hard science” or is this only a suggestion when the “hard science” supports one’s existing viewpoint? Additionally, are there politicians out there who have publicly supported sociology rather than suggested it is a “soft” science?

Illinois redistricting also about capturing suburban voters

Much of the press about redistricting in Illinois has highlighted how Democrats plan to increase their seats. But the Daily Herald offers an additional insight by suggesting that the redistricting is really about capturing suburban voters:

But even as political analysts poring over the new boundaries provide slightly different takes, one thing is certain: the suburbs, which saw booming growth over the last decade, were the prime meat in the proverbial fattened calf — filleted to produce congressional districts that would help assure a Democratic majority in the state’s delegation over the next 10 years…

“There’s been a shift in power,” Northern Illinois University professor Richard Greene said. “Because of the population shift, the Democratic core and the inner manufacturing suburbs are losing strength, as the outer-edge suburban communities are gaining substantially in strength.”

Democrats, political consultant Kitty Kurth said, want to continue to capitalize on their base — the largely Democratic voting bloc of Chicago, some of which has moved to the suburbs in recent years.

The new map appears to do just that, in some cases through odd-shaped districts that often start in solidly Democratic Chicago and extend into the suburbs through long, gnarled fingers. That essentially extends Democratic Chicago districts into traditionally Republican suburban ones, but not by so much as to put any Democratic majority at risk.

Traditionally, some of the suburban areas, particularly DuPage County, have been solidly Republican strongholds. While these figures are already changing somewhat, this redistricting might help push  these state offices further away from Republicans.

The article also goes on to note how the second Hispanic district in the state could be located in the southwest suburbs “centered around Aurora and Joliet.”

Such a move to control suburban votes would go along with commentary that suggests suburban voters are critical for national political outcomes.

Claim of social desirability bias in immigration polls

Social desirability bias is the idea that people responding to surveys or other forms of data collection will say the socially correct answer rather than what they really think. A sociologist argues that this is the case for immigration polls:

A Gallup survey taken last year found 45 percent believe immigration should be decreased, compared to 17 percent saying it should be increased and 34 percent saying it should be kept at present levels. But should such figures be taken at face value? University of California, Berkeley, sociologist Alexander Janus argues not. Using a polling technique designed to uncover hidden bias, he concluded about 61 percent of Americans support a cutoff of immigration. Janus, who published his findings in the journal Social Science Quarterly, argues that “social desirability pressures” lead many on the left to lie about their true feelings on immigration — even when asked in an anonymous poll. In an interview, he discussed the survey he conducted in late 2005 and early 2006:

THE SURVEY: “The survey participants were first split into two similar groups. Individuals in one of the groups were presented with three concepts — ‘The federal government increasing assistance to the poor,’ ‘Professional athletes making millions of dollars per year,’ and ‘Large corporations polluting the environment’ — and asked how many of the three they opposed. Individuals in the second group were given the same three items as individuals in the first group, plus an immigration item: ‘Cutting off immigration to the United States.’ They were asked how many of the four they opposed. The difference in the average number of items named between the two groups can be attributed to opposition to the immigration item. The list experiment is superior to traditional questioning techniques in the sense that survey participants are never required to reveal to the interviewer their true attitudes or feelings.”…

I estimated that about 6 in 10 college graduates and more than 6 in 10 liberals hide their opposition to immigration when asked directly, using traditional survey measures.”

This sounds like an interesting technique because as he mentions, the respondents never have to say exactly which ideas they are opposed to.

In the long run for immigration policy, does it matter that much for liberals if people are secretly against immigration if they are willing to support it publicly? Of course, it could influence individual or small group interactions and how willing people are to participate in rallies and public events. But if people are still willing to vote in a socially desirable way, is this good enough?

I wonder if there are other numbers out there that are influenced by social desirability bias…

The effect of the “McMansion ordinance” in Austin

In the past decade, a number of communities across the United States have debated and enacted ordinances intended to regulate teardowns, often termed McMansions. Austin, Texas has gone through this process and Kathie Tovo, a candidate for the city council, discusses her take on the “McMansion ordinance”:

AC: One more fundamental criticism that’s been leveled at your campaign is that your goal of “complete communities” – the live-work-play ideal with affordable family housing – may be at odds with some policies supported by some of the neighborhood associations you’ve been affiliated with. The Austin Neighborhoods Council, for instance, seemed supportive of the McMansion ordinance, which some people argue has facilitated sprawl by preventing the sort of home expansions that would keep growing families in the city.

KT: I guess I just don’t buy that argument, especially about McMansion. Because, for one thing, a lot of people were really concerned about the McMansion ordinance; it was going to kill the building industry in Austin. It really hasn’t, and a lot of the McMansions weren’t adding density to our neighborhoods because they were typically being occupied by a couple of people. I think that you can add on a considerable amount to your house and not be a McMansion. Absolutely, we want to be sure our land development code allows for people living in small bungalows that might have accommodated families 40 years ago when we want them to be able to add on in ways that are appropriate. I think there’s a lot of room for doing that without running up against the McMansion standards. And as you look at older neighborhoods, people are adding on. And in looking at our Families and Children [Task Force] research – families with kids will live in smaller spaces, including multifamily residences, if the spaces are well-designed. I’m married to an architect, and he’s done some additions to older houses for families that wanted to stay in the central city but the house was really too small for their modern standards.

