Quick Review: The End of the Suburbs

I recently read The End of the Suburbs, written by Fortune journalist Leigh Gallagher. On one hand, the book does a nice job describing some recent trends involving, but, on the other hand, the book is mistitled and I think she misses some key points about suburbs.

1. If I could title the book, I would name it something like “The End of the Sprawling Suburbs” or perhaps “The End of Sprawl.” Neither title is as sexy but she is not arguing that the American suburbs will disappear, rather that demographics and other factors are shifting toward cities. There is a big difference between ending suburbs and seeing them “grow up,” as one cited expert puts it.

2. Some of the key trends she highlights: the costs of driving (the whole oil industry, maintenance/gas/insurance/stress for owners, paying for roads/infrastructure), a changing family structure with more single-person and no-children households, changes among millennials and baby boomers who may be looking to get out of the suburbs in large numbers, a push toward New Urbanism in new suburban developments to increase density and strengthen community, and builders and developers, like Toll Brothers, are looking to build denser and more urban developments with more mixed-uses and smaller houses.

3. But, here are some big areas that I think Gallagher misses:

a. While she highlights the benefits of New Urbanism, does this lead to more affordable housing? In fact, the need for more affordable housing is rarely mentioned. As certain areas become more popular, such as urban neighborhoods that attract the creative class, this raises prices and pushes certain people out.

b. The main focus in the book is on big cities in the Northeast and Midwest. While she mentions some Sunbelt cities, like Las Vegas and Los Angeles, there is a lot more to explore here. There are particular patterns in Northern cities compared to newer, more sprawling Sunbelt cities. And in a book talking about the end of sprawl, how could she not mention Portland’s fight against urban sprawl in the last few decades?

c. It is an intriguing idea that cities and suburbs are starting to blend together. But, some of the examples are strange. For example, she talk about how there is increased poverty in the suburbs, which then could make cities more attractive again. There are still some major differences between the two sets of places, particularly the cultural mindsets as well as the settlement patterns.

d. She highlights thriving urban cores – but what about the rest of big cities? While Manhattan and Chicago’s Loop might be doing all right, what about the poorer parts of those cities? The recent mayoral race in NYC involved this issue and many have complained in Chicago that most of the neighborhoods experience little government help. In other words, these thriving urban and suburban developments often benefit the wealthier in society who can take advantage of them.

e. It isn’t until the last chapter that she highlights some defenders of sprawl – people like Joel Kotkin or Robert Bruegmann – but doesn’t spend much time with their ideas. Indeed, the book reads as if these trends are all inevitably moving toward cities and defenders of suburbs would argue critics of suburbs have been making these arguments for decades.

4. Two questions inspired by the book:

a. Just how much should the American economy rely on the housing industry? Gallagher suggests housing is a sign of a good economy based in other areas rather than one of the leading industries. Sprawl can lead to boom times for the construction and housing industries but it can also face tough times. Perhaps our efforts would be better spent trying to build up other industries.

b. Is the century of sprawl in America (roughly 1910 to today – there were suburbs before this but their mass development based around cars and mass housing really began in the 1920s) an aberration in our history or is it a deeper mentality and period? Gallagher suggests we are at the end of an era but others could argue the suburbs are deeply culturally engrained in American life and have a longer past and future.

Overall, this is an interesting read summarizing some important trends but I also think Gallagher misses some major suburban trends.

Texas is America’s future?

A libertarian economist argues Texas is a bright spot for America’s future:

Since 2000, 1 million more people have moved to Texas from other states than have left.

As an economist and a libertarian, I have become convinced that whether they know it or not, these migrants are being pushed (and pulled) by the major economic forces that are reshaping the American economy as a whole: the hollowing out of the middle class, the increased costs of living in the U.S.’s established population centers and the resulting search by many Americans for a radically cheaper way to live and do business.

To a lot of Americans, Texas feels like the future. And I would argue that more than any other state, Texas looks like the future as well — offering us a glimpse of what’s to come for the country at large in the decades ahead. America is experiencing ever greater economic inequality and the thinning of its middle class; Texas is already one of our most unequal states. America’s safety net is fraying under the weight of ballooning Social Security and Medicare costs; Texas’ safety net was built frayed. Americans are seeking out a cheaper cost of living and a less regulated climate in which to do business; Texas has that in spades. And did we mention there’s no state income tax?

