Teardowns increase

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Demonstrating again that people with means are doing fine in the housing market, the number of teardowns is on the rise:

Home teardowns are becoming common in U.S. suburbs such as Pimmit Hills, a 65-year-old neighborhood just beyond the borders of the growing Tysons Corner area near Washington. Builders, lured to locations where land is more valuable than the aging housing stock, are transforming communities outside of major employment hubs to take advantage of demand for real estate where schools are decent and commutes are short.

Knockdowns across the country are increasing, said Robert Dietz, an economist with the National Association of Home Builders. The trade group estimates that builders tore down and reconstructed about 32,000 homes last year, representing 5 percent of all single-family housing starts. Beyond the nation’s capital, the trend can be found in suburbs of cities from Boston to Minneapolis and Los Angeles.

“It’s all about traffic jams — people can have nice houses far out in outer suburbs but the commute time is impossible,” Lawrence Yun, chief economist of the National Association of Realtors, said in a telephone interview. “This is an ongoing process because older-built homes happen to be closer to job centers and may not meet the needs of modern homebuyers.”…

More builders are ripping down existing homes because well-located vacant lots are becoming difficult to find and structures in communities close to urban areas are among the oldest. In 2013, about 47 percent of owner-occupied homes in the U.S. were at least 40 years old, up from 27 percent in 1991, according to an analysis of Census Bureau data by the homebuilder group.

If you have the resources, you can get the bigger home with the shorter commute in a desirable suburb. The figure cited above about a dated housing stock is intriguing; many people today seem to want new and turnkey construction but many older suburbs – even ones founded right after World War II – could have primarily older homes.

I like the picture they chose to accompany this story as it highlights why many communities have fierce debates over large teardowns:

Northern Virginia’s Pimmit Hills

That is quite a difference in size and shape.

Will outlining the monetary and environmental costs of lawns change behavior?

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Americans may like their green lawns around their single-family homes but they come at a cost:

These days, front lawns cost Americans $40 billion a year to maintain, and are spread over about 50,000 square miles—the land area equivalent of the entire state of Alabama.

This vast swath of ornamentally maintained land is generally bad for the environment. A lawnmower generates more greenhouse gas emissions per hour than 11 cars, according to the Environmental Protection Agency; nitrous oxide emitted by fertilizer has 300 times the warming potential of carbon dioxide, and lingers in the atmosphere for as long as 120 years. Swept into waterways, those fertilizers strip the water of oxygen, causing algal blooms and “dead zones” that kill freshwater and marine life.

Then, of course, there’s water use. Americans consume around 9 billion gallons of water a day on average on outdoor use—most of it watering their lawns. That’s more water than families use for showering and laundry combined. As populations rise, water needs will only get more taxing in many states.

The writer concludes by suggesting that California’s drought and trend-setting may just help limit lawns in the future. However, there are at least two major hurdles to overcome:

1. The cultural importance of a lawn should not be undervalued. The minor connection to nature (or “nature” modified appropriately by humans) is important.

2. Simply citing large numbers or figures like above may not go very far. In the abstract, $40 billion sounds like a lot until you consider what kind of money is spent on other things. Or, what might people do instead with that $40 billion? Even the environmental concerns – and the effects sound quite harmful – are more abstract since the consequences are pushed down the road either in time or place.

Perhaps the best way to combat the American lawn would be to change the American view of nature and what is appropriate around single-family homes. We have seen some of the shaming efforts in California, from overhead photos of celebrity compounds to neighbors reporting each other over water violations. This could be done more positively with incentives (such as being paid to remove turf in Western state) or new trends. What suburban resident would want to be the only one on the block with the green costly lawn if all the neighbors had moved on?

Studying suburban, middle-class drug dealers

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A new book from two sociologists details the lives of suburban drug dealers in Georgia:

But drug users and sellers are busy in city suburbs, too. And many of the sellers are teenagers. That’s according to a newly published sociological study focusing on why middle-class, suburban youth get involved in the drug business.

The study was conducted in a wealthy metro Atlanta suburb.

Authors Scott Jacques and Richard Wright wrote the resulting book called “Code of the Suburb:  Inside the World of Young Middle-Class Drug Dealers.”…

Jacques interviewed some 30 young drug dealers for the book – many of them high school friends of his.

