Reading into a decreasing poverty rate, increasing median household income

Here are a few notable trends in the new data that shows the poverty rate is down in the United States and median household incomes are up:

Regionally, economic growth was uneven.
The median household income in the Midwest grew just 0.9 percent from last year, which is not a statistically significant amount. In the South, by contrast, the median income grew 3.9 percent; in the West, it grew 3.3 percent. “The Midwest is the place where we should have the greatest worry in part because we didn’t see any significant growth,” said Mary Coleman, the senior vice president of Economic Mobility Pathways, a national nonprofit that tries to move people out of poverty. Median household income was also stagnant in rural areas, growing 13 percent, to $45,830. In contrast, it jumped significantly inside cities, by 5.4 percent, to $54,834, showing that cities are continuing to pull away from the rest of the country in terms of economic success…

African Americans and Hispanics experienced significant gains in income, but still trail far behind whites and Asians.
All ethnic groups saw incomes rise between 2015 and 2016, the second such annual increase in a row. The median income of black families jumped 5.7 percent between 2015 and 2016, to $39,490. Hispanic residents also saw a growth incomes, by 4.3 percent, to $47,675. Asians had the highest median household income in 2016, at $81,431. Whites saw a less significant increase than African Americans and Hispanics, of 1.6 percent, but their earning are still far higher, at $61,858.

The poverty rate for black residents also decreased last year, falling to 22 percent, from 24.1 percent the previous year. The poverty rate of Hispanics decreased to 19.4 percent, from 21.4 percent in 2015. In comparison, 8.8 of whites, or 17.3 million people, were in poverty in 2016, which was not a statistically significant change from the previous year, and 10.1 percent of Asians, or 1.9 million people were in poverty, which was also similar to 2015…

Income inequality isn’t disappearing anytime soon.
Despite the improvements in poverty and income across ethnic groups, the American economy is still characterized by significant income inequality; while the poor are finally finding more stable footing following the recession, the rich have been doing well for quite some time now. The average household income of the the top 20 percent of Americans grew $13,749 from a decade ago, while the average household income of the bottom 20 percent of Americans fell $571 over the same time period. The top 20 percent of earners made 51.5 percent of all income in the U.S. last year, while the bottom 20 percent made just 3.5 percent. Around 13 percent of households made more than $150,000 last year; a decade ago, by comparison, 8.5 percent did. While that’s something to cheer, without a solid middle class, it’s not indicative of an economy that is healthy and stable more broadly.

Both of these figures – the poverty rate and median household incomes – are important indicators of American social and economic life. Thus, that both are trending in the right direction is good.

Yet, we also have the impulse these days to (1) dig deeper into the data and (2) also highlight how these trends may not last, particularly in the era of Trump. The trends noted above (and there are others also discussed in the article) can be viewed as troubling as the gains made by some either were not shared by others or do not erase large gaps between groups. Our understandings of these income and poverty figures can change over time as measurements change and perceptions of what is important changes. For example, the median household income going up could suggest that more Americans have more income or we may now care less about absolute incomes and pay more attention to relative incomes (and particularly the gap between those at the top and bottom).

In other words, interpreting data is influenced by a variety of social forces. Numbers do not interpret themselves and our lenses consistently change. Two reasonable people could disagree on whether the latest data is good for America or suggests there are enduring issues that still need to be addressed.

Apple stores are not new town squares

American communities often lack vibrant public spaces but Apple stores may not be the answer:

The stores have good vibes. Everything is clean. There are no sounds of commerce. No clanging till. No specials on an aisle. No mechanical belt sliding products toward a beeping scanner. People will tell you they like your new shoes. I love Apple Stores.

But there is one problem with calling an Apple Store an Apple “Town Square”—which the company announced it’s now doing at Tuesday’s iPhone event. Namely, the Apple Store is a store and not a town square…

And most surreally, a dominant problem for democracy at this moment is that truly public space doesn’t exist on the internet you access through your phone.

Internet platforms, as John Herrman has argued, merely masquerade as democratic spaces. But they are not. They are private, as private as an Apple Store.

This is a regular issue that pops up: private retail or office space that often functions as public space is not truly public space. If you conduct activities that are not conducive to business, whether in an Apple store, a McDonald’s, the cavernous lobby of a hotel, a shopping mall, or even a landscaped area outside a business but that it is on private land, you can be removed from that space. These private spaces that allow people of different backgrounds to gather and interact can still be very valuable – see the concept of “third places,” an idea that Starbucks CEO Howard Schultz has discussed. Granted, there are restrictions on what you can do in public spaces as well but your activities are much more limited in private spaces.

Sociologists and others have asked for decades how American communities might develop more public spaces. The Internet was one space that offered new opportunities for democracy and public interaction. Alas, much of that early fervor has decreased as the Internet is dominated by major corporations and online discourse is often not very enlightening or civil.

