Where is the evidence? McMansion owners “favor” Cadillac Escalades

The connections between SUVs and McMansions continue: this article features a list of traits of Cadillac Escalade owners and their favored kind of housing.

The Escalade has long dominated the Navigator both in sales and cultural currency. Check out this list of Ten Seriously Dope Cadillac-Inspired Hip Hop Tracks. Indeed, the Escalade has long been a favored ride of the hip-hop crowd, pro athletes, Wall Streeters, business owners, drug kingpins and “McMansion” owners…

Who’s buying these hulking SUVs, according to the data? Rebecca Lindland, senior analyst for KBB.com, says it’s more than just the bling and business tycoon sets. “The Escalade and Navigator shoppers on kbb.com are very similar, leaning heavily toward a domestic, family-oriented mindset. But the Escalade buyer tends toward techie side, so if the new Navigator is stacking up well against Escalade on the telematics interface, Cadillac could have its hands full.”…

The market for large luxury SUVs is as well established as cigars, expensive brandy and coal furnaces. Even these harsh words from Consumer Reports can’t dampen the enthusiasm for these vehicles among the rich and brash. “This hulking SUV can comfortably accommodate seven, effortlessly tow more than 4 tons, and practically cast the shadow of the Queen Mary II. While the Navigator pampers you with power everything and a rich interior ambience, a few details detract from the idea of embracing this almost $90,000 behemoth.”

That people of different class statuses purchase different brands and models is well-established, going back to the General Motors brand for every buyer as well as more academic studies showing different tastes among different social classes. What I would want to see in this case involves something more: where is the data that shows McMansion owners favor Escalades over Navigators? Or, that people who own Escalades are more likely to live in McMansions than other kinds of homes?

This is not the first time McMansions have been connected to Escalades. For example, take the New York Times. From a July 2001 story:

There are those who are drawn to the Escalade simply because it is so far over the top. You see them pulling up to McMansions in the suburbs and to hip-hop clubs downtown, making a statement before the truck comes to a halt. On the flip side, it is not hard to find people who are appalled, sometimes with fanatical fervor, by what the Escalade represents. Glaring from subcompacts or crosswalks, they seem to hold this hulk of metal responsible for global warming and dolphins in tuna nets.

Or an October 2005 review of a Lincoln SUV subtitled “A McTruck for the McMansion“:

The Mark LT is priced thousands below its prime competitor, the Cadillac Escalade EXT, but the equipment list shows why. The Caddy has 45 more horsepower and comes only with full-time four-wheel drive. (Lincoln’s system is part time, and costs extra.) Lincoln doesn’t offer a navigation system, air-conditioned seats, traction assist, stability control or power folding mirrors. Its power seats have manual recliners.

Or a January 2014 story titled “In Housing, Big is Back”:

Affluent buyers are drawn to new homes in part because the market for existing homes is so competitive, said Stephen Kim, a Barclays analyst. Inventories of existing homes for sale remain low, and buyers are less interested in large homes in far-flung developments — the McMansions of the exurbs that were emblematic of the boom and bust…

In April 2012, they selected a model costing about $850,000 from a luxury builder and chose a number of standard options for an additional $650,000. Ms. Sleep, who was in the process of selling the software firm she founded nearly two decades earlier, added a wall of windows to the basement and furnished it with a pool table, a media room, a wet bar, a home office and a suite for their youngest daughter to use when she was home from college.

They added a second master bedroom suite, on the ground level, for use when they are older and stairs become tougher to climb. They upgraded floors, carpeting and molding, added a sunroom and a large deck and supersized the garage door to fit Ms. Sleep’s Cadillac Escalade. The home’s lighting and temperature, as well as media on any of 14 televisions and the sound system, can be controlled remotely.

I get that it takes a certain amount of wealth to own either an Escalade or McMansion – and linking McMansions to wealthy people is common – but I have yet to see more evidence that McMansion owners prefer Escalades.

Construction, ride-sharing doom Chicago parking lots

Parking lots are disappearing in Chicago:

Big increases in condominium sale prices and apartment rents have pushed up the value of well-located land, Lev said. At the same time, revenue has decreased as much as 30 percent in some parking lots his firm owns. “Many downtown garages are not doing the kind of business they used to, which is indicative of ride-sharing and not as many people owning cars,” Lev said.

The lowly surface lot will play a role in reshaping Chicago’s skyline, with plans for two of the city’s tallest buildings in the works on parcels now used for parking…

U.S. parking needs will be cut in half during the next three decades, the Newport Beach, Calif.-based real estate research firm projects. Widespread adoption of ride-hailing and self-driving cars will eliminate the need for swaths of parking spaces — enough that the square footage of the unneeded spaces will be more than the cumulative size of every currently existing apartment, office, shopping mall, retail strip center and warehouse property in the U.S., according to the Green Street report.

Dwindling car ownership could have a major impact on land use and urban planning in the coming decades. It’s already affecting the way new towers are designed. Towers built over parking lots often include spaces within the new structure.

Americans may like driving and owning cars but a decrease in the number of vehicles could influence many areas of American life. Parking lots may just be one domino in a chain of cultural phenomena that will slowly fall if driving patterns change significantly.

