Tag Archives: cities

A college degree leads to more geographic mobility

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Americans with a college degree are more likely to leave where they grew up and end up in metropolitan regions:

Today, people with a college degree are more likely than they used to be to move to metropolitan regions with good jobs and other people like them, and this means both that those regions do better over time and that the return on that education is even greater. Almost half of college graduates move out of their birth states by age 30, according to Moretti. Only 27 percent of high school graduates do. As booming cities draw in new college-educated workers, employers seeking these workers follow, and cities continue to gain strength like magnets. This improves the prospects of everyone in the region, including those without college degrees. The working-class strongholds that once prospered without college-educated workers, on the other hand, are doing worse and worse, as computers and robots replace the workers whose jobs haven’t been sent overseas, and, as a result, an oversupply of labor brings down wages for everyone still there.

It’s not just that a college degree leads to higher earnings or more opportunities; it is also that people with college degrees tend to cluster in certain locations. Even in a world where technology could theoretically allow workers to be far away from their workplaces, the clustering in desirable cities of employers, cultural scenes, and places to live with a high quality of life is linked to education levels.

Another side effect of this clustering is that cities tend to have diverse and vibrant economies while smaller communities simply can’t access multiple options. Thus, even if a smaller community has a single thriving industry, this may not work well:

Focusing on one type of industry could be a successful strategy; Warsaw, Indiana, a relatively small town in the northern part of the state, is the orthopedic capital of America, with dozens of orthopedic device companies small and large located there and a bustling economy as a result. Elkhart, Indiana is the epicenter of the recreational vehicle industry, and manufacturers and suppliers are located there, creating good jobs when the economy is doing well. Cities and towns may be able to convince a cluster of a certain type of companies to locate there, and reverse their decline. “Every place has to look at its comparative advantage, and find a niche,” Ross DeVol, the chief research officer at the Milken Institute, told me.

Having lived near Elkhart during the financial crisis, such a strategy can look good in boom times but be disastrous in down times.

Looking toward the future, are there any particular industries or sectors that would be willing to spread out geographically in order to build stronger American communities? This might limit their profits or make it difficult to attract certain employees but could it be worthwhile to invest in smaller communities in the long run (either for the communities or also for a competitive advantage)? Even sectors like health care are finding it difficult to maintain facilities in small towns because of the advantages that consolidation and economies of scale offer.

Are we already to the point where people live in rural areas because (1) they are “stuck” there or (2) because they are already well-off and have the resources or option to live there?

The flow of young adults to cities has slowed, leading to the idea of “peak millennial”

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Have we reached “peak millennial” for America’s cities?

Dowell Myers, a professor of demography and urban planning at the University of Southern California, recently published a paper that noted American cities reached “peak millennial” in 2015. Over the next few years, he predicts, the growth in demand for urban living is likely to stall…

The debate is full of contours and caveats, but it really boils down to this: Are large numbers of millennials really so enamored with city living that they will age and raise families inside the urban core, or will many of them, like earlier generations, eventually head to the suburbs in search of bigger homes and better school districts?

Their choices — and it will be at least a few years before a definitive direction is clear — will have an impact on city budgets and gentrification fights. It could change the streetscape itself as businesses shift. It will affect billions of dollars’ worth of new apartments built on the premise that the flood of young people into cities would continue unabated.

It could also have a big impact on the American landscape more generally. For the past half-century, the trend toward suburbanization has continued with no real opposition. Even in the 1990s and 2000s, when urban areas were starting to turn around, subdivisions continued to expand. Have millennials ended that trend?…

Stay tuned. A few quick thoughts:

  1. One underlying issue here is the idea that cities need to keep growing in population in order to be vibrant or relevant. Can all American cities grow at significant rates? Should they?
  2. As noted in this article, the pull of suburbs is still strong. Any reversal from suburbs to cities is likely to happen over decades, not within a short span or a single generation.
  3. If cities are affected by a small generation after millennials as well as a declining rate of millennials staying in cities, who will they try to attract next? The article also notes that immigration levels have stabilized. Will there be a new plan from mayors and other urban leaders to bring in more residents?

