Many Americans have reunited work and home…because of a pandemic

Posted on by

One of the consequences of urbanization is the physical and social separation of work and home. People live further from where they labor and land uses are often separated. Yet, the pandemic may have helped many Americans reunite these two realms that were once joined more closely. Here is a summary of a survey specifically looking at working from home:

Photo by Dominika Roseclay on Pexels.com

While there has been a widespread recognition that the remote work rate surged during the height of the coronavirus pandemic, there is disagreement about the extent of this change. To address this limitation, we field a new, nationally-representative survey instrument called the Remote Life Survey (LFS) in October 2020. We find that in October, 2020, 31.6% of the workforce always worked from home and 22.8% sometimes or rarely worked from home, totaling 53.6%. We compare our results with alternative measurement approaches, focusing on five factors: (a) differences in the selection of respondents among mail versus web -based surveys, (b) differences in the inclusion of self-employed workers, (c) ambiguity that arises from the forced classification of remote versus non-remote work into discrete categories, (d) the industry mix of the sample, and (e) the exclusion of people who were already remote pre-pandemic. We find that explanation (e) explains the bulk of the difference in estimates between the Current Population Survey (CPS) and other measures of remote work, underestimating the remote work rate by 33 percentage points. Overall, we estimate that about half of the US workforce currently works remotely at least some days each week.

For those who wanted to reunite work and home, is it good that a pandemic brought this about for a good number of workers? What I mean is this: metropolitan regions did not become denser, employees were not economically more able to reside closer to where they worked, and companies and organizations did not necessarily allow this because they wanted to. People worked at home more because of a health risk, not because they aimed to create more holistic lives.

But, here we are with more people working from home. Does this then transform both the communities where they live and the communities where they work? Does it enable more integrated social networks and communities or has too much changed since urbanization (such as the Internet and social media)?

It is hard to predict what exactly might happen if work from home trends continue. As the researchers suggest above, having better data should allow us to better understand what is going on. Figuring out what this all leads to will require more work and interpretation.

Forming social norms in the metaverse

Posted on by

Moderators are on the front lines in developing social norms for the metaverse:

Photo by Jessica Lewis Creative on Pexels.com

These norms reveal how moderation is complicated by trying to map the social conventions of the physical world onto virtual reality. If you covered yourself in purple body paint and showed up at an in-person medical conference, you’d probably be asked to leave. At a metaverse medical conference, the other attendees wouldn’t even bat an eye. This relaxing of certain social norms leads people to test the bounds of acceptable behavior, and moderators in some cases have to decide what crosses the line. For instance, new users will often pat strangers on the head, an interaction that would be strange and a little invasive in real life. Educators in VR tries to discourage people from doing this, though it seems to fall into a gray area of rude but not totally offensive. The same goes for pacing excessively around a room, walking through other users, or fidgeting too much with your controllers, which can cause your VR hands to distractingly bounce around. “People don’t get it at first because a lot of people come into VR from a gaming platform, so they don’t fully grasp the fact that behind every avatar is a person,” said Myer. During one of the events I moderated, VanFossen asked me to message an attendee to step back because he was a little too close to the speaker and invading her personal space. I needed the nudge: It’s hard to tell how close is too close in the metaverse. It’s not like you can feel the other person breathe.

To account for these gray areas, Educators in VR calibrates the strictness of the moderation based on the type of event. Parties are a bit more laissez-faire, while group meditation sessions have a zero tolerance policy where you might be removed simply for moving around the room too much. “I was very much against zero tolerance until I started witnessing what that meant,” said VanFossen of meditation events. “People are there for a reason, whether this is their daily thing, they have a crap stressful job, they need a break, or they have mental health issues.” Moderation levels also differ by platform—AltspaceVR tends to be stricter because it’s targeted at professionals, while VRChat is known for anarchy.

It remains to be seen how moderation will work at scale as the metaverse accelerates its expansion. At the moment, developers don’t seem to have a good answer. AltSpaceVR has been trying to put moderation tools into the hands of its users and also has staff on hand to help with particularly volatile situations. Meta has similarly relied on users themselves to block and report troublemakers in Horizon Worlds. Yet if tech companies succeed in their grand ambitions to get billions of people to inhabit the metaverse, maintaining it is going to take an immense amount of time and energy from a countless number of people who have to make tough, nuanced decisions minute by minute. As VanFossen said, “It’s the most disgusting, frustrating, stress-inducing, headache-inducing, mental health–depleting job on the planet.”

