Category Archives: Sociology

Considering the Wall Street Journal’s “mansion porn”

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The Wall Street Journal sends a special supplement each week to readers looking at the houses of the wealthy:

Mansion, The Wall Street Journal’s real-estate supplement, arrives each Friday slipped into the middle of my newsprint edition, the way pornography (so I’m told!) used to come in unmarked envelopes back before the internet placed it at everyone’s fingertips. I’m satisfied with my weekly print version, but you may prefer reading Mansion on the web, where the photographs are more numerous, detailed, lurid, and explicit…

The comparison to porn is apt. It’s also unoriginal and incomplete. A little more than a decade ago, when the century was young and right before their real-estate holdings drove millions of people into bankruptcy, New York magazine ran a regular feature about how fabulous it was to own real estate. And not just to own it, but to fantasize about it, drool over it, caress the photos and the sales price as though they were objects of sensual desire. The feature was called “Real Estate Porn,” in keeping with the salacious content.

Mansion invokes the same feelings of naughtiness: You’re watching people do something that, in a fairer and more just world, you’d be doing yourself. I think of Vivian Dixon and John Chapple, a married couple that Mansion introduced us to not long ago, as the exemplars of the Mansion character. They are voluptuaries of real estate. They grab houses the way the rest of us scoop mints from the little bowl as we leave a restaurant. At the time of the article’s publication, in May, they owned six residences, though by the time the piece ends you suspect their trigger finger is getting itchy again…

This willingness to take the wealthy on their own terms is a rarity in American business journalism. Reporters are usually more leery in their treatment of such subjects, when not nakedly hostile. Few people in the world despise the winners of the capitalist lotto more than the sorry drudges who are called to write about them. You’ll find a higher percentage of committed socialists in the newsroom of the Financial Times than at a lakefront party at Bernie Sanders’s dacha.

I have not seen this section but I wonder if tackles several darker essentials of American culture from the beginning:

  1. The presence of really wealthy people in the midst of an egalitarian/middle-class public discourse.
  2. The importance of real estate in American life. Sure, citizens can vote and a few people can move from the bottom to the top in unique ways but the real answer to getting ahead is real estate (from moving the frontier for 150+ years to gobbling up expensive properties in  global cities).
  3. The work that goes into homeownership in both maintaining and improving properties.
  4. The interest in seeing what the rich are up to and uncertainty about whether to critique their excess or celebrate their success.

It would be interesting to know how many Americans exist at this elite level of real estate. This is not the typical homeowner hoping to make money on their single-family home or the small market house flipper or the “dream hoarders” in the top quintile of earners; these are people buying and selling with large amounts of capital (perhaps some even thinking like the current president).

Waiting to hear Chicago suburb advertising lower property tax rates

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In recent years, multiple Chicago suburbs have advertised for businesses and residents to move there including Elk Grove Village, Bedford Park, New Lennox, and Lemont. Their pitch often includes mention of the suburb’s transportation advantages, amenities (ranging from water supply to community atmosphere), and available land.

Here is one local feature that is missing from these advertisements: lower property taxes compared to other suburbs or Chicago. This would be a competitive edge in a region where residents and businesses face relatively high property tax rates.

There have to be communities that actually do have lower property taxes. There are a number of suburbs that have higher concentrations of commercial and industrial businesses that provide a good tax base. Industrial parks and office parks provide space for businesses and offices. Many suburbs would want this: the companies help carry more of the local tax burden and this provides extra revenue for the community. In comparison, a bedroom suburb may have really high property taxes because it is primarily residents paying the property taxes and there are limited sales tax revenues.

If the advertisements for suburbs are primarily aimed at businesses and not residents, then perhaps the property tax arguments make less sense. At the same time, a strong existing business base could be very appealing for other firms. Some proof that other businesses have thrived in a suburb plus some opportunities for local synergy in addition to lower taxes could all be very appealing.

In the super competitive race between the Chicago suburbs and the city plus competition from other nearby states like Indiana and Wisconsin (let alone Texas and Florida) for businesses and residents, I am surprised to not hear a property tax appeal. Perhaps this simply means that few Chicago area communities could offer any real advantages in this area. Or, maybe there is some reluctance to tout lower property tax rates. Yet, as suburbs compete, I would expect that their mass appeals will continue to evolve.

