Does the failure of urban renewal necessarily mean that the free market could solve the problems of poor neighborhoods?

Reason looks at what happened to one New York City neighborhood in the name of urban renewal:

In 1949, President Harry Truman signed the Housing Act, which gave federal, state, and local governments unprecedented power to shape residential life. One of the Housing Act’s main initiatives – “urban renewal” –  destroyed about 2,000 communities in the 1950s and ’60s and forced more than 300,000 families from their homes. Overall, about half of urban renewal’s victims were black, a reality that led to James Baldwin’s famous quip that “urban renewal means Negro removal.”

New York City’s Manhattantown (1951) was one of the first projects authorized under urban renewal and it set the model not only for hundreds of urban renewal projects but for the next 60 years of eminent domain abuse at places such as Poletown, New London, and Atlantic Yards. The Manhattantown project destroyed six blocks on New York City’s Upper West Side, including an African-American community that dated to the turn of the century. The city sold the land for a token sum to a group of well-connected Democratic pols to build a middle-class housing development. Then came the often repeated bulldoze-and-abandon phenomenon: With little financial skin in the game, the developers let the demolished land sit vacant for years.

The community destroyed at Manhattantown was a model for the tight-knit, interconnected neighborhoods later celebrated by Jane Jacobs and other critics of top-down redevelopment. In the early 20th century, Manhattantown was briefly the center of New York’s black music scene. A startling roster of musicians, writers, and artists resided there: the composer Will Marion Cook, vaudeville star Bert Williams, opera singer Abbie Mitchell, James Weldon Johnson and his brother Rosemond, muralist Charles Alston, writer and historian Arturo Schomburg, Billie Holiday (whose mother also owned a restaurant on 99th Street), Butterfly McQueen of “Gone with the Wind” fame, and the actor Robert Earl Jones.

Designating West 99th and 98th Streets a “slum” was bitterly ironic. The community was founded when the great black real estate entrepreneur Philip Payton Jr. broke the color line on 99th Street in 1905. Payton, also credited with first bringing African Americans to Harlem, wanted to make it possible for a black man to rent an apartment, in his words, “wherever his means will permit him to live.”

While Reason is a conservative website, there are plenty of others on the other side of the political aisle that also agree that urban renewal had a negative impact on many neighborhoods. Ultimately, this policy was used to clear “slums” and to use that land for more profitable development, typically for wealthier residents and businesses. Additionally, what actually counted as “blight” or as a “slum” was contentious as it tended to frown upon cheaper, ethnic or non-white neighborhoods. Blacks weren’t the only ones displaced; Herbert Gan’s classic work Urban Villagers looked at the fate of an Italian-American neighborhood which was ripped apart by urban renewal.

Since this comes from Reason, I assume that this is a critique of liberal policy and of eminent domain: you can’t trust the government with these kinds of powers as they will use it to trample people they don’t like. But can we swing all the way in the opposite direction and suggest that the free market will eventually get rid of the issues that poorer neighborhoods face and that lead them to be ripe for urban renewal?

I would argue no. Left to its own devices, the free market can also result in harmful policies that hurt less than wealthy neighborhoods. Here are a few examples:

1. Redlining. This was based on the practice of marking urban neighborhoods in terms of the security of their real estate by the Home Owners’ Loan Corporation which arose out of the New Deal. But this practice really took off when private lenders and institutions adopted the government agency’s markings and then only made loans to the better neighborhoods, effectively shutting out poor neighborhoods from mortgages.

2. Exclusionary zoning. After the Fair Housing Act of 1968 ruled out discrimination in the sale or rental of housing, exclusionary zoning became a hot topic in the 1970s. A number of court cases looked at how the zoning guidelines of communities and counties effectively kept poor people out of suburban locations. By only allowing higher priced housing or certain kinds of housing (like single-family homes on a minimum of 2 acres), these zoning guidelines were very effective in maintaining the exclusivity of certain areas.

3. Still existing discrimination in obtaining mortgages and other loans. There have been plenty of studies that show when equally matched whites and blacks apply for a mortgage or a car loan or another loan, blacks are rejected at higher rates. Similar research has shown this also applies to jobs. Read an overview of this research in a 2008 Annual Review of Sociology article.