Social interactions and spaces require social norms. People appreciate knowing how to act and how they will be treated. Without them, chaos or anarchy or worse ensues

Enforcing social norms is an important matter. In many situations, the norms are communicated and enforced in less explicit or informal ways. People see what is happening and respond similarly or they have a general idea of how to behave. In other situations, the norms need to be explicitly addressed, perhaps through formal guidelines or enforcers who step in when needed.

What sounds unique about the situation discussed above is (1) the social space is relatively new, (2) unfamiliar to a lot of people, and (3) is still in flux because of #1 and #2 plus ongoing changes. The moderators are trying to step in and they are creating the norms as they go. If the metaverse becomes more popular, the norms will solidify as the space and the proper behavior becomes more known.

The importance of the decision of where to raise a child

Posted on by

A data scientist argues that one of the most important parenting decisions is where to raise children:

Photo by Agung Pandit Wiguna on Pexels.com

Something interesting happens when we compare the study on adoptions with this work on neighborhoods. We find that one factor about a home—its location—accounts for a significant fraction of the total effect of that home. In fact, putting together the different numbers, I have estimated that some 25 percent—and possibly more—of the overall effects of a parent are driven by where that parent raises their child. In other words, this one parenting decision has much more impact than many thousands of others.

Why is this decision so powerful? Chetty’s team has a possible answer for that. Three of the biggest predictors that a neighborhood will increase a child’s success are the percent of households in which there are two parents, the percent of residents who are college graduates, and the percent of residents who return their census forms. These are neighborhoods, in other words, with many role models: adults who are smart, accomplished, engaged in their community, and committed to stable family lives.

There is more evidence for just how powerful role models can be. A different study that Chetty co-authored found that girls who move to areas with lots of female patent holders in a specific field are far more likely to grow up to earn patents in that same field. And another study found that Black boys who grow up on blocks with many Black fathers around, even if that doesn’t include their own father, end up with much better life outcomes.

I will add this to my list of why it matters where people choose to live: it affects the life chances of kids.

Just having this data only goes so far. A few examples of where it gets trickier to figure out what to do with such information:

  1. How many parents would act on the information compared to other reasons for choosing where to live?
  2. How many parents could act on this information even if they wanted to?
  3. Are there enough neighborhoods in which children could benefit? Do the current residents of such neighborhoods want lots of people moving in?
  4. Are parents responsible for moving kids to such locations or are other actors responsible for helping kids live in these locations?

And so on. The implications of these findings could take decades to work out, particularly as Americans generally want to provide opportunities for their kids.

Estimate of over 1 million Americans displaced by highway construction

Posted on by

As the United States constructed highways starting in the twentieth century, how many residents were displaced? Here are some numbers:

Photo by Jonathan Schmer on Pexels.com

The Times found that more than 200,000 people nationwide have lost their homes because of federal road projects during that time, and that some of the country’s largest recent highway expansions, including in California, have forced out residents in Black and Latino neighborhoods at disproportionately high rates. And that’s in addition to the more than 1 million people pushed out during the initial period of freeway building in the mid-20th century via routes that often targeted Black communities for demolition.

That is a lot of people moved just for highways. In addition to affecting particular groups at higher rates, highways broke through established neighborhoods with existing ways of life.

But, the era of highway construction through certain neighborhoods started facing more resistance decades ago. Jane Jacobs was involved in a movement against a highway that would have cut through the middle of Manhattan. Neighborhoods throughout the United States successfully fought against highways. And some of the highways that once plowed through neighborhoods were changed or removed.

This does not mean highways are on the way out. However, it does mean that constructing a new highway or widening a highway in densely settled locations is not a foregone conclusion.

Can new suburban developments be sustainable?

Posted on by

A long-proposed big suburban project north of Los Angeles aims to be sustainable:

Photo by Dhyamis Kleber on Pexels.com

The company’s proposals promise a reprieve from California’s existential crisis about its way of life, suggesting that the environmental consequences of the state’s notorious sprawl can be reformed with rooftop solar panels, induction cooktops, electric cars, and careful bookkeeping. The threat of wildfires can be held at bay by stricter building codes. These proposals preserve the idea that, although the climate may be changing, the California dream of sunshine, a single-family home, and a two-car garage needn’t change at all.

