Argument: “Why more McMansions are bad news for first-time home buyers”

McMansions may be good for builders but not so much for people looking to purchase their first house:

Home building has been steadily picking up this past year after taking a sharp nosedive during the recession, although production is still far below historical norms. Orr said home builders are moving forward with cautious optimism, being wary of their pre-recession mistake of overbuilding.

So to help make up for the slowdown, builders are now making homes larger once again. Bigger homes means bigger sales revenue — and for only a minimal bump in construction costs, Orr said.

The trend has been to the detriment of first-time and lower-income buyers, who are finding both the new and existing home markets offer them very few options today.

“They (home builders) have kind of abandoned that sector,” Orr said.

The existing home market nationwide — but particularly in Phoenix — has been facing a chronic shortage of homes for sale, and the problem is most severe in price ranges below $200,000.

Many buyers have thus turned to new construction out of frustration. But given the sharp price hikes of new homes recently, lower-income buyers aren’t finding the same relief, Orr said.

In other words, builders can make more money on the bigger homes for those who still have money to play with. But is this just about builders? I wonder if there are two other things going on here:

1. The article hints at a depressed existing house market, suggesting that there isn’t enough movement in the housing market for these older smaller homes, what might be called “starter homes,” to become available in large numbers.

2. In addition to not much existing inventory opening up, perhaps there simply aren’t enough buyers for smaller houses for builders to take notice. What numbers are we talking about – how many first-time home buyers in the Phoenix are not able to find a home they want? This reminds me of recent data from the Chicago area: while housing starts may be up a large percent, the housing market is still not operating at normal.

That all said, if people want to get into purchasing a home can’t do so or are delayed, this could contribute to more long-term problems for the US housing market.

Targeting Santa Monica homeowners in order to build mini-mansions

The housing market in Santa Monica, California is apparently in good shape: homeowners are being targeted by those who want to tear down their smaller homes and build bigger ones.

Santa Monicans are being targeted by real estate agents representing developers looking to turn small homes in desirable neighborhoods into mini-mansions that can be sold for double the original asking price.

The agents tend to single out older homes, often taking up a relatively small portion of the parcel on which they sit, offering a cash purchase and a promise by the buyer to take care of normal closing costs, provided the homeowner does not broadcast their intent to sell.

Residents report notes left on their doors, direct mail bearing a picture of their own home and even direct phone calls soliciting sales.

That practice is called by many names, including off-market listing, pocket listing or quiet listing, and while it is completely legal, it often is a bad deal for sellers in hot markets like Santa Monica, said Don Faught, president of the California Association of Realtors…

Sosin led the charge in the late 1990s against “McMansions,” homes built to the margins of their property lines. They overshadowed neighboring properties, and led to the death of many mature trees that had to be removed so that the home could be built out.

Her work resulted in new rules around single-family homes, requiring set backs and imposing controls over how much of a parcel can be covered.

The attempts to build to even those restricted maximums are unwelcome, she said, because they only succeed in making neighborhoods more expensive to move in to and replace quaint, well-loved homes with larger versions.

It sounds like the resident quoted above is ready for a teardown battle, should one develop, but the article makes it sound like people are generally unhappy with this approach. The real question in my mind is whether these sorts of real estate tactics are successful. Does this suggest developers are worried about how the community will react to more public plans to build bigger teardowns or is this primarily a way to get real estate at a cheaper price before it hits the open market? Either way, I would want to know how many homeowners actually sell their homes in such a way and how they negotiate the peer pressure in the neighborhood versus the offer from developers.

Also, is the use of the term “mini-mansion” intended to avoid using the term McMansion? I would expect McMansion in this sort of situation, particularly from unhappy residents…

h/t Curbed

Argument for a flat tax for both electric and gas drivers

There is ongoing discussion in several states about a flat tax for electric and gas cars per mile driven:

“EV drivers want to pay their fair share,” says Jay Friedland, the legislative director of Plug-In America. “We want the roads to be supported, but we’re still in a phase of early adoption and there’s a greater public good.”

That “greater good” is to give electric vehicle technology a chance to crack through its niche status, reducing the continued reliance on fossil fuels from unstable nations. The more state and federal breaks EVs get, the greater the possibility that drivers will look to them as an alternative. But they still need to contribute to the greater good of roads and infrastructure, and Plug-In America agrees.

The advocacy group believes a flat road tax is a better solution – taxing all drivers equally, no matter how their vehicle is powered. That idea is gaining momentum.

