Housing prices up during COVID-19

During COVID-19, few people are looking for homes – and even fewer are selling:

The median home price rose 8% year-over-year to $280,600 in March, according to the National Association of Realtors. While buyer demand has softened and sales fell 8.5% that month from the prior month, the supply of homes on the market is contracting even faster, recent preliminary data shows…

What’s more, many sellers have been reluctant to cut prices. Only about 4% of sellers cut their prices in the week ended April 25, down from 5.7% during the same week last year, according to Realtor.com. ( News Corp, parent of The Wall Street Journal, operates Realtor.com.)…

Total listings of homes for sale, meanwhile, have hit a five-year low, while the median listing price was up 1% from last year at $308,000, Redfin said.

The housing market has been undersupplied for years. During the pandemic it may get worse. There were 1.5 million units for sale at the end of March, NAR said, down 10.2% from a year earlier. Homeowners are waiting to list their houses, real-estate agents say, because they have decided not to move or they are worried about letting buyers into their homes during a pandemic.

It will be interesting to see how long this holds up given the rapid spike in unemployment. How many people will be in a position to buy or sell in the coming months? And how long will it take for housing markets to return back to pre-Covid levels of activity?

Beyond prices, which matter to many homeowners who want to do everything they can to keep property values going up, there are additional big issues at play. One is noted above: a lack of housing supply long-term, particularly in certain markets and in certain segments. Another is the possible effects on the mortgage industry. A third is what this does to the idea of housing when there have been two  major shocks to housing in the last fifteen years. A fourth is whether people decide they want to live in certain locations more because of health risks. Like other sectors of society, COVID-19 may expose or hasten problems with existing issues.

In other words, stay tuned.

The difficulties for public institutions and spaces after COVID-19

Reopening and repopulating public spaces during and after COVID-19 might provide difficult:

Yet can you reopen a society — particularly a republic built on openness and public interaction — without its physical institutions at full capacity, without public spaces available for congregation?…

Something else unites these places. In each, the woman on the next bench, the man ahead in the checkout line, the family down the pew are suddenly potential vectors — or potential victims. So we’re assessing the public realm in the way we assess a salad bar when we walk into a restaurant…

“Democracy depends to a surprising extent on the availability of physical, public space, even in our allegedly digital world,” John R. Parkinson writes in “Democracy and Public Space: The Physical Sites of Democratic Performance.”

“How do you define the ‘public realm’ when an enormous percentage of the American public spends the majority of its day in its pajamas?” Stilgoe says.

This piece raises great questions for a COVID-19 world. The emphasis on how architecture and design shapes public behavior as well as how others in those spaces can be trusted or not is right on. At the same time, there are several elements I would add to this analysis:

1. The definitions of “institution” and “spaces” are pretty broad. Some of the listed locations, like shopping malls, colleges, and grocery stores, are not public spaces. They are owned by private groups that can and do dictate how the space can be used. Some of the other locations, like parks and squares, are public spaces. Government buildings are generally more open to all. Americans privilege private space even though we need some of the private spaces – grocery stores, workplaces – to survive. But, the same rules or expectations do not apply in each of these spaces. We saw this in the Occupy Wall Street protests where gatherings in what looked like public spaces could be ended when they spaces were actually owned by private groups or the government pushed people out. We actually do not have that many public spaces where people regularly gather; many of our “public spaces” are actually privately owned and this matters. The private public spaces require both private groups and the public to cooperate – and they may not always do so.

2. Even before COVID-19, it is not clear that many Americans value public spaces or use them regularly. As noted in #1, Americans like their private spaces. Homes may be less attractive when you are trapped in them but we have a society where success is owning your own suburban single-family home. Add to this declining trust in numerous institutions and it may be hard to make the case that we should put more resources and effort into creating and maintaining public spaces.