[Editor’s note: In response to this question, Tovo later added the following to her answer via email:

KT: This criticism has little grounding and shows a lack of understanding of the research in this area or the work that has been done by groups like the city’s own Families and Children Task Force. Neighborhood associations tended to be big supporters of many of the amenities that enhance the quality of life for families across the life span: parks, open spaces, sidewalks, and safe pedestrian and bike routes.

The reasons families with children have been leaving the central city are complex…Suggesting that unregulated development will somehow lead developers to create more affordable housing or more family friendly housing is incorrect.

(And for the record – the trend of families leaving the central city pre-exists the McMansion Ordinance.)]

This candidate makes several interesting points:

1. There is an argument out there that cities lose out when they create such ordinances as it drives out middle-class and upper-class residents. If these possible residents can’t tear down an older home and build the kind of suburban home that they desire, they are going to take the tax dollars and go elsewhere. In the long run, the city loses out on the sort of stable residents and tax base that it needs. I’ve seen this argument made in Dallas as well. Tovo suggests this isn’t really the case; people were leaving Austin even before the ordinance, suggesting other factors are also at work.

2. Tovo makes an architectural critique of McMansions, suggesting that people “will live in smaller spaces, including multifamily residences, if the spaces are well-designed.” I wonder if the ordinances/regulations in Austin go far enough to make sure housing units are well-designed.

3. Tovo wants to make clear that she is not opposed to people adding on to their homes – but this has to be done “in ways that are appropriate.” She is trying to chart a middle path between the two poles in the teardown debate: the rights of the community versus the rights of individual property owners.

4. Tovo suggests that unfettered, free-market housing policies will not lead to “more affordable housing or more family friendly housing.” Other communities agree with this as they offer incentives and regulations to insure that some of these structures are created alongside more typical single-family homes.

It sounds like Tovo is trying to tread carefully in these comments (perhaps also highlighted by her follow-up email after the interview). Overall, it sounds like she is promoting New Urbanist type neighborhoods that are walkable, diverse, affordable, and well-designed.

You can read the “McMansion ordinance” here on Austin’s official website.

Sociologist says “access to information is a fundamental human right”

A sociologist talks about the importance of citizens accessing information:

Access to information is a fundamental human right and democracy can’t function unless you know what government is doing, Dominique Clement, an associate professor at the University of Alberta, said Monday.

“By denying people access to information, you’re denying a human right and you’re denying them knowledge of how governments work, and ultimately that harms our democracy,” Clement, a sociology professor, said during a Canadian Historical Association panel discussion at the Congress of the Humanities and Social Sciences.

Calling freedom of information law in Canada “draconian,” Clement, who’s filled about 500 information requests throughout his career, said reform needs to happen nationwide in order for those laws to be effective.

He said privacy commissioners in the provinces should become more arm’s length than they are now and should be answerable to the legislative assembly or parliament, not to any premier or prime minister.

I wonder how democratic governments would respond to this argument. I imagine they would support it and then argue that certain information need to be protected because of national security and other reasons. One doesn’t have to be a conspiracy theorist to see that there is quite a bit of public/government information that is not easily accessible. Of course, non-democratic governments may not be too happy with these arguments as restricting information is deemed vital – see Iran’s recent efforts to create a national Intranet.

But this is related to a thought I have had in the past: is Internet access, particularly because of its ability to share and produce information, going to become a human right in the near future? Should rights regarding information apply to all information on the Internet or just “vital information” that citizens might need to participate in the civic realm? What would be the response in Western nations if Internet access was severely limited, even if a case could be made for it (like a threat of attack)?

Problems at the DuPage Housing Authority

As part of a story about corruption at the DuPage Housing Authority, the Chicago Tribune provides an update on the recent history of the organization:

But investigators have asked plenty of questions lately about how DuPage housing officials spend the $22 million in federal funds they get annually.

Since 2009, the U.S. Department of Housing and Urban Development has audited the DuPage Housing Authority three times, concluding the troubled agency violated numerous federal regulations and must pay back $10.75 million in misused tax money.

HUD has determined DuPage must repay that money to its Section 8 housing program because it didn’t allow competition for projects, failed to properly document whether many tenants were eligible to get subsidized rent, made inappropriate credit card purchases and, in some cases, overpaid benefits.

This is not a whole lot of federal money, particularly in a county with a population over 900,000 and a poverty rate of around 6% (this site has 2009 figures of a poverty rate of 6.5% and the 2008 Census had an estimate of 5.8%). But the DuPage Housing Authority has an interesting history. If I remember correctly from research I have done, the group was formed in the 1940s and had some federal money to work with. But by the early 1970s, the Housing Authority had not built any units within the county and HOPE, an organization now in Wheaton, sued the county for housing discrimination, primarily for exclusionary zoning practices. The court case, Hope v. County of DuPage (the 1983 version here), lasted for over a decade and here is a brief summary of the conclusion in a law textbook.  It is only within recent decades that the Housing Authority has developed units.