But the debate it intense about whether the sustainable features of the development offsets what suburbia brings:

Cheap fossil fuels, the supremacy of private-property rights, and the maximization of shareholder value have, for decades, dictated the patterns of land use in America. People need homes, and, in Southern California and other growing metropolitan areas, those homes get built in areas far from the centers of cities. Disasters that follow this approach are attributed to natural causes or climate change, rather than to the avoidable flaws of poor planning. Consider the Marshall fire that burned a thousand homes last December, including all of a hundred and seventy-one properties in a nineteen-nineties-era subdivision built on the outskirts of Boulder County, Colorado—or the disappearance of water from exurbs constructed in the two-thousands in the Rio Verde Foothills, outside of Scottsdale, Arizona. Even reasonable predictions on a twenty-year event horizon are seen as fussy impediments to construction…

California has a severe housing shortage; a recent state assessment called for more than a million new units in Southern California to meet demand. Barry Zoeller, an executive at the Tejon Ranch Company, told me, “That’s going to have to take, in our estimation, a combination of both infill development in urban areas and also new master-planned communities of sufficient scale that can also meet climate-change criteria.” But many environmentalists argue that the imbalance between jobs and housing in Los Angeles can not be solved by building houses that are a thirty-minute drive from the city’s outermost suburbs. “Aren’t there better places to build?” Pincetl asked. “Yes, but you don’t own the land, so no.” She added, “If we’re turning over the provision of housing and the land markets to private entities, their motivation is not to house people. Why are private-equity firms coming into the real-estate market? Tell me. Not to provide housing.”…

I used my phone to scan QR codes and open the self-entry locks on a handful of model homes by Lennar, KB Home, and Toll Brothers, among others. The houses were built close together. They were large and well appointed, with gray laminate floors, giant appliances, many bathrooms, and cold air-conditioning. Some stoves at Valencia were electric, but many were still gas ranges—the era of banning natural-gas hookups hadn’t arrived when this development was approved. Some of the planned homes were already sold out, and a steady stream of racially diverse prospective buyers in luxury cars made their way around the neighborhoods-to-be. It looked like every other subdivision I’ve ever been in: paved-over farmland with a few transplanted trees, an island in a landscape hostile to pedestrian life. Maybe I just wasn’t seeing it with new eyes. The wind blew hot and the sun beat over the newly built homes, and from far away came the faint screams of people riding the roller coasters at Magic Mountain.

This is a decades-long issue as suburbs, first found in the United States in the 1800s, exploded in popularity and policy in the 1900s. With the expansion of driving and highways, the postwar suburbs sprawled in all directions from big cities and have not stopped since. All of this comes at an environmental cost: all of the materials used, the pollution from all of the driving, the inefficiencies of single-family homes, and the loss of land and habitat.

There are numerous ways to make suburbs more sustainable. This includes the moves suggested above as well as increased suburban densities, mass transit options or walkability or other transit options so that driving is not the only options, and better locations nearer population centers and jobs and away from important land and habitats.

So, where exactly is the line where suburbs might be “sustainable enough”? The article above suggests this line is in flux as communities, states, and other interested actors negotiate and set regulations for new development. It is unlikely that all suburban development will be banned or limited and it is unlikely that all suburban development will just happen without any questions about the environmental costs. This line can also vary across contexts as the local concerns are different outside of Los Angeles than they might be outside Columbus, Ohio or Jacksonville, Florida.

Separating McMansions from luxury homes

Posted on by

What is the difference between a McMansion and a luxury home? Here is one viewpoint:

Photo by Frans Van Heerden on Pexels.com

So, what exactly is a luxury home, Michael, you ask? Some people classify it by the style of the house, or perhaps by its finishes, or by the product brands in the home. So, how do we define a luxury home from a price standpoint? I know different brokerages and different real estate firms define luxury real estate differently. Many define a “luxury home” as a property that is priced at $1,000,000 or higher.  For the purposes of this article, we’re going to define a luxury home as a home that is listed for sale at at least three times the average sales price for that market. (There are four primary price points in most markets: starter-/entry-level, average, high-end and luxury pricing. I define high-end homes as homes that are two times the average sales price for that given area.)

Luxury is relative to that specific market. Most markets have luxury homes based on our definition; it’s all relative, however, because when people think of luxury, they often think of McMansions or estate homes, and that’s not always the case. To take action, you need to develop graphs and other visuals that can articulate the data for luxury and high-end real estate for/in your marketplace: Are you in a buyer’s market or a seller’s market? High-end and luxury homes start at what price point for your market?

I am interested in the ways the dimensions of a luxury home are different than those of McMansions. This is based on my four traits of McMansions.