3. More broadly, many would argue a thriving society and democracy depends on regular interaction between people. And face-to-face interaction provides benefits that online communication does not regarding communicating clearly and building relationships. Yet, again, this has been on a decline for a while now. Twitter is not a good approximation of public conversation nor a good medium (at least as currently constructed or experienced) for public conversation. Telecommuting may provide efficiencies and allow people more private lives but something will be lost. See my earlier thoughts on sociologist Eric Klinenberg’s Palaces for the People where he takes up these issues (Part One, Part Two, Part Three, Part Four).

From outlier to outlier in unemployment data

With the responses to COVID-19, unemployment is expected to approach or hit a record high among recorded data:

April’s employment report, to be released Friday, will almost certainly show that the coronavirus pandemic inflicted the largest one-month blow to the U.S. labor market on record.

Economists surveyed by The Wall Street Journal forecast the new report will show that unemployment rose to 16.1% in April and that employers shed 22 million nonfarm payroll jobs—the equivalent of eliminating every job created in the past decade.

The losses in jobs would produce the highest unemployment rate since records began in 1948, eclipsing the 10.8% rate touched in late 1982 at the end of the double-dip recession early in President Reagan’s first term. The monthly number of jobs lost would be the biggest in records going back to 1939—far steeper than the 1.96 million jobs eliminated in September 1945, at the end of World War II.

But, also noteworthy is what these rapid changes follow:

Combined with the rise in unemployment and the loss of jobs in March, the new figures will underscore the labor market’s sharp reversal since February, when joblessness was at a half-century low of 3.5% and the country notched a record 113 straight months of job creation.

In other words, the United States has experienced both a record low in unemployment and a record high within three months. A few thoughts connected to this:

1. Either outlier is noteworthy; having them occur so close to each other is more unusual.

2. Their close occurrence makes it more difficult to ascertain what is “normal” unemployment for this period of history. The fallout of COVID-19 is unusual. But the 3.5% unemployment can also be considered unusual compared to historical data.

3. Given these two outliers, it might be relatively easy to dismiss either as aberrations. Yet, while people are living through the situations and the fallout, they cannot simply be dismissed. If unemployment now is around 16%, this requires attention even if historically this is a very unusual period.

4. With these two outliers, predicting the future regarding unemployment (and other social measures) is very difficult. Will the economy quickly restart in the United States and around the world? Will COVID-19 be largely under control within a few months or will there be new outbreaks for a longer period of time (and will governments and people react in the same ways)?

In sum, dealing with extreme data – outliers – is a difficult task for everyone.

The most McMansiony residence on Modern Family

Adding to earlier posts on the details of the three primary residences on Modern Family and the way the show was successful even with three McMansions, this post considers which home is the most McMansiony.

https://www.housebeautiful.com/design-inspiration/house-tours/a23472261/abc-modern-family-house-design/

To make this decision, I am working with the four traits of McMansions I developed: size, relative size, poor architecture/design, and a symbol for other American problems.

The Pritchett House: this is the biggest home at over 6,000 square feet. The relative size is hard to judge since the neighboring homes are almost never seen (I cannot recall seeing them). The home is built in a modern style with big windows and some strange angles. There is a good-sized pool in the backyard. With its size and design, the home could definitely be considered for the wealthy and Jay Pritchett is a successful business owner.

The Pritchett=Tucker home is in a more Mediterranean style (title roof, stucco, balcony, some arched windows and an arched doorway). There is a round turret in the middle with the doorway. Cam and Mitchell have the least space (since they only occupy the first floor on the show). Again, we do not have much of a sense of the surrounding neighborhood since other homes are rarely shown. This is easy to select as the least McMansiony home, at least as presented on the show as a oe story dwelling.

The Dunphy home is nearly 3,000 square feet and built to look like a traditional home with its white picket fence, covered entryway, and front entrance that leads to a hallway as well as a staircase to the bedrooms upstairs. The home seems to fit in of what we see of the neighborhood; we see more of the Dunphy neighborhood than any of the other homes. Phil and Claire are portrayed as typical parents who with three kids are just trying to help their kids be successful and keep their sanity at the same time.

