Addressing “green gentrification”

As American cities develop land in ways to combat climate change, researchers have examined who benefits from the new development:

Fighting climate disasters is a good idea for the planet, but can have unintended consequences for neighborhoods. “In order to construct a green, resilient park or shoreline, we get rid of lower-income housing … and behind it or next to it, you’ll have higher-income housing being built,” says Isabelle Anguelovski, an urban geographer at the Autonomous University of Barcelona who co-wrote an article about green gentrification in December’s PNAS. It can get even worse, she says. Hardening one neighborhood so that water can’t flow inland there means the water goes somewhere else. “The flooding and storm events go into the basements of the public housing next door,” she says.

That’s double jeopardy. And it turns into triple jeopardy, thanks to economics. New amenities plus new luxury housing drive up local housing prices, which drive out working-class and poorer residents. “The question is not only what Boston is facing, which is middle-class gentrifiers with a slightly higher income and education. It’s über-rich people who end up taking over cities until they are unable to fulfill their direct functions,” Anguelovski says. The gentrification wave is its own kind of economic apocalypse. If it hits, none of the people who make a city work—teachers, police officers, health care workers, bus drivers—can afford to live there. “Or it becomes so important from an economic standpoint, so desirable and hardened with infrastructure that entire buildings are empty—purchased by real estate funds or individuals from the Middle East or Russia,” Anguelovski says.

The problem that cities face is the difference between physics and real estate. Climate change happens on the scale of decades or centuries; real estate development and politics happen on fiscal and electoral timescales. “I get it. Green space is great, and while it may not be much of an improvement in terms of climate adaptation, it’s good for people’s well-being and quality of life,” says Ken Gould, an environmental sociologist at Brooklyn College and coauthor of Green Gentrification: Urban Sustainability and the Struggle for Environmental Justice. “Does it sequester much carbon? Not really. It’s fine. But you have to manage the real estate markets, because markets left to themselves, when you put in an amenity, are going to generate development.”…

Obviously, cities are facing more and more climate-related hazards. It’d be policy malpractice to not get ready for them. “It’s not too difficult for a city to make green infrastructure investments in neighborhoods that have been historically underinvested in, but the housing side needs to kick in,” says Constantine Samaras, an energy and climate researcher at Carnegie Mellon University. “The people who live in these underinvested neighborhoods deserve a neighborhood with bike lanes and green space. It’s up to city policy to make sure they can stay.” The trick is to build new housing while not uprooting people who live in the old stock—so that everyone benefits from the protection against disaster, not just a wealthy, lucky few.

This sounds like a twenty-first century version of urban renewal programs in American cities. In the name of the good of the whole community – now to protect neighborhoods and cities against environmental risks – lower-income housing is removed and the land eventually ends up in the hands of wealthier residents and property owners.

The sociological literature on urban development would suggest this is not surprising. Through a variety of means, leaders and wealthier people find ways to procure desirable land and profit from them. Redevelopment, whether undertaken to improve properties or make places greener, tends to benefit those who move into the neighborhood, not the ones who have been there a long time.

As is noted in the portion above, what is good for real estate and property values may not be good for the community even though the changes themselves – such as putting up barriers to water or creating more green space – would be welcome. At least now, the American system tends to privilege the real estate side, not the community improvement and well-being side. What could be done to limit the real estate market for the good of the city? Which city leaders will lead the way in arguing that green improvements should not be tied to market forces?

Following (or not) the latest fashionable way to revive urban spaces

Blair Kamin dismisses a proposal to create a High Line like park along LaSalle Street in the Loop in part by appealing to history:

In 1979, as America’s downtowns struggled to meet the challenge of suburban shopping malls, the flavor of the month was the transit mall. Make cities more like suburbs, the thinking went, and they’ll be able to compete. So Chicago cut the number of traffic lanes on State Street from six to two— for buses only — and outfitted the ultrawide sidewalks with trees, flowers and bubble-topped bus shelters…

A recently issued study of the central Loop by commercial real estate brokers Cushman & Wakefield floats the idea of inserting a High Line-inspired elevated walkway through the heart of LaSalle Street. But unlike the High Line or Chicago’s 606 trail, which exude authenticity because they’re built on age-old elevated rail lines, the LaSalle Street walkway would be entirely new — more wanna-be cool than the real thing…

The pathway would combat the perception that LaSalle is a stuffy, “old school” street lined by intimidating temples of finance, the study claims. “With thoughtful modification,” it goes on, “LaSalle Street can become the live-work-play nucleus of the Central Loop.”

