If millennials prefer suburbs, what could lead to suburban decline?

Joel Kotkin argues that millennials would rather live in suburbs than big cities:

It has been often asserted that millennials (defined as the generation born between 1982 and 2002) do not want to buy homes or live in suburbia; Fast Company, saw this as “an evolution of consciousness.” The Guardian declares that millennials are refusing to accept “the economic status quo” while Wall Street looked forward to profiting from the idea that millennials will be satisfied to live within a “rentership society” (PDF)…

Meanwhile, the much mocked suburbs have continued to dominate population trends, including among millennials. As people age, they tend, economist Jed Kolko notes, to move out of core cities to suburban locations. Although younger millennials have tended toward core cities more than previous generations had, the website FiveThirtyEight notes that as they age they actually move to suburban locations at a still higher clip than those their age have in the past. We have already passed, in the words of USC demographer Dowell Myers, “peak millennial,” and are seeing the birth of a new suburban wave (PDF).

To some extent, the meme about millennials and cities never quite fit reality outside of that observed by journalists in media centers like New York, D.C., and San Francisco. More than 80 percent of 25- to 34-year-olds in major metropolitan areas already live in suburbs and exurbs, according to the latest data—a share that is little changed from 2010 or 2000.

Suburban tastes remain predominant with 4 in 5 people under 45 preferring the single-family detached houses most often in suburban locales (PDF). Surveys such as those from the Conference Board and Neilson consistently find that most millennials see suburbs as the ideal place to live in the long run (PDF). According to a recent National Homebuilders Association report, more than 2 in 3 millennials, including most of those living in cities, would prefer a house in the suburbs.

If these trends continue, the suburbs will live on for quite a while in the United States.

This raises a question that I occasionally think about: what exactly would it take for millennials and other Americans to give up on suburbs? A few possibilities:

  1. Significantly higher gas prices. Apparently, getting up to $3-4 a gallon was not enough.
  2. Ecological disasters in the suburbs. Since there isn’t likely something that would affect all suburban areas at once (and not urban or rural areas), perhaps this would involve incidents in a number of major metropolitan areas.
  3. Another burst housing bubble. If housing it not more attractive in suburbs, this might change a lot of minds.
  4. All major employers move to big cities. I’m not sure why they would all do this is a significant number of workers are still in the suburbs but perhaps many employers needing educated workers would moving to cities, leaving suburban residents with low-wage, low-skill jobs.

Even with one of these scenarios, it would take significant time to see the suburbs on the whole decline and wealthier pockets would hold on for quite a while. Overturning the association between the American Dream and suburban life will be hard to reverse.

Argument: suburbs are about difference, not sameness

At the end of the volume Making Suburbia: New Histories of Everyday America, a professor of architecture Margaret Crawford argues we need to see American suburbs in a different way:

Charting the complexity, contradictions, and even paradoxes contained within suburbs, these accounts suggest that difference may actually be the defining characteristic of suburbia, rather than the sameness consistently attributed to it. In fact, currently, in an inversion of conventional wisdom, cities are becoming more homogeneous while suburbs grow more diverse. In widely varying circumstances, suburban people of different races, classes, religions, genders, and sexual orientations, acting according to a broad range of politics and values, live highly divergent lives. (382)

I like this argument that scholars should approach suburbs from a different angle. Yet, two issues come to mind:

  1. Crawford goes on to suggest researchers need to collect more stories, oral histories, and ethnographies. We need more granular detail about suburban life. This would indeed likely show more difference across suburbs. And it would also help give voice to more varied experiences across suburban settings. But, I wonder how much this would help us better understand suburbs as a whole. We need in-depth data on the suburbs but we also need to be able to piece these details together to understand patterns.
  2. She ends the chapter suggesting more of this kind of work would help studies of suburbia “move out of the shadow of the city.” (387) This is an open question: can we understand the suburbs separate from the big city? Does the study of suburbs always have to include comparisons to cities? It does not have to but it often does. Is this more due to the fundamental importance of large cities for today’s world or is it tied to how researchers often prefer the city and/or see the suburbs as a sub form of urbanism? I suspect these two reasons are hard to separate and even though a majority of Americans live in suburbs – and roughly 20% more live in suburbs than cities – urban fields will continue to strongly focus on cities.

What the losers for Amazon HQ#2 might gain

Amazon may be leading the way to more highly public location searches and there is one way this could help the communities who lose out:

All may not be lost for the 237 also-rans, though. They’ll have thick books filled with available sites, potential incentives and glossy pages touting their best attributes, and they’ve learned lessons for their next big pitch.