Based on my definition and what we see on the show, I think the home of Jay and Gloria Pritchett best fits the bill of a McMansion. It is large. All that space for a family of four. (When the whole family gathers there, it looks like they all fit easily.) It is the most expensive of the homes. It has newer features plus a pool. The architecture is unique though not necessarily garish – this could depend on one’s view of more modernist homes. As the patriarch with his second family, Jay clearly has plenty of resources (and there are other hints of this on the show as well).

Perhaps a more interesting question is whether the Dunphy home is really a McMansion. It is a larger than average home. It costs quite a bit, though this is due more to its metropolitan market and its location. The home does not look garish on the outside; the proportions may be off, the entryway covering is large, and there are multiple gables but it does not scream ostentatious. Furthermore, the show does not portray the family as evil or overly-wealthy McMansion owners; they are a typical sitcom family. Given all of this, I am on the fence about calling this home a McMansion even as a majority of Americans could not live in such a home in that real estate market.

More on the McMansions on Modern Family

Following up on yesterday’s post, here are some more details on the main residences featured on Modern Family and which one I think qualifies as the most McMansion-y. (This post draws on “Stalking from Los Angeles: Houses from Modern Family” – denoted as SfLA below, House Beautiful – denoted as HB below, and the Modern Family Wiki – denoted as Wiki below.)

  • Phil and Claire Dunphy’s house.

“Phil is the only one working in the Dunphy family and as a realtor he’s doing very well. The Dunphy house is worth almost $1.8 million, according to Zillow.com.” (SfLA)

“Phil and Claire’s house is a little more traditional, almost as if it’s ripped directly from an early 2000’s catalog. And that was exactly the goal: The space is supposed to be very comfortable and lived in, with a vibe that’s “Pottery Barn meets Restoration Hardware,” production designer Richard Berg told Architectural Digest back in 2012.” (HB)

“It is a detached, suburban home with two living rooms, kitchen/dining room, 2 bathrooms, 4 bedrooms, and a garage. Outside it has both a front and back garden with a trampoline.” (Wiki)

  • Jay and Gloria Pritchett’s house.

“According to Zillow.com Gloria and Jay’s house in Brentwood is currently worth more than $8 million. This 6,359 square foot (590 square meters) single family home has 5 bedrooms, 6 bathrooms and a pool.” (SfLA)

“Fun fact: That exterior is an actual, two-story house in Los Angeles’s Brentwood neighborhood, though most of the filming is done on a soundstage. The Modern Family production team had built “80 percent” of the set before finding the perfect house to serve as its exterior, so they had to go back and change its windows and layout to match, Berg said.” (HB)

“It seems to be the largest and grandest house of the three families, as Jay earns a lot of money from his job. Contains 2 floors, a living room, 1 kitchen, 3 bedrooms, 1 bathroom, and a garage…Outside there’s a front garden and a huge pool that is first seen in “The Incident“, and is frequently seen ever since…The real house is located in Brentwood, 15 minutes away from the house used for Mitch and Cam. There is a whole extra wing of the house that is not show in the shots of the house for the show.” (Wiki)

  • Mitch Prichett and Cam Tucker’s house.

“Cameron’s and Mitchell’s house is very near to the Dunphys (well, for L.A., of course). Their house has 4 bedrooms and 2 bathrooms. Its worth: $1.3 million (source: Zillow.com).” (SfLA)

“Mitchell and Cameron’s apartment, with its villa style and ivy snaking up the walls, definitely caught people’s attention. It’s a little more romantic, and even though their home would mean settling for less square footage (they live in the ground-floor apartment of the two-story, technically), their interiors tend to be a little more upscale and collected over time. “We saw the couple as being new to the parenthood plateau and fresh off the plane from years of travel and singledom,” Berg told the magazine.” (HB)

“Unlike The Dunphy House or The Pritchett House, it only has one floor, the upstairs is open for rental, revealed in Slow Down Your Neighbors. Their floor contains a living room, 1 kitchen, 1 bathroom, 2 bedrooms, and a garage. It is revealed in “Mistery Date“, that Lily’s bedroom was previously Mitchell’s home office, but they had to give it up for her room. Outside it has both a front and back garden..” (Wiki)

In summary:

The homes are all large and expensive, located near each other west of downtown Los Angeles, are meant to reflect the characters that live there, and have recognizable exteriors that are then recreated on sets where the interior scenes are shot.

