Whether tech companies and their workers actually do better in and prefer cities

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A recent Chicago Tribune article echoed a theme I have now seen numerous times: companies must have downtown campuses to compete for tech workers.

To lure data scientists and other tech workers, companies in industries from fast food to insurance have opened outposts in the heart of the city, where tech employees want to work. Having hip, downtown spaces has proved worth the extra cost to suburban companies, even as rents have increased…

When suburban companies first started catching on to millennials’ desire to live and work in the city, managers had a new culture to learn, Reaumond said. Employees in the downtown innovation hubs didn’t want to be chained to desks 10 hours a day…

Tech-focused downtown spaces feel different than their suburban counterparts, and that’s how it should be, Arity President Gary Hallgren said. Allstate’s Northbrook campus has a barber, a pharmacy and a doctor, but the Merchandise Mart space isn’t trying to be a campus, Hallgren said. Its goals and culture are different, and the space is too. Arity’s office has a pingpong table and the same fizzy water dispenser featured in the HBO show “Silicon Valley.” It hosts meetups that draw tech workers from outside the company.

The underlying premise in these articles is that tech workers prefer to be in urban settings. However, I do not believe I have seen much data that measures this claim. When Americans as a whole are asked where they prefer to live, they tend to say either small towns or suburbs.

If tech workers do tend to prefer urban settings, is this due to the work itself actually going better in cities (higher productivity, more innovation, more efficiency, etc.) or other factors? For example, these stories often do not distinguish between the work activities of these firms and the age (younger) and generation (millennials) of the featured tech workers. Will the tech workers of today be the suburban parents of ten years from now? There is evidence that cities are innovation centers (see the scaling effects of patent production chronicled in Geoffrey West’s Scale) yet tech innovation is possible in the suburban office park (see the Route 128 area outside Boston, Silicon Valley around San Jose, and Bell Labs research centers in suburbia after World War Two).

And while this is often pitted as an either/or issue – tech firms must be in the big cities or must be elsewhere – I suspect there could be some benefits to each as well as some mixing of locations.

Updated report on spreading gang activity in the Chicago suburbs

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The Chicago Crime Commission recently published a report that includes information on how gang activity is changing in the Chicago suburbs:

A breakdown of traditional hierarchies, the growth of social media and the ongoing opiate crisis has led to gangs further spreading their influence — and violence — into the suburbs, according to the commission.

“No suburb is immune from gang crime,” Andrew Henning, the crime commission’s vice president and general counsel, told us. “Violence has no borders. Drugs have no borders. Jurisdictional boundaries mean nothing to a gang when there’s profit involved.”…

Of the 122 suburban police departments responding to the commission’s survey, 80 (about 65 percent) had a gang presence in their town. And there appears to be growing activity in affluent suburbs where gangs hadn’t traditionally been seen, according to the commission.

Gang activity, once considered an “urban problem,” has spread throughout numerous metropolitan regions.

This reminds me of a neighborhood meeting I witnessed years ago. One resident said he was concerned with some graffiti nearby. He then explained his response: he would keep moving further and further out from the city until these problems disappeared. Our neighborhood then had minimal issues and a move further out may not have solved his problems.

How to make a better public case for abundant housing in four steps

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After witnessing a positive result in front of a neighborhood council for a small project in Los Angeles, Virginia Postrel suggests four steps can help smooth the process:

Respect matters. Especially in liberal enclaves like West L.A., opposition to new housing — and to change in general — comes wrapped in the rhetoric of democracy and procedure. Activist residents, including official representatives, are jealous of their prerogatives as neighborhood incumbents. They’re more likely to say yes — or at least not say no — if they feel they’ve been listened to…

But so do the rules. Under a law signed in 2017, anti-development activists can no longer easily block new housing if it meets zoning requirements and incorporates 10 percent low-income units. One reason the Mar Vista project garnered support was that activists feared the alternative would be something less considerate of neighborhood sentiment.

 

Showing up is important. By answering questions and treating the meeting as important, the developer’s representative helped flip sentiment in Mar Vista. And the Abundant Housing LA speakers made arguments that often go unspoken in such forums. They reminded locals that by not letting people build housing near jobs, they make traffic worse, and that by blocking new apartments, which tend to be expensive, they send high-income renters into places where they push out middle- and lower-income residents. Beyond the specifics, it’s simply harder to argue against housing when you don’t have the overwhelming majority.

Don’t assume residents are against housing. In March 2017, Angelenos had the opportunity to vote for a slow-growth initiative that would have blocked at least a quarter of new housing developments. They overwhelmingly said no, defeating Measure S by a 70-30 margin. “That stereotypical kind of Nimby does exist, but there aren’t really that many of them,” says Burns. “When you really talk to people and you put a face on what it means to develop more — to add more housing — and it’s somebody who lives close by, you can really come to some sensible kind of compromises with folks.”

