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

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

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

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?

Housing prices drive punk music to the suburbs

Punk music is associated with gritty urban life – until that urban life becomes too expensive:

Shows like that are increasingly common in Santa Rosa, and it has a lot to do with the prohibitive cost-of-living in nearby San Francisco. “I had every intention of moving down to the city,” said Ian O’Connor, 23, who organized the gig. “But when the time came, it was too expensive.” Instead, in the last three years, he has booked dozens of all-ages gigs in Santa Rosa, mostly at unofficial venues: detached garages, living rooms, lobbies of sympathetic businesses. The scene thrives on the participation of people like him, area natives in their early 20s who, not so many years ago, would’ve likely moved an hour south to Oakland or San Francisco…

One hallmark of punk’s inception in the Bay Area and throughout the Pacific north-west was the notion of cities as places of possibility, so hollowed out by eroding tax bases and selective civic neglect that they seemed “deserted and forgotten”, as music journalist Jon Savage wrote of his 1978 trip to report on San Francisco punk bands such as Crime and the Dead Kennedys. “It was there to be remapped.”

But with the same cities stricken by intensifying affordability crises – premiums on space that make somewhere to live, let alone rehearse and perform, available to a dwindling few – they don’t beckon young punks like they used to. And though reports of music scenes’ deaths tend to overstate, news of shuttering venues (see eulogies for The Smell, The Know, and LoBot) deters some of the intrepid transplants needed for invigoration. Dissipating metropolitan allure, however, helps account for the strength of scenes in outlying towns…

According to Samantha Gladu – bassist in the feminist, wrestling-themed hardcore band Macho Boys and chief advisor to state senator Chip Shields – recent revelations about what a state investigation found to be cripplingly over-burdensome nightclub regulations have done little to calm the Portland punk scene’s nerves: “Rising rents and recent reporting on the city government’s apparent selective regulation for venues leave punks with the impression that not only can they not afford Portland, they aren’t part of some officials’ vision for Portland.”

Given that more urban features – including denser housing, more non-white and less wealthy residents, and urban issues – have moved to the suburbs, it isn’t too surprising that artistic ventures could move there as well. Yet, I imagine this is not easy for many artists or others who dislike the suburbs and celebrate cities. Can places that are still criticized for conformity, whiteness, and materialism nourish new artistic ventures? Can suburban communities tolerate people who go against convention or who seek space to spread out and explore? If given the resources, I imagine that most bands would want to be in the big city where there is more energy, similar artists, and venues.

However, this represents an opportunity for suburbs to pursue a more creative vision. Many suburbs hold and promote festivals and fairs committed to the arts, both as a way to generate revenue as well as a way to signal openness and engagement. It is something different to have permanent venues devoted to some ventures; could a middle to upper-class suburb give its blessing to a punk music music site? Or a collaborative of experimental artists? In other words, if cities and/or certain neighborhoods are too expensive, numerous suburbs could join the competition to attract musicians and artists and possibly transform their own communities.

Whether driverless cars will benefit suburbs or cities

Some are wondering what kinds of places will benefit most from driverless cars:

Two op-eds published Thursday make the case one way and the other for the driverless car and the American settlement. In Bloomberg View, the economist Tyler Cowen argues that new technology—not just cars, but also virtual reality and the Internet of Things—has advantages that favor the suburbs. In the Wall Street Journal, Uber CEO Travis Kalanick posits that new technology will create “a more livable and less congested” city.

Cohen’s argument is in some ways convincing. He’s right that driverless cars and on-demand delivery could bring perks to the suburbs—a commute spent reading a book, say, or the quick purchase of that one-percent pint—that have traditionally belonged to urbanites. It’s also true that new technologies, like a smart home heating system, are more readily installed in the modern, spacious suburban home than the older urban apartment. (Ask a New Yorker if she’s ever had a garbage disposal.)…

But Kalanick makes a great point in his piece: autonomous transportation is actually the less important component in creating “a city that lives and breathes more easily.” The more important concept is… sharing. Not the bullshit low-paid menial labor that has long characterized the sharing economy, but actual sharing, where two people get in the same car together.

The most radical future is one where self-driving cars are shared, both on a single trip and between trips. A slightly less radical future is one in which individuals are willing to use a car someone else has just used, but prefer to ride alone.