Kamin summarizes his proposed strategy:

In short, the way to confront the central Loop’s looming vacancies is to build carefully on existing strengths, rather than reach desperately for a hideous quick fix that would destroy one of the city’s great urban spaces.

A few thoughts in response:

1. Kamin cites two previous fashions – transit malls, linear parks – and cautions against following them. But, certainly there are other fashions from the urban era after World War Two that could be mentioned including: large urban renewal projects (often clearing what were said to be “blighted” or slum areas), removing above ground urban highways (see the Big Dig, San Francisco), mixed-income developments (such as on the site of the former Cabrini-Green high rises), transit-oriented development, waterfront parks, and more. Are all of these just fashions? How would one know? Certainly, it would be difficult for every major city to simply copy a successful change from another city and expect it to work in the same way in a new context. But, when is following the urban fashion advisable?

2. How often does urban development occur gradually and in familiar ways versus more immediate changes or disruptions? My sense is that most cities and neighborhoods experience much more of the first where change slowly accumulates over years and even decades. The buildings along LaSalle Street have changed as has the streetscape. But, the second might be easy to spot if a big change occurs or something happens that causes residents and leaders to notice how much might change. Gentrification could be a good example: communities and neighborhoods experience change over time but one of the concerns about gentrification is about the speed at which new kinds of change is occurring and what this means for long-time residents.

3. As places change, it could be interesting to examine how much places at the edge of change benefit from being the first or in the beginning wave. Take the High Line: a unique project that has brought much attention to New York City and the specific neighborhoods in which the park runs. As cities look to copy the idea, does each replication lose some value? Or, is there a tipping point where too many similar parks saturate the market (and perhaps this would influence tourists differently than residents)? I could also see where other cities might benefit from letting other places try things out and then try to correct the issues. If the High Line leads to more upscale development and inequality, later cities pursuing similar projects can address these issues early on.

Considering housing shortages and gentrification together

An MIT economist looks at the relationship between gentrification and a shortage of cheaper housing:

Unsurprisingly, the geography of a place and the community residing there are linked. Along the most measurable dimensions, richer people tend to live in places with attractive geographies. Conversely, places with undesirable attributes like industrial or transportation pollution, poor access to jobs, and uninviting climates are usually left for the poorest and most marginalized.

Usually—but not always. Occasionally, physically attractive locations come to be occupied by low-income communities, immigrant communities, black communities. Neighborhoods like these are ripe for gentrification. Changes in labor markets, large investments by public or private institutions, or even just changing preferences among the wealthy move these neighborhoods into the sight lines of richer people, and then they gentrify.

The housing shortage, meanwhile, is a region-wide round of musical chairs, in which the winners sat down before the music even stopped. Whereas gentrification reshuffles which communities occupy which parts of the city, the housing shortage can operate at the scale of cities and regions as well as neighborhoods…

Policies introduced to fight gentrification—rent control and tenant protections—may ameliorate the effects of neighborhood change, but they won’t build new homes. We must allow new construction somewhere, despite the changes this will bring. Of course, we must do so in a way that avoids gentrification.

Four quick thoughts on this argument:

1. This reminds me of my post from the other day comparing the perspective that there is not enough housing and there is plenty of housing but it is not cheap enough. This piece suggests there are multiple housing issues at work and policies might tackle one particular issue and not others (or even make other housing issues worse).

2. Does the multiplicity of housing issues require that Americans prioritize which issue matters to them most? If middle-class people want cheaper housing, that will lead to different approaches (public policies, legislation, urban planning, decisions by developers, etc.) compared to a consensus that gentrification is not desirable. Historically, Americans have tended to prioritize housing for the middle-class (broadly defined) at the expense of housing for the poor or homeless.

3. To truly address all of these issues, metropolitan-wide approaches are needed. Individual neighborhoods or municipalities are often left to tackle these on their own even though decisions by nearby neighborhoods or municipalities have significant effects on their housing.

4. Additionally, a comprehensive housing policy is needed, not just one that tackles the most important or noisiest issue at the moment. On one hand, many Americans would not want the government to become involved in such issues even as the government has promoted suburban homeownership for roughly a century.

