Declining populations in the New York City, Los Angeles, and Chicago regions

The biggest metropolitan areas in the United States are losing residents:

Source: William H. Frey

And what is behind this?

Each of these Chicago phenomena—declining immigration, revitalized downtowns coinciding with a middle-class exodus, and the specific decline of the black population—has spread from the heartland to America’s largest coastal metros…

First, immigration to both New York and Los Angeles has declined by 30 percent in the last five years. This could be for a variety of reasons, including the fear, and reality, of more restrictive immigration policies; richer and safer home countries; and a less affordable housing stock in these metros.

Second, higher-income residents bidding up the price of housing in both cities has accelerated the middle-class exodus. Earlier this decade, Los Angeles was the fastest growing county in all of southern California. But in 2018, it was the only major county in the region to shrink, even as its median home price set a new record. As more middle-class families leave the Los Angeles area for cheaper markets in the West and Southwest—their preferred destinations: Las Vegas, Phoenix, and Dallas—California’s population growth has slowed to its lowest rate in state history. This might have something to do with the recent tax law, which, in capping the state and local deductions, effectively raised the cost of living in these places for the upper-middle class. (The next few years will tell us more about whether high earners are fleeing high-tax metros for the South, as well.)

Third, the black population of both New York and Los Angeles peaked in the early 2000s and has since been in steady, and perhaps accelerating, decline. The political implications of the first Great Migration were immense, as blacks moving into northern cities forged an alliance with urban liberals and pushed the Democratic Party to prioritize civil rights in the middle of the 20th century. The political implications of the Reverse Great Migration could be equally ground-shaking, if blacks moving south redraw the political map for the second time in 100 years. The slow decline of America’s largest metros may also mark the beginning of a new political movement in the suburbs of the South and Southwest.

When it was just Chicago losing residents, it was easier to write it off as inevitable Rust Belt decline combined with particular issues that have dogged the city and region for decades. But, if New York and Los Angeles are also losing people, then this becomes more interesting as even the glitzy coastal cities are losing people to other parts of the United States and there are fewer new residents via immigration.

Is there evidence then that cities are losing steam compared to suburban areas? Not necessarily; Sun Belt cities are growing in population. At the same time the three biggest cities draw outsized attention in the United States (consider the relative anonymity of Houston which is approaching Chicago for third in population). Americans generally do not like what declining populations connote and particularly not in their largest locales.

Ultimately, the actual population figures which could fluctuate slightly from year to year might matter less than the perception that the biggest cities are floundering. Would they then put into place big plans to try to attract residents? Would second tier cities step up their efforts to toot their own (growing) horns?

Final note: Chicago’s long-standing quest to put itself in the same company as New York City might be looking up if both cities are losing residents.

Chicago suburbs without property taxes – but perhaps not for much longer

In a region known for high property taxes, at least a few suburbs outside Chicago have no property taxes:

A town of about 40,000, Carol Stream managed to avoid a property tax even when another outlier, Schaumburg — a village with a much larger retail base — took the leap during the Great Recession.

But officials say Carol Stream is facing significant budget pressures from rising pension costs. If it maintains the status quo, projections also show the village would exhaust capital reserves during the third year of a five-year plan for roadwork and infrastructure projects…

In Oak Brook, another town that doesn’t charge a property tax, candidates in the last mayoral race took stock of the financial challenges from flat sales tax revenues. Carol Stream also saw a 2.4% drop in sales tax dollars — the village’s largest revenue source — from calendar years 2017 to 2018.

Suburbs have multiple ways to reduce or eliminate residential property taxes. Sales tax revenue can come from shopping malls, big box stores, and other retail options. Schaumburg and Oak Brook have sizable shopping malls surrounded by many more retailers. Communities can also seek out industry; Carol Stream founder Jay Stream intentionally set aside much land for industrial parks (which are still there). Some suburbs would not like this as industry could conflict with an ideal of quiet neighborhoods of single-family homes.

The article suggests these suburbs with no property taxes will have to reconsider because of declining sales tax revenues and rising pension costs. Given the fate of shopping malls and the problems facing retailers, even in successful malls in wealthy areas like in Oak Brook and Schaumburg, communities need additional revenue.

Suburbs typically do not have the ability to quickly counter declining sales tax revenues. In order to not have property taxes in the first place, certain decisions had to be made long ago. Then, later decisions build within a framework of no property taxes. Making changes to land use takes time for study, approval, development, and then reaping benefits. A suburb cannot say it wants to bring in more sales tax revenue and line up a set of retailers operating within a year.

The fate of these suburbs will be worth checking in five years to see whether they can hold on against levying property taxes.