There’s a bumper sticker sometimes seen around the state that proclaims, I WASN’T BORN IN TEXAS, BUT I GOT HERE AS FAST AS I COULD. As the U.S. heads toward Texas, literally and metaphorically, it’s worth understanding why we’re headed there — both to see the pitfalls ahead and to catch a glimpse of the opportunities that await us if we make the journey in an intelligent fashion.

Joel Kotkin would likely agree. A few thoughts after reading the full story:

1. There are several examples of people moving to Texas from California or the Northeast and finding that they really like Texas. But, the examples tend to emphasize Austin, a city known for plenty of cultural amenities. With its culture, UT-Austin campus, and tech companies, Austin looks like a cool place for the creative class. What about the other major areas in Texas? Why not stories about moving to Houston and Dallas, bigger cities and metropolitan areas with their own industries (oil, etc.)? How representative of Texas is Austin?

2. There is little discussion in the story about Latino residents. The primary focus in on Americans who have moved to Texas from other states but what about the influx of immigrants from Mexico? How are they doing? Are there some differences in their experiences as a whole versus those who are held up as successes in the article?

3. This is another article in a long line of opinions about which American state best represents the country or provides a glimpse into the future. What about California, a more progressive melting pot? What about the Washington D.C. metropolitan area, home to a number of the wealthiest counties in the United States? How about Illinois, held up in a more negative light in recent years for pension woes, too many governments/taxing bodies, bullish politicians, foreclosures, and violent crime? Perhaps we should look to Florida, specifically at the diversity in the Miami area or the aging population throughout the state? I realize people are interested in spotting trends but it is hard to select ideal types from 50 states and hundreds of big cities.

4. The story plays out Texas’ connections to the American pioneer and frontier story. This works but there is also a different culture and set of social norms in Texas. Even if business is thriving and people are moving in, does this necessarily mean many Americans would want to act or live like Texans? Is it all simply about a decent job and affordable housing? Yes, everyone may be American but outsiders and Texans themselves will tell you that the state is a land onto itself.

Can car-sharing spread to older Americans?

The Christian Science Monitor asks whether the phenomenon of car-sharing will spread beyond young adults:

But there are limits to the model. Car sharing caters to a fairly limited demographic – namely, educated, Web-savvy urban dwellers in their 20s and early 30s with access to decent public transportation. “It’s narrow in terms of the overall driving potential,” Mr. Belzowski says.

Car sharing works well in a compact city with decent public transit like Boston or New York, but Belzowski points out that more sprawling US metro areas present a problem. “Many cities are designed for having a vehicle, and it’s difficult to move around those cities in a timely way unless you own a vehicle.”

Another obvious drawback: Car owners share with strangers at their own risk. “I had an issue with there being a lot of dog hair in one, and I found a dog toy in the back,” Hill says.

Even in car-share hot spots, having a car at your beck and call is not guaranteed. The number of available cars is still limited to the point that getting one during peak times, like weekends, requires advance planning. That could be helped as car sharing goes more mainstream – national rental car company Avis recently agreed to buy Zipcar for $500 million, a merger that should expand the company’s vehicle fleet. Other major rental car companies, including Enterprise and Hertz, are getting into the car-sharing game as well.

I’m not sure this article gives us much insights into what might prompt older adults to adopt car-sharing. Reading between the lines, here are a few hints from the article:

1. Older adults are more likely to live in suburbs while younger adults desire to live in the city.

2. Older adults are less willing to share cars with others.

3. Older adults would rather have cars available when they want them rather then having to more meticulously plan their driving schedules.

The first hint seems relevant: this would appeal most to people living in denser cities where owning a car is much more difficult. However, these second two reasons seem more flimsy and seem based on the idea that older adults simply aren’t used to the idea of car sharing. Reasons #2 and 3 could be related to having children.

One solution to the demographics is to simply wait for these younger adults to grow up and they will be already used to car-sharing. But, I suspect Zipcar and others would like to grow this category at a faster pace.

h/t Instapundit

Decrease in young people in Illinois; how might suburbs be different with less children?