In New Jersey, a road tax proposed by Sen. James Whelan, a Democrat from Atlantic City, would charge all drivers 0.00839 cents per mile driven. For the average driver who travels 12,000 miles per year, that comes to a little more than $100. It’s an easy way for Jersey to recoup some cash from EV drivers without targeting them directly.

It’s the same idea with Virginia’s HB 2313, which eliminates the $0.175/gallon tax on fuels in favor of a tax of 3.5 percent for gasoline and six percent for diesel fuel, while imposing larger annual registration fees and a $64 per year for EVs, hybrids and alt-fuel vehicles.

There seem to be several competing interests in these discussions:

1. States who desperately need money to pay for roads.

2. Advocates of electric vehicles who don’t want new taxes and fees to limit the adoption of electric vehicles.

3. Where are the gasoline drivers and the trucking industries? There has not been much reporting on their status in these ongoing discussions…

Another factor that makes these conversations more difficult is the potential changing nature of driving in the coming years. States need certain levels of funding for roads but it is unclear how many people will be driving what and what the status of miles driven per capita will be down the road. All of this means it is harder to make projections and also suggests that whatever is decided in the near future will probably have to be revisited soon.

Continuing political battles over Census data

Megan McArdle provides a reminder of the political nature of the Census:

If the Census is the key to political control, then you can expect parties to put more energy into gaming the census.  Arguably, you’re already seeing this: Republicans are now making their second attempt to defund the American Community Survey, which uses sampling to generate data between censuses.  The American Community Survey is not used for districting, but it is used for all manner of other policy purposes.

As the political fault lines harden in Congress, the battlegrounds are moving back to more hidden levers of policymaking.  There are the courts, of course: we’re now in the third decade of a mostly undeclared war to gain control of the Supreme Court and do some unelected legislating.  Data gathering and research funding are coming under fierce scrutiny.  And on the national security front, secrecy and executive orders seem to be the order of the day for whoever is in the White House.

Before you say it, no, this isn’t just Republicans.  But it’s not good on either side.  As the legislature has ceased being able to legislate, both parties almost have to resort to more undemocratic methods to achieve their goals.  The casualties, like judicial impartiality and good data for policymaking, are vastly more important than the causes for which this war is allegedly being fought.

To see more details of the recent Republican defunding attempt, see here.

Data is rarely impartial: the processes of by which it is collected, interpreted, and then used in policy can be quite political. That doesn’t mean that is has to be. Much of the grounding for social science is the idea that data can be more objectively collected and analyzed. Yet, within the realms of politics where data is often a means to victory, having a good handle on data can go a long way, as we saw in the 2012 presidential election or currently in debates among Republicans about how to handle voter data.

In the end, it will be fascinating to see how big data, from the Census to Facebook, does or does not become political. There are a couple of fault lines in this debate. First, there are people who will argue that having such data is in itself political and dangerous while the opposite side will argue that having such data is necessary to have more efficient and business government and business. This could be a debate between libertarians and others: should there even be big data in the first place? Second, there is a good number of people who like the idea of collecting and using big data but debate who should be able to benefit from the data. Can the data be used for political ends? If government should have its hands on big data, perhaps it is okay for businesses? Should individual consumers have more power or control over their contributions and participation in big data?

h/t Instapundit

Sociologist on the growing achievement gaps between upper, middle, and lower-class children

A sociologist explains the “substantial” growing achievement gaps in recent decades among students of different classes:

One way to see this is to look at the scores of rich and poor students on standardized math and reading tests over the last 50 years. When I did this using information from a dozen large national studies conducted between 1960 and 2010, I found that the rich-poor gap in test scores is about 40 percent larger now than it was 30 years ago…

The same pattern is evident in other, more tangible, measures of educational success, like college completion. In a study similar to mine, Martha J. Bailey and Susan M. Dynarski, economists at the University of Michigan, found that the proportion of students from upper-income families who earn a bachelor’s degree has increased by 18 percentage points over a 20-year period, while the completion rate of poor students has grown by only 4 points.

And why is this happening?

It boils down to this: The academic gap is widening because rich students are increasingly entering kindergarten much better prepared to succeed in school than middle-class students. This difference in preparation persists through elementary and high school…

High-income families are increasingly focusing their resources — their money, time and knowledge of what it takes to be successful in school — on their children’s cognitive development and educational success. They are doing this because educational success is much more important than it used to be, even for the rich.

In other words, it appears social reproduction is occurring through the schooling system. Sounds like the ideas of sociologist Pierre Bourdieu, who argued social class differences are reinforced by education systems, as well as sociologist Annette Lareau who suggests different classes have different parenting approaches. In the end, those who already have resources can put them to use in getting the best out of the system while those with fewer resources can’t keep pace.

