Finances, ideal lifestyles, and the push and pull away from cities experienced by young adults

Looking back at residential patterns after the late 2000s economic crisis and the COVID-19 pandemic, what motivated younger adults to leave cities and move to suburban or rural communities?

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Later waves that arrived just after the Great Recession, however, had a different type of migrant identity. As luxury housing continued to be built in New York City and affordable areas disappeared, some residents found the big city “inhospitable to their desired urban lifestyle and identity”: “Many of today’s newcomers to Newburgh use the term ‘priced out’…though few actually left in direct response to their rents rising or their landlord pressuring them to move out,” Ocejo writes. “But cost still played an important role in their decision to relocate…. They felt displaced from their own potential and opportunities to thrive as middle-class urbanites living a specific city lifestyle in the metropolis.”

Herein lies the tension between getting “pushed” from a city versus “pulled.” Some contemporary migrants are pushed from a particular lifestyle and pulled by a promise that it can be built elsewhere. Unlike midcentury white flight—which was highly dependent on the construction of suburban housing, racism, and statecraft—middle-class millennials (especially those facing mounting city prices and remote work) find that smaller cities and towns cater to a broader vision for life, one that provides opportunities to buy a house, build a business, or comfortably raise a family…

“When people move from one community to another…they leave behind their old job, connections, identity, and seek out new ones. They force themselves to go meet their neighbors, or to show up at a new church on Sunday, despite the awkwardness,” Appelbaum writes. What this might mean for rural or metro areas is yet to be seen. But for people moving out of large cities, it’s redefining what upward mobility might look like. Building wealth through housing may be unattainable, but it’s being replaced by a search for a new American dream: self-actualization.

What I read in this description is an intertwining of financial matters and what lifestyle people see themselves having. Costs and resources matter; housing is a sizable portion of many budgets. Housing has become more expensive in many American metropolitan areas. But cultural narratives and individual aspirations also matter; what life does someone want to live? What do they see as a good life?

On this first factor, it helps to have more financial resources. The stories told in this article seem to involve people who had enough resources that they had options of where to live. They could make a major move, perhaps by selling a residence in one place to go to another. Or they had careers and job skills that enabled them to live in multiple places.

On this second factor, Americans have developed a lot of narratives over time about desirable lives. They want a single-family home in the suburbs. They want to be individuals who pursue their own path (the self-actualization suggested above). They want to engage community life. And so on.

Perhaps then it would be helpful to think about a two-pole line that demonstrates how people make decisions about where to live and what to pursue. On one side of the line is finances and what is possible in terms of money and resources. On the other side of the line is an image of the life they want to live and what that entails on a day-to-day and long-term basis. Depending on the current situation personally and in society, they might slide a marker more toward one pole than the other.

(Does this describe how young adults make these decisions or is this limited to a certain subset with particular resources and goals?)

Increased demand for airport lounges is a sign of elite overproduction?

More travelers want to use airport lounges. Does this signal a broader problem in society?

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In the context of airport lounges, the “elite” are not just the ultra-wealthy, but the vast upper middle class—armed with a combination of higher degrees, status, and premium credit cards—now jostling for the same perks. But what if much of society has been turning into some version of an overcrowded airport lounge?

In an interview with Fortune Intelligence, Turchin said this theory makes sense and fits with his thesis when presented with the similarities. “The benefits that you get with wealth are now being diluted because there are just too many wealth holders,” he said, citing data that the top 10% of American society has gotten much wealthier over the past 40 years. (Turchin sources this statement to this working paper from Edward Wolff.)…

When asked where else he sees this manifesting in modern life, Turchin said “it’s actually everywhere you look. Look at the overproduction of university degrees,” he added, arguing that declining rates of college enrollment and high rates of recent graduate unemployment support the decreasing value of a college diploma. “There is overproduction of university degrees and the value of university degree actually declines. And so the it’s the same thing [with] the lounge.”

Noah Smith argues that elite overproduction manifests as a kind of status anxiety and malaise among the upper middle class. Many find themselves struggling to afford or access the very symbols of success they were promised—be it a prestigious job, a home in a desirable neighborhood, or, indeed, a peaceful airport lounge. He collects reams of employment data to show that Turchin’s theory has significant statistical support from the 21st century American economy.