The Chicago Tribune leads today with a story of demographic change in Illinois: along with some other states, Illinois has experienced a drop in its young population.

Demographers have long known that the baby boom of the 1950s was giving way to a baby bust nationwide. Now Illinois and the Chicago area are providing a vivid example of the trend: According to data from the U.S. Census Bureau, from 2000 to 2010, Illinois had a 6.2 percent drop in children under 10, among the biggest declines in the country.

The impact is being felt in declining school enrollments and refashioned youth programs, officials say. In coming years, it will be felt in a workforce with fewer workers to replace retirees and help replenish pension coffers.

Changes in the youth population are especially pronounced in Chicago, which lost one-fifth of its young residents, particularly along parts of the lakefront, in Hispanic neighborhoods and in places where public housing high-rises once stood. But the trend is also under way in suburbs in Cook and DuPage counties…

Even suburbs such as Naperville and Winnetka — traditionally magnets for families — saw relatively sharp declines in their populations of children.

The impact of this could last for quite a while. I’m most interested in the bits about suburban communities. Since the post-World War II suburban boom, suburbs have been generally regarded as the best setting for children. With more space and good schools, kids could be safe and experience the middle-class life. This image coincided with a baby boom where lots of young families, including those of military veterans who had returned from the war, moved to the suburbs. So how would suburbs be different without as many children?

To start, as the article suggests, this would have a big influence on school districts. Communities that once had to build multiple schools to keep up with new developments might now have to contract schools. What will happen to the old buildings? Might this lead to smaller school district budgets which could then lead to less money from property tax bills going to school districts? I imagine a number of suburban residents would be happy at the thought that schools would cost less. Even as communities like Naperville were expanding, some existing residents were pushing for fewer houses so that their tax bills wouldn’t increase.

Going beyond schools, this could lead to changes for other taxing bodies such as park districts and libraries. But, even more broadly, this could change the character of many suburbs. Without as many children, the main focus of suburbs might change from familialism to something else. One big trend in American life today is the rise of single-person households, which could also become the plurality in the suburbs. There have also been rumblings about older suburbanites whose kids are growing up or have already left the house wanting to move to denser areas. Neighborhoods and communities that once revolved around children and their activities would have to shift their focus elsewhere. Imagine a Chicago suburb that becomes known as a haven for the 50+ crowd. Or a suburb where young professionals have a hopping cultural and entertainment scene.

Looking at Seneca Falls, New York, “the real Bedford Falls” in It’s a Wonderful Life

Social Explorer, a cool tool for looking at demographic data, takes a quick look at the New York community that was the inspiration for Bedford Falls in the holiday classic It’s a Wonderful Life:

Producer and director Frank Capra set the Christmas classic It’s a Wonderful Life in the fictional small town of Bedford Falls, NY.  The actual town of Seneca Falls, NY, claims to be Capra’s inspiration.   The town hosts the annual It’s a Wonderful Life Festival and visitors can explore the history at the museum dedicated to the legend…

Back in 1940, Seneca County had 25,732 residents, of whom 99.5 percent were white and 0.5 percent were black.  Nearly a third of the county’s foreign born population (32.0 percent) hailed from Italy, more than both statewide (one fifth) and nationwide (one seventh).  Many foreign born residents also came from Germany (10.2 percent) and England and Wales (9.1 percent).

Today, Seneca County has grown 37.1 percent to 35,285 residents, while the state grew 43.2 percent and the nation grew 133.0 percent.  Seneca County remains predominately white (92.9 percent) with a small but growing black population (4.3 percent).  According to 2006-10 ACS data, today 4.6 percent of the foreign born population comes from Italy.  Larger shares of newcomers come from other countries including Canada (17.4 percent), India (11.2 percent), Laos (6.1 percent), Ukraine (5.1 percent), and Poland (3.6 percent).

The top occupations in 1940 were:

  • Proprietors/Managers/Official (20.9 percent)
  • Craftmen/Foremen/Kindred Workers (16.4 percent)
  • Operatives/Kindred Workers (15.0 percent)
  • Laborers (13.9 percent)

Of the adult residents, 18.2 percent had completed high school (or more) and 3.0 percent had graduated from college, which were both smaller percentages than in the state (22.9 percent and 5.5 percent) and nation (24.1 percent and 4.6 percent).