Tomorrow, I will compare how the features of each home match up traits of McMansions. In other words, which Modern Family dwelling is the most McMansion-y?

Modern Family a successful TV show for taking place in McMansions

McMansions do not have a positive reputation yet they can serve as the primary setting for popular television shows. For example, Modern Family had a successful run and featured three large homes:

The path of the mockumentary series arcs from a trailer park in Nova Scotia to a McMansion in Los Angeles. In 2001, the Canadian cult comedy Trailer Park Boys inaugurated a soon-to-be-ubiquitous style of show: deliberately messy, handheld camera work paired with confessional interviews and presenting scripted fiction in the style of candid reportage. In 2020, the ABC megahit Modern Family wound down after 11 seasons and 22 increasingly aggravating Emmy wins. Between those two events lies the rise and fall of a genre that was not reality TV, but came up alongside it and echoed its conventions.

Since the rest of the article is more about mockumentaries as a genre than about the residences of main characters in such shows, I will go on the McMansion tangent regarding Modern Family. Here is what is unique about the McMansions on the show:

1. The McMansions are not objects of derision or mockery. The genre may lend itself to this but Modern Family sought to end episodes and story lines with feel-good family togetherness. The characters were portrayed as goofy or quirky suburbanites who otherwise lived normal lives. The McMansion is the center of family life and good things result for the family that lives there. (Compare this to many recent portrayals of troubled families that live in McMansions – see examples here and here. Or, consider the McMansion on The Sopranos.)

2. The homes are all clearly large and their architecture is unique in different ways: Cam and Mitchell’s home has a turret (and supposedly has an upstairs apartment), Jay and Gloria’s home is more modernist, and Phil and Claire’s home tried for a traditional look. In other words, the show displays the variety of McMansions.

3. These are not just large homes; they are expensive homes in an expensive housing market. The Dunphy home went on the market several ago with a price tag over $2 million. The homes are portrayed as normal yet the houses are not within the reach of many viewers.

4. There is little doubt that Modern Family was successful: 11 seasons? 22 Emmys? A long life in syndication? And it happened even with the consistent presence of McMansions, homes critics would say symbolize all sorts of large American problems. Did the show work in spite of the homes? Was it all just one big wink and nod about the characters and their homes?

Open offices might be pushed out by COVID-19

Open offices have provoked a lot of reactions. One CEO thinks COVID-19 might help them meet their demise:

Carol Bartz, who led the architectural and engineering software maker Autodesk Inc. for a decade before heading up Yahoo Inc. during a turbulent period that began with the last recession, is known for being direct and speaking her mind. In a recent telephone interview with MarketWatch from her home in Silicon Valley, Bartz described the current age of COVID-19 as a “new game,” with “new rules” for everyone, and made a few predictions about how she expects life to change, especially at work.

“I think office space is going to change, [and] we will go back to putting shields between people,” she said, adding that, while she realizes this in the grand scheme amounts to minutiae, this is one of the many kinds of changes that CEOs are going to have to address in the future, in what will be the new life of the CEO. “We have to take the fear away from people,” she said, noting that this will probably be the first time offices will have to be designed around health factors.

Instead of the old office cubicles separating desks, “They probably will be clear, you will not sit there in that big open space. I think people are going to want protection, plexiglass or whatever. There will also be more teleconferencing, absolutely less flying — you will teleconference with customers,” Bartz said. “Tthey don’t want to see you in person, and you don’t want to see them.”

