Affordable housing issues in rural America

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Rural America may have fewer people than suburban or urban areas but it also faces an affordable housing problem:

It can be hard to understand how finding affordable housing could be an issue in areas where housing is substantially cheaper than it would be in the nearest city or suburb. But the fact of the matter is, despite lower costs of living, income for many in rural areas is also significantly lower thanks to limited economic opportunities and struggling industries, like coal.

“When we are looking at areas that are most challenged economically we’re also finding some of the most challenging housing conditions,” says David Dangler, the director of Rural Initiatives at NeighborWorks America, an organization that advocates for affordable housing and acts as a network for nonprofit housing groups. Poverty is high in rural areas, with about 17.2 percent of rural residents living below the poverty line in 2012 versus 14.9 percent nationwide, according to 2012 data from the HAC. “Much of the affordable-housing stock in rural housing areas is old and in need of repair. Many of the people who live there don’t have the resources that they need in order to keep the houses in good repair,” says Sheila Crowley, president of the National Low-Income Housing Coalition…

When it comes to creating new homes, interest is often thin and those that do opt in, face many unique hurdles. “Developers can’t count on any kind of municipal infrastructure to help them,” says Dangler. When it comes to building, things that are often taken for granted in more urban areas, like water, sewers, and even access to quality roads, aren’t guaranteed, which can make building a quality house much more challenging.”

Aid is somewhat sparse too, for both building and rehabilitating properties. “There’s a handful of programs that serve people in rural communities. They tend to be much smaller in scale in terms of the amount of money than the HUD programs. They also tend to be lost in the bureaucracy,” says Crowley. That’s particularly problematic because “rural areas have been traditionally more dependent upon public subsidies and publicly-funded programs than their urban counterparts,” according to Dangler. “There can be a disproportionate pain in rural areas as we attempt to right our financial books by cutting back on federal-housing programs.”

Sounds like a variety of problems at work including difficult economic conditions, a lack of public, government, and philanthropic attention, and, lurking in the background, the difficulty in administering social services in less dense areas. Just like communities have to work harder to tackle more distributed by still present poverty in the suburbs, attacking this housing issue in rural areas is simply harder to do in decentralized locations.

Plug and play 10 square feet Cubitat on display

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Toronto’s Interior Design Show featured a 10×10 square foot Cubitat living unit:

Cubitat is a 10-by-10-by-10-foot cube that houses a kitchen, bathroom, bed, laundry, and storage.

Once plumbing and electric are hooked up, the structure can theoretically turn any dwelling into what the developers are calling a “plug and play” living space that looks something like a giant’s Rubik’s cube and seems to beg to be painted in Mondrian colors…

The concept is appealing but problematic: For the moment, Cubitat comes assembled in one giant piece. So although it looked great in the large, light-filled exhibition space at the Toronto show, figuring out how to get this giant module through the doors of most existing structures is an obvious obstacle (unless you’re lowering it into a roofless barn or sliding it into a converted double garage).

The pictures are really interesting and hint at the creative possibilities of mass-produced small housing units. Yet, the biggest problem seems to be ignored: since a number of the features open outward (the bed, the kitchen, etc.), this unit is only as good as the larger space in which it sits. If you had a big loft – particularly with taller ceilings – you could plop a Cubitat or two right in the middle. But, what other spaces offer such options and provide another set of exterior walls?

Naperville mayoral candidates all want to fix traffic problems…but how?

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The four men running for mayor in Naperville agree that fixing traffic issues is important but differ on the solutions:

Walker says the city should adjust traffic signal timing street by street to alleviate common backups.

Jim Haselhorst says the city’s traffic problem needs a comprehensive solution because every time signals are adjusted on one street, drivers change their habits, causing backups elsewhere.

Steve Chirico says the planned implementation of an integrated traffic management system on Washington Street will help, as will good city planning to avoid creating future traffic nightmares.

And Doug Krause says the city needs to form better intergovernmental partnerships — since many roads in Naperville are managed by a township, a county or the state — and spend more on street improvements and maintenance.