“A positive outcome of this could be the self-reflection of communities throughout the country,” Sessa said. “They’ve had to be very honest about where their strengths are and where their weaknesses are. Only one is going to be selected, and the other 237 will have assembled a lot of good information. If the weaknesses are addressed, the beneficiaries will be the companies who reside there now and the companies looking to move there in the future.”

This is a positive takeaway from what promises to be a disappointing outcome for numerous major cities: they will be better positioned to make the next pitch. But, I can imagine multiple ways this self-reflection and self-improvement will not work in the long run:

  1. There are not many future large-scale searches like this for cities to participate in. Amazon is a special case both because of its size as well as its desire to add jobs (rather than relocate existing facilities and employees).
  2. It is unlikely there are enough major companies for every major city to win something in the coming years. Additionally, major companies tend to want to locate near other major companies and in hot areas.
  3. The tax breaks and incentives required to attract these companies may not be worth it, particularly in an era when many communities are struggling to generate revenues.

In my mind, honest self-reflection in many communities would involve the realization that fighting for the biggest companies is not in their best interest.

More details on Google’s urban plans for Toronto development

Google’s plans for a Toronto neighborhood have been in the works for a while and here are more details:

A self-contained thermal grid would recirculate energy from non–fossil-fuel sources to heat and cool buildings, while a food-disposal system would keep food waste out of landfills. For cars and trucks, Quayside would be less hospitable than other areas in the city: Part of the neighborhood would prohibit non-emergency vehicles entirely, while bike-share stations, transit stops, and cycling and walking paths—kept useable through the Canadian winter with sidewalk snow melters and automated awnings—would offer “efficient alternatives to driving, all at lower cost than owning a car.” An autonomous transit shuttle would rove some streets. (Waymo, a leading developer of self-driving-vehicle software, is also an Alphabet subsidiary.)

Buildings would be largely prefabricated using eco-friendly materials, to cut back on waste. With a “strong shell and minimalistic interior,” they could be adapted to multiple uses, morphing from residential to retail to industrial, and back again. To support such a futuristic vision, Quayside would test a novel “outcome-based” zoning code focused on limiting things like pollution and noise rather than specific land uses. If it doesn’t bother the neighbors, one might operate a whiskey distillery in the middle of an apartment complex…

Yet what has drawn the most concern and curiosity with regards to Quayside is a uniquely 21st-century feature: a data-harvesting, wifi-beaming “digital layer” that would underpin each proposed facet of Quayside life. According to Sidewalk Labs, this would provide “a single unified source of information about what is going on” to an astonishing level of detail, as well as a centralized platform for efficiently managing it all…

It’s the kind of all-seeing urban omniscience that would stir the heart of any utopia builder. But to whom, and how, would this data be made available? And what would such an arrangement mean for any Quaysider who doesn’t wish to be monitored? In Toronto and beyond, the depth and details of the data collection have sparked public debate. At the first public forum on the project, and in a list of questions related to the project compiled by the journalist Bianca Wylie at Torontoist, privacy questions and fears have come up again and again.

This is a good mini test case for tech companies entering the urban development realm. The questions raised by residents and local officials should not be surprising: does such a company have the best interests of the community and residents at heart or is this primarily a profit-making enterprise based on intense data collection?It is interesting to consider how this might go in an American city. The proposed project is in Toronto, a prosperous Canadian city that is now larger than Chicago. How would such plans for Google be received in San Francisco or Austin, cities known as tech hubs? Or, in contrast, might there be more open arms in a city that needs development help, such as Cleveland or Detroit? I suspect the move to develop property in Toronto was very intentional yet the outcome could be quite different if positioned in a different North American city.

 

A call to address inequality in cities but are they doing much?

Among the urban trends of 2017, Curbed notes Richard Florida’s admission that promoting the creative class could exacerbate inequalities in cities:

It takes a lot of reflection to contradict an idea that for many, is the centerpiece of your reputation as an author and analyst. In his new book The New Urban CrisisRichard Florida admitted his previous championing of the new creative class—and the idea that tech and design businesses would reinvigorate cities—didn’t anticipate how this rapidly reshaping economy would create urban inequality. A key phrase from the book, “winner-take-all-urbanism” essentially describes the Hunger Games-esque contest over Amazon’s HQ2 and exemplifies the stakes for cities in today’s fast-moving economy. It’s not just a takeaway, but a call-to-arms for local leaders looking to combat the growing divide between the wealthy and poverty.