The sidewalk problems for walking and biking in the suburbs

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Using suburban sidewalks is not easy for a variety of reasons. Here is a short list of the problems:

  1. Sidewalks with too many or too big of cracks and/or dips. This is less of an issue for walking but can range from annoying to tire-popping for bicycles.
  2. A lack of curb cuts or good ones in going between sidewalks and roads. It is can be enough work to watch out for vehicles at intersections but then many of the transitions between sidewalks and streets are poor.
  3. A lack of shade on sidewalks. This is particularly pronounced in newer developments where there is a lack of trees near the street or in places where diseases have limited trees.
  4. Too much vegetation along sidewalks so that users of the sidewalk have to dodge low branches or overgrown bushes. This is inconvenient for single users and could be really difficult when people are passing each other.
  5. No sidewalks at all. While this is a pronounced issue in more rural locations or unincorporated areas where sidewalks were never built, it can also pop up in weird in-city locations where a sidewalk will simply end, forcing a user to cross over to the over side or use the street.

All of these issues could reduce sidewalk use in a country where bicycling and walking is already dangerous and more people would benefit from moving around. The lack of sidewalk users might contribute to the poor conditions listed above and more local advocacy could help reverse these conditions.

Seattle enacts “McMansion ban”

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Earlier this week Seattle moved to approve accessory dwelling units and also limit the size of McMansions:

While loosening restrictions on accessory units, the new rules will tighten restrictions on the construction of single-family houses by outlawing certain large homes, based on their floor area and lot size.

The aboveground living space for a single family in a new house will be limited to half the square footage of the home’s lot. For example, a new house on a 6,000-square-foot lot will be limited to 3,000 square feet of aboveground living space, not counting space devoted to an accessory unit.

O’Brien has said the “McMansion” ban will discourage people from replacing modest older houses with more expensive new houses and will encourage them to add accessory units….

The city’s most recent environmental analysis estimated the new rules would result in 4,430 accessory units built and 1,580 houses torn down over 10 years, versus 1,970 accessory units built and 2,030 houses razed under the status quo.

Three quick thoughts:

  1. The restriction on floor size based on lot size is a common one. This not only keeps the overall size down but also can help keep the new home from crowding up against the edge of the lot. Fitting a large home on a small lot is a common issue with those opposed to teardown McMansions.
  2. The story above says there is a restriction on aboveground square footage based on the lot. Does this mean some new homes will go underground instead (a la London)?
  3. The numbers cited at the end of the article are interesting in a city of over 700,000 people. The “McMansion ban” would not appear to have much effect: over the course of ten years, roughly 25% fewer teardowns would occur according to projections. Even with the restrictions, it will still be an option for those with wealth who want a single-family home (as opposed to the new option of an accessory dwelling unit on the lot of someone else). If the city really wanted to go after McMansions, could they have done more?

Bringing in tourists just to see the airport

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Airports are often considered gateways to other tourist activities. Yet, they can be tourist destinations in their own right:

Hughey’s at the vanguard of a new phenomenon: terminal tourism. Programs adopted or being considered by a number of airports allow people beyond security checkpoints so they can meet arriving relatives or just hang out. It’s a bit of a return to the days before the 9-11 terrorist attacks, when airport security was more relaxed and you didn’t need a ticket for a flight to get inside. The programs are taking root as airports expand options to fill passenger dwell time, as it’s called — those often mind-numbing hours between when people make it through security and when their flights take off. Now many airports feature live music and art exhibits. There are spas, microbreweries, playgrounds, gourmet restaurants and wine bars.

Pittsburgh was the first airport to open up to non-travelers, in 2017, and Tampa started doing so last month. Seattle-Tacoma is evaluating a pilot it tested earlier this year and Hartsfield-Jackson Atlanta International, the nation’s busiest, may seek approval for a trial run. The idea is under consideration in Detroit and Austin…

Some view it as a potential money-maker; officials with the facilities in Atlanta and Detroit figure they might see additional revenue from parking and concessions. A survey of visitors during Seattle-Tacoma’s trial showed people stayed an average 2.5 hours — though they spent only an average $10.29.