4. The ongoing presence of residential segregation in the United States. Many of our major cities, particularly in the Northeast and Midwest, are still very segregated. View maps of some of these cities here.

5. Gentrification. While the influx of residents may “improve” a neighborhood, it often has the effect of pushing the poorer residents into other poor neighborhoods because of increased housing prices and property taxes.

So urban renewal was not the answer. But it is unlikely that a completely unfettered free market is as well. So perhaps the real question to address is how to craft effective public policy that provides aid to neighborhoods and their residents so that these neighborhoods truly improve, add jobs, and experience revitalization. The key here is “effective,” policy that does not become cost prohibitive, works with local residents and organizations rather than just applies a top-down approach, and achieves attainable and worthy objectives while minimizing unintended consequences. This is likely a difficult task but swinging the pendulum all the way to the free market side isn’t the solution.

Where do Washington D.C. metro area residents find diversity?

This could be an interesting research question as put by the Washington Post: “where do you experience diversity?” The question comes amidst recent changes in the Washington D.C. metropolitan area:

We all know how diverse our region is; the latest census shows that Washington is one of the eight major metropolitan areas that have become majority minority in the past decade.

But how do those statistics translate into actual diversity? Where are the places in our region where people of all races, creeds, colors and nationalities mix most freely? Where are the markets, playing fields, dog parks, theaters, shopping malls that attract the most diverse crowds? And what does diversity even mean to each of us?

And there is even a reference to Elijah Anderson’s recent concept of the “cosmopolitan canopy,” places where people of different races and social classes mingle.

Several thoughts come to mind:

1. What exactly do they mean when they ask about people “mix[ing] most freely”? Does this mean different people are simply in the same place, like a baseball stadium or a shopping mall, or they are actually interacting?

2. Several studies from earlier this year looked at segregation within American cities. In one study, Washington D.C. is the 20th most segregated city in the country. The dissimilarity score of 61.0 roughly means that 61% of the population would have to move for there to be an equal distribution of blacks and whites in the region. While there are cities that certainly have worse scores (Chicago, New York City, and Milwaukee are the top three), this isn’t necessarily good. The region may be majority-minority but that doesn’t mean that people live near each other.

2a. Here are some of the other US cities that became majority-minority by 2010: “Along with Washington, the regions surrounding New York, San Diego, Las Vegas and Memphis have become majority-minority since 2000. Non-Hispanic whites are a minority in 22 of the country’s 100-biggest urban areas.”

3. I wonder if this is kind of a silly question because it doesn’t get at the real issue: residential segregation. It is better to have people of different backgrounds mixing in public or private spaces than to not have this happen. But the real issue is that people of different races tend not to live near each other in the United States. When presented with the option of living with other races within the same neighborhood, whites opt out more often than not.

4. What will the newspaper do with this data regarding where people find diversity? Since it won’t be a representative sample (as a voluntary, online poll), I suspect they will profile some of these places to try to understand why they attract different groups of people.

Keeping the poor at bay in both suburbs and urban developments

This overview of Battery Park City, a New York City development located near Ground Zero, suggests the development has kept the poor away in the same way as suburbs:

Conceived originally by David Rockefeller, then vice-chair of Chase Manhattan, in the late 1950s and early 1960s, the development was essentially built to house finance executives and other white-collar workers during a period in which those sorts of people were escaping the city for a growing number of suburbs. Literally, as well as metaphorically, Battery Park City crushed the docks that were the only vestige of working-class industry in lower Manhattan, constructed atop landfill that was tacked onto Manhattan with the specific purpose of advancing New York’s financial sector.

It was as physically isolated as it was demographically. Separated from the rest of the city, connected only by pedestrian bridges—unless one was willing to face West Street, more aptly described as the West Side Highway. There were guards at the edge of Battery Park City, and its parks closed to the public at night. In a similar fashion, much of the “public” space was established where it was either difficult or intimidating for non-residents or non-financial workers to get to…

Lower Manhattan is not what is was when Battery Park City was conceived and built. These days, much of the area around it is fancy, too.

“The people across the street are just as elite as they [Battery City residents],” told me.

There are no longer any guards because “you don’t need them anymore, because just as in the suburbs people don’t have fences around their yards, you don’t need those barricades because there’s nobody poor nearby. So instead of walls, you’re using distance.”

