Millennials move into suburbs and less dense big cities and other urban population shifts

A new report from Trulia looks at where millennials and Baby Boomers moved as well as population growth in cities:

Extrapolating from the census data, a separate report from San Francisco-based real estate research firm Trulia Inc. showed where different age groups lived in 2013. Contrary to popular thought, millennials – Americans 20 to 34 years old – actually moved more into big-city suburbs and lower-density cities rather than dense urban areas. The three fastest growing millennial metropolitan areas were Peabody, Massachusetts, a town north of Boston, Colorado Springs, Colorado and San Antonio.

Americans 50 to 69 years old also flocked most to the “second quartile of counties,” wrote Trulia Chief Economist Jed Kolko, or big city suburbs and lower density cities. The fastest growing areas for baby boomers were Austin, Texas, Raleigh, North Carolina, and Dallas – all places that already have high concentrations of young people. In fact, Austin has the highest share of millennials than any other large metropolitan area, the Trulia report showed…

“The trend in the past year was that boomer growth [took place] in millennials’ favorite places,” Kolko says.

The population of the youngest Americans, or those ages 5 and younger, grew fastest in big cities like Washington, D.C. and New York. Frey has studied demographic changes in New York and says since 2010, there’s been a growth in the under 5 population in all of the boroughs except for Staten Island.

The biggest surprise here seems to be that more millennials moved to “big-city suburbs & lower-density cities.” At the same time, the population growth differences between the four quartiles of counties are not that large – the analysis shows roughly 0.2% differences.

Another note: the South and West continue to lead the way (all those less dense cities due to different zoning rules, annexation policies, and waves of development) in this analysis with the occasional city from elsewhere sneaking in occasionally.

The continued rise of the Sunbelt: Florida’s population to pass New York’s

One of the largest demographic shifts in American history continues: Florida’s population will soon surpass that of New York.

When the 2013 census results are revealed on Monday, Florida is expected to edge out New York as the third most populous state. The population gap between New York and Florida has been closing quickly over the past few years, but the ranking swap could still signify changes ahead for both states.

According to The New York Times, the new census figures reflect the trend of migrants born outside the U.S. making their way toward sunnier states, like California, Texas — the top two most populous states — and Florida. The Times reports that roughly 50,000 New Yorkers move to Florida each year, compared with only 25,000 Floridians who come to New York. Though New York state’s population is still growing, it is far outpaced by Florida growth. And upstate New York is largely economically stagnant, while cities like Tampa and Jacksonville flourish…

A larger population can dictate a state’s future, in addition to simply reflecting its current circumstance. It means a larger chunk of the federal government’s money and more political representation. The New York Times explains:

The changing population pattern could have many practical and political implications, including diminished congressional delegations, a setback New York already suffered in 2010 — the year of the last decennial census count — when the state lost two districts, while Florida gained two seats. Census data also inform how billions of dollars in federal funding and grants are divvied up among the states, for things like highway planning and construction, public aid for housing and health care and education programs.

It is interesting to see the attention these estimates are getting. This population shift to the Sunbelt has been happening for decades now, spurred on by being closer to immigration sources (the 1965 Immigration Act helped increase immigration from Mexico and Latin America), warmer weather, more affordable housing, and economic growth. But, I suspect there are some other reasons in particular to point out the closeness in population of New York and Florida:

1. New York, particularly New York City, is seen as an American center of power (economic, political, cultural, social). Florida is seen as a place where people go on vacation or to retire. Yet, the population shift suggests Florida might be able to grow in power and influence while a relative population decline suggests New York has already peaked.

2. A conservative-liberal divide between the two states. For example, the New York Times article cited above mentions the stand your ground law in Florida as well as the implications for Congress. The horrors that might ensue if the people of Florida get to help dictate policy for the people of New York City…

3. It is more difficult to understand larger population trends without having these kinds of comparisons. In other words, we could say the Sunbelt population has grown 15% over 10 years while the population in the Northeast has grown 4% over the same period but these are big areas and vague numbers. Being able to pit two states against each other makes the data more understandable and produces a better news story.

“Bewitching” look at state migration patterns is good when used interactively but not all together

The Atlantic Cities has a cool graphic about migration between states but there is one problem – it is hard to read unless you use the interactive element.