(Reminder: this does not mean residents in these communities do not pay any property taxes. Rather, their suburbs do not collect property taxes even as school districts and other taxing bodies do.)

Zoning for single-family homes contributes to California’s housing issues

If a lot of individual communities zone largely for single-family homes, it can add up to larger housing problems:

At its heart, California’s housing problem is one of scarcity: According to one analysis, the state has 3.5 million fewer homes than it needs to house all the people who live there. That gap was created over decades — largely as a result of the zoning policies of individual communities, under pressure from local residents. Randy Shaw, a longtime Bay Area housing advocate and author of the book Generation Priced Out, says the best way to describe the dynamics at play is to look at the city of Atherton. Thirty minutes from San Jose, Atherton is the most expensive city in the country: The median price of a home there is $8.1 million.

“You can’t build an apartment building in Atherton,” Shaw says. City code prohibits anything other than a single-unit building with a footprint that cannot exceed 18 percent of the land. In other words, everything but a single, detached home with a yard is verboten. “You have all of these cities in California where you can’t build anything but a luxury home,” Shaw says. “When you have zoning restrictions that prevent you from building the housing you need, you’re pretty much guaranteed to get in the situation we have.”

It’s a problem lawmakers across the state are grappling with, including in San Jose, where 94 percent of the city is zoned for single-family homes. “You got lots of family housing, and you’re not going to bulldoze it to go build apartments,” Liccardo said at a meeting of the state’s mayors in July. “At least, not if you don’t want [homeowners] to burn down City Hall.”…

At the start of the legislative session this past January, the housing committee introduced a slate of bills focused on streamlining approvals for new construction, protecting renters, funding affordable housing, and, most controversially, reforming zoning laws. Wiener’s top priority was SB50, an ambitious proposal that would prohibit cities from having zoning laws like Atherton’s. Residential neighborhoods historically reserved for single-family homes would be opened up to multi-unit housing like triplexes and fourplexes. And even higher-density construction would be allowed around transit corridors and “job-rich” enclaves.

With suburban preferences for single-family homes, exclusion, and local control, providing cheaper housing at a state level is going to be a tough sell. As I have asked before, what incentive do wealthier homeowners have to change the rules that let them live with people like them? But, if California can find some path through this all that actually makes an impact – and it will likely take quite a while before significant change could be noted – then it could provide a helpful template for other American locations that suffer from similar problems.

Finding the Simpsons home in the sprawl of Las Vegas

A subdivision in the Las Vegas suburb of Henderson features a home made to look like the Springfield home of The Simpsons:

SimpsonsHomeHendersonNV

Once upon a time, the house on Red Bark Lane wasn’t just another address in a sprawling suburban development: It was originally built as a nearly exact three-dimensional replica of 742 Evergreen Terrace, the Springfield residence of Homer, Marge, Bart, Lisa, and Maggie Simpson. Working on a short schedule, architects and builders de-fictionalized the home featured in The Simpsons for a 1997 giveaway that was intended to leave one lucky fan with the ultimate in cartoon memorabilia. No detail was spared, from a food dish for their cat, Snowball II, to Duff beer cans in the fridge.

But controversy soon erupted in this faux-Springfield mock-up. The homeowner’s association wasn’t keen on having a cartoon house that broke conformity requirements by being painted solar yellow. The sweepstakes winner rejected it outright. And the current owner had to learn to live with the property being a source of perpetual curiosity for fans of the show who brazenly turn her doorknobs and peer through her windows at all hours of the day and night. As it turns out, the reality of living in a fantasy can get a little complicated…

Once the project was approved, Woodley and Gonzalez pored over 100 episodes of the show and storyboards on loan from the production to try and discern a layout. “We took a floor plan we already had and did things that still had to meet building code but was reminiscent of The Simpsons,” Gonzalez says. “We never would have put in a rounded door or windows in the spots they were in.”

The team’s goal was to be 90 percent normal, with occasional lapses into cartoon continuity. Door frames were widened and lengthened to accommodate Marge’s hair and Homer’s girth. The stairs leading to the second floor were slightly steeper than normal. The downstairs floor was poured and painted concrete rather than hardwood or carpet, the better to mimic the show’s flat colors. Bart’s treehouse was erected in the backyard.

Like other homes on TV, the floor plan doesn’t exactly work. What makes this case interesting is that this is an animated show that does not have the same constraints as one with actors. With live actors, homes may not have walls or have rearranged features to allow cameras to have wide views. The proportions with live actors will also be different.