Even with plenty of evidence that drug use is a regular feature of suburban life (illustrated by the heroin outbreak in the Chicago suburbs in the last year or two), such deviance is often associated with cities and lower-class residents. This reminds me of the classic study “The Saints and the Roughnecks.” Two groups of delinquent boys in a town are treated differently by social class: despite similar rates of delinquency, the higher class boys were not arrested and it was expected that they would grow out of the behavior and contribute positively to society as adults. In contrast, the lower class boys were punished more harshly and took on the expectations the community had for them as delinquents.

“Why Is My Smart Home So Stupid?”

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A marketing professor gives an answer to this simple question:

One popular answer is that the Internet of Things is still in its infancy and that better technology and standards are within reach and will lead to greater integration, and thus, greater smartness in the not too distant future.

There is some value in this explanation. Everyone who has ever tried to get an IP camera to work on a cell phone will probably agree. But this answer is also entirely steeped in a technological mindset and the naive belief that better technology will automatically improve our lives.

An alternative explanation may be that popular tropes such as the “Internet of Things” not only inspire but also constrain our imagination as innovators and as consumers. Designing greater customer experiences and, thus, extracting greater economic value may be a matter of avoiding this trope altogether…

One managerial implication we can derive from Epp, Schau, and Price is that different smart home definitions are possible. And Nest’s definition seems much more powerful than Plum’s. Plum adds yet another layer to the Internet of Things, and the result is often a home where everything is connected but nothing adds up. In sharp contrast, Nest succeeds by putting its technology in service of a much higher sociological goal: the age-old quest to create and sustain a happy family

The suggestion here is that new technology is only as good as the improvements in social interactions that it brings. Way before the smart home, modern consumers have been promised all sorts of benefits from new technology but the created items don’t always lead to the desired social outcomes. Cars enabled easier transportation but led to more private existences and increasing sprawl. Similarly, more single-family homes gave people space but helped spread them out. The radio and later television delivered mass media, theoretically connecting people, but also led to people sitting around these items. Modern appliances were to save labor. The Internet allows unprecedented customized access to information yet can lead to echo chambers and isolated interactions. Autonomous vehicles will create more free time or more time to work?

Perhaps this should be a challenge for smart home innovators: how can new devices both help in their particular area (say heating or lighting or saving energy) and foster social interaction? This may actually be the harder part.

Considering a robot superhighway from Mexico to Canada

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If driverless cars are in the near future, why not a superhighway of autonomous trucks linking Mexico and Canada?

The project is currently being considered by members of the Central North American Trade Corridor Association (CNATCA), and would consist of a robot-only corridor running along Route 83 through Texas, Oklahoma, Kansas, Nebraska, South Dakota, North Dakota and on into Manitoba.

One of the main reasons for a robot road like this, according to Marlo Anderson of the CNATCA, is that North Dakota produces a lot of oil right now, and doesn’t have a great way to get it all where it needs to go. Sure, there are trains, but there’s not enough space to be had. That, and the jury-rigged cars that carry the oil keep exploding. Trucks can help ease the pressure, especially if they don’t need drivers…

There are plenty of problems to solve before any of this would be possible though, including self-driving car laws in half a dozen US states, some way of having driver-less robo-rigs cross borders into and out of the United States, and security in place to make sure no one tries to exploit that system. But robot roads like this one—if it happens—could pave the way to wider acceptance of self-driving vehicles that really do take care of it all themselves. Even if we’re not ready to have them on the road with us just yet.

Advantages include safer roads, no time restrictions on the trucks, lower labor costs, and presumably cheaper goods and/or more money to be made. Disadvantages include lost trucking jobs, a long period of time to put this all together, and perhaps the biggest hurdle for now: what exactly would such a highway cost to build and maintain? Do we need a fleet of herding vehicles to service the trucks and highway?

I wonder what the final arguments regarding this might look like: perhaps safety on the trucking side (how can you argue with a safer driving experience?) versus the steady erosion of jobs greased by free trade (this time to autonomous vehicles).