Dissolving governments in DuPage County proceeding at a slow pace

Reducing the number of governments and taxing bodies in Illinois can take a bit of time:

County board members on Tuesday approved a plan to dissolve the Highland Hills Sanitary District and provide Lake Michigan water to customers served by the Lombard-area agency…

The agreement paves the way for Highland Hills to be disbanded within 18 months, officials said…

Cronin said Highland Hills will be the fifth unit of local government dissolved in DuPage. He said it’s more proof that the county’s “accountability, consolidation and transparency model for local government is working.”

In 2013, state lawmakers gave DuPage the power to eliminate Highland Hills and a dozen other local government entities.

If consolidation is working, it is working slowly. A reminder: Illinois leads the way among states with nearly 7,000 local governments. Even when it may look like there are obvious ways to combine government units or get rid of other units, it often requires the approval of residents. Although many would like their taxes to stabilize or go down, giving up local control is also difficult as many then fear a decline in services or that they will have less input to processes that can affect daily life.

Not so fast: turning suburbs into cities

One way to revive America’s cities may be to adapt to increasing densities in Americans suburbs:

But this analysis also misses something important. These trends don’t just represent people’s moving decisions — they also represent changes in the places themselves. If enough people move to a low-density area, it becomes a high-density area.

People are pouring into Dallas and San Diego. So unless those cities continue to sprawl ever farther out across the countryside, the new arrivals will increase density. People will want to live close to their jobs instead of enduring hour-long commutes. Apartment blocks will spring up where once-empty fields or single-family homes stood. Today’s fast-growing suburb is tomorrow’s urban area.

In other words, the great urban revival might not be ending, it might just be relocating. Instead of piling into existing cores, Americans might simply be creating new ones across the country. And if each of these new cities creates the productivity advantages enjoyed by places like San Francisco and New York City, this could be a good thing for the economy.

This is an intriguing concept: some suburbs, because of their popularity, willingness to build taller structures, and population size, might become like cities. This has already happened to some degree in a number of suburbs across the country.

Yet, just because a location has a certain number of people or reaches certain population densities does not necessarily mean that it feels or operates like a city. We also already have some denser urban areas – see the Los Angeles suburbs which are pretty dense compared to many metropolitan areas – but that does not automatically make them cities or urban. What is required? Most American cities have: a core or multiple cores that are multi-use and include a good number of businesses or offices; a walkability that extends for a good distance (beyond just a suburban downtown or large shopping center) and mass transit options to extend beyond the core(s) – in other words, good options beyond operating a car; a vibrancy and diversity that could range from thriving economic activity to restaurants and bars to filled public spaces; and an identity among residents and others that the area is a city.

Imagine Naperville, Illinois really wanted to become a city. It starts approving dense residential and commercial projects throughout the community. (Just to note: the local government has rejected these in the past.) The population ticks upward past 200,000 or even 300,000. There are still some pockets of single-family homes and vestiges of small-town life. How long would it take for the conditions of a city as discussed above arise? How would the community adapt to having so many businesses along I-88 rather than downtown? Would this limit the number of people who ride into Chicago on the Metra each day? (Naperville right now has the busiest stops in the whole system.) How would a city atmosphere develop? This all would take significant time and effort and perhaps decades before Naperville would be considered from both the inside and outside a city.

I disagree: Loop building boom a sign of “the re-urbanization of America”

An insightful analysis of the high-rise construction boom in Chicago’s Loop includes this claim about what all this new development means:

“It’s the re-urbanization of America,” said John Lahey, chairman of Solomon Cordwell Buenz, a Chicago-based firm that specializes in residential high-rises.

It’s also a shift in the urban map: The once-frayed edges of downtown, home to the poor and working-class, are now the glittering home of the affluent. Rental rates, while less expensive than on the coasts, still leave many priced out. City officials last month proposed a pilot program to generate affordable housing in gentrifying areas of the Near North and Near West sides as well as along Milwaukee Avenue. But changing the trajectory of the marketplace won’t be easy.

This is an interesting claim to make in Chicago. The “Super Loop” is indeed growing in population and tall buildings. But, the city as a whole is not doing so well. See the population loss. See the persistent problems – meaning, decades-long concerns – in numerous poor neighborhoods. See the slow population growth in the suburbs within the metropolitan region and also the emerging presence of urban issues (affordable housing, poverty, exclusion) in suburban areas.

A better description might be this: what is happening is the concentration of wealth in urban cores while outlying areas of cities and suburbs are suffering. The same process is happening in New York City, Miami, Seattle, San Francisco, and other major cities.

Can a list of the most beautiful homes in Dallas include McMansions?