Sounds like small town life that may not be much different today. The movie seems to provide more information about the “feel” of the community rather than the demographics. George Bailey is trying to build suburban-type homes and is thwarted by the evil banker in the community. By the end of the film, Bailey and other average citizens in the community are shown to be decent people who rally together in times of need. Does this story necessarily line up with the ancestry of the community or the top occupations? Maybe, maybe not. Perhaps demography is not narrative destiny in this case. Perhaps the best way to attack this issue would be to compare the demographics of Seneca County in 1940 to other typical small towns and counties and see how “representative” the movie demographics might have been.

American housing reacts to changes in family and household structures

After looking at some data about how much American families and households have changed in recent decades, Kaid Benfield asks an interesting question about how American housing might change to meet these realities:

So, as many of us connect with families in one way or another on Thanksgiving, I can’t help but observe that there really is no “typical” American family living under the same roof these days, if there ever was.  Rather, we have a diverse and changing array of household types and circumstances that smart planners and businesses will seek to accommodate.  The census data show that the growing parts of the housing market are nonfamily households, smaller households including people living alone, unmarried couples, single-parent households with kids, and older households.  The declining parts of the market are larger families, married couples, two-parent households, and couples with only one breadwinner, though each of these categories clings to a significant share of the total.

Interesting stuff, and mostly good for those of us who would like to see less sprawl and more walkable neighborhoods.  But also a bit complex.

The typical answer I’ve seen online to this question is to point to indicators that suggest younger (see here and here) and older adults (see here) will be seeking out denser housing. This may be true. I think we could also argue that American housing has already shifted to these realities in recent decades through several new options.

1. The rise of townhouses, particularly in the suburbs. These have the advantages of allowing for single-family home ownership, the ability to pay an association to maintain the housing as well as help protect property values, and denser housing which frees up more open space.

2. The rise of condos in both suburbs in cities. In suburbs, this has similar benefits to townhouses. In cities, this has been a boon for redevelopment and the movement of people with money into urban cores.

3. New housing products for older Americans beyond group homes including developments like the Del Webb communities and retirement complexes that include owned units (whether more like condos or detached single-family units).

4. More interest in tiny houses and tiny apartments (see this latest example from San Francisco).

5. Some New Urbanist communities and neighborhoods that allow for denser housing.

Perhaps the argument here about housing is about a matter of degrees; there have been changes in American housing in recent decades but it hasn’t necessarily been mostly anti-sprawl.

Note: I’ve been following some of these trends about changing family and household composition. For example, check out these posts (here and here) about more Americans living in single-person households.

World population in 1804 = Facebook users today

Here is an interesting, if not misguided, comparison of how many people are now Facebook users:

One billion people. That’s how many active monthly users Facebook has accrued in the eight years of its existence, the company announced today.

It took the population of modern humans about 200,000 years to reach that number, a milestone that was hit, demographers believe, just over two centuries ago in 1804 (bearing in mind that population tabs, then and now, are not exactly precise). Since then, human population has just exploded, enabled and protected by advances in medicine, agriculture, and hygiene. In the past year, it is estimated that the human headcount hit 7 billion.

I think I know what this comparison is trying to do: show the remarkable speed at which Facebook has attracted users. I agree. It has been remarkable.

At the same time, this is comparing apples to oranges. Yes, they are both large numbers of people. But one number is tied to human development, birth rates, life expectancy, technological improvement, and so on. This number reminds us of the broader scope of human history which is longer and progress is relatively slow. Having seven billion people on earth requires a lot of resources, space, and creative energy to tackle everyday and long-term problems. On the other side, you have Facebook, an Internet site that has attracted lots of users. While some of these users may be mega-users, people who are constantly online updating their status, tagging photos, reading other people’s walls, it is still just an online program, a relatively small part of human existence.

Perhaps there would be better ways to make a comparison to Facebook’s user total:

1. Looking at adoption rates compared to other technologies. In other words, is Facebook’s growth something completely new, a sign of the digital world, or does its adoption rate compare more to other technologies? Comparisons can be made here.