This is an important issue for a suburb that claims a high quality of life (#33 in Money‘s recent list of best places to live) yet has a large population (the fifth largest city in Illinois). The problems stretch back decades: Naperville, like many Chicago suburbs, had a better system of east-west transportation (think the highways and trains on the hub and spoke model with Chicago); the city’s sprawling growth outpaced the local north-south roads; the proposed Fox Valley Freewayway never materialized; and mass transit does not adequately connect destinations along the north-south axis (though Pace and others always have plans). The best answer for these issues is probably that this should have all been planned for a long time ago. But, few people ever thought Naperville would have been this big.

Yet, I think simply talking about existing roads doesn’t do much. Traffic light synchronization should have been done a while ago if it is such a solution. Again, why weren’t plans implemented earlier on Washington Street to help traffic get through downtown? Widening roads may increase the number of lanes but this can also increase traffic volume which fills up those new lanes. Adding right-turn lanes could help at intersections but it can be a lot of work for relatively little new road space.

I would be interested to see some Naperville officials think big here. Single, easy solutions will be hard to find. Enhancing mass transit within Naperville and to other communities would help. A comprehensive and varied approach is needed, particularly if the city has any designs on denser development (which is what is needed if the city wants to continue to grow given its lack of large plots of open land).

Can townhouses look like McMansions?

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One resident claims units in a proposed townhouse development “look like a bit like the stereotypical “McMansions.” Here is a description of the proposed units as well as an artistic rendering:

“The idea is to capture the transient market of people coming from urban areas to work at the colleges,” Buhl said.  “They would ultimately buy a house, but don’t know where to locate.  We’re looking for young, two-worker families.  It’s an in-between type of rental of higher-end people that we’re looking for.”

Cayuga Farms has gone through several changes over the past recent years.  Originally it was conceived as a 144 unit townhouse condominium community.  Today it is being packaged as a 102 rental two and three bedroom townhouses with one or two-car garages in a total of 21 buildings.  Buhl characterized it as a high-end development targeted at young families who may have moved to town to work here, renting for a while before purchasing a house.  He said rents will range between about $1,800 and 2,200 per month…

cayugafarms elevation
An artist’s elevation of the proposed design for the townhouse buildings

These do seem to be aimed at a wealthier renter. So, could these be McMansions? These townhouses do appear to have some of the features tied to McMansions. A multi-gabled roof. Big emphasis on garages. A mish-mash of styles on the facade. Possibly two-story entryways (the windows right above the door do suggest this). Odd dormers on the third story. Windows of all sorts of sizes. Porticos at the front door. Height and width that seems to dwarf the green space between the driveways.

Yet, I think not being single-family homes is a big barrier as McMansions are viewed by critics as cartoonish versions of the single-family house. The design of townhouses seems not to be as much of an issue. Perhaps this is because there are fewer design options for townhouses or because they tend to be located within their own developments (avoids teardown situations) or density is a bigger issue for opponents compared to design.

My verdict: these look like McMansions but can’t quite be labeled McMansions.

The county with the worst roads for traveling in the Chicago region

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The Chicago Metropolitan Agency for Planning has a new data tool online and it provides insights into the commuting experiences of Chicago area residents:

CMAP planners say it’s time to “get people excited about data.” The hope is CMAP’s constituents — Cook, DuPage, Kane, Kendall, Lake, McHenry, and Will counties — will use the facts to understand why certain projects deserve prioritization and funding. To access the data, go to http://www.cmap.illinois.gov/mobility/explore…

To that end, a section on ride quality includes detailed maps measuring pavement conditions on both expressways and major roads. A snapshot of counties’ ride quality on major roads puts Cook County with a 47 percent rating compared to 72 percent in DuPage, 80 percent in Kane and 83 percent in Lake and 90 percent in McHenry.

Other data available includes stats on bridges in need of repair, pavement quality, the number of passengers boarding at Metra and CTA stops and the worst railway crossings for delays in the region — FYI, it’s on Chicago’s South Side at Morgan Street and Pershing Road with 3,194 vehicles delayed a day.