The interest from fans is understandable; TV shows offer few physical spaces where fans can connect to a show. Fans can go to studio backlot to see locations (I have toured a few and it is an interesting experience to see places that are on TV screens for seasons) or track down interior and exterior shots (for example, see a comprehensive list of locations on The Sopranos). But, many family shows revolve around the single-family home. The famous opening credits end with the family in front of the TV in the family room. The family regularly gathers in the kitchen for meals. The kids and parents talk in bedrooms upstairs. The garage, basement, and backyard are home to many scenes. The article asks why the contest winner did not accept the home and make money off tours; perhaps the better question is why someone has not recreated the house elsewhere and catered to Simpsons fans.

Finally, that the replica is located in Henderson, a fast-growing suburb in the desert outside Las Vegas is a fun contrast to the small town charm of Springfield. The show creators have famously kept Springfield’s location secret but it would difficult to imagine the home located in a neighborhood like that shown in the Google satellite image above.

A declining American belief in God, country, and family

Pollsters and sociologists find a shift away from three American values:

The nuclear family, religious fealty, and national pride—family, God, and country—are a holy trinity of American traditionalism. The fact that allegiance to all three is in precipitous decline tells us something important about the evolution of the American identity…

But it looks like something bigger is going on. Millennials and Gen Z are not only unlikely to call themselves Protestants and patriots, but also less likely to call themselves Democrats or Republicans. They seem most comfortable with unaffiliation, even anti-affiliation. They are less likely than preceding generations to identify as “environmentalists,” less likely to be loyal to specific brands, and less likely to trust authorities, or companies, or institutions. Less than one-third of them say they have “a lot of confidence” in unions, or Silicon Valley, or the federal government, or the news, or the justice system. And don’t even get them started on the banks...

The older working-class men in the Edin, Nelson, et al paper desperately want meaning in their lives, but they lack the social structures that have historically been the surest vehicles for meaning-making. They want to be fathers without nuclear families. They want spirituality without organized religion. They want psychic empowerment from work in an economy that has reduced their economic power. They want freedom from pain and misery at a time when the pharmaceutical solutions to those maladies are addictive and deadly. They want the same pride and esteem and belonging that people have always wanted.

The ends of Millennials and Gen-Z are similarly traditional. The NBC/WSJ poll found that, for all their institutional skepticism, this group was more likely than Gen-Xers to value “community involvement” and more likely than all older groups to prize “tolerance for others.” This is not the picture of a generation that has fallen into hopelessness, but rather a group that is focused on building solidarity with other victims of economic and social injustice. Younger generations have been the force behind equality movements like #BlackLivesMatter, #MeToo, #AbolishICE, and Medicare for All, not only because they’re liberal, and not only because they have the technological savvy to organize across the Internet, but also because their experience in this economy makes them exquisitely sensitive to institutional abuses of power, and doubly eager to correct it. What Americans young and old are abandoning is not so much the promise of family, faith, and national pride, but the trust that America’s existing institutions can be relied on to provide for them.

My first thought: I wonder if these three values have been consistent throughout American history or are more particular to the postwar era. It was in the prosperity of roughly 15-20 years after World War II that Americans became the most religious, the nuclear family became the ideal, and America saw itself as opposed to communism and the Soviet Union. Additionally, a number of societal institutions were relatively strong and well-regarded. Prior to this era, would the same values have held and/or would others have been in the top three? For example, I could imagine making a case for individualism as a core American value from the beginning. This would, to some degree, be in opposition to all three of God, country, and family which require loyalty to larger groups or beings.

My second thought: what comes next in a trinity of American values? Would something like self, community, and success work?

Marijuana sales viewed as hurting family-friendly suburbs, Naperville edition

Tuesday night the Naperville City Council voted against allowing marijuana dispensaries to locate within the suburb:

Naperville City Council members voted 6-3 Tuesday to opt out of recreational marijuana sales within city limits, and directed staff to come back with information on a potential referendum question for council consideration.

The decision to opt out of recreational pot sales came several hours after hundreds of people began packing the Naperville City Council chambers as residents and non-residents waited their turn to comment on the issue of whether to allow the retail sale of pot. The discussion on marijuana sales brought 238 people to sign up for public comment on the topic — a vast majority speaking in favor of opting out while wearing white and orange “opt out” shirts.

Over the past couple weeks, the group was organized to rally and lobby city council members to keep recreational cannabis dispensaries out of Naperville. At the same time, residents in support of retail marijuana sales have circulated a survey on the issue.

People who asked city council to opt out Tuesday night are concerned recreational pot dispensaries would lead to increased availability to children and would hurt the “family friendly” brand of Naperville.