Office spaces change in response to a variety of factors. With health as a concern going forward, it will be interesting to see how companies and leaders discuss the possible changes: how does health interact with wanting to promote collaboration or cutting costs by not having a lot of cubicles and private offices?

More broadly, this goes beyond just personal workspaces. How will employees gather together? The proverbial water cooler (or break room or coffee station) is an important feature of workspace, whether it provides a break or encourages conversation among employees. Is holding meetings in conference rooms also off the table if social distancing is required or helpful?

I would also imagine that whatever changes in physical office space occurs because of COVID-19 might need to be highly adaptable to future changing conditions. Cubicles or plexiglass might be needed for months but what happens after that point when people and organizations are less fearful? Cubicles tend to be modular and can be reconfigured. Just how many shifts can a typical organization go through?

Fitting COVID-19 into the cycles of American cities

Derek Thompson writes about how COVID-19’s effect on retail and restaurants will affect American cities:

The song of American urbanization plays on an accordion. Americans compressed themselves into urban areas in the early 20th century. By mid-century, many white families were fanning out into the suburbs. Then, in the early 21st century, young people rushed back into downtown areas. But in the past few years, American cities have begun to exhale many residents, who have moved to smaller metros and southern suburbs. As with so many other trends, the pandemic will accelerate that exodus. Empty storefronts will beget empty apartments on the floors above them.

The American cities waiting on the other side of this crisis will not be the same. They will be “safer” in almost every respect—healthier, blander, and more boring, with fewer tourists, less exciting food, and a desiccated nightlife. The urban obsession with well-being will extend from cycling and salads to mask design and social distancing. Many thousands of young people who might have giddily flocked to the most expensive downtown areas may assess the collapse in living standards and amenities and decide it’s not worth it. Census figures will show that the urban exodus went into hyperdrive in the COVID years. There will be headlines exclaiming the decline of the American city or, more punchy, “Americans to New York: ‘Drop Dead.’”

Then something interesting will happen. The accordion will constrict again and American cities will have a renaissance of affordability…

But the near death of the American city will also be its rebirth. When rents fall, mom-and-pop stores will rise again—America will need them. Immigrants will return in full force when a sensible administration recognizes that America needs them, too. Cheaper empty spaces will be incubators for stores that serve up ancient pleasures, like coffee and books, and novel combinations of health tech, fitness, and apparel. Eccentric chefs will return, and Americans will remember, if they ever forgot, the sacred joys of a private plate in a place that buzzes with strangers. From the ashes, something new will grow, and something better, too, if we build it right.

Several thoughts in response:

1. Thompson hints at one of the vital pieces that makes cities work: the density of people and activity. Restaurants and retailers are not just functional entities that provide jobs and revenue; they bring in extra people who want to visit, eat, browse, be around other people who are doing similar things. The kinds of everyday activity that make urban neighborhoods unique and attractive are difficult to maintain during COVID-19 when restrictions limit contact and social interaction.

2. After just reading The Death and Life of Great American Cities with one of my classes, I wonder: what would Jane Jacobs do in times of global pandemics?

3. Thompson describes populations moving in and out of American cities as conditions change. From a broader perspective, I am not sure I would agree with the accordion example: the longer-term trend in the United States since the early 1900s has been toward suburban growth and development. The percent of Americans living in cities has stayed relatively stable since the beginning of the postwar era while government policy, cultural ideology, and population shifts have swelled suburban populations. If American cities can gain and lose residents, it is a relatively small accordion compared to the tremendous suburban growth over the last century.

4. A problem with predicting future urban trends is that the patterns of the past may not happen again in the future. COVID-19 is the sort of event that is difficult to know the effects of, particularly years down the road. Will life return to normal or will the effects of a significant economic shutdown and shelter-in-place for many people change future behaviors? We do not know. At the same time, I do not think Thompson’s predictions are unreasonable. How exactly the affordability of land plays out could be an arduous process; land that was relatively overvalued before COVID-19 may not quickly become affordable and it may take time to clear significant debts or mortgages for numerous urban properties.