Taken cumulatively, the website sends a message that the region’s infrastructure needs more capital to avoid gridlock, stagnant transit and deteriorating roads. The warning is timely, with a new governor in Springfield and a push for state and federal multiyear capital programs.

Two things strike me as interesting:

1. I always like the idea of putting more data into people’s hands. Commuting is a common experience and one that people would probably want to see improved. However, without data that moves behind individual and/or anecdotal evidence, it is hard to have conversations about the bigger picture in the region.

2. Some people may like data but it is another thing to translate that data access into collective action. Assuming that some people go to this site, will they then take an interest in infrastructure projects? Will they contact political officials? Will they vote differently? How exactly CMAP goes about putting this data into action is worth paying attention to.

Lesson of Glendale, Arizona: don’t put so much public money into sports stadiums

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The Super Bowl will be played in Glendale, Arizona but the suburb’s push to become a sports center has not exactly paid off:

As the Coyotes and Cardinals sought new facilities in the early 2000s and efforts failed to build them in other parts of the Phoenix area, Glendale stepped in. The city helped pay for the Coyotes’ arena with $167 million in bonds in 2003, and as the hockey team’s finances began to fade during the recession, Glendale went all-in to keep the team in Arizona. The city dished out $50 million earlier this decade to keep the team and continues to make annual payments toward the arena, but the money it is getting in return has not met expectations.

The football stadium was built in 2006, but Glendale was not on the hook for the costs of the $450 million retractable-roof facility. It was funded primarily with new taxes on car rentals and hotels in the Phoenix area, but that financing hit a snag last year when a judge ruled that the car rental tax was unconstitutional, leaving a major funding source for the Super Bowl venue in jeopardy. The issue is still being argued in the courts.

Glendale is far from alone. Cities and states nationwide have long struggled with how much public money to spend on stadium projects. The effort to build a new stadium for the Minnesota Vikings became embroiled in controversy over a financial commitment by the state that opponents said was excessive. The St. Louis Rams are at the center of a debate over whether to spend public money on a new stadium. Topeka, Kansas, is immersed in a fight over a motorsports track that has drawn comparisons to hockey in Glendale…

In the case of the Super Bowl, he believes the city is paying dearly. He said Glendale will actually lose a “couple million dollars” by hosting the event. It’s spending huge amounts of money on overtime and police and public safety costs associated with hosting the Super Bowl but getting very little in return.

Super Bowl visitors are mostly staying in Phoenix and Scottsdale and only showing up in Glendale on game day, meaning the city won’t see much of a boost in tax revenue. And the city was hoping the state would reimburse Glendale for its police overtime costs, but lawmakers have scoffed at the idea.

Teams and cities typically sell stadiums as engines for economic development. Think of all the fans who will be there! You can build around the new facilities! This will put your city on the map! But, such stadiums come with big costs including tax money that is often used as well as a whole host of other infrastructure concerns (from police to building hotel rooms). And the winners in such schemes are often the team owners who don’t have to pay completely out of pocket for facilities that can immensely boost the value of their team. (A thought: just imagine a team owner selling the team for a big profit – and many current sports franchises would turn such a profit today – and having to reimburse the community for costs incurred.)

But, if Glendale hadn’t built these stadiums, some other community might have fallen over themselves to make it happen…

Loss of housing wealth hits black suburbanites hard

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The housing and economic crisis of the last decade has hit black suburbanites particular hard:

But today, the nation’s highest-income majority-black county stands out for a different reason — its residents have lost far more wealth than families in neighboring, majority-white suburbs. And while every one of these surrounding counties is enjoying a strong rebound in housing prices and their economies, Prince George’s is lagging far behind, and local economists say a full recovery appears unlikely anytime soon…

The recession and tepid recovery have erased two decades of African American wealth gains. Nationally, the net worth of the typical African American family declined by one-third between 2010 and 2013, according to a Washington Post analysis of the Federal Reserve’s Survey of Consumer Finances, a drop far greater than that of whites or Hispanics…