Claim: popular 90’s TV shows prompted people to move to cities

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This is not the first time I’ve seen this argument: Friends wasn’t just entertainment…it helped make cities cool again.

I tested out my hypothesis—that “Friends” triggered the proliferation of boutique coffee shops across the nation—on Facebook a few days ago, and found some agreement. My good friend Kenyon Farrow, an award-winning writer and advocate for HIV/AIDS awareness, who’s based in D.C., was with me on this, writing, “I think ‘Friends’ (and ‘Seinfeld’) are totally responsible for marketing cities to young white suburbanites, [which] helped fuel the market-demand side for gentrification to take place in the ‘90s and 2000’s.

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That was about the extent of agreement on my “Friends” theory, though—my barista cred all damned to hell now. But others in the debate made the gentrification connection Farrow offered. Wrote Ben Adler, who I worked with at Grist: “Americans have increasingly become alienated by the social isolation of suburban, car-dependent life. That’s fueled both the urban gentrification that brings the cafes, and the cafes themselves.”

For others on our Facebook thread, the secret of the coffeehouse’s mainstream appeal was pure and simple: It’s just “a good idea,” wrote my buddy Justice Rajee, a family advocate at the Portland Opportunities Industrialization Center. “Having someplace to sit have a beverage and do what you need when you can’t go home is good.”

This is the reverse of the argument I’ve been thinking about in recent years: the proliferation of popular TV shows depicting happy suburban life in the 1950s and 1960s helped push Americans to the suburbs. At face value, this might seem to make sense as Americans are influenced by what they watch on TV (and they watch a lot of it). However, I have some data that suggests the connection is not as clear. (There is an upcoming paper coming out of this; more on the particular topic when it sees the light of day.)

Generally, we don’t know as much as you might think about how much television influences people’s behaviors. The argument for Friends or Seinfeld and cities suggests people viewed the shows and wanted to emulate that lifestyle. Is the link that direct? If we asked people why they moved to the city, would they cite a television show or would they be more likely to mention things like jobs, cultural opportunities and the lifestyle, or housing options? The influence of television may indeed be subtle which begs the question of how we might uncover as social scientists the empirical link between viewing and deciding where to live. If seeing things on TV mattered, wouldn’t others be turned off by city life with so many crime and police procedural shows?

Four steps for city dwellers to improve winter

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The Danish concept of hygge may have the four part secret for surviving winters in dense settings:

Hygge principle: Warmth. Unlike some American cities, where snow seems like a shocker year after year, Scandinavian cities acknowledge and build for their cold climate, with higher energy standards for walls and doors, vestibules that prevent drafts, coat racks for winter gear, and public plazas that block wind and capitalize on southern sun. Then there’s the ritual of the sauna…

Hygge principle: Light and color. With far fewer hours of sunlight, wintertime contentment relies on literal or metaphorical brightness—hence the typical Danish scenes of candle-bedecked dinner tables and windows laced with twinkle lights, or Copenhagen’s streets with their famous Crayola-colored buildings…

Hygge principle: Access to nature. While hygge’s overarching style seems to be an indoorsy, “cocoa by the fire” feel, Pia Edberg, author of The Cozy Life: Rediscover the Joy of the Simple Things Through the Danish Concept of Hygge, points out that experiencing nature is elemental to hygge. “As the old saying goes: ‘There’s no such thing as bad weather, only bad clothes.’”…

Hygge principle: Gathering places. Perhaps the most important antidote to winter’s isolation is hygge’s emphasis on communal gathering and social connection. In Copenhagen, privately owned third places—restaurants, bars, cafes, bookstores—are as central to the wintery social life as public squares are in the summertime.

The American way of rugged individualism may lead to many long cold winter nights…

Really, though, these adaptations to climate are interesting to consider. Every so often, you will find people making arguments that places like the Sunbelt in the United States are attractive because of their warmer weather. But, how much is this a factor versus other possible factors? Or, how is it that many countries along the equator and in tropical zones are outside of the first world? Would New York be the leading global city in the world if it had a climate like Miami or Cairo? In this case of Denmark, is it more about a different kind of society – the Scandinavian way of life that seems to make it to the top of a number of rankings for best places to live – rather than an approach to winter?