An earlier article I published suggested McMansions are not viewed as negatively in Dallas compared to New York City. The list of “the hand-down 10 most beautiful homes in Dallas” from D Magazine includes two references to McMansions:

Each year of the last decade, the editors of D Home have canvassed the city to bring you a list of “10 Most Beautiful Homes” that hopefully appeal to every taste. While on the road, we’ve spilled endless Diet Cokes due to sudden stops, exposed ourselves to the occasional McMansion, and risked looking like embarrassingly low-tech private investigators snapping photos with our iPhones. We do it all for you!…

We once named Tokalon Drive the most beautiful street in Dallas, which we suppose makes this 4236-square-foot dwelling the most beautiful home on the most beautiful street in Dallas. Plus, it reminds us why turrets are actually totally cool and not just something that just gets thrown on a McMansion. All that’s missing is a moat.

Yet, the list of 10 homes includes no McMansions. While these are large and expensive homes, all were constructed prior to World War II and have an architectural coherence that many McMansions lack. However, homes on this list for previous years did include newer homes and I would guess some of these 2017 selections have had major work done to them which might also negate some of their old-image charm.

Even in Dallas, such lists may not be able to select or trumpet McMansions as beautiful homes. If you run in certain circles – particularly when your readers are educated and wealthy – McMansions are a dirty word. A magazine like this that considers itself “a member of the original generation of city magazines: New York Magazine, Washingtonian, Philadelphia, Boston and Chicago” could likely not support such as crass consumer item as the McMansion.

Fighting over affordable housing in Cedar Rapids

Lest you think NIMBY responses to new housing are limited to expensive cities, here is a case of opposition to 45 affordable housing units in Cedar Rapids, Iowa:

Neighbors said they didn’t oppose affordable housing per se, but that they feared the burden of the construction on their area, citing issues such as an increase in traffic and car accidents, potential flooding, and a lack of walkability for incoming residents. The developer said it had selected the site because it would immerse residents in a middle-density community with access to family amenities, including a bus stop, parks, and an elementary school.

At first, it looked like NIMBYism had prevailed: The petition and complaints convinced the city planning commission to vote against the request to rezone the property at an April 2016 meeting. But a few months later, the proposal was revived, becoming a test of what it would take to defeat neighborhood concerns and develop affordable housing that was integrated into rather than segregated from low-poverty communities.

That’s when the real animosity started to emerge, according to Phoebe Trepp, the director of Willis Dady, the local homeless services organization that would provide assistance at the development…

City leaders are also interested in spreading affordable housing throughout the city, rather than clustering it in the poorer southeast quadrant. Susie Weinacht, a City Council member at large, says that city staff want “housing options available throughout the community.”

This sounds fairly typical. A decent-sized community has difficulty providing affordable housing as well as dealing with homelessness. The city wants to spread the affordable units throughout the city so that poorer residents are not concentrated in one area (and perhaps to limit political opposition if one area had to host more units). Residents are not happy about this. They raise all sorts of common concerns about new developments – traffic, too much density near single-family homes, water issues, negative effects on property values – while also hinting at issues of race, ethnicity, and class (not cited in the excerpt above but more details are in the full article). A public debate ensues, one side wins, and the other side is not happy.

Is there a better way to do this whole process? Toward the end of the article, an official says that affordable housing initiatives work best when the support is from the grassroots (rather than planned by local or larger governments). This is probably true. Yet, how does one convince working-class to upper-class residents that it is in their interests to live near affordable housing? This is an incredibly tough sell to make to many Americans.

It is also worth asking about how the neighborhood fares within five, ten, twenty years of the construction of affordable housing units. Are the fears of Cedar Rapids neighbors unfounded? Does a denser development significantly alter the character of the community and drive existing residents away? Having some of these facts may not matter to some residents but showing some data could help ground the discussions in reality rather than emphasizing possible negative effects.

Roll out the tax break bidding war for Amazon HQ#2

Amazon want to build a second headquarters with some 50,000 workers. Expect the tax break war to begin:

Amazon is seeking proposals from local, state and provincial government leaders, and says it is focusing on metropolitan areas with more than 1 million people. It is also looking for areas that can attract and retain technical workers and “a stable and business-friendly environment.”

News of the search has unleashed a wave of speculation about where the world’s largest online retailer could set up shop. But experts say the company’s decision is likely to be as much about politics as it is about logistics and incentives. Bezos has been a vocal opponent of President Trump’s immigration bans, and earlier this week was among hundreds of tech leaders who urged him to reconsider his stance on the “dreamers” immigration program…

Among the criteria it will consider, Amazon says, are tax exemptions and other incentives, including relocation grants and fee reductions. “The initial cost and ongoing cost of doing business are critical decision drivers,” the company said in its request for proposals.