The article suggests an increased number of travelers can access airport lounges and this hints at more people with money to spend. But I wonder how these other factors play in:

  1. Different standards of living. How do expectations shift over time about accessing airport lounges or other luxury goods? How many other goods or services over time have moved from luxury goods to being available to masses of people?
  2. Expectations about travel. A standard Internet narrative goes like this: airplane travel was once luxurious (forget the slow speeds). Then it became a mass phenomena and customers were treated poorly. Are airport lounges a way travelers are reclaiming a better travel experience?
  3. The airlines helped create this demand by introducing this perk; now they are surprised it is popular? Do they want it to remain exclusive or do they want more travelers to access lounges (and then the airlines benefit further)? Put another way: did customers want this first or did airlines push the lounges?
  4. Why not offer an upgraded experience for all travelers? Does this not generate as much revenue or status for the airlines?

If Delta is able to figure out how to make the lounge “work,” would their practices then translate to other areas of society?

How many suburban communities will allow chickens?

Given the price of eggs, is this a moment when more suburban communities will allow residents to have chickens?

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Americans like suburbs for multiple reasons. Some of these reasons might appear to support homeowners having chickens while others might seem to oppose it. A quick breakdown:

-Closer to nature: suburbanites keeping chickens feel they are closer to the land and to animals. Suburbs with chickens can feel more like rural areas.

-Middle-class aspirations: suburbanites pay a lot of attention to what yards should look like. For example, lush green grass is a preferred option in many places. Chickens can disturb this aesthetic. Or keeping chickens might be considered something that contributes to a lower status for a neighborhood or a community. At the same time, middle-class residents can tout the financial benefits of keeping chickens instead of paying for eggs.

-Single-family homes and the rights of property owners: suburbanites take property rights seriously. If you own your home, shouldn’t you have freedom to do with it what you want? However, many Americans live in HOAs that have particular standards or suburbanites live in communities where particular standards are maintained (such as the maximum length of the lawn). Is the ability to live a quiet suburban life with higher property values hampered if a neighbor has chickens?

Suburbanites could make arguments for chickens and against them out of the same common suburban values. This could mean that all of these debates are then local and depend on the context of the community. How many community members are in favor? How does the community view itself and do chickens fit into that vision? Do the current economic conditions push residents and leaders in one direction?

Argument: “The sharp decline in geographic mobility is the single most important social change of the past half century”

People in the United States move less than they used to. One writer describes the consequences:

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But over the past 50 years, this engine of American opportunity has stopped working. Americans have become less likely to move from one state to another, or to move within a state, or even to switch residences within a city. In the 1960s, about one out of every five Americans moved in any given year—down from one in three in the 19th century, but a frenetic rate nonetheless. In 2023, however, only one in 13 Americans moved.

The sharp decline in geographic mobility is the single most important social change of the past half century, although other shifts have attracted far more attention. In that same span, fewer Americans have started new businesses, and fewer Americans have switched jobs—from 1985 to 2014, the share of people who became entrepreneurs fell by half. More Americans are ending up worse off than their parents—in 1970, about eight out of every 10 young adults could expect to earn more than their parents; by the turn of the century, that was true of only half of young adults. Church membership is down by about a third since 1970, as is the share of Americans who socialize several times a week. Membership in any kind of group is down by half. The birth rate keeps falling. And although half of Americans used to think most people could be trusted, today only a third think the same…

As a result, many Americans are stranded in communities with flat or declining prospects, and lack the practical ability to move across the tracks, the state, or the country—to choose where they want to live. Those who do move are typically heading not to the places where opportunities are abundant, but to those where housing is cheap. Only the affluent and well educated are exempt from this situation; the freedom to choose one’s city or community has become a privilege of class.

A possible solution?

These three principles—consistency, tolerance, and abundance—can help restore American mobility. Federal guidelines can make the environment more amenable, but the solutions by and large cannot come from central planning; states and cities and towns will need to reform their rules and processes to allow the housing supply to grow where people want to build. The goal of policy makers, in any case, shouldn’t be to move Americans to any particular place, or to any particular style of living. They should instead aim to make it easier for Americans to move wherever they would like—to make it equally easy to build wherever Americans’ hopes and desires alight.

We will likely never be at a point where everyone will move to pursue certain opportunities – see an earlier post here – but this trend over time does go against earlier patterns. If more people were able to move, they might then be able to take advantage of housing or job opportunities.

One thing I have not seen in articles that highlight this: do more people want to move but can’t (which could be linked to social class)? Take some patterns from recent years. If more employers allowed work from home, would this free up people to move? If people perceive there to be more opportunities in the Sun Belt, how many move there (hence growing populations in recent decades) versus those who cannot?