At the same time, it wouldn’t hurt to have more fun during the winter months. The weather and lack of sun from Thanksgiving to New Year’s doesn’t seem to prompt the same kind of despondency prompted by January and February.

The middle class finding it difficult to find city housing – what to do?

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Some urban neighborhoods are hot but this can lead to housing prices that limit how many middle class residents can move in:

The casualties in this war are mostly the middle class. In 2016, rents continued their years-long rise, incomes stratified further, and the average price to buy a home in major US cities rose. The strain pushed the middle class out of cities like Boston, San Francisco, Los Angeles, New York, Austin—the so-called “hot cities.” Some families move to the suburbs. Others flee for less expensive cities. But across the US, the trend holds: cities are increasingly home to high-rollers who can pay the high rents or down payments and lower income people who qualify for subsidized housing.

Macroeconomists say this a good problem to have. These cities are growing. People want to live in them. Stagnating economies in the Rust Belt might envy this kind of trouble. From the perspective of the overall wealth of cities, the middle class being pushed out doesn’t matter. But it matters on the human level, the neighborhood level. In Fort Hill, it means that a teacher at the local elementary school cannot afford to live in the neighborhood where she works. The effects on inequality, mobility, and the demographic composition of cities are very real, their causes multifold, and the solutions difficult…

“It’s very hard to get people to understand that the affordable housing crisis is not for the very poor,” says lawyer Mechele Dickerson of the University of Texas, an expert in housing and the middle class. It’s for people with good jobs who are not poor enough to qualify for subsidized housing, nor rich enough to pay the rising housing prices. “A family that makes $100,000 can’t afford to buy a house in most US cities,” Dickerson says…

The incoming administration has given experts no reason to expect it will prioritize fixing the affordability crises for the middle class. “In terms of the federal government, I see no hope,” Dickerson says. But as with immigration reform and climate change, housing affordability is something that states and cities can tackle on their own. In 2017, this trend toward decentralized power will continue—that is, if cities make retaining middle class residents a priority. That means relaxing the zoning laws to permit more housing stock to enter the market. This is the single most helpful thing the city of San Francisco could do, for example, to counter the tech money forcing prices on the limited housing stock up, says Shulman.

Four quick thoughts:

  1. This article seems to suggest that the government should do something to help middle class residents live in cities and the Trump administration may not help much. So, we do still in America subscribe to the idea that the federal government should subsidize middle class housing (whether in suburbs or cities)?
  2. I’m a little skeptical that the real problem is middle class housing rather than housing for poorer residents. Either this is a very broad definition of the middle class – which is entirely possible since most Americans consider themselves to be middle class – or cities really don’t care about poor and working class residents. I know cities want to keep middle-class residents but about people with less education and job prospects with less pay?
  3. This is an area that could really use some innovation. Big government doesn’t seem to have all the answers (what is the long-term effect of HUD?) nor does the free market (which tends to lead to residential segregation by race/ethnicity and class). What could really work well here is for a number of cities to try new ideas and see what might work.
  4. As the article notes, one of the biggest barriers is existing residents who don’t want to be near “affordable housing.” I’m not sure how you can get around this though there have been some indications that well-designed affordable housing limits some of the stigma. How do you get Americans (urban or suburban) to get past the mentality of pulling up the drawbridge after they move into their desirable neighborhood?

Cities using ride-sharing services to supplement mass transit

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Several pilot programs in American cities take advantage of the rise of ride-sharing companies:

Transit agencies, perennially strapped for cash, have embraced these pilot programs as a way to save money and, potentially, provide better service. Outside Tampa, for example, the East Lake Connector bus cost the Pinellas Suncoast Transit Authority about $16 per person per ride. Riders paid $2.25 each. That route has since been discontinued. In its place, starting this month, riders will pay $1 for an Uber, Lyft, or cab ride from anywhere in the county to the nearest bus stop. The transit agency will achieve the low fare by providing a $5-a-head discount.