 

Generally, these look like good steps anybody seeking to redevelop property could benefit from. From some of my own work, these would be helpful for those constructing teardown houses in the suburbs as well as religious groups seeking to alter an existing building or construct a new building. Building a relationship with people in the community as well as presenting a cogent and reasonable case can go a long ways.

At the same time, I wonder if these four steps might be idiosyncratic and apply only to certain places and at certain times. This particular case is from a state and region that has a large need for more housing. The description of the steps above suggest that residents were more open to this project because they feared something worse. Additionally, this project is within a city and region that is already very dense (and one of the densest regions in the United States). Residents are used to denser housing.

I suspect redevelopment would be a much tougher sell in areas or communities that are (1) primarily comprised of single-family homes with some distance from denser land uses and (2) where housing demand is lower (or is perceived to be much lower – the Chicago area may have a big need for affordable housing but it would be hard to convince many communities of this).

 

Minority populations up, white populations down in almost every Chicago area county

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New Census data displayed in the Daily Herald shows the change in population by race and ethnicity between 2010 and 2017 in the six northeastern Illinois counties in and around Chicago:

2017CensusDataChicagoAreaCounties

Daily Herald graphic of 2017 Census data.

The headline points out one clear trend of the data: the absolute numbers and percentages of non-white residents continues to increase in every Chicago area county. (The one exception is a decrease in the black population in Cook County.) Many of these collar counties had few non-white residents just a few decades ago.

But, there is another possible headline here: as the minority population grows, the white population has decreased in every county except for Kane County which had a very small increase in the white population. It is not required that the white population must decrease when the minority population increases so this is notable.

As the population changes in the Chicago region, it is due to both increasing minority populations and decreasing white populations.

Controlling private property, as viewed through Nextdoor

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Based on Nextdoor, one writer sums up what bothers Americans about their local surroundings:

Steve Wymer, Nextdoor’s vice president of policy, told me that the same topics arise again and again, modulated by region and neighborhood type. Service requests and recommendations constitute 30 percent of chatter, and discussions of real estate make up another 20 percent. About 10 percent of Nextdoor conversations relate to crime and safety, Wymer said. (Suspicious persons come up a lot, often amounting to sightings of people of color in predominantly white areas. Nextdoor has attempted to discourage posts that use appearance as a proxy for criminality by prompting users to add more detail and blocking some posts that mention race.) Public agencies such as police and emergency-management departments also post updates to their constituencies. Noise complaints are another popular subject, according to Wymer—fireworks seem to raise particular ire—as are classifieds, missing pets, and gardening tips.

Judging by the conversations on Nextdoor, it would seem that Americans are concerned first about the safety and security of their property, family, and pets, and then with their property’s, family’s, and pets’ upkeep and improvement. Though the platform breeds its share of conflict, it is notable—in contrast to other social networks—for the commonality it reveals, even in these times of unprecedented political division. No one, Democrat or Republican, wants a neighborhood strewed with dog poop.

I wonder how much this online behavior is driven by two fundamental factors underlying American neighborhoods:

  1. Residents want to be able to control their own property.
  2. They also want to control some of their immediate surroundings, often in the name of property values or the character of the neighborhood.

These values can often come into conflict when one resident’s actions with their own property clashes with the desires of another property owner. Property rights are very important in the United States but property values often rely on neighbors and the surrounding community.

In the long run, it would be interesting to know whether Nextdoor provides a better platform for resolving neighborhood conflicts compared to face-to-face conversations or mediated conversations through other actors (such as calling the police or contacting local government about a concern). For example, many suburbanites are averse to open conflict and moving the conversation online might diffuse some of the tension. At the same time, an online platform could reinforce issues if things are said there that wouldn’t be said face-to-face or conversations take significantly more time.

 

How close to San Francisco does a house have to be to be considered “in San Francisco”?

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The short answer: closer than north of Oakland on the east side of San Francisco Bay.

The current edition of Brother vs. Brother on HGTV features two homes undergoing renovation in the Bay Area. However, they are located in the suburbs of El Sobrante and Pinole, respectively a 45 minute and one hour drive from San Francisco. This is similar to a post from years back when I wrote about Procure Proton Therapy claiming a “close to downtown Chicago” location with their Warrenville facility. Can the show truly claim to be about houses in San Francisco?