Not only is African American wealth down, but the chances of a quick comeback seem bleak. Just over a decade ago, homeownership — the single biggest engine of wealth creation for most Americans — reached a historic high for African Americans, nearly 50?percent. Now the black homeownership rate has dipped under 43?percent, and the homeownership gap separating blacks and whites is at levels not seen in a century, according to Boston University researcher Robert A. Margo…

Many researchers say the biggest portion of the wealth gap results from the strikingly different experiences blacks and whites typically have with homeownership. Most whites live in largely white neighborhoods, where homes often prove to be a better investment because people of all races want to live there. Predominantly black communities tend to attract a narrower group of mainly black buyers, dampening demand and prices, they say…

Scholars who have studied this dynamic and real estate professionals who have lived it say the price differences go beyond those that might be dictated by the perceived quality of schools, or the public and commercial investment made in particular neighborhoods. The big difference maker, they say, is race.

In other words, simply promoting homeownership – a key part of the ideal of the American Dream and also something taken as a sign that various groups have made it – is not the complete answer for thinking about equality among different groups. What homes people own and where they are located also matter. Decades of research in urban sociology and related areas shows that blacks and other minorities often don’t live in the same suburban settings as white suburbanites. Their homes tend to be located in poorer neighborhoods and neighborhoods that have higher non-white populations. This is due to a variety of reasons including long-term white wealth that gives whites better opportunities to move to wealthier and whiter places, zoning practices in wealthier communities that tend to limit cheaper or affordable housing (examples here and here), mobility patterns among whites that show they leave neighborhoods and communities as they become more non-white (the process of “white flight” continues in some suburban areas), and patterns of mortgage lending as well as renting that tend to take advantage of poorer and non-white residents. Tackling the issue of residential segregation still matters today even as more minorities and poor residents move to the suburbs.

 

Translating communism into urban design principles

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Here is a look at how the Soviet Union designed cities:

With this assumption, Soviet planners made some logical steps to promote density. They built nurseries and preschools as well as theatre and sports halls within walking distance to worker’s homes.   Communal eating areas were arranged. Also, wide boulevards were crucial for marches and to have a clear path to and from the factory for the workers. The goals of the “socialist city” planners were to not just transform urban planning but human behavior, helping such spaces would breed the “urban human”…

Alexei Gutnov and his team set to create “a concrete spatial agenda for Marxism”. At the center of The Communist City lay the “The New Unit of Settlement” (NUS) described as “a blueprint for a truly socialist city“. Gutnov established four fundamental principles dictating their design plan. First, they wanted equal mobility for all residents with each sector being at equal walking distance from the center of the community and from the rural area surrounding them. Secondly, distances from a park area or to the center were planned on a pedestrian scale, ensuring the ability for everyone to be able to reasonably walk everywhere. Third, public transportation would operate on circuits outside the pedestrian area, but stay linked centrally with the NUS, so that residents can go from home to work and vice versa easily. Lastly, every sector would be surrounded by open land on at least two sides, creating a green belt.

Gutnov did acknowledge the appeal of suburbia — “…ideal conditions for rest and privacy are offered by the individual house situated in the midst of nature…”, but rejected the suburban model common in America and other capitalist countries. Suburbs, he argued, are not feasible in a society that prioritizes equality, stating, “The attempt to make the villa available to the average consumer means building a mass of little houses, each on a tiny piece of land. . . . The mass construction of individual houses, however, destroys the basic character of this type of residence.”

The author is insistent on comparing these to current planning practices but let’s be honest: all urban planning is based on some sort of ideology. Many Americans may prefer suburbs to these Soviet cities but suburbs have their own logic based around private property, individualism, and local control. In other words, neither Soviet cities or American suburbs “just happen”; there are a series of historical events, decisions made by key leaders (often in government and business), and meanings that contribute to particular spatial landscapes.