And here is some criticism for such efforts:

There are serious concerns with such programs: For starters, the savings are in part derived from trading public-sector employees like bus operators for low-wage stringers like Uber drivers. For the most part, though, the partnerships have made bad service a little better. In Pinellas, for example, the program emerged in response to a 2014 referendum in which local voters declined to adopt a 1 cent sales tax in support of transit.

But now that chain of cause and effect is being reversed. The rise of ride-hailing companies is increasingly viewed not as a fix for bad service but as its justification. It is invoked, as you might expect, in bad faith by conservatives who have advocated against public investment for decades. But even pro-transit politicians and officials have begun to see ride-hailing services as an acceptable substitute for public transit. As a result, cities across the country are making important decisions about transportation that treat 10-year-old companies as fixed variables for the decades to come…

We’ve known for a while that Uber is unprecedentedly unprofitable, its $60 billion-plus valuation notwithstanding. But as we begin to make policy decisions based on it and its competitors’ impact, we have to recognize that this state of affairs can’t last. It is not just the taxi cartel that makes conventional cab rides cost more than Uber rides. It’s the patience and optimism of Silicon Valley investors. Maybe Uber will continue its shift into shared rides, which (as a prior generation of transportation operators learned 150 years ago) are more profitable. Or robot cars will eliminate driver jobs, dropping the marginal cost of providing rides (though adding billions in capital expenditures). But in any case, whether it achieves its desired market share or not, the company will have to start raising prices.

This criticism makes sense: mass transit is all about economies of scale and having large numbers of people following more fixed routes. Failing to build infrastructure now means there will be reduced mass transit options in the future.

But, I think there may be a larger issue that undercuts this criticism: what if large numbers of Americans don’t want to use mass transit, either when given other opportunities or they have enough resources on their own to get where they want or they don’t want to pay for it through taxes and municipal funds? Even with plateauing driving in recent years, this doesn’t necessarily mean Americans want to sacrifice their mobility or personal space to use mass transit more. If this is true, perhaps driverless cars are the true answer for individualized mass transit – not ride-sharing – as they would offer personal space and mobility but without the hassle of driving oneself. Of course, this could also destroy mass transit as we currently know it…

When urban non-profits represent residents better than local government

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A sociologist suggests the role of non-profit organizations has changed in urban areas:

To Levine, the incident illustrates something he’s been tracking over four years of monitoring the interactions between neighborhood nonprofits, city leaders, and private organizations in Boston. Based on his observations, he argues in the journal American Sociological Review, the role of nonprofits in disadvantaged city neighborhood has been changing. They’re no longer just extensions of the state or representatives of a few interest groups. They’re “legitimate representatives of poor urban neighborhoods,” and in many cases, “supersede” elected officials…

What’s happening now is that these organizations are directly negotiating for resources from public and private sector entities that hold the proverbial purse strings. Community organizations are now authoritative voices at the table, and often regarded by both private companies and bureaucrats as more invested and deeply knowledgable representatives of the neighborhoods. In Boston, “district-based elected officials, by contrast, attended ribbon cuttings and groundbreakings but were largely absent from substantive discussions of redevelopment planning,” Levine writes.

The phenomenon is particular to low-income communities for a reason: These communities have very specific needs for services. But also, these are the places where voices of residents can be easily unheard by politicians. Think about neighborhoods in Detroit left to fend for themselves for basic needs in the city’s worst days. It’s community organizations that are transforming them into livable spaces. In Flint, where residents’ concerns about poisonous water were essentially ignored for the longest time, it’s nonprofits that are stepping in to address the damage done. “There’s a political vacancy in these poor neighborhoods that these organizations can fill.”…

Obviously, this phenomenon has a lot of positives. For one, it’s a “victory for the motivation of the war on poverty,” Levine says. Empowered community organizations present a stronger front against displacement, environmental racism, and transit inequity. They can be more consistent than elected officials, because they don’t suffer from political turnover. But the good stuff only happens if these organizations know what the entire neighborhood actually needs. Sometimes they don’t. And in those cases, it’s not possible to vote them out or hold them accountable. If a nonprofit dissolves, it’s hard to pick up the pieces quickly, because the infrastructure for a new organization has to be rebuilt from scratch.