I would say no for three primary reasons:

  1. The location is just too far away from San Francisco to claim it is in the city. One could visit San Francisco from these locations but the show is not about San Francisco; it is about suburban housing. This is particularly noticeable in each episode with the size of the homes, the price of the homes, and the property each house sits on.
  2. This is not just about being relatively far our from the big city; the homes are also beyond Oakland. The Bay Area is a unique one in that there are three major cities within a relatively short distance from each other: San Francisco, Oakland, and San Jose. The largest in population is San Jose, the 11th largest city in the country, followed by San Francisco at 13th, and Oakland at 45th. Even though San Jose is closest to Silicon Valley, San Francisco is the most prestigious city with Oakland trailing both. If these suburban homes are to be connected to a big city, Oakland would technically be more accurate.
  3. Many suburbanites rarely make it into the big city if they do not work there or have business that regularly takes them there. They may still identify with the big city in the region, especially when talking with people from other parts of the country or world who have little knowledge of little communities but know certain big cities. Yet, their day-to-day experience is markedly different from that of a San Francisco resident.

I know the marketing is driving this. “Brother vs. Brother: San Francisco” is a lot more exciting than “Brother vs. Brother: Bay Area Suburbs.” Still, the consistent shots of San Francisco is a bit much when these are suburban homes that could fit in many regions across the United States.

 

Even with concerns, Nashville will likely push for more growth

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Nashville is growing and reactions are mixed:

The Nashville region population grew 45% from 2000 to 2017, reaching about 1.9 million, according to the U.S. Census Bureau. Ms. Ervin represents both sides of the city’s extraordinary growth: a transplant who was attracted to a booming urban hub, and a resident increasingly concerned that unbridled development may threaten the Tennessee capital’s charm…

Nashville’s thriving health-care, financial and tourism sectors have drawn national attention. In April, the U.S. Bureau of Labor Statistics reported the city had an unemployment rate of 2.7%—lower than any other major metro area in the U.S. From 2010 to 2016, Tennessee’s large urban areas, led by Nashville, accounted for 57% of all employment growth in the state, according to the Brookings Institution…

With urbanization comes pressure on local government to improve housing affordability, workforce education and public transit, Mr. Briley said…

The government has been working to manage growth, such as preserving green space and establishing a special fund to build low-income housing in the city, which spent $10 million last year, Mr. Briley said.

Generally, population growth is good in the United States. It is seen as a positive sign for business and the status of the city. It means that the city will be taken more seriously by outsiders, whether that includes businesses considering moving, sports teams wondering where to locate, or where government money should be spent. Nashville is now the 24th largest city in the United States and moving up that list – with established cities like Detroit and Boston in sight – means something.

At the same time, significant growth does inevitable change cities and communities. At the least, it pits longer-term residents versus newer residents who can be perceived as jumping on the bandwagon. Growth can transform a lot of neighborhoods and open space as demand for housing and other land uses increases. It can lead to questions about how to bridge the gap between being a smaller big city and a big city. Some will perceive that they are being left behind as the city now tries to chase bigger dreams.

Two final thoughts:

  1. Even with concerns expressed by some, very few leaders will ever try to limit growth. Whatever problems arise with changes due to growth will be seen as secondary to the goal of growing in population, business, popularity, and capital.
  2. It is too bad this story does not include more about the suburbs and the whole region. The city of Nashville is growing but what about the suburbs? As noted above, a recent vote over mass transit in the region pitted city and suburban voters against each other.

Suburban residential segregation and ongoing effects on voting and prejudice

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A long New York TImes op-ed summarizes the findings of the 2017 book The Space Between Us by political scientist Ryan Enos:

Enos then looked at results from 124,034 precincts, almost every precinct in the United States. Again:

“A white voter in the least-segregated metropolitan area was 10 percentage points more likely to vote for Obama than a white voter in the most-segregated area.”…

These voting patterns, according to Enos, reflect what might be called a self-reinforcing cycle of prejudice.

“Prejudice may have helped cause segregation, but then the segregation helped cause even more prejudice.”

In other words, it is not just problematic that people of different racial/ethnic groups and social classes choose to (possible more often for whites and those with more financial resources) or are pushed to live in different places from each other. The residential segregation then has a feedback loop where those differences reinforced by spatial arrangements are perpetuated and perhaps even amplified.

As more of the op-ed explains, simply putting people together (such as suggested by Allport’s contact hypothesis or in the train experiment described in the essay) is not a silver bullet for forging relationships, networks, and reduced prejudices. Even as attitudes toward other groups have improved over time, what would push wealthier whites to sacrifice or put themselves into uncomfortable positions when they do not have to?