  1. The absolute square feet of the home is not mentioned above. Presumably, both McMansions and luxury homes are large.
  2. The relative square footage is also not mentioned above. Perhaps luxury homes are generally larger than McMansions?
  3. The architecture and design is mentioned as luxury homes may have particular features and/or finishes. While McMansions are often criticized for mass produced features and/or poor architectural choices, luxury homes stand apart from this.
  4. The luxury home is more expensive, whether over $1,000,000 in price or some multiplier above the market or in a tier above others. McMansions are more expensive than small homes or starter homes but they are not as pricey as luxury homes. The luxury home is then a true luxury good available only to a few while McMansions are meant to appeal to a broader audience.

If the description above is correct, luxury homes are mostly different because of their price at the top end of the market. McMansions are not that; they may aspire to be luxury homes but they are for a different price point and have different features that have less to do with square feet and more to do with design elements or features.

(The next step might then be to provide advice for real estate agents and others who want to appeal to McMansion buyers and owners. How to stay away from luxury home territory and above more typical homes?)

“The stadium is the spiritual home”

Posted on by

With the opening of a new stadium for Nashville SC, the team’s CEO described its importance:

Photo by Tuur Tisseghem on Pexels.com

“For any team, whether it’s in soccer or other sport, the stadium is the spiritual home,” Nashville SC chief executive officer Ian Ayre said. “If you’re renting, it’s not the same as owning, right? Of all the infrastructure and the parts we build, it’s the most important.”

The team’s coach added:

Nashville SC coach Gary Smith called the crowd “magnificent,” adding that the players felt the energy from the moment they walked onto the field for warm-ups. “The expectation and excitement that surrounded this opening game was huge,” he said after the match. “To think that the players didn’t feel that would be inhuman. The atmosphere was terrific.”…

“To have our own home is vitally important,” Smith said. “This venue now will be the place over the coming years and decades that fathers and sons will come to and look back on and say, ‘Do you remember?'”

As a sports fan, I understand this sentiment. Going to the physical home of your favorite team or to an interesting stadium or a stadium where there is clearly fan interest is exciting. It is not just watching teams play in a physical setting; there is a collective effervescence that can arise to the level similar to how people describe spiritual experiences.

On the other hand, the team benefits from this spiritual home in the terms of dollars and cents. The stadium and all it entail makes money. It is an improved property. And increasingly so these days, owners and teams develop the land around the stadium in ways to further enhance revenue. This is not a sacred place maintained for the well-being of people who visit; it is for a business.

This mixing of business and spirituality is not uncommon in the United States or elsewhere in the world. Is the spiritual homeness of the sporting event ruined because money is being made? Perhaps not for most of the fans who are there for what the trivial can produce. For some of those fans, the sports stadium is more sacred than a religious building or congregation. At the same time, a new stadium and sports in general are big business where producing spiritual homes and transcendent experiences keeps consumers coming back for more and cities eager to keep teams or introduce new teams to the local economy.

Numbers on the reduced inventory of starter homes in the United States

Posted on by

I have noted the decline of starter homes in multiple posts (examples here and here). Here is recent data from the National Association of Home Builders and the National Association of Realtors about this decline:

Photo by REX WAY on Pexels.com

Homes ranging in price from $100,000 to $250,000, the typical cost for an entry-level home, have seen nearly a 28% decrease in inventory from a year ago, says the National Association of Realtors.

And smaller homes are also in short supply. In 1999, 37% of newly-built single-family homes were smaller than 1,800 square feet. By 2020, that share had fallen to 25%, Dietz said.

In comparison, in 1999, 66% of newly-built single-family homes were smaller than 2,400 square feet while in 2020, that share had fallen to 57%.

These are two very important factors for getting into purchasing a home. A lower price means a smaller down payment and mortgage is needed. Smaller homes are cheaper because they have fewer square feet and cost less to construct.

And without this ability to enter the housing market, it will take potential homebuyers longer to enter, if they can enter at all. This precludes them from building housing equity and stepping up to larger or more expensive residences in the future. It limits the ability of people to pursue homeownership, a goal many Americans have.

Tackling both price and housing size will be difficult in many markets where developers, builders, and those in the real estate industry can get more. Yet, here is an opportunity to appeal to an important sector of potential homeowners if solutions can be put into practice.