At Pittsburgh International, the impetus was popular demand, said Chief Executive Officer Christina Cassotis. She was peppered whenever she appeared at public forums. “In the top five questions was always, ‘Why can’t we go back to the airport and see what’s going on out there?”’

I know there are security concerns but I cannot believe it took this long to consider this potential revenue generator given the number of cities interested in tourism. If the buildings are already there, why not invite more people in?

Some of the discussion in the article suggested airport tourists are drawn by food and shopping. I also assume the terminals provide some other nice features: watching airplanes and a safe, controlled, clean environment. In all these senses, airports are then like shopping malls with options for dining, shopping, and entertainment all within a pleasant indoor setting. And having been in almost all of the airports listed above, newer facilities are definitely headed toward shopping mall status with large shopping and dining areas plus interesting amenities for people on the go. For example, Sea-Tac offers a large glass window for watching planes.

Now, if only those struggling shopping malls could find something as interesting as planes landing and taking off to attract visitors…

Take a road trip to (downtown) Naperville

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I found a suggested road trip to the suburb of Naperville, Illinois in a recent AAA magazine:

NapervilleRoadTrip

Several things strike me about this list:

1. All but one of the listed items to do is in downtown Naperville (with that other location almost out of the suburbs on the northwest side). This is a testament to the vibrancy and uniqueness of downtown Naperville.

2. Related to #1, all but one of the locations is walkable from the others. This is probably pretty unique in many American suburbs which are automobile dependent (as is the majority of Naperville).

3. What is missing from this list: Naper Settlement, the downtown shopping options, the rest of Naperville (see #5).

4. There is no mention here of proximity to Chicago. Naperville stands on its own with over 140,000 residents even though Chicago is accessible by car or train within roughly an hour. Would a road trip to a smaller and (perceived to be) safer location – a suburb – be more appealing to many Americans than a global city?

5. Does this accurately represent what Naperville is? On one hand, yes. The downtown features of Naperville represent a unique collection of recreational and consumer options within a suburban downtown. On the other hand, no. Naperville is a sprawling suburb marked by numerous subdivisions, strip malls, and lots of driving. Naperville is unusual both because of its downtown and its size and wealth with the latter two features perhaps not providing much appeal for a road trip.

Which 2020 candidate will set themselves apart by promoting homeownership?

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Homeownership is at relatively low levels in the United States. There is a disparity in homeownership between different racial and ethnic groups. Affordable housing is hard to come by in many housing markets. So why is homeownership not an issue more 2020 candidates are talking about?

Several possible reasons come to mind:

  1. Policy options regarding housing on a national scale are not easy and/or may not be popular. Homeownership gets at a whole set of thorny issues including meritocracy, unequal distribution of resources, the power of local government, and exclusion from certain communities.
  2. Federal policy has done less subsidizing of homeownership in recent years (even as the general policy over the last century or so has been to do so). Other areas of policy are more attractive or pressing (see #4 for example).
  3. Many Americans desire to become homeowners at some point (including millennials) and they assume it will happen at some point, even if they face obstacles now. Perhaps they don’t see a big role for the federal government to play in this. Perhaps many Americans think housing is a free market operation (despite evidence to the contrary).
  4. Debates about college loan debt and free college may be proxy issues for homeownership. No shortage of ink has been spilled writing about how possible young homeowners cannot purchase a home because of college debt. Provide a cheaper or less-debt-inducing college experience and homeownership rates might climb again.
  5. Economic and social conditions have changed to the point where although many Americans still plan to own a home, it is no longer the same marker of success it was in the past. Success now may be no college debt or a fulfilling career or a funded retirement.

Even as American politicians for roughly a century have appealed to voters with arguments about expanding homeownership (for example, see Herbert Hoover in 1931 or George W. Bush in 2002), this election cycle may few such arguments.

Online publication of “Emerging SNS use”

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My colleague Peter Mundey and I have a new article published online at the Journal of Youth Studies titled “Emerging SNS use: the importance of social network sites for older American emerging adults.”