Or, perhaps this change in parking could be seen as a necessary correction to having too much parking supply in the past. Some have argued American parking has been too cheap for too long as it encourages driving. This reminds me of two past phenomena. First, communities had battles over free parking and parking meters as customers came to expect plentiful free parking at shopping malls. Second, you can find plenty of images of Chicago in the mid-twentieth century where parking is prominently displayed even as the city was booming. For example, Grant Park was an important area for parking (and still is – it is just better hidden underground).

Additionally, holding on to urban parking lots could be a lucrative investment strategy. In the short run, an owner and/or operator could collect parking fees. In the long run, they could wait until the price of land increased dramatically and then convert a humble parking lot or structure into an expensive development. These urban surface parking lots are rarely meant to be there forever.

Cars, homes, and the American way of life

Can comparative data about owning cars and homeownership in the United States help us think about how the two together help define a unique American way of life?

The data across countries suggest Americans are world leaders in owning vehicles and not so high on the list of homeownership. Few countries have more vehicles than us but over forty have higher percentages of homeownership. Yet, put these two features of life together – driving and owning a home – and they create something fairly unique in the United States.

To start, it is not just that Americans have a lot of vehicles: daily life and spaces are structured around these vehicles. For most Americans, getting to the places that are required for daily life – work, food, school, recreation – requires a vehicle. This is seen as normal and we have adapted in unique ways to this including developing fast food and big box stores (both could not exist in the same way unless people have their own vehicles, and often large ones at that, to operate). It does not have to be this way and indeed many other industrialized countries are not as dependent on vehicles for these daily activities.

As for homes, the availability of cars plus a desire to have a private single-family homes means that Americans are pretty spread out. This way of life reaches its apex in the American suburbs, which range from denser communities where driving involves shorter distances to places on the metropolitan edges where significant driving is needed for every major activity. This suburban form already existed to some degree before cars with the help of trains and streetcars. But, the availability of cars to the public in the 1920s really helped boost suburbanization as did subsequent decisions by different bodies of governments and others to promote an automobile-based society.

Critics of this way of life are plentiful even as we are nearing one hundred years of this arrangement. For more than a third of the existence of the United States, the goal of many is to own a vehicle and a home. To change this would require significant adjustments in a variety of areas. Imagine an America with smaller car companies (think of everything from the economic ripples to what commercials would replace auto ads on TV) or fewer fast food restaurants or no new sprawling suburban developments. We can see the resiliency of car and home narrative still: even as fewer than two-thirds of Americans own their dwelling (with more recent drops after the fallout of the housing bubble plus rising housing costs in certain places), it is still the goal of majority of residents (including younger Americans) and is said to be worth aspiring to. When the economy picks up, it seems Americans return to purchasing cars and homes.

Either cars or homeownership separately may not be enough to mark a unique American lifestyle. Put them together and they shape an entire society of over 300 million people.

Understanding car ownership in the United States through comparative data

Americans like cars. Just how much they do is easier to see with two sets of comparative data (first image, second image).

MotorVehiclesPerThousand

1510B35-vehicles per person finland andorra

Several things to note:

  1. The United States is toward the top of the list with a number of notable smaller countries. Other large countries tend to be further down the list (except for Italy).
  2. It is interesting that the number of vehicles per person is so high in many countries that have smaller populations and a smaller land area. In the United States, cars often seem necessary because it is a big country and the population is spread out. (This would be interesting to measure exactly: before the widespread popularity of cars, was the dispersion of the American population significantly different from other countries? This would help get at whether the car caused greater American sprawl or Americans had already spread out and it only accelerated with the availability of cars.)
  3. Having higher levels of wealth seems to be at least slightly connected to higher rates of car ownership. However, this is not necessarily a strong relationship. In other words, different wealthy countries have different approaches to vehicles. Compared to the United States, the other G7 members are far down the list.

Google Street View, machine learning, and social patterns

I have wondered why more researchers do not make use of Google Street View. Here is a new study that connects vehicles in neighborhoods with voting patterns and demographics:

Abstract: The United States spends more than $250 million each year on the American Community Survey (ACS), a labor-intensive door-to-door study that measures statistics relating to race, gender, education, occupation, unemployment, and other demographic factors. Although a comprehensive source of data, the lag between demographic changes and their appearance in the ACS can exceed several years. As digital imagery becomes ubiquitous and machine vision techniques improve, automated data analysis may become an increasingly practical supplement to the ACS. Here, we present a method that estimates socioeconomic characteristics of regions spanning 200 US cities by using 50 million images of street scenes gathered with Google Street View cars. Using deep learning-based computer vision techniques, we determined the make, model, and year of all motor vehicles encountered in particular neighborhoods. Data from this census of motor vehicles, which enumerated 22 million automobiles in total (8% of all automobiles in the United States), were used to accurately estimate income, race, education, and voting patterns at the zip code and precinct level. (The average US precinct contains 1,000 people.) The resulting associations are surprisingly simple and powerful. For instance, if the number of sedans encountered during a drive through a city is higher than the number of pickup trucks, the city is likely to vote for a Democrat during the next presidential election (88% chance); otherwise, it is likely to vote Republican (82%). Our results suggest that automated systems for monitoring demographics may effectively complement labor-intensive approaches, with the potential to measure demographics with fine spatial resolution, in close to real time.