Naperville ranked as the 186th most diverse city out of 230 biggest cities

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Naperville may be the safest big city but it doesn’t have much diversity according to new rankings from WalletHub:

As the culmination to our series on diversity studies, this final installment combines our previous reports on economic class diversity, ethno-racial and linguistic diversity, and diversified economies with household diversity to paint the clearest image of America’s cities today. Recognizing that economic opportunity follows diversity, where in the U.S. would you rather live? Better yet, where would your unique background be most valuable to society?

To help you answer those questions, WalletHub once again examined the demographic profiles of the 230 most populated U.S. cities. In order to construct our final rankings, we tallied each city’s scores in the four major diversity categories we analyzed in this series.

Los Angeles leads the way at #1 and Chicago is at #32 overall. For the record, Naperville ranks 125 in income diversity, 336 in educational diversity, 265 in racial & ethnic diversity, 170 in language diversity, 149 in region of birth, and 183 in industry diversity. Naperville is also listed as one of the five lowest in marital status diversity as well as in household type diversity.

The commentary on the rankings suggests that economic opportunity is linked to higher levels of diversity. This may be the case but it doesn’t necessarily mean that the economic opportunities are equitably spread across cities. Perhaps having opportunities nearby is better than no opportunities at all – though I’m reminded of some of the earliest American sociological neighborhood studies like The Gold Coast and the Slum that noted how closely the rich and poor could live near each other with no interaction. Even if Naperville is not diverse in many of these areas, that doesn’t mean that it can’t be wealthier or that it won’t be viewed as a desirable place to live (ask Money or other magazines). Indeed, some might see the lack of diversity as highly desirable for both defensible (wanting a higher quality of life – isn’t that what the suburbs are supposed to be about?) and indefensible (trying to avoid members of a different racial/ethnic groups or certain social classes).

Frank Underwood gets in on the critique of McMansions

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The second episode of Season One of House of Cards includes this commentary regarding McMansions:

Frank Underwood: Such a waste of talent. He chose money over power – in this town, a mistake nearly everyone makes. Money is the McMansion in Sarasota that starts falling apart after 10 years. Power is the old stone building that stands for centuries. I cannot respect someone who does not see the difference.

Watch the YouTube clip here.

Underwood’s statement hints at three facets of the criticisms of McMansions:

1. Sarasota represents the booming Sunbelt flooded with new money and new developments. McMansions are often associated with the sprawling suburbs of recent decades that quickly gobbled up land.

2. He suggests McMansions are about money (represented by a lobbyist here) and not about longer-term influence (power in this case). Critics suggest people buy McMansions – which often stretch them beyond their financial means or at least lead to a big mortgage – in order to impress people.

3. Critics argue McMansions are not of the same kind of quality construction as other houses or structures. With builders/developers interested in quick profits and providing as much space for as little money as possible, McMansions won’t stand the test of time. Of course, even stone buildings require some work but people expect them to last longer than suburban tract homes.

Frank Underwood might claim he is everything McMansions are not: he is not worried about first impressions but rather plays the long game of influence and power, he has attended schools like The Sentinel (modeled after The Citadel, a name suggesting stone and permanence) and Harvard Law, and he is from the old traditions of South Carolina (one of the original colonies, not an upstart booming suburb).

Naperville named safest American city over 100,000 people

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Niche.com recently named Naperville the safest American city:

The rankings were based on evaluations from 215 cities with populations of more than 100,000 residents and included analysis of the city’s violent and property crime data, including murder, assault, robbery, burglary, larceny and vehicle theft rates.

Niche, a Pittsburgh-based ranking and review web site, used the 2013 FBI Uniform Crime Report “Crime in the United States,” an annual publication that reports the number and rate of violent and property crime offenses. They then used a formula to determine the city’s safety ranking, which includes weighting the crime by category: murder rate at 30 percent; assault and robbery at 20 percent each; and burglary and larceny at 10 percent each.

Two Naperville officials are quoted in the story praising crime prevention efforts. This helps but my guess regarding the bigger factor is the wealth of the community. According to the latest (2013) Census estimates: Naperville has a median household income of $108,302, the poverty rate is 4.1%, and the percent of residents with a high school degree is 96.5% and 65.9% have a bachelor’s degree. There are plenty of wealthy communities in the United States but they tend to be smaller. Once you get cities bigger than 100,000, it is hard to find many that have the number of educated and wealthy residents as Naperville.