It added that the location does not need to be in an urban or downtown location, or a development-prepped site. The site should, however, be within two miles of a major highway and have access to mass transit. Amazon said it will give priority to existing buildings that are at least 500,000 square feet and undeveloped sites that measure about 100 acres.

Here is the actual language from page 6 of the RFP:

AmazonRFPp6

This may seem like a perfect scenario for locations (cities and states) to offer tax breaks: the company is growing, it is a major player, and it comes with a large number of jobs. Headquarters are a status symbol for areas but this one includes real jobs and a high-status company.

However, I would still argue a tax break war is a bad idea. Here are a few reasons why:

  1. There will be one winner and a lot of losers. Those who do not win may just offer even deeper breaks to the next possible company. When does this stop?
  2. A massive tax break will offset at least some of the benefits of the headquarters. While it is hard to pass up 50,000 jobs, significant tax breaks mean local governments and residents get less than they might otherwise.
  3. A bidding war puts Amazon in the driver’s seat and may have local governments begging for this. A victory would wipe out groveling but going all in on an offer and losing may reduce the status of a location. (Think of unsuccessful Olympics bids in the past.)

The locations involved could be many but this will not turn out well for many or maybe even all.

Crossing the line into NIMBYism

Author Margaret Atwood is opposed to an eight story residential building that would back up to her home in pricey Toronto. In some exchanges on social media, Atwood was accused of a NIMBY attitude. This raises an interesting question: when does one’s actions move from normal concerns about a home or neighborhood and into NIMBYism? Here is a description of Atwood’s concerns:

As the debate escalated, Atwood threw shade at a prominent local urbanist, accusing him of being in the pocket of developers, and went toe-to-toe with the architecture critic of a major Canadian newspaper.

The exchanges were confusing because, historically, Atwood has championed urban issues. She fought cuts to the Toronto Public Library under Mayor Rob Ford and opposed a plan by the University of Toronto to cover one of its historic green spaces in artificial turf.

In actuality, the opposition Atwood officially registered with the city was muted compared to those of others, particularly her husband, author Graeme Gibson.

“[The condo] hover[s] close to a brutal and arrogant assault on a community that has been here since the 19th Century,” he wrote in an email to the local city councillor.

In her email, Atwood focused on potential damage to several trees with roots in the development area, and later insisted on Twitter she would prefer affordable housing and a community center in the building.

In really expensive markets, perhaps anyone opposed to new housing units could be accused of NIMBYism. In many cities, there is a shortage of affordable housing and, as the article notes, it seems like wealthier residents do not want to live near cheaper housing and they have the clout to contest development. Additionally, it is difficult to imagine how sufficient housing units could be provided without making major changes to neighborhoods and cities as a whole.

But, is there also a way that NIMBYism is particularly expressed? This particular article hints at three possible distinctions. First, her husband used particular language. Perhaps taking a haughty or dismissive tone does not help. Second, Atwood has fought for the people regarding other city issues so perhaps she is not the average, out-of-touch wealthy resident. Third, Atwood may be trying to make a more nuanced argument – not opposed to the building but opposed to its uses – but this is difficult to relay through social media and it may not matter in a city like Toronto where housing is a controversial issue.

For better or worse, NIMBY is in the eye of the beholder. When arguments about land use and personal property arise, they are often heated. Accusing an opponent of NIMBY and the related idea that they are trying to keep people away from what they already have is a common tactic. Whether this application of a label helps the process in the long run is another matter to consider.

Could a community be green and have a lot of McMansions?

An Australian community is moving to become a garden city even as there is a demand for teardown McMansions:

The Monash Urban Landscape and Canopy Vegetation Draft Strategy suggests increasing canopy cover in Monash from 22 to 30 per cent by 2040.

Councillor Geoff Lake, who submitted amendments to the plan, said the people of Monash felt strongly about vegetation protection overlays…

“In particular, concerns related to overdevelopment on blocks where the site is razed to build a ‘McMansion’ and vegetation is not retained or replaced,” Cr Paterson said.

She said the council acknowledged that people valued the green character of Monash.

While it sounds like the vegetation plan is partly in response to teardowns, it could lead to an interesting scenario: a community that is both green and has a number of McMansions. The two are often assumed to not be compatible. McMansions are viewed as wasteful, whether because they are part of sprawling settings or provide unnecessary amounts of private space or use mass-produced materials. Garden cities, in contrast, feature plenty of green space alongside greener housing.

I have hinted at this in earlier posts: could we reach a point where McMansions are compatible with green settings? Imagine big homes with garish architecture that are built with eco-friendly materials and in settings that limit some of the worst features of sprawl. I suspect it may be difficult to convince McMansion critics that such homes could ever be green but given the public’s interest in such homes plus the ability to brand numerous products as green, the day where we have green McMansions may indeed come.