And a little more explanation from a news source:

The researchers created an algorithm to identify the brand, model and year of every car sold in the US since 1990.

The types of cars also provided information about the race, income and education levels of a neighborhood, the study said.

Volkswagens and Aston Martins were associated with white neighborhoods while Chryslers, Buicks and Oldsmobiles tended to appear in African-American neighborhoods, the study found.

This study seems to do two things that get at different areas of research:

  1. Linking lifestyle choices to voting behavior as well as other social traits. Researchers and marketers have done this for decades. For example, see this earlier post about media consumption and voting behavior. This hints at the work Bourdieu who suggested class status is defined by cultural tastes and lifestyles in addition to access to resources and power.
  2. Connecting different publicly available big data sets to find connections. Google Street View is available to all and election outcomes are also accessible. All it takes is a method to put these two things together. Here, it was a machine learning algorithm by which different kinds of vehicles could be identified. It would take humans a long time to connect these pieces of data but algorithms, once they correctly are identifying vehicles, can do this very quickly.

Of course, this still leaves us with questions about what to do with it all. The authors seem interested in helping facilitate more efficient national data-gathering efforts. The American Community Survey and the Dicennial Census are both costly efforts. Could machine learning help reduce the effort needed while providing accurate results? At the same time, it is less clear regarding the causal mechanisms behind these findings: do people buy pick-up trucks because they are Republican? How does this choice of a vehicle fit with a larger constellation of behaviors and beliefs? If someone wanted to change voting patterns, could encouraging the purchase of more pick-up trucks or sedans actually change voting patterns (or are these more of correlations)?

Finding the price and usage at which to not own a car

Two researchers crunched the numbers and have some thoughts about when you should not own a car:

The decision for owning a vehicle or using mobility services is unique to every individual. If you purchase a highly efficient vehicle for less than $25,000 and drive it more than 15,000 miles per year until it falls apart, then you should definitely own a car if your goal is to save money.

But, if you drive less than 10,000 miles per year, face long waits in traffic, or place a high value on your time that would otherwise be spent driving, our calculations show that mobility services might be the cheaper option. Geography can also play a role—it’s not a coincidence that there have historically been so many taxi cabs in New York City, where the high cost of parking and slow pace of traffic consume time and money.

As noted before on this blog, owning a car can be a substantial part of middle-class expenses. With their physical layout, the sprawling suburbs probably then do not make much sense for not having a car. Yet, those denser suburbs for the older millennials and companies hip to them may be the true spots where suburbanites can ditch their cars. A combination of walkability, some mass transit, and car sharing in these denser suburbs could be enough to push people toward limiting car ownership.

On the other hand, perhaps driverless cars will render this all moot within a short amount of time. Within ten or twenty years, few of us will even need to own a vehicle if we just buy into a car sharing option.

Traffic deaths increased in 2016

Explaining the rise in traffic deaths in the last two years may be difficult to explain:

Cars may be safer than ever, but 37,461 people died on American roads that year, a 5.6 percent hike over 2015. While fatalities have dramatically declined in recent decades, this is the second straight year the number has risen. It’s too early to say why, exactly, this is happening. Researchers will need much more time with the data to figure that out. But here’s a hypothesis: It’s the economy, (crash) dummy.

“People drive more in a good economy,” says Chuck Farmer, who oversees research at the Insurance Institute for Highway Safety. “They drive to different places and for different reasons. There’s a difference between going out to a party in the middle of the night in an unfamiliar area and driving to work—that nighttime driving to a party is more risky.”…

Researchers have long known that driving deaths rise and dive with the economy and income growth. People with jobs have more reason to be on the road than the unemployed. But this increase can’t be pinned on the fact of more driving, the stats indicate. Even adjusted for miles traveled, fatalities have ticked up by 2.6 percent over 2015. You can still blame the economy, because people aren’t just driving more. They’re driving differently. Better economic condition give them the flexibility to drive for social reasons. There might be more bar visits (and drinking) and trips along unfamiliar roads (with extra time spent looking at a map on a phone).

The DOT numbers seem to confirm that drivers involved in traffic deaths were doing different things behind the wheel last year. The feds say the number people who died while not wearing seat belts climbed 4.6 percent, and that drunk driving fatalities rose 1.7 percent. Contrary to what you might expect, the numbers show distracted driving deaths dropped slightly, but experts caution against putting too much faith in such info. The numbers are based on police reports. They’re reflections of what cops are seeing at crash sites, but also of what’s in the zeitgeist at the time. It could be that first responders weren’t, for example, looking out for distracted driving last year because it wasn’t in the news as often.

Official statistics do not provide all the information we might want. In this case, the figure of interest to many will simply be the total number of deaths. Is an increase over two years enough to prompt rapid action? If so, I would imagine the regulatory structures regarding driverless cars might attract some attention. Or, do car deaths continue to be the costs we pay for having lifestyles built around driving?