New survey suggests 66% of millennials (who want homes) still prefer suburbs

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Perhaps that generational shift back to the city will take some time: a new survey shows a majority of millennials would prefer to live in suburbs.

Some demographers and economists argue that the preference of millennials, also called Generation Y, for city living will remain long lasting. And surveys of these young urban residents have tended to show that they don’t mind small living quarters as long as they have access to mass transit and are close to entertainment, dining and their workplaces.

But a survey released Wednesday by the National Association of Home Builders, a trade group, suggested otherwise. The survey, based on responses from 1,506 people born since 1977, found that most want to live in single-family homes outside of the urban center, even if they now reside in the city…

The survey, which was released at the association’s convention in Las Vegas, found that 66% want to live in the suburbs, 24% want to live in rural areas and 10% want to live in a city center. One of the main reasons people want to relocate from the city center, she said, is that they “want to live in more space than they have now.” The survey showed 81% want three or more bedrooms in their home…

The survey results, though, could be skewed because they included only millennials who first answered that they bought a home within the past three years or intended to do so in the next three years. That excluded young people who intend to rent for many more years, which is a large and growing group, in part because of hefty student debt and the tight mortgage-lending standards of recent years.

Interesting twist there at the end – of those who have or intend to buy homes, the suburbs are still the place (and only 10% wanted to live in a city center) to go.

I do wonder at the three categories presented: city center, suburbs, and rural areas. While the last one is pretty easy to define, what is the boundary between the city center and suburbs? If I’m thinking about Chicago, does living in the city center include every part of the city of Chicago (which has a lot of neighborhoods of single-family homes) or does it refer to living in the denser Loop and right nearby?

Debate the data: are millionaires leaving New Jersey in large numbers?

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A new report suggests some millionaires have left New Jersey:

New Jersey lost roughly 10,000 millionaire households, but those affluent families who remain still account for 7 percent of the whole state, the researchers said…

A high tax rate for top earners may have led to some migration out of the state, according to David Thompson, the lead researcher.

By losing those 10,000 millionaire households, the Garden State returns to third, where it was ranked from 2010 through 2012. Since the last report, Connecticut lost only 1,000 millionaire households, as it vaulted to the second spot, the group said.

And alternative interpretations:

“If millionaires were truly trying to flee NJ’s top income tax rate, we probably would have lost a lot more when the rates were higher,” Whiten said. “But during the 2000s NJ almost doubled the number of tax filers above $500K at a time when the tax rate was increased on them, twice.”Wealth has been reported leaving the Garden State before, however. In 2010, a Boston College team found that in a five-year period some $70 billion in total wealth left for other parts of the U.S.

Last year, a report by the Morristown-based Regent Atlantic wealth management firm released a report entitled “Exodus on the Parkway” that claimed so-called “tax migration” began in 2004, with the state’s passage of the “millionaire’s tax.” The report found that a couple with an income of $650,000 who moved to Pennsylvania would save some $21,000 per year in taxes, adding up to $1.65 million over 25 years, if invested. Most families with incomes of $500,000 per year or more were departing New Jersey for either the Keystone State or Florida, the Regent Atlantic authors added.

“The phenomena is there, that people are leaving – but people in New Jersey have high incomes,” said Joseph Seneca, professor of economics at the Edward Bloustein School of Planning and Public Policy at Rutgers University.

My interpretation: no one really knows whether 10,000 millionaire households leaving is a big number or not. If the true figure was 5,000, might those who oppose higher taxes still argue that taxes are pushing a large number to leave? And if the true number was 15,000, would this be enough evidence that taxes really are making a difference? Because this appears to be an ideologically laden debate, each side can look at the 10,000 figure and make a reasonable interpretation.

Here are two ways around the issue that both make use of comparisons. The first way would be to compare the New Jersey leavings over the years. Is the 10,000 figure more or less than years past? The second would involve comparing the leaving rate across states. This new report looks at millionaires per capita across states but why not compare the leaving rate per capita across states? Then, people in New Jersey could decide whether they are concerned with having similar or different rates compared to states with other policies.