This is not a surprise. A few weeks ago, I wrote about the likelihood that wealthier suburbs would not want to sully their brand by allowing marijuana sales. A community like Naperville has a reputation to protect: it is large, wealthy, has a vibrant downtown, highly-rated school districts, and acres upon acres of single-family homes. While marijuana sales may do little to affect behavior in a community of over 140,000 residents, this is about an image. Not too long ago, the vibrant downtown presented a similar issue: alcohol-related incidents were getting out of hand and the city responded.

At the same time, Naperville could change its mind later. Perhaps the dispensaries will not cause issue in similar communities. Perhaps the city will want the extra sales tax revenue. Perhaps the group that turned up in large numbers in front of the City Council to opt out will fade away and advocates will win the day. But, at least for now, Naperville wants to – and to be honest, does not need to look for quick money or be on the leading edge of this – protect its brand.

More broadly, how long until marijuana sales and use becomes normal fare in the American suburbs? For decades, some claimed the suburbs makes people conservative: they want to protect their families and homes. However, the political tides of suburbia have turned (including in DuPage County as well as in Naperville) and attitudes toward marijuana and other drugs have changed.

Cooking meat in a suburban backyard and resolving suburban conflicts

A recent controversy in an Australian suburb highlights two key issues in suburbia: (1) what exactly can you do in a suburban backyard and (2) how do suburbanites resolve conflict? To the details:

The Perth woman said she couldn’t enjoy her backyard in the suburb of Girrawheen, claiming her neighbours deliberately allow their barbecue meat and fish smells to waft into her yard…

After her claims were rejected by a tribunal earlier this year on lack of evidence, she applied to the Supreme Court of Western Australia for right of appeal. It was also turned down in July…

And it’s not just the smell of meat and fish that has made her furious — it’s the smell of cigarettes and the sound of children playing with basketballs…

Mr Vu said he just wanted to “keep the peace” and had removed the barbecue out of his yard and also banned his children from playing basketball…

Mr Hammond said the first step in any dispute with your neighbours was to try and resolve the matter face-to-face.

Two issues are present:

  1. Suburbanites tend to assume that backyards are for private activities. The front yard is open to the public and can be seen from the street and the sidewalk. The backyard is more hidden, particularly if the yard is fenced or cut out from view in other ways (such as through hedges and trees). But, are there limits to what can be done in backyards? What is considered infringing on others? Overly loud dogs? Trees that cross property lines? Activities found undesirable by neighbors (such as grilling and playing basketball)? Where property rights end and neighborhood disturbances and nuisances begin could be a fine line (and there are surely some local regulations to help figure this out).
  2. Suburbanites are often not great at resolving conflict. Baumgarner argued suburban community is built around avoiding open conflict and using third party actors if necessary. It is not clear from the article above how much face-to-face interaction happened between neighbors but appealing to the courts seems likely to end badly for neighborly relations: no matter who wins, the fact that this led to media coverage and court cases likely makes it more difficult to have positive relationships.

On one hand, this is a small-scale conflict. On the other hand, multiply such conflicts by just a few and the suburbs look like a place where neighbors want to be protected from each other – wait, privacy and exclusion was indeed behind the creation of suburbs

The role of disasters – such as the Great Chicago Fire – in pushing people to leave cities for suburbs

A thought experiment considering what would happen if the Chicago Fire of 1871 never happened includes this tidbit about suburban growth:

But then, after that second big fire in 1874, Chicago officials extended the restriction on wooden buildings to cover the whole city.

Elaine Lewinnek, author of the new book The Working Man’s Reward: Chicago’s Early Suburbs and the Roots of American Sprawl, says the aldermen contributed to suburban sprawl by making it cheaper to build outside the city. After they changed the law, a real estate booster reported “a brisk demand for building just outside the city limits.” (Some of those areas outside the city limits in the 1870s later became part of the city through annexations.)…

“Things were already changing, as railroad lines and industry were crowding out housing,” Keating says. “The fire made this happen more quickly but it would have happened anyways. People moved more quickly south to Prairie Avenue or out to new suburban towns like Riverside.”

“The fire pushed 27,000 humble homes out of the central city and the North Side, leading to fewer residences downtown,” Lewinnek says. “Yet suburbanization was already happening before the fire, in elite suburbs like Riverside and more humble suburbs too.”

I have not heard this argument before. At the time of the fire of 1871, suburban populations were very modest. Railroad lines had only been in present in the region for a few decades. For example, the suburb of Naperville, which had just lost out on being the county seat to Wheaton, had just over 1,700 residents in 1870 while Wheaton had 998 residents and Aurora had over 11,000 residents.