Here is an explanation of how to read the chart:
The graphic may look like spaghetti pie at first glance, but it really is beautifully simple once you learn how to navigate it. Here’s Walker explaining about that:

The visualization is a circle cut up into arcs, the light-colored pieces along the edge of the circle, each one representing a state. The arcs are connected to each other by links, and each link represents the flow of people between two states. States with longer arcs exchange people with more states (California and New York, for example, have larger arcs). Links are thicker when there are relatively more people moving between two states. The color of each link is determined by the state that contributes the most migrants, so for example, the link between California and Texas is blue rather than orange, because California sent over 62,000 people to Texas, while Texas only sent about 43,000 people to California. Note that, to keep the graphic clean, I only drew a link between two states if they exchanged at least 10,000 people.

Without the interactive element, you can’t quite figure out what is going on. All you can rely on is the relative width and length of the arcs as there are no numbers for the migration (and that would get cluttered really quickly). For example, you can quickly see that it seems like California sends Texas a lot of people. Or that quite a few New Yorkers go to California or Florida. The middle is kind of a jumbled mess and can be hard to follow thinner strands.

This seems to be a fun graphic element when it takes advantage of the capabilities of the Internet – you can click on your state, cut out all the clutter, and see the numbers. Otherwise, I’m not sure it adds much and still requires a good amount of text to sort things out.

Chicago good at attracting the creative class, not good at keeping them

Recent data suggests Chicago attracts a good number of the creative class – young, college graduates – but they don’t stay in the city long-term:

And still the 20-somethings swarmed to the city. If you drew a circle with a 2-mile radius around Chicago’s City Hall, as the Census Bureau did, you’d find the population in that ring had grown by 48,288 residents — 36 percent — between 2000 and 2010, even as the overall population fell. Census researchers measured the growth within similar rings in other metro areas. Chicago outpaced them all…

Chicago demographer Rob Paral points out that the 25- to 34-year-olds counted from 2007 to 2011 are even better educated than those in 2000. The Census Bureau’s American Community Survey found 46 percent of the residents in that age bracket had a bachelor’s degree or higher, compared with 36 percent in 2000. Among America’s top 10 cities, Chicago recorded the highest percentage of young college grads and the largest increase since 2000…

Then what? This is a demographic with choices. If the city looks less appealing once the babies come along, many of them will leave. Big-city crime is sometimes the explanation, but in truth most of these young adults live in neighborhoods largely insulated from the violence of the South and West sides.

More often, the deal breaker is the public schools. Staying in Chicago can mean spending thousands on private tuition, or working the system to get the kids into one of the city’s selective-enrollment high schools. Suddenly it’s easy to see the attraction of smaller suburban districts, their tax collections enriched by higher property values…

How can the city hold on to those families? One way, it turns out, is to suffer a massive recession. Census data show that from July 2010 to July 2012, Chicago’s population inched up again — by about 19,000 residents — as out-migration slowed to a trickle. Meanwhile, two decades of double-digit exurban growth lurched to a near standstill.

Since having a recession isn’t a good long-term growth strategy, the city will have to try something else. Most American big cities would love to have more young college-educated adults, particularly those involved in industries like the technology sector or those willing to move into and improve less well-off neighborhoods. Yet, this article highlights a second issue: how exactly do all these cities then retain these adults as they age? One irony not noted in this article is that many American urban neighborhoods offer the ability to own a home, even a single-family home with a yard. But, getting over this idea that cities are not good for children is more difficult. Whether it is an issue of schools (and Chicago has some of the highest-performing schools in Illinois) or safety and crime or a perceived need to interact with kids like them, these will be tough to overcome. Additionally, fighting these perceptions might include creating and maintaining kid-friendly pockets in the city, but this leads to other issues such as very different experiences of urban residents (for example, compare the life chances of kids from Lincoln Park in Chicago versus those from Englewood) and this is still different than fleeing to an exclusive suburban community where the wealthier and more-educated don’t have to interact with anyone other than them.

I don’t remember Richard Florida, the main proponent of the creative class, talking much about this issue…

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.

Rust Belt cities look to attract immigrants to help turn things around

Rust Belt cities have struggled for decades but are now welcoming seeking out immigrants:

Other struggling cities are trying to restart growth by luring enterprising immigrants, both highly skilled workers and low-wage laborers. In the Midwest, similar initiatives have begun in Chicago, Cleveland, Columbus, Indianapolis, St. Louis and Lansing, Mich., as well as Detroit, as it strives to rise out of bankruptcy. In June, officials from those cities and others met in Detroit to start a common network.