I’ve recently heard or read several critiques of national and local urban policy in the United States that suggest much of what has been tried has been ineffective. At the same time, this doesn’t necessarily mean that government needs to be completely eliminated from the equation. At times, only a larger government body can access certain resources or leverage certain opportunities. But, this new analysis suggests perhaps the best conduit between government (with the resources) and the people is a non-profit. Perhaps government can’t do everything, particularly in responding to local needs when politicians need to answer both to local voters as well as politicians and leaders above them.

Of course, we want to know whether the role of non-profits leads to better outcomes. National and local governments have been fighting a war on poverty and/or trying to address the issues present in poor urban decades for roughly half a century now.

Miami in front of the Supreme Court arguing for damages due to subprime loans

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The Supreme Court just heard a case presented by the city of Miami that they should receive monies from banks because of the subprime loan crisis:

The story begins, Rugh said, in the late 1990s, when banks began marketing high-risk, high-fee home loans to black and Latino borrowers, especially those living in segregated neighborhoods. In a study published in 2015, Rugh and his co-authors examined 3,027 home loans in Baltimore (one of the few cities that has successfully settled a Fair Housing Act lawsuit against a bank) made between 2000 and 2008.When they controlled for basic loan characteristics such as credit score, down payment, and income, they found that black borrowers were channeled into higher-risk, higher-fee loans than were white borrowers with similar credit histories. These findings were compounded for black borrowers living in predominantly black neighborhoods: The study found that relative to comparable white borrowers, the average black borrower in Baltimore paid an estimated $1,739 in excess mortgage payments from the time the loan was made, a figure that was even higher for black borrowers in black neighborhoods…

In an amicus brief filed in support of Miami, a group of housing scholars argued that there is a direct link between the harm to borrowers documented by people such as Rugh and financial losses incurred by cities. Citing more than a decade of economic and sociological research from a variety of sources, Justin Steil, a professor of law and urban planning at MIT and one of the authors of the brief, explained, “the data is well established that foreclosures do lead to decreases in neighboring property values, which then lead to decreases in city revenues. Foreclosures,” he added, “also lead to more expenditures by the city in re-securing those properties, dealing with the vandalism, squatting, fires. And if the neighborhoods don’t recover, it just remains an ongoing problem for those communities to deal with.”

Supporters of the banks in this case say that if anything, leaders of cities like Miami encouraged the influx of credit into their municipalities. “I really think Miami wants to have this both ways,” said Mark Calabria, director of financial regulation studies at the Cato Institute. “If the banks weren’t doing business in Miami, they’d have a problem with that. It’s hard for me to believe that Miami would have been better off if Bank of America and Wells Fargo hadn’t been there.”

There are a lot of interesting aspects of this case, including the question of whether cities were harmed by loans made to individuals. But, there is little question in the sociological and additional social sciences literature: minority borrowers were steered toward loans with worse terms. (And other research suggests these worse terms for minorities extends to other areas including car loans and rental housing.)

Let’s say the court case goes in Miami’s favor and they receive some money. Two questions: (1) what do they do with this money? (2) What responsibility does the city have for not combating these loans in the first place and what are they responsible forward regarding disadvantaged neighborhoods? I hope one of the outcomes of this effort is not that cities can punt on their own policies and solely blame banks.

The “night mayor” looks to improve the urban overnight experience

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The head of an advisory NGO in Amsterdam is looking to make the overnight experience better both for city residents and night owls:

“I think that to really build a 24/7 economic system in Amsterdam, we should focus on creating one 24-hour area in the city,” Milan tells CityLab. “You could have working spaces there, and a library open 24 hours a day for students. It would also be a place for food. In Holland you can’t have a proper meal after 9.30 p.m., and when friends arrive late from out of town, all you can really offer them is fries.”