It may be a “call-to-arms” but it is interesting that this is not followed up with descriptions of actual cities successfully combating inequality. Cities, on the whole, tend to privilege development projects from those with money who want to make more money. (This is not limited just to city leaders; media outlets often act as boosters and business leaders certainly trumpet more opportunities to make money.) In contrast, projects or problems that need addressing that would help more average residents – affordable housing would be a great example – do not get as much attention.

Perhaps I am just overly pessimistic on this so I would love to hear of a major American city that is clearly addressing inequality rather than promoting growth machines.

China defines “big city disease”

In announcing plans for Shanghai, China also defined “big city disease”:

China’s financial hub of Shanghai will limit its population to 25 million people by 2035 as part of a quest to manage “big city disease”, the cabinet has said…

State media has defined “big city disease” as arising when a megacity becomes plagued with environmental pollution, traffic congestion and a shortage of public services, including education and medical care.

Many of China’s biggest cities also face surging house prices, stirring fears of a property bubble.

This leads to two thoughts:

  1. If China, a country devoted to urbanization, thinks this is the population limit for big cities, does this mean other industrialized countries will follow suit?
  2. It would be interesting to hear urban experts weigh on regarding how big they think major cities can get. Twenty-five million people is quite a few but can some of the issues Chinese officials raise be ameliorated by good planning or technological advances?

Perhaps one of the key features of major global cities of the future will be a limited population size in order to have a certain quality of life. In contrast, major cities that are not as important may grow to unheard of sizes with all sorts of symptoms of “big city disease.”

More evidence of “peak millennial” reached in major American cities

Time suggests 2016 Census data shows a number of American cities have plateaued in terms of millennial residents:

After years of growth, the population of millennials in Boston and Los Angeles has fallen since 2015, with more young people leaving the cities than arriving last year, according to the latest Census data. And millennial growth has slowed in large hubs like Chicago, New York and Washington, D.C.

Dowell Myers, professor of demography at the University of Southern California, first suggested in 2015 that cities would begin to see declines in millennials. With the largest birth group turning 27 this year, Myers says it’s only a matter of time before millennials head to the suburbs for more space.

To see which cities have reached “peak millennial” — a term Myers coined —we analyzed a decade of Census data through 2016. We found that while tech hubs like San Francisco and Seattle are still drawing young people, large East Coast cities, like New York and D.C., are fast approaching peak millennial, with plateauing populations of those born between 1980 and 1996. And then there are cities like Boston, which already appear to have reached their peak. Boston lost roughly 7,000 millennials in 2016, after a record high of 259,000 the previous year…

But they won’t live with roommates forever, Myers says. Eventually, he expects millennials to follow the generations before them and move to the suburbs. “They’re waiting for the recovery to happen,” he says “for new housing and job opportunities open up — so they can move out.”

If this continues, cities will have to think about how to continue to grow their populations. And cities generally do not want any residents; they desire professionals and high-income earners who can contribute to their tax base. But, to some degree they are fighting against demographics as household sizes have shrunk in the United States and birth rates have been steady or declined slightly since 1990. Perhaps their best bet these days is to attract highly-skilled immigrants but this may be an uphill battle as well considering national conversations about immigration, competition between cities, and the significant number of immigrants to the United States that move directly to the suburbs.

Read earlier posts on this topic here and here.

Cities ready to offer tax monies for new soccer stadiums

Cities continue to see sports stadiums as good uses for tax dollars. This time, it involves soccer stadiums:

Officials from Cincinnati, Detroit, Nashville, and Sacramento appeared in New York on Wednesday to place their bids with Major League Soccer for an expansion team. Slots for two teams are now up for grabs in the league’s plans to expand, so cities are lining up to lob promises of tax incentives for stadium construction at the MLS. Picture the mayors of each of these cities lined up for a free kick on goal.

Cincinnati, for example, has secured $200 million in private funds to build a stadium for FC Cincinnati, and the city has pledged up to $75 million in public money to pay for the infrastructure associated with a stadium. Nashville promises $25 million in tax dollars toward build-out costs for a $275 million Nashville Soccer Club stadium, which would be paid for through a public-private financing deal. Representatives for Sacramento Republic FC argued for a plan that would cost the city $46 million to realize a privately financed $226 million stadium.