52% of Beijing’s residents live in suburban-like areas

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Beijing has grown to over 21 million residents but more than half live beyond 12 miles of the city center:

More than half of Beijing’s 21.5 million residents live outside the Fifth Ring Road, a beltway built in the early 2000s that traces a circle roughly 12 miles in diameter around the city, the Beijing Municipal Statistics Bureau said Thursday. Nearly 52% of the city’s roughly 8.2 million migrants—who lack local household registration, or hukou—are suburban dwellers.

The data mark the first time Beijing authorities have mapped the distribution of residents with reference to its six ring roads (a seventh is under construction), numbered progressively as they radiate from the city center. Experts say the numbers highlight the uneven spread of public services—typically clustered in the capital’s central areas—and reflect socioeconomic realities faced by low-income rural migrants.

The clustering of residents on Beijing’s outer fringes will become more pronounced over the coming years, as the city center has limited capacity for accommodating further population growth, Song Yueping, an associate professor at Renmin University’s School of Sociology and Population Studies, told the Beijing Times. Furthermore, new arrivals from outside the capital typically earn less and can only afford cheaper suburban housing, the newspaper quoted her as saying.

This sounds remarkably similar to recent stories about the difficulties in providing social services or mass transit in the American suburbs. Several other thoughts:

1. Many big cities in developing countries are sprawling. They may not stretch to 40-60 miles out like the biggest American cities but the rapid growth of new developments (whether funded by the government or through shantytowns) has to go somewhere.

2. If this followed the pattern of American development, we might expect to see new “urban” centers pop up in the suburbs, revolving around clusters of businesses and jobs as well as denser pockets of residential development.

3. The fact that the population can be so easily measured by the ring roads is interesting in itself. This suggests central planning that can keep putting in the ring roads. But, such roads might also help encourage sprawl along these roads as well as potentially lead to heavy traffic. Additionally, the ring roads likely serve as physical and social markers to differentiate sections of the city.

Taxing McMansions and other buildings by roof size to cover stormwater costs

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Want a McMansion or another building that covers a lot of ground in Mississauga? You will have to pay more for stormwater costs:

In a move that’s a first for the GTA, Canada’s largest suburb and its sixth largest city will soon charge home owners and businesses for storm water costs based on how much of their property is covered. If you have a very small house that causes little run-off water, you will pay nothing. But if your home is in the highest of five size categories, it will cost $170 in 2016 for your share of the city’s storm-water management costs. It’s an approach that Toronto is also looking at ahead of its 2016 budget process, according to a city spokesperson…

Councillor George Carlson, council’s resident environmentalist, has championed the innovative approach since it was first examined in 2011. He recognizes the impact of climate change, but said development trends are also at the root of the problem. “You can’t use pipes the size of Dixie straws when we need massive concrete culverts,” he said after the meeting. “There were streets in Mississauga that looked like Venice in July of 2013 (when a major storm event wreaked havoc across the GTA).”

“But look at all the asphalt and parking lots and McMansions in this city. All of that covered land is sending more and more run-off water into pipes that were probably already too small. I can see the king and queen needing to live in a castle, but does every third person have to?”…

Charges to businesses will be based on a formula that measures the total covered amount of space, but they will be able to save up to 50 per cent of their fee by putting in measures such as catchment basins and permeable material to prevent storm run-off.

It will be interesting to see how this works out. The Councillor quoted above said he thinks this could have an impact on building sizes down the road. Communities with lots of sprawling development often have water problems and solutions range from permeable pavement to green roofs to taxes like these. But, many of these solutions are after the fact which can get quite costly (just see the massive Deep Tunnel project in the Chicago area).

If the real estate pressure is there to build McMansions, I wonder if there are ways around such a fee. (To be honest, $170 a year doesn’t sound like much for the types who buy McMansions.) What if people built underground to get extra space and to minimize the roof size (a la the luxury underground facilities in London)? Presumably there are height restrictions in the community that would limit building up.