The idea might sound ambitious, but then forward-thinking about Amsterdam after dark is actually Milan’s job: he’s the Dutch capital’s “night mayor.” This innovative office, unique to Amsterdam when created in 2014 (as the development of a project itself begun in 2003), has helped to clear up a blind spot that many cities face. Too often, public officials view their city’s nighttime existence with suspicion—as a sinister doppelgänger of its daytime form but with added sex and crime, sleep-spoiling noise, and sidewalks slicked with vomit. Even liberal politicians can have little experience with this twilight zone, given that they’re often tucked up in bed by 10 p.m.

It’s the role of the night mayor to bridge this gap. The incumbent’s job is to manage and improve relations between night businesses, residents, and City Hall. Milan and his team have proved so successful in Amsterdam that the concept has taken off internationally. Paris, Toulouse, and Zurich now all have night mayors, while London and Berlin are considering creating their own. Within the Netherlands two other cities, Groningen and Nijmegen, also have their own professional nocturnal managers, part of a total of 15 Dutch municipalities that have some form of night mayor role…

“In the nighttime economy, there’s a lot of talent,” he says. “Think of all the graphic designers, party promoters, DJs—all these people that use the night as a serious playground to develop their skills and in the end, have their daytime job. Definitely the creative industries are really important for Europe and especially for cities like Amsterdam or Berlin, but actually for everywhere in the world.”

The big city is supposed to be the place where you can find all sorts of activities at all times of day. One of the biggest surprises for visitors to the city is the amount of activity in some places all night long. Imagine Times Square or The Strip with all the lights and people. (I’ve been to both late and it is remarkable just how many people are wandering around.) But, those places are not necessarily where a lot of people live and they are filled with tourists. What is the average urban night owl supposed to do, particularly if they are a resident and not a tourist?

It would be interesting to see every major city develop a night district. Presumably, such a district would need good public transit, a variety of uses to serve different interests (from restaurants to arts spaces to music venues to gyms to coffee shops), temperate weather (I assume this would be very helpful), and probably should be composed of smaller buildings in more of a neighborhood feel rather than within a set of tall, modern structures. Would enough people flock to such a place if it was located far from primary residential areas?

GE moved to Boston to be near big ideas, disruption, competition

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Big companies moving back to big cities is a trendy thing and here the CEO of General Electric describes their recent move back to Boston:

Immelt: You know, we wanted to get to a city. At the end of the day, I think for the company we wanted to get into a place where there was more of an every day where you could get up and be part of an academic setting. So I think it was important to get to a city...

I have to say it’s real. I thought it was a little bit of B.S. initially, I wasn’t sure. And when I looked out the window—when I was in Connecticut, it was beautiful, awesome, great office—but when I looked out my window, I saw nothing, there was nothing going on. I could watch cars go on the highway, things like that.

I’ve been Boston now six weeks and you just walk out the door. You’re in the middle of an ecosystem that quite honestly for a big company, it makes you afraid. You’re where the ideas are. You get more paranoid when you’re doing that and that’s a good thing. So I thought it was—

Isaacson: Only the paranoid survive!?

Immelt: No, no. It’s a good thing. When you’re a big company, it can get hidden but it’s important that you’re in touch with what the next idea is or what the next disruption is. And so I’m kind of a big believer that that’s the wave of the future.

The summary suggests this echoes Richard Florida’s approach to cities. Yet, when people talk about Florida, they often refer to his ideas about employees and the workforce: a talented, diverse, and tolerant workforce that is attracted to thriving cultural and entertainment scenes. Immelt is suggesting something else is also important: competition between ideas. In the suburbs, it is easy to become comfortable and become insulated from cutting edge thinking (and technologies?).

It seems like it wouldn’t be too hard to test this idea: cities produce more innovation and competition than suburban areas. Off the top of my head, it seems like Bell Labs did okay for decades in largely suburban office and R&D facilities. Are the various companies in Silicon Valley hampered by being in more suburban settings (or to put it another way, could they have been even more successful)? Is being in the metropolitan area enough to help spur innovation or does a physical location in an urban core (even opposed to being within city limits but not near thriving areas) near other firms and employees doing these things matter?