NYC plans to provide social distancing space for pedestrians by closing more streets to cars

Sidewalks may not provide enough room to keep distance from others so New York City is planning to close more roads to vehicles:

New York City will close 40 miles (64 kilometers) of streets to cars, mostly near parks, to expand the amount of space that pedestrians have to keep social distance, Mayor Bill de Blasio said.

The ultimate goal will be to have 100 miles of “open streets” during the coronavirus outbreak, de Blasio said Monday at a press briefing.

The mayor has been pressed by the City Council and bike advocates to open more streets to pedestrians and bikers, and to give more recreation possibilities to New Yorkers. De Blasio had resisted these proposals, saying they would create challenges for law enforcement. The mayor also said he was concerned that drivers might not obey the street closing, placing pedestrians and bikers in danger.

As a temporary measure, this seems like it makes some sense given the need for space to get outside within denser communities. It does raise other issues, such as delivering packages in certain areas or, as the article notes, law enforcement concerns.

Perhaps more interesting is the long-term consequences of such a move. In the last one hundred years or so, American cities and communities have often prioritized moving vehicles through cities. Manhattan already had a problem with crowded sidewalks before COVID-19. Pedestrian and bicyclist safety is already an issue. More cities were already considering closing streets to cars. Road closures might be motivated in the short-term by COVID-19 but this could also be part of a growing movement to provide for human-powered means of transportation.

When a billboard with a basketball player slowed down Chicago traffic

Along one of the most congested stretches of highway in the United States, a mural of NBA player Dennis Rodman led to even more traffic in early 1996:

In March 1996, men’s clothier Bigsby & Kruthers painted an image of Rodman on the side of a building just off the Kennedy Expressway. The 32-foot-high mural stared eastbound traffic in the eye, causing gapers delays in both directions that snarled traffic as badly as road construction.

An operations manager for a traffic-data company said the larger-than-life image added 20 to 30 minutes to morning commutes on the Kennedy and the Edens Expressway. And that was before Rodman’s hair was even on it.

“The 75-foot-wide advertisement included a color image of Michael Jordan looking down on traffic,” a March 26, 1996, Tribune story read. “But it’s the oversize Rodman who has taken the rush out of rush hour. His power glower is punctuated with three earrings and a nose ring; his arms are crossed, and his natty suit has the sleeves ripped out to reveal his collection of tattoos. He is even leaning forward, as if he just might want to butt heads.”

Standing just before the North Avenue exit, the painting was wider and taller than billboard laws normally would have allowed. But because the building was being used as a Bigsby & Kruthers warehouse, the advertising was not limited in size.

While most of the mural was black and white, the hair was in color — and changed as Rodman’s dye did, only adding to the traffic headaches.

Alas, the mural didn’t last. Bigsby & Kruthers covered it up a little more than two weeks after it first appeared in response to the concern of traffic officials.

A few quick thoughts:

  1. Cities have regular spots that come up on traffic reports and the Kennedy is typically on the list in Chicago (“from O’Hare to downtown”). These spots can be on the list for a variety of reasons: a chokepoint for traffic, an odd curve or different road design (such as narrowing of lanes), and/or regular accidents. Billboards probably are not common contributors to this.
  2. At the same time, certain billboards or advertisements can be become part of the urban highway experience. As commuters travel regular routes, they get used to seeing particular signs. New signs can also garner attention if they are a significant change or unusual. The other sports one that comes to mind from the Chicago region involved a series of Brian Urlacher balding treatment billboards along I-294 that popped up several years ago. I’m not sure if it caused any delays but it certainly caught people’s eyes as one of the city’s most recognizable recent sports stars suddenly had hair.
  3. The particular Rodman billboard came as part of a perfect storm. Take a regularly congested stretch of highway plus an incredible basketball team that set the record that year for most wins in a season plus a truly unique player on the billboard (and not one who fit the typical Chicago image). The billboard did not last long but it left a mark.