As noted by numerous scholars, by the late 1800s fewer areas surrounding Chicago were willing to be annexed into the city (unlike communities like Hyde Park). This is usually attributed to the declining status of city life compared to suburban life alongside the declining price of public infrastructure that made it possible for suburbs to have electricity and their own water supplies. But, the scholars above hint at another factor that would become a long-running feature of suburban life: cheaper housing. If Chicago required less flammable materials for homes, people would move to suburbs that did not have such regulations.

More broadly, it would be worth examining whether major disasters in urban areas push people to move to surrounding areas or even other regions. Do earthquakes in the LA area influence population patterns? How about hurricanes in the southeast? Do people leave population centers after terrorist attacks? It would take some work to separate out the effects of disasters on movement compared to other factors.

Celebrating the labor of those who build McMansions?

The construction of single-family homes employs many Americans. When demand for homes drops, such as in the late 2000s with the burst housing bubble, many are out of work until the housing market heats up again.

Critics of McMansions would argue such homes should not be built. Instead, the land could be put to better use or developers and communities should focus on building other kinds of housing units that do not suffer from the same flaws.

But, the construction of McMansions employs people. Developers may build them to make more money than they could by building starter homes and communities may approve them in order to keep property values higher. And these homes provide work. Is this the case where a job is not worth it if the outcome is an undesirable product (in the eyes of McMansion critics)?

On this Labor Day, it would be interesting to consider how those who construct McMansions might be employed constructing other buildings. For many who construct McMansions, it could be hard to turn down the work if other opportunities are not present or the job pays okay. Should part of the fight against McMansions also include efforts to address labor issues?

Building Florida’s Metropica around retail

A new development in Florida is built around a shopping mall:

Once safely inside, Kavana returned to explaining what that vision amounts to. Turns out it’s an Instagram-friendly mall that you can live in—one that happens to be smashed up against the side of an enormous swamp…

Approved for construction in 2014, the first residential tower of Metropica’s 4-million-square-foot planned community is set for move-in soon. On opening day, there will be a DJ spinning as buyers (and prospective ones) check out tennis courts and a state-of-the-art gym while enjoying gourmet popcorn. All this, Kavana said, is to showcase the conveniences and amenities that come with living inside a shopping center. He’s well aware that traditional retail is on the decline, but hopes he can buck the trend by bringing online players like Casper Mattress, which is heavily advertised by podcast hosts and Instagram influencers, to a brick-and-mortar location across from Tower One. Although Casper has yet to sign a lease, he hopes to court them and other retailers who might appeal to those millennials who hate malls but love “experiences,” as he put it…

Still, while it’s true that building your own jewelry at a Kendra Scott store is technically an experience, millennials are the most financially beleaguered generation in modern American history, and the only one to prefer urban environments to suburban and rural ones. Meanwhile, units at Metropica start in the mid six figures, and its $1.3 million penthouse overlooks two vast expanses, the juxtaposition of which defines the weirdness of South Florida’s bedroom communities. In full view is the Everglades Wildlife Management Area—facilitating regular clashes with wild animals—but also the parking lot of the BB&T Center, the arena where a different kind of wild animal, the Florida Panthers, battles visiting teams in professional hockey. With student housing, a building for active seniors, and an assisted living center also in the works, it might one day be possible to spend an entire lifetime in Metropica.

The question, however, is whether anyone will want to do that, or if the master-planned community will go the way of other Florida development boondoggles that were also advertised as utopias before falling into disrepair. Kavana is far from the first person to come to Florida and try to build something out of nothing, and perhaps as a result, the state has a long history of producing what sociologists call non-places. As the theory goes, there are three categories to describe where people spend their time in an ideal society: work, home, and a so-called third place where conversation is the main activity. In his book The Great Good Place, a guy named Ray Oldenburg said that might be a bar, a coffee shop, or the prewar concept of “Main Street”—no matter what form it takes, the third place has to be cheap (if not free), easy to get to without a car, and old enough to be embedded in the community.

Three quick thoughts:

  1. The rest of the article provides a quick overview of multiple large-scale Florida developments that did not work out as intended. At the same time, is it safe to say that development in Florida might have always been on a big scale? I remember visiting the Edison and Ford Winter Estates years ago and reading about how so few people lived on the Gulf Coast of the state then compared to now.
  2. The article does not say much about the funding for this project. As long as not much or any public money is on the line, the project going belly up may not be too harmful. (Of course, there are still environmental costs and partially developed land might be harder to develop in the long run.)
  3. It is also not clear who would move into Metropica outside of the appeal to millennials. Is this intended for Florida residents or people moving to the state? How does it compare to other developments in the area they could choose from? When I see major developments like this in urban areas that have more expensive housing, I always wonder who will move and/or invest in the property. (The Miami area is known for an interesting set of investors.)