Meanwhile, the Detroit Express would play on Ford Field, the home of the National Football League’s Detroit Lions, meaning that the proposed soccer team’s owners—who also own the Lions, the Detroit Pistons, and the Cleveland Cavaliers—would merely have to pony up the $150 million franchise fee plus some smaller costs in adjusting the existing stadium.

Perhaps in their favor, the cities and taxpayers would not be investing so much as is required for a top-four sport stadium.

At the same time, this approach is likely a bad idea. The research is pretty clear: the winners of taxpayer funded stadiums are the team owners who tend to already be wealthy people. Cities desperately want to boost their status and look trendy and acquiring a new sports team, particularly one in a sport that is thriving and looks like it is on the rise (just see the number of new teams in MLS in recent years). But, research shows that if do not build these stadiums and acquire teams, residents and visitors will just spend their money elsewhere.

Another interesting piece of the MLS expansion is that it is involving some medium-size big cities. Think Sacramento: they have a NBA franchise and nothing else. Orlando had a NBA franchise, nothing else. Cincinnati has the NFL and MLB. Austin has no major team. MLS expansion offers some new places a chance to get in the sports game and signal that they are major players.

Wealthy San Francisco residents may have their private street back but this may not bode well for the city

Remember that private street with wealthy residents in San Francisco that fell behind on its taxes and was sold at auction to some other California residents? The street is now back in the hands of the well-off residents:

For now, Presidio Terrace belongs to its residents again. Their victory isn’t cause for celebration, either. The city’s first-ever tax sale reversal smacks of preferential treatment. It’s hard to imagine elected leaders going to bat for, say, each homeless individual who has had property seized by the city. Farrell, the city council member quoted above, is also the author of Prop. Q, a controversial measure approved by San Francisco voters in 2016 that allows the city to clear homeless camps given 24 hours notice.

But the saga of Presidio Terrace may not be over yet. Although the city promised they’ll get their $90,000 purchase price back, Cheng and Lam have said they plan to sue. For progressive politics, San Francisco was once a city upon a hill. Now it’s rich people squabbling over one.

While New York City rightfully gets a lot of attention for its mix of world-leading buildings, residents, activities, and expensive housing, San Francisco may be a more fascinating case. A limited amount of land (both due to local policies and different topography) plus rapidly increasing wealth in recent decades (with the tech industry leading the way) plus consistently liberal politics yet sharp divides between the rich and poor makes for big housing problems. Kind of like how President Trump regularly uses Chicago as a case of how crime is not being addressed, San Francisco has become a common conservative rallying cry for how not to address housing and growth.

At the same time, many of the housing issues facing San Francisco also are issues for many other American cities: how to construct more affordable housing when few want to live near it? How to encourage jobs for many residents that provide good standards of living (which then gives people access to more housing)? How to encourage economic growth and development across the city rather than within particular trendy or desirable neighborhoods?

Douglass: humans may not be able to adapt to cities but suburbs could work

Church researcher Harlan Paul Douglass concludes his 1925 work The Suburban Trend with his ideas about human nature and cities:

Human nature, all agree, is capable of a certain measure of adaptive elasticity. Village life, which was its typical form of civilization up to the beginning of the era of steam-driven machinery, little more than a century ago, was not, so far as determined, an undue strain upon it. The city does overstrain human nature, and relief must be looked for in the direction of the village. JUst how far back, then, is it necessary to go? Perhaps no further than the suburbs, and to a different balance between the urban and rural elements in civilization. One cannot prove just where the broken ranks of civilization will hold even if it is possible to rally them again. But it is worth trying along this line. (p.311)

Four quick thoughts:

  1. Here in the second decade of the twenty-first century in the United States, it is hard to remember how big of a social change the move to large cities is. It changes everything for social relationships. It is still happening in numerous parts of the world as rural life is disrupted by huge flows of people to large cities. And even in the United States and the Western world, in the limited time of recorded human history, this urbanization happened not long ago.
  2. Given #1, it serves as a reminder of how quickly we have adapted to big city and surrounding suburbs life. This is all relatively new yet we take it for granted.
  3. Douglass hints at the work of others like Simmel who were also concerned about whether humans could survive in big cities. Few urbanists would raise such concerns now; instead, cities are often held up as the solution to numerous social problems. Humans are indeed adaptable.
  4. At the same time, Douglass does presciently hint at the appeal of suburbs for many Americans. It may not be cities themselves that are the problem – many Americans left cities for issues such as race, social class, and immigration – but in the decades after this book was published, the suburbs became the home for a plurality of Americans.