Getting married in a Going Solo world: more married couples living separately

More Americans are choosing to live alone but what happens if they want to get married? Here is one solution that appeals an increasing number of couples: get married but live apart.

It may seem unusual, but these non-traditional arrangements are more common than you think. The U.S. Census Bureau estimates 1.7 million married couples in the U.S choose to live apart, and experts say that number is on the rise.

Marriage and family therapist Dr. Jane Greer said the looming 50 percent divorce rate has couples worrying about the future before they even say “I do.” She said living apart allows them to avoid all the daily little conflicts that can lead to big problems down the road…

Ultimately, Haisha said, they avoid all the business of being married and they can just enjoy the marriage…

“We want to be the wind beneath each other’s wings, not clip each other’s wings,” Haisha said.

Judging from the comments made in this article, it sounds like these couples want to maintain the perceived strengths of living alone, which means you can escape from other people and don’t have to get too involved in daily life which might lead to conflict, while still enjoying their marriages. In other words, the ideals of autonomy and individualism are preserved while still committing to marriage. But, doesn’t this redefine marriage to some degree as another relationship that can be had at the time of one’s choosing?

Who should be really happy about this trend? People in real estate as it suggests more couples need two place to own or rent.

Is it okay to be a Christian and quiet suburbanite?

One blogger suggests the “missional” or “radical Christianity” movements go too far in suggesting one cannot be a normal suburbanite and Christian:

I continue to be amazed by the number of youth and young adults who are stressed and burnt out from the regular shaming and feelings of inadequacy if they happen to not be doing something unique and special. Today’s millennial generation is being fed the message that if they don’t do something extraordinary in this life they are wasting their gifts and potential. The sad result is that many young adults feel ashamed if they “settle” into ordinary jobs, get married early and start families, live in small towns, or as 1 Thessalonians 4:11 says, “aspire to live quietly, and to mind [their] affairs, and to work with [their] hands.” For too many millennials their greatest fear in this life is being an ordinary person with a non-glamorous job, living in the suburbs, and having nothing spectacular to boast about…

In the 1970s and 1980s, the children and older grandchildren of the builder generation (born between 1901 and 1920) sorted themselves and headed to the suburbs to raise their children in safety, comfort, and material ease. And now millennials (born between 1977 and 1995), taking a cue from their baby boomer parents (born between 1946 and 1964) to despise the contexts that provided them advantages, have a disdain for America’s suburbs. This despising of suburban life has been inadvertently encouraged by well-intentioned religious leaders inviting people to move to neglected cities to make a difference, because, after all, the Apostle Paul did his work primarily in cities, cities are important, and cities are the final destination of the Kingdom of God. They were told that God loves cities and they should, too. The unfortunate message became that you cannot live a meaningful Christian life in the suburbs.

There are many churches that are committed to being what is called missional. This term is used to describe a church community where people see themselves as missionaries in local communities. A missional church has been defined, as “a theologically formed, Gospel-centered, Spirit-empowered, united community of believers who seek to faithfully incarnate the purposes of Christ for the glory of God,” says Scott Thomas of the Acts 29 Network. The problem is that this push for local missionaries coincided with the narcissism epidemic we are facing in America, especially with the millennial generation. As a result, living out one’s faith became narrowly celebratory only when done in a unique and special way, a “missional” way. Getting married and having children early, getting a job, saving and investing, being a good citizen, loving one’s neighbor, and the like, no longer qualify as virtuous. One has to be involved in arts and social justice activities—even if justice is pursued without sound economics or social teaching. I actually know of a couple who were being so “missional” they decided to not procreate for the sake of taking care of orphans.

To make matters worse, some religious leaders have added a new category to Christianity called “radical Christianity” in an effort to trade-off suburban Christianity for mission. This movement is based on a book by David Platt and is fashioned around “an idea that we were created for far more than a nice, comfortable Christian spin on the American dream. An idea that we were created to follow One who demands radical risk and promises radical reward.” Again, this was a well-intentioned attempt to address lukewarm Christians in the suburbs, but because it is primarily reactionary and does not provide a positive construction for the good life from God’s perspective, it misses “radical” ideas in Jesus’ own teachings like “love.”

As a suburban scholar, I’d like to point out there are a number of interesting things going on in this argument.

First, it makes some sweeping generalizations. Is this true of all “missional” or “radical” Christians? If I remember correctly, Platt argued that Christians don’t necessarily have to leave their suburban settings though they should change their focus. Similarly, making broad claims about generations is a difficult task. On the whole, a majority of Americans live in the suburbs (and they didn’t necessarily choose it – there was a whole lot of public policy that helped pushed them there) though there are rumblings that millennials and younger adults are interested in more urban spaces, whether they are in denser suburbs or cities.