As the nearby area gentrified, Battery Park residents no longer had to fear who might enter their development as nearby residents were similar to them.

As a broader question, is a neighborhood like this more desirable for critics of suburbs even though it is still a wealthy enclave that is separated from lower-class neighborhoods? These city dwellers may have more contact with people unlike them on a day-to-day basis but ultimately, some of the issues that are said to plague suburbia such as homogeneity can also be found in urban neighborhoods. Is residential segregation in the city equal to, better than, or worse than residential segregation in the suburbs?

Wealthier blacks and Latinos live in poorer neighborhoods than poorer whites

In addition to recent news that the wealth gap between whites and minorities has increased, recent Census data shows that wealthier minorities tend to live in poorer neighborhoods than poorer whites:

The average affluent black and Hispanic household — defined in the study as earning more than $75,000 a year — lives in a poorer neighborhood than the average lower-income non-Hispanic white household that makes less than $40,000 a year.

“Separate translates to unequal even for the most successful black and Hispanic minorities,” says sociologist John Logan, director of US2010 Project at Brown University, which studies trends in American society.

“Blacks are segregated and even affluent blacks are pretty segregated,” says Logan, who analyzed 2005-09 data for the nation’s 384 metropolitan areas. “African Americans who really succeeded live in neighborhoods where people around them have not succeeded to the same extent.”…

“White middle-class families have the option to live in a community that matches their own credentials,” Logan says. “If you’re African American and want to live with people like you in social class, you have to live in a community where you are in the minority.”

Residential segregation is very much alive, particularly in large cities in the Northeast and Midwest. For minorities, simply having a middle-class income does not guarantee living in a middle-class neighborhood that one might expect as part of the American Dream.

This reminds of the classic work American Apartheid (1993) that cited the idea that residential segregation is the “linchpin of American race relations.” Without people of different incomes and races and ethnicities living near and with each other, a host of other issues are difficult to address.

Chicago named 3rd most segregated city in the country

A piece in the Chicago Reader discusses the results of a new University of Michigan study that showed Chicago is the third most segregated city in the country, trailing only New York City and Milwaukee. A few notes about this study:

1. Like many other studies of its ilk, this is based on dissimiliarity index scores. Here is how this is calculated:

The dissimilarity index is a system used by sociologists to measure segregation, with the highest score – meaning total segregation – being 100. The lowest – complete integration – is 0. The numbers reflect the percentage of people from one race (black and white are measured here) that would have to move in order to create complete integration.

There are some other measures like this with different calculations but the dissimilarity index seems to be used most often. There are a number of easily-found sites online that provide instructions on how to calculate the dissimilarity index (here is eHow’s explanation).

2. The Chicago Reader article and another piece at Salon (with some nice maps and explanations for each city) focus on white-black segregation. The original study also calculated the dissimilarity index for other pairs of races, such as whites and Latinos. These figures are generally lower than those for whites and blacks as the Great Migration of blacks from the south prompted increasing levels of segregation in Midwest and Northeastern cities during the early decades of the 1900s.

In terms of the white-Hispanic findings from the original study, the top 5 segregated cities are Springfield, MA, Los Angeles, New York, Providence, and Boston. On this list, Chicago is tenth.

The original study also look at white-Asian segregation: the top 5 cities here were Buffalo, Pittsburgh, New York, Syracuse, and Baton Rouge.

3. A little more on interpreting the figures regarding Chicago:

-Along with the other 52 most white-black segregated cities, Chicago had a drop (4.8) in its dissimilarity index between 2000 and 2010.  The 53rd city, Greensboro, NC, was the first on the list to have an increase (0.9).

-In the Salon piece, there is a little bit of history about how this segregation came to be in Chicago and black migration, public housing, interstates, and Mayor Daley are mentioned. The conclusion is this:

Oak Park was one of a handful of places around the country where progressive whites made common cause with blacks. But in the Chicago area, it’s the exception, not the rule. Today, middle-income blacks are increasingly moving into Chicago’s suburbs. And though Quillian says that there isn’t white flight like there was in the past, many communities appear to be resegregating. The problem now is white avoidance.

It would be interesting to hear more about this idea of “white avoidance.”