Two dead suburban transportation projects: the Metra STAR Line and the Prairie Parkway

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A large metropolitan area of over 9 million residents could benefit from more transportation options for residents and visitors. Here are quick summaries about two projects that never got off the ground:

The STAR Line

The suburb-to-suburb STAR Line rail system was intended to loop from O’Hare to Hoffman Estates to Joliet along tracks formerly owned by the EJ & E railroad, providing an alternative to the suburb-to-city commuter lines.

But Canadian National Railroad bought the EJ & E in 2008 and moved freight traffic onto those tracks, effectively putting the STAR Line on ice. In 2011 Schaumburg pulled the plug on a special taxing district meant to spur development around the convention center, which had been envisioned as a STAR Line hub.

Prairie Parkway

The Prairie Parkway would have circled Chicago’s outer suburbs, linking I-88 near Elburn to I-80 near Minooka. The Illinois Department of Transportation began studies in 2003, and in 2005 President George W. Bush came to Montgomery to sign a highway funding bill and call the Prairie Parkway “crucial for economic progress for Kane and Kendall counties.”

Opponents organized and sued. The highway’s patron, former U.S. House Speaker Dennis Hastert of Plano, was accused of profiting from land buys near the proposed highway. And in 2012, the Federal Highway Administration rescinded its approval of the right of way. It was only in March that IDOT canceled the corridor.

I have always thought the STAR Line was a clever idea in multiple ways:

  1. It would provide needed railroad links throughout the region so that not all riders have to go into Chicago before making transfers. The spoke model in the Chicago region is good for getting to downtown but the biggest number of trips these days are suburb to suburb.
  2. It made use of existing tracks. Although they likely needed more capacity to run regular passenger service and new tracks would be needed along I-90, some of the infrastructure was already there. This is not something to look past in an era when acquiring land can be expensive and time-consuming.
  3. It had the potential to spur transit-oriented suburban development in a number of communities. This is a hot topic in many suburban downtowns and it could have opened up new commuting, residential, and business opportunities.

Yet, the plan was scuttled by several factors:

  1. A lack of money. This project has been around since the 1990s but it was unclear who would fund it.
  2. Control of the EJ&E tracks.
  3. Likely concerns from neighbors to these tracks. When CN purchased these tracks and added freight trains, multiple communities pushed back.

The Prairie Parkway may have not offered as much opportunity to remove cars from roads but could have spurred development on some of the edges of the Chicago region and offered a shorter drive time in these areas. Building belt-line highways like this require some foresight: if they are constructed after too much development has occurred, they can be much more expensive to build. Also, neighbors can object to the plans, such as with the Illiana Expressway which also has not gotten off the ground.

Not needing “for sale” signs in wealthy suburbs

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The Connecticut suburb of New Canaan is testing banning “for sale” signs:

The “trial ban” on real estate signs will run from July 1 to Jan. 1, according to Janis Hennessy, president of the New Canaan Board of Realtors.

The decision was made by members of the Board as well as the New Canaan Multiple Listing Service, “to further improve our already beautiful town,” Hennessy said in a release…

“Millennials and other potential buyers shop for real estate online and we believe they will be able to find New Canaan homes without these signs. We have seen how eliminating the signs has improved the look of other towns in Fairfield County without impacting the real estate markets. New Canaan Realtors believe it is worth a try here in the ‘Next Station to Heaven’ as well.”

The question of whether to implement a ban, such as a longstanding one in Greenwich, has been battered around New Canaan for some time. Saying the sheer number of ‘For Sale’ signs undermines the town’s attractiveness and ability of some property owners to sell, advocates for the change are cheering the decision.

There are four explanations provided or hinted for why “for sale” signs will not be allowed for six months:

  1. Younger homebuyers do not go driving around looking at homes; they look online.
  2. Other suburbs nearby already have a ban in place. New Canaan needs to keep up.
  3. Not having the signs makes the properties more attractive.
  4. There are too many “for sale” signs.

There may be a single underlying reason behind these explanations: the higher social class of residents in New Canaan. “For sale” signs may be gauche in a community that is one of the wealthiest zip codes in the United States (with Greenwich also as one of the wealthiest zip codes). Selling and buying property in a wealthy community does not have to be such a public event. The crass exchange of money for property is essential to American life but may be too prosaic to acknowledge in a place where residents could live in a myriad of places. Not making the sale as public (no signs plus pocket listings and listing only in certain places) may just add to the cachet of the community.

In a place where there are no “for sale” signs and where there may be limited community interaction (one of the findings of The Moral Order of a Suburb), there may be few indications that a property has changed hands. The cars in the driveway may change a bit and home repairs may happen here and there but the single-family homes may be more permanent than residents.