Novel suggests McMansions gentrify small suburbs

A new novel suggests McMansions can upset small suburbs:

Novels about small houses in small towns can feel cramped. But in Julie Langsdorf’s White Elephant, the locals fight to keep things that way in their property battle with a builder who puts up McMansions. Set in the suburban Maryland town of Willard Park, the story depicts a married couple’s struggle with their defunct sex life, middle school kids and their awkward, back-stabbing drama, a pot-head attorney whose marriage is in trouble, and numerous sketches of other denizens. White Elephant has a long, slow start, but once it gets going, it bolts straight to the end...

White Elephant is a gentrification story which focuses on suburbs and small towns. This tale will feel familiar to anyone who has lived in an inner suburb and woken up one morning to the shock of McMansions going up nearby. Suddenly all the talk is of assessments, property values, equity, and second mortgages. The new houses tower over neighbors. Or, if a block of expensive townhouses has been installed, suddenly the local school is too small. It’s not as pernicious as urban gentrification, booting out locals to make way for wealthy hipsters and their $10 latte watering holes, but it’s a menacing cousin. Costly houses and townhouses open the door for luxury apartments, and once those appear, all the old affordable ones raise their rents. A person working full-time on minimum wage can hardly afford a one-bedroom apartment in any American city, and this is the next step, as the blight of gentrification seeps out into formerly cheap suburbs.

I believe that McMansions can upset residents’ conceptions of their neighborhood or community. There are plenty of cases in the last 10-20 years that suggest some believe McMansions, whether in new subdivisions or as teardowns, ruin locations they like.

On the other hand, the description above of how all this works seems a bit odd to me. A few questions:

  1. How many inner suburbs become home to many teardown McMansions? Inner suburbs can be wealthy, working-class to poor, or somewhere in-between.
  2. My guess is that McMansions and more expensive housing do not just pop up in a community: there are precipitating qualities of the community that lead developers and local officials to think that the more expensive housing would take off. In other words, wealthier communities beget more housing for wealthier residents.
  3. Cheap suburbs, if just going by cost of housing, can be located throughout a metropolitan region. If gentrification is simply more expensive redevelopment, it could happen in many places throughout a region.
  4. Why is this gentrifiation not as pernicious if new development makes it harder for locals to stay? It may be happening in a suburban area but not all suburbs are that well-off.
  5. Is there a small-town suburban life worth defending? Decades of suburban critiques suggested suburbanites and their communities have all sorts of deficiencies. Are suburbs now to be saved from McMansions?

The McMansion is a monster to invoke in today’s fictional tales as its size and lack of good taste relegate it to at least shady, if not menacing, status.

Linking nicer cars to a suburb on the rise

From the Australian suburbs: one insider suggests seeing nicer cars in driveways signals good prospects for the suburban community.

The gentrification of the driveway happens before the gentrification of a suburb, says the boss of a data analytics company.

Upmarket vehicles beginning to appear in the carports and garages of houses is often a forerunner of a suburb on the rise, as renovators move in...

When more models such as a BMW X5 or an Audi SUV begin appearing in the driveway of houses and apartments in particular suburban streets, it is a reliable predictor of a suburb undergoing gentrification and becoming much more popular with renovators. Extra investment in community infrastructure often followed, and there was a broad flow on to higher property prices…

He said households who were taking out a loan for $500,000 to buy a rundown home in an up-and-coming area were often also purchasing a $30,000 to $40,000 car to fit the aspirational lifestyle.

The article chalks this up to a big data insight as bringing together multiple pieces of information helped reveal this relationship. I can see how this new information might help investors but it is less clear how this would help residents or local governments.

More broadly, this gets at something my dad always said: look at the cars in driveways, on the street, or in parking spots and it gives you a sense of the people who live there. In societies that prize cars, such as in the United States and Australia and particularly their suburbs, a vehicle becomes an important social marker. The one-to-one relationship might not always work as some people buy more expensive cars than their housing might indicate and vice versa (recall the stories of millionaires driving old reliable cars). Yet, on the whole, people of different social classes drive different vehicles in varying states of repair. Hence, various brands aim at different segments of the market. Famously, General Motors did this early in the 20th century with five different car lines to appeal to different kinds of buyers.

UPDATE: I probably did not contribute to this upward trend with long-term ownership of a Toyota Echo. But, it looked good for its age.

 

Some evidence whites are moving into black urban neighborhoods

In the United States, whites do not typically move into black neighborhoods but there is some evidence this may be changing:

In America, racial diversity has much more often come to white neighborhoods. Between 1980 and 2000, more than 98 percent of census tracts that grew more diverse did so in that way, as Hispanic, Asian-American and African-American families settled in neighborhoods that were once predominantly white.