-The Chicago Reader piece also suggests that Pekin, Illinois (a town whose high school has had some issues regarding race and its mascot – link from Wikipedia) is the most segregated city (white-black) in Illinois. However, the story doesn’t add the caution regarding Pekin: there are 857 blacks in the community. The CensusScope page of Illinois cities by dissimilarity index adds this disclaimer:

When a group’s population is small, its dissimilarity index may be high even if the group’s members are evenly distributed throughout the area. Thus, when a group’s population is less than 1,000, exercise caution in interpreting its dissimilarity indices.

It would be helpful if this were added to the story regarding Pekin.

The role of residential segregation in lawsuit over Elgin school district

The Chicago suburb of Elgin has long been a satellite city with more diversity and manufacturing than the average suburb. The city’s school district, U-46, is the second-largest district in the state and is the plaintiff in a long-running civil suit that is continuing in federal court this week:

The two sides in a long, bitter fight over boundary lines in an Elgin-area school district met in federal District Court in Chicago on Monday, six years after a class-action suit sought to improve learning conditions for minority students.

The students and the families who were part of the original case filed in 2005 have long since left School District U-46, a racially and culturally diverse district of 40,000 students in the northwest suburbs. But the conditions that sparked that initial outrage — overcrowding and poor classroom conditions — continue to persist and are putting minority students at a disadvantage, attorney Stewart Weltman told the judge in his opening remarks.

“U-46 served the needs of white students first, and the needs of minority students second,” Weltman told U.S. District Judge Robert W. Gettleman. “The district knew it had thousands of empty seats in white schools, and yet it forced more and more minority students into overcrowded schools and portable classrooms without running water.”

Attorneys for the school district say race never played a role in the redrawing of attendance boundaries for the district’s 55 elementary, middle and high schools. Instead, they say, the changes were part of a reorganization plan by the district in 2004 to allow more students to attend schools closer to home.

I don’t know the particulars of the case. What the district did sounds like what a lot of American parents might desire: let my children go to schools close to home rather than busing or driving them to schools across the city. Closeness is one issue but the idea of local control or rule of nearby schools is important, even in a large school district.

But as I read this, I am struck by an idea: with the district letting students “attend schools closer to home,” U-46 was letting the wealthier kids go to the nearby nicer schools and the minority kids go to nearby worse-off schools. And if you look at the map of the U-46 boundaries, there is quite an economic range, from Elgin (median household income in 2009: $57,009) to wealthier Bartlett (median household income in 2009: $91,863) and Wayne (less than 2,000 people in the village but a 2009 median household income of $142,321). Therefore, it may appear that the district is not spreading the wealth (in money or children) around the district in a way that benefits everyone. The residential segregation patterns in suburbia, where the wealthier tend to live with the wealthier and the poorer live with the poorer, then get reinforced.

It will be interesting to see how the case turns out. On one hand, I’m sure the district has an interest in keeping wealthier families and areas within the district, something that may have been aided by this 2004 decision. On the other hand, the larger school district is supposed to be providing the same opportunities for all students.

 

Argument: improve educational performance of poor children by moving them to the suburbs

Academic achievement is a familiar topic in recent American discourse: how exactly do we improve student performance, particularly for those who are behind? One foundation president suggest the answer is to have more poor kids move to the suburbs and attend suburban schools with wealthier children:

One of the most important recent pieces of education research was released last year — and promptly ignored. The Century Foundation’s report “Housing Policy is School Policy” confirms the seminal 1966 finding of Johns Hopkins University sociologist James Coleman: The school-based variable that most profoundly affects student performance is the socioeconomic composition of the school. In short, poor children do better if they attend schools with affluent children.

The “new” news in the report? It highlights the critical out-of-school influence of where the low-income children reside. Poor children attending an affluent school do even better, it turns out, if they also live in an affluent neighborhood.

There is more interesting material in here, including reference to the Gautreaux program in Chicago (see some of the academic research generated in studying this program) that was one of the first programs that moved public housing families to suburban neighborhoods. (However, there is no mention of over similar and bigger programs, like HUD’s Moving To Opportunity.)