All interesting points. But, I have two larger concerns with either argument:

  1. What if driverless cars allow both suburbs and cities to thrive? In other words, it would allow some to live outside major cities and others to further enjoy city life.
  2. Point #1 is connected to another: transportation technology alone does not dictate choices about where people live and work. It can certainly open up new possibilities. But, the American suburbs in general are not solely the result of the automobile; suburbs were growing before this, partly due to newer technologies like trains and streetcars but also due to solidifying cultural ideas about cities, suburbs, and social life. I could see driverless cars both giving justifications to those who want to live a car-sharing life in the big city while others will make the choice to buy a cheaper yet bigger home further away and let the car handle the longer commute.

It is difficult to make predictions in this case. As the article notes in the final paragraph, regulations and policies could help tilt the scales one way or another. We have seen this before: a variety of policies in the early to mid 1900s helped make suburban living more affordable and palatable to many Americans. The results included white flight, disinvestment in major cities, the creation of new infrastructure such as interstate highways, and the development of the suburban American Dream accessible to many (whites).

Sociologist on the effect of skylines on cities

Camilo Jose Vergara is a sociologist and photographer who in a recent piece showing multiple angles of the World Trade Center tower over the decades also remarks about the power of a city skyline:

“The skyline is often how people relate to cities,” Vergara told The Huffington Post. “If a city has a skyline, it enters into a different category. It’s a grand city, a great city.”

Two points are notable:

  1. Cities are complex so an iconic image – the skyline – can be an important shorthand for the large city and metropolitan region.
  2. Important cities have notable skylines. Of course, many cities have taller buildings that can be seen from a distance. But, only certain cities have large collections of tall buildings and these skylines can have buildings that becomes iconic in themselves.

In other words, it is hard to imagine major American cities without recognizable skylines. Yet, European cities don’t have the same obsession with skyscrapers and tend to feature older structures like churches. And I wouldn’t be able to immediately pick out a skyline for Tokyo or Berlin or Moscow or New Delhi.

Getting a handle on the increasing complexity of large cities

Richard Florida interviews the author of a new book on cities and complexity. Here is one of the more interesting questions:

What do you think is the best way to think about cities: as machines, ecosystems, living organisms, or something else?

The fascinating thing about cities is that different aspects of them allow us to think about them in many different ways. At the level of urban infrastructure, cities certainly have features of machines, with vast constructed networks involved in transporting people, water, electricity, and waste.

At the level of the economy, cities resemble complex ecosystems, with companies and individuals filling specific niches and all living and working in a symbiotic dance. And at the level of growth and change, cities also feel like living, breathing, constantly growing and changing organisms.

But ultimately, the fact that a city has features of both a machine, a societal ecosystem, as well as a living thing means that a city is truly its own category: a novel type of socio-technological system that humans have made, and is perhaps one of our more incredible inventions.

I like this response: we have a tendency to reduce complex social phenomena to understandable objects (like machines – think of how often the brain is compared to a computer) but this often isn’t possible. Understanding all of the social relationships involved – and this could include relationships between people as well as between people and objects or nature – should lead us to some humility of how much we can know and predict as well as a fascination regarding how it all works. (Or, perhaps this fascination just applies to people like sociologists)

If indeed cities are complex systems, this could lead to questions of whether that complexity has drawbacks in the long run that cannot be overcome. (Parenthetically, such questions could also apply to nation states.) At some point, complexity may produce diminishing returns as argued by anthropologist Joseph Tainter. This reminds me that Jane Jacobs suggested organizing cities in districts that weren’t too big or small so that they could attend to smaller matters while also allowing community involvement. Americans tend to like smaller local government but the combined resources and interactions between larger groups of people can lead to more unusual benefits.

Gov’t plan to reduce infrastructure barriers between communities

Several months ago, the Department of Transportation started a project intended to reverse infrastructure barriers between communities:

Wednesday marks the launch of an initiative from the Department of Transportation aimed at mending some of those old wounds. The Every Place Counts Design Challenge calls on local governments to identify neighborhoods that face barriers to (or created by) existing transportation infrastructure, and to compete to work with experts who’ll assist in knocking them down.

Four communities around the U.S. will be selected to receive a specialized DOT design session in their hometowns, which will offer “in-depth facilitation of design strategies, on-site advice from subject-matter experts, targeted guidance related to USDOT program funds, and identification of resources to address an existing transportation infrastructure project challenge,” according to a federal notice provided to CityLab.