2. What one billion people in the world do on a daily basis or how many other objects have such broad appeal. For example, this website suggests there are 5.6 billion cell phone users in the world. (Meaning: Facebook has many more users to attract.)

Sociologist/time management consultant on the rush of Baby Boomers to new homes

A sociologist and time management consultant offers some thoughts about the upcoming years for many American Baby Boomers:

Jan Yager, a sociologist and time-management consultant, predicts that within the next decade “tens of millions” of baby boomers will sell their current homes and move to different abodes more suitable for retirement.

No matter where they plan to move, boomers who’ve lived in the same home for many years will face the enormous task of sifting through accumulations and upgrading their property for market. And all who try to tackle this project need a strategic plan to manage their time, says Yager, author of “Work Less, Do More,” a time-management book…

If possible, Yager encourages those who need to clear through a vast collection of belongings before selling to allow a full year for this project. But she’s aware that most sellers don’t have this much latitude and that they may need some help to expedite the process.

“It could be a good idea for you to hire a professional organizer,” says Yager, who recommends that home sellers consider seeking a local referral through the National Association of Professional Organizers (www.napo.net).

Four things strike me here:

1. Moving is not made easier after decades of consumption and accumulation. While our houses have gotten larger, our household sizes have gotten smaller, suggesting we need more space for our stuff or like more private space.

2. Is there a lot of potential for contractors and companies to offer remodeling or flipping services to Baby Boomers who don’t have the time to upgrade their own homes? New buyers have their own tastes and there could be a lot of money spent on upgrading homes built during the construction boom after World War II.

3. The potential move of so many Baby Boomers has the potential to have a large effect on demographics and other features of American life such as electoral politics, the housing industry, and advertisers. We’ve already seen some of this in Sunbelt growth in places like Florida and Arizona.

4. Americans have been known for their mobility, their interest in trying out new places and tackling new opportunities. Is this an extension of this spirit, another example of the American can-do spirit? Or more of a recognition that life truly changes as we age?

Signs of the “demographic train wreck” in retirement colonies in Florida

One commentator suggests the expansion of retirement in Florida hints at larger demographic changes in the United States:

“There is a demographic train wreck coming that we are not really addressing nationally or in Florida,” says Sean Snaith, director of the University of Central Florida’s Institute for Economic Competitiveness.Over the next 20 years, the number of adults over 62 in the U.S. will double to 80 million, as the largest generation in American history retires. A demographic model that once looked like a pyramid, with a relatively small number of seniors with lots of younger people to support them, now more closely resembles a bobble-head doll. Right now in the U.S., four working age adults support each retiree. In 20 years, that ratio will slip to three to one nationally — and two to one in Florida…

Yet after years of stagnant population growth, Florida is adding new residents again, especially in those areas where it is growing gray. According to projections from Florida’s Office of Economic and Demographic Research, more than half of the five million migrants expected to flow into the state over the next 18 years will be 60 or older. This elderly population boom, fueled by the retirement of the Baby Boomers, the biggest generation in U.S. history, will profoundly change the face of Florida from a state that is simply very old, to a state with one of the oldest populations on the planet.

If it seems like there are a lot of wrinkled faces crowding the aisles at the Publix grocery store in Boca Raton now, just wait. By 2030, one in four Floridians will be older than 65, up from one in six today, with the 85-plus set the fastest-growing group, according to projections…

“Basically you are asking a bunch of old retired rich white people to vote for school bonds that benefit immigrant Latino kids,” says Jennifer Hochschild, a Harvard University professor who studies the intersection of politics, immigration and education. “This is a potential political disaster.”

It will be fascinating to see how this plays out. Currently, it sounds like developers have figured out there is quite a market for such retirement communities. I have wondered why these haven’t seem to have caught on in the same scalein more northern, even considering the weather.

Should retirees have the right or make the possibly wrong choice for the larger society by moving into more isolated communities of people their own age? I’m sure there are class and race differences present here as well – not everyone has the resources to move to Florida in their golden years. What happens when all of these older residents can no longer live in these communities and require more care?