The abstract:

This study asks how older emerging adults (23–28 years old) describe, understand, and interpret their own social network site (SNS) use, as well as whether this SNS use promotes social ties and life satisfaction or leads to negative consequences. Based on organic mentions of SNS use in interviews from Wave 4 of the National Study of Youth and Religion (N = 302), we find: maintaining relationships is the largest SNS use while older emerging adults also expressed difficulties in online relationships and finding romantic partners; they use SNS in new domains, such as work and politics; aging and generational changes affect how they view SNS use as they have new demands on their time; and they expect to continue to use SNS. The findings suggest limited support for the argument that SNS use promotes sociality and well-being and some indications that SNS use negatively influences older emerging adults. We argue SNS use will be similar and different as older emerging adults age – they will continue to use SNS to maintain relationships yet new demands will alter other uses – and this has implications for employment as well for as political, religious, and SNS leaders.

 

Counterarguments to the claim that people should not waste money on a big house

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Economist Robert Shiller argues Americans do not need large houses:

“Big houses are a waste. People are still in a mode of thinking about houses that is kind of 19th century. As we modernize, we don’t need all this space,” Shiller told the Journal…

Shiller said advanced technology has replaced the need for extra space in our homes.

“For example, we don’t need elaborate kitchens, because we have all kinds of delivery services for food. And maybe you don’t need a workshop in your basement, either. You used to have a filing cabinet for your tax information, but now it’s all electronic, so you don’t need that, either. And bookshelves, for people who read a lot. We have electronic books now, so we don’t need bookshelves anymore,” Shiller said.

“Having a big house is a symbol of success, and people want to look successful. People have to know about your achievements. How do you know, really? Who knows what people are doing in their day job? But you do see their house.”

The counterargument for a typical owner of a large house might look like this:

1. What else could be such a worthwhile investment over time? Many people assume their home will appreciate in value and a big home purchased today means not only more space but more money down the road when the home sells.

2. Private space is still important. The kitchen may not be just about cooking. Of the spaces Americans do use in their homes, the kitchen is one. Or the idea of a workshop: there can be public spaces where people could come together to share tools and use common space but how many Americans are ready for that?

3. Shiller may overestimate the rate at which people are willing to get rid of stuff in favor of electronic copies or technology-aided alternatives. Shiller cites paper and books above. But, Americans simply consume a lot, ranging from video games to decor to furniture to electronic gadgets. Don’t they need bigger houses to fit all their stuff?

4. Status symbols matter in American society. A home is a very tangible expression of status, particularly compared to smaller items like watches, smartphones, jewelry, clothing, and other items.

All of these reasons may not be the most efficient or rational but they are a product of decades of social and cultural action and values. For more reading, see an earlier post: “Explaining Why Americans Desire Larger Homes.”

Get creative and sell home and new car together as package deal

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Thinking about an earlier post linking new upscale car purchases with suburban gentrification, I had an idea: why not sell more homes and new cars together as a package deal? Here are reasons this could be a good pairing:

  1. Americans like the lifestyle that comes with a single-family home and driving a car. It is particularly important in the suburbs where owning a home and the ability to drive rank high in importance. Put these two big purchases together and sell a whole lifestyle.
  2. Both a home and a car are a status symbol. Pairing the two really provides an opportunity to brand the owner. Would someone want to purchase a McMansion but still drive a two Toyota Tercel or a Pontiac Aztek? Or, retire and downsize to a nice urban condo and keep driving a minivan or an older model SUV? Matching the home and the car at the same time provides a unique opportunity to establish oneself.
  3. I wonder if there are some “efficiencies” in purchasing both at the same time. On the producer side, developers and dealers want to move properties and cars; if selling them together helps, this is a deal. On the buyer side, perhaps they can roll all of the costs together and just pay one lump sum a month for two important items. (Mortgage documents might be hard enough to put together, let alone a joint document rolling together a mortgage and a car loan). Could it all be cheaper for the buyer (or get the sellers/lenders more money in the long run on interest)?

I would guess there are also good reasons this is not done widely. Still, given how much Americans like buying properties and like driving and cars, there may be potential here.