“We want to get back to the entrepreneurial spirit that immigrants bring,” said Richard Herman, a lawyer in Cleveland who advises cities on ideas for development based on immigration.

The new welcome for immigrants reflects a broader shift in public opinion, polls show, as the country leaves behind the worst of the recession. More Americans agree that immigrants, even some in the country illegally, can help the economy, giving impetus to Congressional efforts to overhaul an immigration system that many say is broken.

Concerns about uncontrolled illegal immigration, which produced strict curbs in Arizona and other parts of the country, have not been an issue in Dayton. Officials here say their goal is to invite legal immigrants. But they make no effort to pursue residents without legal status, if they are otherwise law-abiding.

Read on for more information on what happened in Dayton, Ohio which has welcomed thousands of Turkish immigrants. This will be worth watching in the long run.

Three other thoughts:

1. The article doesn’t say much about this but recent immigration debates have been marked by two opposites: more opposition to less educated and skilled immigrants and more interest in educated, wealthier immigrants. Perhaps it doesn’t matter much in Dayton.

2. A student asked me recently where Middle Easterners fit into typical American definitions of race and ethnicity. For example, where do they fit in Census categories? The article suggests the immigrant residents haven’t encountered much opposition in Dayton but they do occupy an unknown sort of racial and ethnic space. (Also see discussions in Europe about Turkish immigrants as well as whether Turkey should be allowed in the European Union.)

3. This article hints at a broader reality: population growth in plenty of places, including a number of suburbs as well as the United States as a whole, has depended heavily on immigration.

Fastest-growing American counties are suburban

Joel Kotkin highlights the fastest growing counties large counties in the United States:

Yet an analysis by demographer Wendell Cox of the counties with populations over 100,000 that have gained the most new residents since 2010 tells us something very different: Suburbs and exurbs are making a comeback, something that even the density-obsessed New York Times has been forced to admit. Of the 10 fastest-growing large counties all but two — Orleans Parish, home to the recovering city of New Orleans, and the Texas oil town of Midland— are located in the suburban or exurban fringe of major metropolitan areas.

Fastest Growiing US Counties: 2010-2012
Counties over 100,000 Population
Rank County Equivalent Jurisdiction    Growth
1 Williamson, TX 7.94%
2 Loudon, VA 7.87%
3 Hays, TX 7.56%
4 Orleans, LA 7.39%
5 Fort Bend, TX 7.16%
6 Midland, TX 7.14%
7 Forsyth, GA 7.07%
8 Montgomery, TN 7.04%
9 Prince William, VA 7.04%
10 Osceola, FL 6.97%

What these findings demonstrate is that more people aren’t moving “back to the city” but further out. In the last decade in the 51 largest U.S. metropolitan areas, inner cores, within two miles of downtown, gained some 206,000 people,  while locations 20 miles out gained over 8.5 million. Although the recession slowed exurban growth, since 2011, notes Jed Kolko at Trulia, suburbs have continued to grow far faster than inner ring areas as well as downtown. Americans, he concludes, “still love their suburbs.”

Rather than an inevitable long-range shift, the post-crash slowdown of suburban growth seems to have been largely a response to economic factors. The retro-urbanist dream of eliminating, or at least undermining, suburban alternatives depends very much on maintaining recessionary conditions that discourage relocation, depress housing starts, as well as lowering marriage and birthrates.

Where incomes are growing along with rapid job growth , suburban and exurban growth tends to be strong.  The metro regions that contain our fastest-growing counties — Austin, Houston, Nashville and Northern Virginia — all epitomize this phenomenon. For example, nearly 80% of all housing growth in greater Houston takes place in the areas west of Beltway 8 (the outer beltway). A similar pattern can be seen in the D.C. area, where the number of units permitted in Loudon has more than doubled since 2007. In 2012 permit issuances were the highest since 2005, and the vast majority were for either detached or attached single-family houses.

Kotkin’s conclusion is that the economic crisis slowed suburban growth for a few years, not a growing American move to cities and denser suburban areas. Some of this can’t be known until more time goes by; if Kotkin is right, recent years will be a blip and the kinds of places that were the fastest growing counties from 2010 to 2012 will continue to be fast-growing places.