Historic preservation, the ways cities and suburbs resist development projects, and property values

Posted on by

In a discussion of how historic preservation aligned with particular political interests in cities, a scholar describes how suburbanites resist development compared to those in cities:

Photo by PhotoMIX Company on Pexels.com

The peculiar yet profound way in which historic preservation bound together issues of aesthetics, finance, and urban change is key to understanding why its popularity grew so rapidly in the middle of the 20th century. It also explains why a culture of historic preservation took root in some places more than others. Most suburbs—like the one on Long Island where Geller I once stood—relied on a different set of tools to stop development, such as open-space requirements and zoning codes that limited the number of new homes. To this day, historic preservation remains a less potent force in such places, largely because these other rules ensure that homes like Geller I are unlikely to be replaced by anything but McMansions. In cities with significant numbers of old buildings, however, preservation became an essential part of the process by which communities fended off urban-redevelopment projects.

While historic preservation does take place in the suburbs (and will come for McMansions at some point), it does not occur at the same level as in cities. As noted above, suburbs are not likely to approve significant changes to local zoning or buildings. Neighbors and residents will complain about changes to traffic, noise, lighting, and the character of a neighborhood in a way that tends to limit what a redeveloped property will be.

Cities also have zoning regulations and NIMBY responses to new structures but the presence of more buildings and uses in denser areas can make this all more complicated. Particularly in areas where redevelopment is hot, a new building might be very different than what has stood there for a long time.

But, as the article notes, historic preservation can be a tool used in a lot of places to halt plans:

Historic preservation not only gave this process of hyper-gentrification an imprimatur of political and legal legitimacy it might otherwise have lacked, but also continues to enable it in the present day. The LPC’s own website still notes that one of the purposes of New York’s landmarks law is to “stabilize and improve property values.” While the commission’s press releases paint an image of a body focused on protecting a diverse new array of buildings, the historic districts that already exist are, right now, a significant intervention in the city’s real-estate markets, whose main beneficiaries are the people who own land within them. Nor is this dynamic unique to New York. In California, wealthy cities like Pasadena and Palo Alto have recently tried to expand their landmarking powers in order to circumvent a new state law encouraging the construction of sorely needed housing. Simsbury, Connecticut, which is 87 percent white, just finalized a sale of nearly 300 acres to a land trust—killing an affordable-housing project in the process—on the premise that the site is historically significant because Martin Luther King Jr. once worked there. In Washington, preservationists have long tried to block the redevelopment of a water-filtration plant that hasn’t been used in 35 years on the basis that it is historically significant.

And perhaps this gets at the heart of the matter: whether using zoning or historic preservation, one of the goals of American residents is to enhance property values. Sonia Hirt argues that protecting single-family homes and their values is a primary goal of zoning in the United States. In a system that prizes the growth of home values, perhaps historic preservation plays a similar role.

NIMBY concerns about affordable housing even when it is not adjacent to single-family homes

Posted on by

A proposed project in northwest Chicago that would include some affordable housing units has raised concerns from residents…who do not live adjacent to the property:

Photo by Kayley Dlugos on Pexels.com

But the plans have not been embraced by all in the 41st Ward and its neighborhoods filled with postwar bungalows and ranch-style homes. Though the complex would be located in a far stretch of the city next to offices and hotels bordering Park Ridge, residents say they fear it will congest traffic and overcrowd schools.

John Frano, who lives about a mile away in Oriole Park, said the apartment complex will create too much bustle in a section of the city known for being more serene and spacious…

Retired Chicago police Sgt. Salvatore Reina, a longtime owner of a two-flat in Oriole Park, said he opposes the Glenstar tax break partly because it feels unfair to smaller landlords like him. He added that he worries about having to bid against the potentially lower rents in the future complex…

“These neighborhoods are not made for massive multiunit buildings,” Reina said. “When you bring more people in, other issues are going to arise with that too. Who knows what they are? Some could just be quality-of-life issues.”

While there is more at play here – the role of aldermanic prerogative and how exclusion shapes residential patterns – these are common NIMBY concerns: traffic, the effect on schools, large buildings, and how might move into the new units. At the same time, if you cannot build affordable housing units here, where can they be constructed? Even the location of affordable housing units in a building similar in size to adjacent buildings and not adjacent to single-family homes leads to such responses.

The reason I emphasize the proximity of residents is that I found when studying proposals for land or buildings from religious groups (here and here) proximity of residents to the property appeared linked to the concerns raised. Those who have purchased a home or housing unit often do not like the idea that someone wants to significantly alter the building or property next to you.

This is not the case here. Affordable housing is so undesirable in the United States for established homeowners and residents that it is difficult to construct. There are other barriers at play as well but consistent and loud opposition from residents in the community is common. They view affordable housing as a threat rather than as housing that could help local residents or workers, let alone help the larger city or region.