But since 2000, according to an analysis of demographic and housing data, the arrival of white residents is now changing nonwhite communities in cities of all sizes, affecting about one in six predominantly African-American census tracts. The pattern, though still modest in scope, is playing out with remarkable consistency across the country — in ways that jolt the mortgage market, the architecture, the value of land itself.

In city after city, a map of racial change shows predominantly minority neighborhoods near downtown growing whiter, while suburban neighborhoods that were once largely white are experiencing an increased share of black, Hispanic and Asian-American residents…

At the start of the 21st century, these neighborhoods were relatively poor, and 80 percent of them were majority African-American. But as revived downtowns attract wealthier residents closer to the center city, recent white home buyers are arriving in these neighborhoods with incomes that are on average twice as high as that of their existing neighbors, and two-thirds higher than existing homeowners. And they are getting a majority of the mortgages.

The examples provided are intriguing to consider but the summary data is hard to come by in this article. A few thoughts:

  1. How many whites are actually moving into what are black neighborhoods? Are these significant shifts or relatively few new residents?
  2. The suggestion is that many census tracts are affected – “about one in six predominantly African-American census tracts.” If the amount of change is not much, this may not mean a whole lot. For both #1 and #2, the article said the changes are “still modest in scope.”
  3. Do the affected census tracts have relatively low densities or populations that have decreased over the years? In other words, are these areas with depressed land values or are they wealthier minority neighborhoods whites are entering? If it is the first, could this be a side effect of the inflated housing values in many metropolitan areas?
  4. The focus of this article is also on mortgages and gentrification: the arriving white residents are more likely to receive loans and they have higher incomes. This hints at longer-standing issues facing minority or poor communities that historically have had less access to credit. Additionally, change is not just about race and ethnicity; social class and access to capital matters as well.

There is a lot to consider here and to follow up on with more data, analysis, and interpretation.

Former Cabrini-Green site home to the fastest growing American neighborhood of residents making over $200k

A new analysis of Census data suggests the former home to Cabrini-Green housing project high-rises is increasingly the home of wealthy residents:

Cook County, which includes the county seat of Chicago, is home to the No. 1 and No. 7 fastest-growing concentrations of $200,000-plus households. No. 1 is, ironically, the area around where the Cabrini-Green public housing projects once stood. Cabrini-Green was notorious for violent crime, poverty and de facto racial segregation until its demolition beginning in the 1990s at the behest of the Chicago Housing Authority.

Even back then, authorities fretted that redevelopment plans might displace low-income families. They were right to be worried. Two decades later, the area’s concentration of $200,000-plus households has skyrocketed from zero to 39 percent. For some of the longtime residents who remain, the neighborhood’s transformation has been isolating.

Latanya Palmer, 53, grew up in the Cabrini Rowhouses. While she moved into a nearby mixed-income development in 2005, the hypergentrification has occasionally made her feel like a stranger in her own home. That sentiment echoes across the country, as poor and working-class Americans are increasingly pushed aside by frenzied development and prohibitive living expenses…

The census tract in question includes the still-standing, albeit largely vacant row houses where Palmer grew up. But now there are luxury condominiums and apartments, too. They sport rooftop terraces and sparkling views of the city’s affluent Gold Coast and Lake Michigan beyond. A three-bedroom penthouse can cost around $2 million.

This should be no surprise: the proximity of the land to both downtown and Lincoln Park meant that it is was highly desirable for developers and residents. Compare the clamor for the Cabrini-Green land to land where the Robert Taylor Homes once stood.

I would suggest there is a bit of revisionist history above. The claim that “authorities fretted” about the possible displacement of public housing residents is overstated. If anything, the city and Chicago Housing Authority probably could not wait to remove the high-rises (and other ones in the city, including the Robert Taylor Homes). Progress on replacing the units has been slow and with limited effects. The Chicago Housing Authority continues to have long waiting lists for housing. And many of the neighborhoods where public housing high-rises once stood are still relatively poor, even as a construction boom is taking place in the Loop and desirable nearby neighborhoods. In other words, some foresaw the potential for the Cabrini-Green site to be a wealthy neighborhood – and this what the city desired.

For more on why some Cabrini-Green residents fought hard to not be pushed out of their high-rises, see my earlier paper: “The Struggle Over Redevelopment at Cabrini-Green, 1989-2004.”