There might be another approach that would allow both Kotkin and proponents of cities to both be able to claim some victory: outer suburbs might continue to grow as might attractive big cities (think Richard Florida’s creative class moving to the city) while inner suburbs who often have big-city problems, older housing stocks, and tax bases that have a hard time supporting suburban services languish.

Charlotte, North Carolina known for its McMansions?

A book review of a new novel about an old money family in Charlotte, North Carolina suggests the city is known for its McMansions:

The city of Charlotte, with its social-climbing bankers and developers, its flock of mega-churches and its McMansions – where, as the old saying goes, folks believe in the fatherhood of God, the brotherhood of man and the neighborhood of Myers Park – has always made an inviting target.

And now, with “Lookaway, Lookaway,” Wilton Barnhardt has scored a palpable hit. With his first novel since 1998’s “Emma Who Saved My Lie,” Barnhardt delivers a knowing, wry and delightfully catty satire, an acid-etched portrait of one of the Queen City’s downwardly mobile Old Families.

This review hints at one reason for the abundance of McMansions in Charlotte and I think this is related to another reason:

1. McMansion here might be shorthand for new-money families as contrasted with old-money families. This is more noteworthy in the South with its emphasis on tradition and honor. Established families live in more established homes in older neighborhoods while those with new money live in big subdivision houses.

2. Related to the new money in the city is its Sunbelt population growth after World War II. In 1940, the city had just over 100,000 residents and today the city has over 731,000 and the metropolitan area has around 2.3 million residents. In other words, one of the notable traits of Charlotte in recent decades is its growth which then includes new houses and new residents.

At the same time, I haven’t yet run into any news stories about teardown issues in Charlotte or too many concerns about sprawl.

Kotkin splits US into 10 areas, predicts which ones will grow

Joel Kotkin takes a look at which areas of the United States will grow in the next decade. Here are a few of his predictions:

Over the next decade, the Left Coast should maintain its momentum, but ultimately it faces a Northeast-like future, with a slowing rate of population growth. High housing prices, particularly in the Bay Area, are transforming it into something of a gated community, largely out of reach to new middle-class families. The density-centric land use policies that have helped drive up Bay Area prices are also increasingly evident in places like Portland and Seattle. The Left Coast has the smallest percentage of residents under 5 outside the Great Lakes and the Northeast, suggesting that a “demographic winter” may arrive there sooner than some might suspect…

The vast region from Texas to Montana has often been written off as “flyover country.” But in the past decade, no nation in America has displayed greater economic dynamism. Since the recession, it has posted the second-fastest job growth rate in the U.S., after the Inland West, and last year it led the country in employment growth. The Dakotas, Nebraska, Oklahoma and Kansas all regularly register among the lowest unemployment rates in the country.

The good times on the Plains are largely due to the new energy boom, which has been driven by a series of major shale finds: the Bakken formation in North Dakota, as well as the Barnett and Permian in Texas. The region’s agricultural sector has also benefited from soaring demand in developing countries…

Once a sleepy, semitropical backwater, the Third Coast, which stretches along the Gulf of Mexico from south Texas to western Florida, has come out of the recession stronger than virtually any other region. Since 2001, its job base has expanded 7%, and it is projected to grow another 18% the coming decade…

More babies and the migration of families, including immigrants, to this low-cost region suggest an even larger political footprint for the Southeast in the decades ahead. Population growth has been more than twice as fast since 2001 as in the Northeast, a trend that is projected continue in the next decade. The region looks set to become smarter, more urban and cosmopolitan, and perhaps a bit less conservative.

Common factors in the analysis: demographics, particularly the influence of immigration; which industries are booming, with an emphasis on technology and oil/gas; and government restrictions/debt. These are common themes for Kotkin. Two quick thoughts:

1. It would be interesting to see how Kotkin’s predictions hold up. One smart move was to restrict this to ten years out which limits some of the unpredictability. But, predictions by experts are notoriously wrong.

2. The prognosis for the South, Southwest, Plains, and some of the West is much better than the big city Midwest or the Northeast. There has been quite a shift to these areas in recent decades in the United States but are we close to a point where these areas take over? Just how much staying power does a region like New York have – would it take decades to overcome its inertia?