To be eligible, elected officials, urban planners, designers, and a cross-section of local residents must all convene around a transportation project that is already in the works and has the potential to reconnect communities to essential services such as jobs, healthcare, and schools. Applications (due June 3) must demonstrate how the existing infrastructure cuts people off from those needs, and how working with transportation and design experts could help these areas achieve better outcomes.

As this later article suggests, such monies could be used to counter earlier efforts that often emphasized driving (particularly in the form of highways in urban areas) or development at the expense of poorer neighborhoods. There are numerous classic cases of this including the construction of the Dan Ryan Expressway in Chicago between the Bridgeport (white) and Bronzeville (black) neighborhoods or Gans’ classic study Urban Villagers involving an Italian neighborhood in Boston. Instead of enforcing outside interests on existing communities – usually along racial/ethnic or class lines – planning today would often advocate for more community input. At the same time, there are still plenty of current situations where neighborhood and outside interests are not aligned and conflict can arise. Additionally, what may look advisable now may seem crazy in a few decades even as we would often imagine that we would never do something as destructive as post-war urban renewal.

Perhaps efforts like this are simply necessary: while better planning could help limit future remediation, monies should always be available to address past plans that didn’t quite work as intended or that were more misguided.

Urban segregation leads to bad outcomes – and what if the city is okay with this?

Following recent events in Milwaukee, NYMag summarizes some of the sociological research on urban segregation. As noted, the results of persistent segregation are not good.

However, what if this segregation is desired by the city or by large percentages of residents, whites in particular? The outcomes of segregation may be bad but the alternative might be considered worse: whites would have to live near blacks and share more resources and social spaces. With segregation, the problems are largely confined to certain areas (though there can be widespread fear if bad things happen in whiter and safer areas) and can be explained away by being attributed to particular groups. The segregation can be a self-fulfilling prophecy: there are neighborhoods for different groups because these sorts of things keep happening.

At some point, the negative consequences of segregation may be too much to ignore and stronger action might be taken. One good example is the destruction of public housing high-rises in many cities in order to deconcentrate poverty. City and national leaders perceived that something needed to be done. Yet, less provision was made for helping residents move elsewhere and find better opportunities. A less helpful example might be the uptick in shootings in Chicago: this is widely decried by leaders and the public but will much action be taken to (1) counter segregation and (2) provide more economic opportunities? At the moment, it appears not.

tl;dr: the outcomes of segregation are bad but how much will is there to consider alternatives?

The Olympics increasingly studied by academics

Nature reports an increase in published works about the Olympics. Here are two aspects of this increase related to urban life:

Beijing 2008 inspired the most papers, followed by London 2012. Beijing had imposed special restrictions on air pollutants, providing a rare opportunity for researchers to do relatively controlled experiments, says David Rich, an environmental epidemiologist at the University of Rochester in New York. The London 2012 Olympics inspired topics ranging from urban development and sprawl to security and surveillance.

Graph: Papers per games. Beijing 2008 inspired the most papers, followed by London 2012.

The Olympics are an “urban change-maker”, says sociologist Jacqueline Kennelly at Carleton University in Ottawa, Canada. They have led to expensive infrastructure projects and placed huge demands on public transport. And those that have contended with world wars, protests, boycotts and terrorist attacks have generated substantial literature…

The paper that has generated the most citations focuses on the Atlanta 1996 Games, and is followed closely by one about Beijing 2008. Both articles explore how policies such as increased provision of public transportation can improve air quality. The fifth most highly cited paper analysed levels of enthusiasm about the 2000 Olympics among different resident groups in the host city, Sydney. It is the most highly cited Olympics paper in the social sciences.

The paper that has generated the most citations focuses on the Atlanta 1996 Games, and is followed closely by one about Beijing 2008. Both articles explore how policies such as increased provision of public transportation can improve air quality.

There could be a variety of reasons for an uptick in research:

  1. Seeing the Olympics as unique opportunities to observe certain phenomena in a time-limited setting. They are a sort of natural experiment where one could study effects of phenomena before, during, and after the events. Or, one of the articles mentioned looked at athlete-coach relationships and the Olympics would provide the option of examining this in a number of sports at once.
  2. The increased globalization of the Olympics, both in geographic location (new cities such as Beijing and Rio) and global media coverage. Additionally, the Olympics can be viewed as an effort to bring the world together.
  3. Perhaps sport is a more acceptable research topic (whether the purpose is to study the athletes or the spectacle).
  4. There are more academics in general who are looking for things to study. Hence, more studies of the Olympics.