Second, the argument makes some interesting claims about narcissism and what is really the good/virtuous life. The charge of narcissism among millennials and emerging adults in America today is a common one. There may be some truth to this. (However, I wonder if there is also some golden age mythologizing going on here – are those in the builder generations the paragons of virtue here?) But, is narcissism completely limited by geography? How are participating in the arts and pursuing social justice necessarily narcissistic activities? What qualifies as a non-narcissistic action? Critics of the suburbs have argued for decades that the suburbs are built to be all about the individual: suburbs promote private spaces to the neglect of public spaces, individualism over community life. Are these values, “Getting married and having children early, getting a job, saving and investing, being a good citizen, loving one’s neighbor, and the like, no longer qualify as virtuous,” necessarily Christian values? They may be general suburban or traditional American ideals but they don’t necessarily match up with Christian lives throughout the centuries or around the world.

Third, I think there is merit to the idea that suburbs can be home to Christians just as much as cities. However, this radical approach might be linked to cities because evangelicals do have a long history of anti-urban bias. This is due to multiple factors including thinking that cities are more evil, corrupting, and dangerous (this dates back to Christians like William Wilberforce in the late 1700s wanting to escape a changing London – see Robert Fishman’s Bourgeois, viewing cities as less friendly toward families (a primary conservative Christian focus), and a history of racialized actions and prejudice which is tied to white flight from the cities after World War II and residentially segregated suburbs today. Thus, the suburbs can often be a safe, comfortable space for evangelicals and people challenging this can make a pointed and needed contrast to cities. Christians could argue that the faithful need to be in both places without saying it is an either/or proposition and that living the easy life in a suburb or city is the way to go.

Fourth, there is a difference between feeling shamed and being confronted with helpful or unpleasant truths. I wonder if this is similar to the feelings of shame some white evangelicals express when confronted with the problem of race in the United States today. I don’t think authors like Platt or Chan are suggesting people should be shamed; they are more likely to suggest relatively well-off suburbanites acknowledge their blessings and advantages and then go to work in following and obeying God. It is not about feeling guilty but rather living a life that properly acknowledges and utilizes one’s relative privilege and status.

On the whole, this argument demonstrates how the categories, ideas, and values of American, suburban, and conservative/evangelical Christian can become intertwined. They are not easy to sort out and it is not as simple as suggesting cities are inherently good or evil or arguing the same about suburbs.

New eight-part CNN documentary series on Chicagoland

CNN ordered a new series directed by Robert Redford that looks at Chicago:

In Chicagoland, executive producers Robert Redford and Laura Michalchyshyn team with Brick City filmmakers Marc Levin and Mark Benjamin in an eight-part series about “a city generating change and innovation in social policy, education, and public safety – to meet national and local challenges.”

According to CNN’s release, Chicagoland will capture “the riveting, real-life drama of a city looking to unite at this critical moment in the city’s history. In the aftermath of a countrywide economic collapse, Chicago faces the challenges of improving its public education system, and neighborhood and youth safety. Can the city’s leaders, communities, and residents come together in ways that expand opportunities and allow aspirations to be realized?”

In a statement, Redford praised Chicago mayor Rahm Emanuel: “The vibrant culture and opportunities inherent in this 21st century, world-class city run alongside profound daily challenges. Much of it falls on the shoulders of its tough, visionary mayor, his team and people doing heroic work in neighborhoods throughout the city. Chicago has always had a rhythm all its own. It’s a city that wears its heart on its sleeve and I am honored to be a part of telling this story.”

“Chicago is the quintessential American city and where it goes tells us a lot about where our country is going,” added series producer Levin.

Some quick thoughts:

1. Generally, the term “Chicagoland” is used to refer to the entire metropolitan region of over 9 million people, not just the city of Chicago. But, it sounds like the series is primarily about the city. It would be interesting if there was some focus on the region as a whole…

2. The last quote from the producer fits with a common image of Chicago: Chicago is a truly American city with the possible strengths and weaknesses that come as being part of the United States as well as being located more in the center of the country. Chicago has had this image for at least a century now and it sounds like the documentary will continue this idea.

3. I wonder how laudatory or critical the documentary will be. How much criticism or praise will local politicians receive? How much of the documentary will talk about positive aspects of the city/region versus the present challenges?

4. Connected to #3, will the documentary be more like the recent biting book review in the New York Times or sounds more like Chicago boosters?