This is perhaps not too unusual considering the political conservatism of a county that has been solidly Republican since the the 1860s. But as the lawsuit from the early 1970s alleged, the county has continued to change: more immigrants and minorities have become residents, housing values went up, a number of communities limited construction of apartments, and there are a good number of lower-paying jobs in wealthier communities. Add this all up and there are affordable housing concerns within a wealthy county and this extends beyond the common suburban debate about “work-force” housing for essential government employees like teachers or policemen or providing cheaper housing for young graduates and/or older residents.

Poll figures on how the Rapture would have affected the Republican presidential field

Even as the news cycle winds down on Harold Camping and his prediction about the Rapture, Public Policy Polling (PPP) digs through some data to determine how the Rapture would have affected the field of Republican presidential candidates:

First off- no one really believed the Rapture was going to happen last weekend, or at least they won’t admit it. Just 2% of voters say they thought that was coming on Saturday to 98% who say they did not. It’s really close to impossible to ask a question on a poll that only 2% of people say yes to. A national poll we did in September 2009 found that 10% of voters thought Barack Obama was the Anti-Christ, or at least said they thought so. That 2% number is remarkably low.

11% of voters though think the Rapture will occur in their lifetimes, even if it didn’t happen last weekend. 66% think it will not happen and 23% are unsure. If the true believers who think the Rapture will happen in their lifetime are correct- and they’re the ones who had the strongest enough faith to get taken up into heaven- then that’s going to be worth a 2-5 point boost to Obama’s reelection prospects. That’s because while only 6% of independents and 10% of Democrats think the Rapture will happen during their lifetime, 16% of Republicans do. We always talk about demographic change helping Democrats with the rise of the Hispanic vote, but if the Rapture occurs it would be an even more immediate boost to Democratic electoral prospects.

Obama’s lead over Romney is 7 points with all voters, but if you take out the ones who think the Rapture will occur in their lifetime his advantage increases to 9 points. That’s because the Rapture voters support Romney by a 49-35 margin. Against Gingrich Obama’s 14 point lead overall becomes a 17 point one if you take out take the ‘Rapturers’ because they support Gingrich 50-37. And Obama’s 17 point lead over Palin becomes a 22 point spread without those voters because they support Palin 54-37.

Palin is the only person we tested on this poll who is actually popular with people who think the Rapture is going to happen. She has a 53/38 favorability with them, compared to 33/41 for Romney, 26/48 for Gingrich, and a 31/58 approval for Obama. Palin’s problem is that her favorability with everyone who doesn’t think the Rapture will happen is 27/66.

What a great way to combine two of the media’s recent fascinations. I would guess PPP put this poll together solely to take advantage of this news cycle. Should we conclude that Democrats should have wished the Rapture to actually happen to improve their political chances?

Of course, all of this data should be taken with a grain of salt as only 2% of the voters believed the Rapture was going to happen this past weekend and 11% believe it will happen in their lifetimes. These small numbers are out of a total sample of 600 people, meaning that about 12 people thought the Rapture would happen on Saturday and about 66 thought it would happen while they are alive. And this is all with a margin of error of plus or minus 4 percent, suggesting all of these numbers could be really, really small and not generalizable.

Do polls/surveys like these help contribute to giving all polls/surveys a bad reputation?

With banks and lending institutions owning so many homes, housing values will be lower for several years

Foreclosures are not just an immediate problem; the New York Times reports that the number of foreclosed homes now owned by banks and mortgage lenders are likely to depress the housing values for years to come:

All told, [banks and mortgage lenders] own more than 872,000 homes as a result of the groundswell in foreclosures, almost twice as many as when the financial crisis began in 2007, according to RealtyTrac, a real estate data provider. In addition, they are in the process of foreclosing on an additional one million homes and are poised to take possession of several million more in the years ahead.

Five years after the housing market started teetering, economists now worry that the rise in lender-owned homes could create another vicious circle, in which the growing inventory of distressed property further depresses home values and leads to even more distressed sales. With the spring home-selling season under way, real estate prices have been declining across the country in recent months…

Over all, economists project that it would take about three years for lenders to sell their backlog of foreclosed homes. As a result, home values nationally could fall 5 percent by the end of 2011, according to Moody’s, and rise only modestly over the following year. Regions that were hardest hit by the housing collapse and recession could take even longer to recover — dealing yet another blow to a still-struggling economy.

Not good news for those who want to sell a home in the near future. It is interesting that we now hear very little about this at a policy level. There are certainly other important pressing issues in the world (jobs, gas prices, military actions, Republican candidates for President?) but housing values affect a lot of people.

At the same time, I have heard and seen new advertisements from the National Association of Realtors. I wonder why they are running these ads now: are they worried that more people will rent rather than buy? Is there an uptick in the number of people who are trying to combat lower housing values by selling the home on their own? Do they feel that there might soon be changes in public policies, perhaps through measures like limiting or getting rid of the mortgage-interest deduction, that would limit the government’s promotion of homeownership? And interestingly, these advertisements have stressed that homeownership helps create jobs.