As the article suggests, this is a difficult solution to implement. The suburbs tend to have more expensive housing, suburban residents can be resistant to minorities and the lower classes, support networks can be lacking, and transportation by automobile is often required (and is costly). Additionally, it is very hard to create laws that would force movement or impel suburban communities to build affordable housing.

More broadly, this piece is a reminder of the price of segregated housing in America. We have an ethos that says people can move wherever they want (particularly if they have the money) but there are a variety of factors that inhibit this. As American Apartheid suggests, residential segregation “is the ‘linchpin’ of American race relations.”

Not so fast on integrated American neighborhoods

Taking another angle on residential integration (based on data from the American Community Survey – also reported on here) suggests it is a very slow process. Two sociologists suggest some has changed – metropolitan whites now on average live in neighborhoods that are 74% white (the figure was 88% in 1980). But minorities still have similar segregation figures to 2000:

•Black-white segregation averaged 65.2 in 2000 and 62.7 now.

•Hispanic-white segregation was 51.6 in 2000 vs. 50 today.

•Asian-white segregation has grown from 42.1 to 45.9.

This index score (and I think this is a dissimilarity index) ranges from 0 to 100 with a score of 0 meaning that two groups are completely integrated while a score of 100 means that two groups live completely separately or in different neighborhoods.

Based on this analysis, it looks like the issue of residential segregation is one that will be with us for a long time yet. While there was improvement for some groups, there were  negative or very limited changes for other groups. All that said, residential segregation looks like it is still an entrenched feature of American life.

Lower levels of segregation in many cities according to the American Community Survey

Residential segregation, primarily between whites and blacks, is a critical issue when considering the historical development and current state of American development patterns and way of life. But new findings from the most recent American Community Survey (the Census Bureau’s yearly survey) suggest that segregation levels have decreased in many cities:

Atlanta is one of several predominantly Southern and Western cities that showed a noticeable integration trend over the last five years as both middle-class blacks and whites moved into each other’s neighborhoods, according to the Census Bureau’s American Community Survey of 10 million Americans, released Tuesday…

Seventy-five percent of the largest 100 US metro areas showed neighborhood segregation rates slipping to levels not seen for more than a century…

Ethnic integration failed to show the same kind of gains…

It isn’t that the North, which has lagged behind the South and West in integration rates, has dramatically different attitudes on race. Rather, new housing and job opportunities in the South and West have helped to spur integration there.

This is interesting, and potentially uplifting, news. A number of sociologists have called attention to this issue in recent decades, perhaps most notably in American Apartheid published in the early 1990s. Recent maps show that many cities have a highly visible divide between different population groups. With these recent findings, the question may now be: how much more integration might we see in American cities? Is this a short-term trend or is this indicative of a slow, steady rise of integration in American cities?

What I would like to see is a more specific breakdown of what cities improved on integration and which did not. The article suggests that cities in the South and West had increasing rates of integration while segregation decreased less in the North. This is a reminder that in American cities, segregation has been more prominent in northern cities, what scholars (according to the article) call “the ghetto belt.” Are there lessons from the cities that improved in integration that can be exported to other cities?

Additionally, how have segregation/integration rates changed in suburbs or perhaps in whole metropolitan regions?

The racial bias in predatory lending

A new study in the American Sociological Review explores how race impacted predatory lending and the larger U.S. housing crisis:

Poorer minority areas became a focus of these practices in the 1990s with the growth of mortgage-backed securities, which enabled lenders to pool low- and high-risk loans to sell on the secondary market, Professor Douglas Massey of the Woodrow Wilson School of Public and International Affairs at Princeton University and PhD candidate Jacob Rugh, said in their study.

The financial institutions likely to be found in minority areas tended to be predatory — pawn shops, payday lenders and check cashing services that “charge high fees and usurious rates of interest,” they said in the study.

“By definition, segregation creates minority dominant neighborhoods, which, given the legacy of redlining and institutional discrimination, continue to be underserved by mainstream financial institutions,” the study says.

The larger tale is that minority neighborhoods still do not have the same access to banks and lending institutions that non-minority neighborhoods enjoy. While the practices are now less covert (no redlining, restrictive deeds and covenants, riots when minorities moved into white neighborhoods), there are still clear race lines in American lending. These lending patterns have a strong impact on where people live, contributing to residential segregation (as seen in these maps).