“Five reasons to expand Chicago transit now”

The “vice president of policy at the Center for Neighborhood Technology in Chicago and vice chairman of the Chicago Transit Authority” gives five reasons for why mass transit needs to be expanded in the Chicago area:

Why expand transit? Why now? Five reasons: increased efficiency, improved individual and regional economies, and jobs, jobs, jobs.

Cook County’s current transit system allows hundreds of thousands of residents to get to and from their destinations in a safe, efficient and affordable way every day. Unfortunately, four out of five of the region’s biggest job centers outside of downtown Chicago are underserved by transit. People traveling to work or school in these suburbs have no choice but to drive. The resulting traffic leads to wasted time and wasted money. Expanding and improving the region’s transit system will increase commuter choice, decrease congestion, connect businesses to transit locations and reduce the number of individuals without vehicles who are, in effect, excluded from the job pool.

But it can be more than that. Transit expansion, from my perspective — which includes decades of experience in transportation and community development issues, as well as service to the Chicago Transit Authority board — must be part of a wider strategy around transit-oriented development. That is, transit expansion should be accompanied by development that integrates residential, office, retail and other amenities into walkable neighborhoods within a half-mile of quality public transportation.

This type of development tends to be more economically resilient than others, as evidenced by the Center for Neighborhood Technology’s study for the American Public Transit Association and the National Association of Realtors. Between 2006 and 2011, the report found, average sales prices for residential properties within walking distance of a transit station outperformed the region by an average of 42 percent. In Chicago, home values in transit-served areas performed 30 percent better than the region. That’s real money for local tax bases, not to mention homeowners’ wallets.

Add to this a recent analysis by the Brookings Institution that makes a clear case for transportation infrastructure investment as an economic development strategy. It’s a popular, and smart, play these days. Other countries, both developing and developed, are doubling down on investments to build and upgrade their transportation infrastructure. They see it as the path to long-term sustainable growth. We need to see, and do, the same.

One big problem the Chicago area faces in this regard is the general orientation of transit toward Chicago. If you are out in the suburbs, transit lines tend to run into Chicago. This is good for accessing jobs and other amenities in Chicago but with more jobs and residents in the suburbs, it is quite difficult to travel by transit from suburb to suburb. If the population growth is in places like Aurora, Plainfield, McHenry County, and Kendall County, how are those residents to use mass transit to get to suburban job centers like Naperville, Schaumburg, Hoffman Estates, Northbrook, etc.? Local bus service tends to run between train stations and local amenities and despite several decades worth of experimentation, there is not high sustained levels of transit between suburbs. Some things could probably be done fairly quickly, like finding the substantial funding to implement the STAR Line that would connect Joliet to O’Hare through the western suburbs on the EJ&E tracks, but on the whole, this probably requires long-term money and planning.

The money question is just that: where is the money for this going to come from? Lots of people agree with investing in infrastructure, particularly for improving quality of life issues like traffic and congestion, but are they willing to pay for it or give up other priorities?

The Common Core and college instruction

Here is a nice overview of how the new national Common Core standards for K-12 might intersect with college instruction and learning. Here are a brief overview:

Those adjustments, if the Common Core vision is realized, could transform dual enrollment programs, placement tests, and remediation. They could force colleges within state systems, and even across states, to agree on what it means to be “college ready,” and to work alongside K-12 to help students who are unprepared for college before they graduate from high school. In the long run, it could force changes in credit-bearing courses too, to better align with what students are supposed to have mastered by high school graduation. While the effects will be most obvious at public institutions of higher education, private colleges, particularly those with broad access missions, will feel the effects as well.

Still, although a few states have seized the standards to develop “P-20” systems — stretching from pre-kindergarten through graduate school — progress has been slow in many others. In 2010, as the standards were being developed, policy makers touted the effect they could have in bringing together K-12 and higher education. And they pointed out that the ultimate success of the standards, particularly beyond K-12, will depend on whether colleges are willing to change placement and remediation criteria and work together to determine what “readiness” really means.

In some cases, that’s coming to pass. Three years later, proponents for the standards are arguing that they have already changed the way K-12 and postsecondary education interact — at least by putting the leaders of each system in the same room together and forcing states to collaborate.

And there is a little bit of a disconnect between what high school teachers say they are doing and what college educators perceive:

ACT’s most recent survey, released last week, looked at the gap between high school and college expectations for students. It found that only 26 percent of college faculty thought that students entered their classrooms prepared for college-level work. High school teachers gave themselves much higher marks. Nearly all — 89 percent — said they had prepared their students well for college.

There is going to be a lot more discussion about this in the years ahead.