Or, what if more people are used to not moving now and would stay put even if there were opportunities elsewhere? The era of mass mobility may be over and new generations are less used moving. Perhaps they want to stay closer to family or like staying rooted in one place.

Maybe the hyper mobility of Americans in the 19th and part of the 20th centuries was abnormal. Before then, opportunities were more restricted and people had stronger ties to families and communities. Why should humans move so frequently?

Looking forward, does easy access to social media and the Internet make it even easier to not move? People can access the connections and opportunities they want from wherever they are, as long as they have a fast connection.

“Symbolic capitalists” driving social media activity

In his analysis of “symbolic capitalists” in We’ve Never Been Woke, sociologist Musa al-Gharbi summarizes research on who uses social media:

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All said, it is a relatively small segment of the population that is “very online” with respect to social media, or that regularly consumes jouranalistic media in virtually any format (TV, online, print, podcasts) – let alone engaging with research by think tanks, nonprofits, activists, or academics. Mostly, it’s people like us. Virtually the entire political and cultural melodrama carried out in academia, policymaking spaces, media outlets, and social networking sites it carried out among symbolic capitalists. The views and priorities of most others are simply unrepresented in these spaces. And for their part, most of those who are not symbolic capitalists are not particularly interested in the highly idiosyncratic struggles we invest so much of ourselves into. (195)

This seems consistent with earlier reports I’ve seen. Social media activity is driven by a small set of users who are not representative of the American population at large.

This could be helpful to keep in mind when wondering if social media is fragmented or how widespread a trend is or whether algorithms could be driving people to different corners of the Internet. These features might be true AND social media as a whole might be driven by a small set of people who share particular positions and practices.

(Read more about the definition of symbolic capitalists here.)

The shift in voting patterns among the wealthiest Americans

Here is one political shift that occurred in recent years:

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Over the past decade and a half, however, the dynamic has dramatically shifted. In 2008, the top fifth of earners favored Democrats by just a few percentage points; by 2020, they were the group most likely to vote for Democrats and did so by a nearly 15-point margin. (Democrats won the poorest fifth of voters by a similarly large margin.) Democrats now represent 24 of the 25 highest-income congressional districts and 43 of the top 50 counties by economic output. A similarly stark shift has occurred if you look at college education rather than income. Perhaps most dramatic of all has been the change among wealthy white people. Among white voters, in every presidential election from 1948 until 2012, the richest 5 percent were the group most likely to vote Republican, according to analysis by the political scientist Thomas Wood. In 2016 and 2020, this dynamic reversed itself: The top 5 percent became the group most likely to vote Democratic…

That realignment leaves both parties in a strange place heading into November. Voters consistently say that the economy is the most important issue of the 2024 election. And yet the affluent overwhelmingly support Kamala Harris, whose administration favored bold redistribution and big government spending, while a critical mass of working-class voters favor Donald Trump, whose economic agenda consisted largely of cutting taxes for the rich and trying to kill the Affordable Care Act.

This is not the only political shift in recent years but an interesting one nonetheless. Are these political shifts enduring? Such a shift disrupts short-term activity but there could also be long-term consequences. With the resources and connections elites have, does a shift like this lead to other consequential changes?

While the article focuses on whether these voters are voting in their material best interests, another part is intriguing: how then does this fit with the American obsession on the middle-class and the political rhetoric and activity that goes along with this? Does the composition of who comprises the electorate for a political party than affect how much the party talks about the middle-class or pursues policy aimed to help that group?

And since I think about the suburbs a lot, how does this affect how the two parties view suburbs in the United States? Traditionally viewed as middle-class places with powerful local control, does this shift with new political bases at play?

A more diverse suburbia and “liv[ing] together in difference”

This quote from the end of historian Becky Nicolaides’ new book The New Suburbia: How Diversity Remade Suburban Life in Los Angeles after 1945 is worth noting:

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The new suburbia emerged as a crucial site where people of different backgrounds, races, classes, and identities coexisted as neighbors, where people were trying to figure out how to live together in difference.

Building on decades of ideology, policy, and patterns in social relations, the American suburbs that grew quickly immediately after World War Two were often single-family home communities with white and middle-class and above residents. But as suburbs changed, particularly in more recent decades, they have become a different landscape. They are more diverse in terms of race and ethnicity and social class. They include numerous immigrants. They can contain different kinds of housing. Suburbanites live in a variety of communities distributed across a metropolitan landscape. Los Angeles is a good place to see these changes in action but this has happened in numerous metropolitan areas across the United States. All of this has led to a more complex suburbia.

Given the quote above, I also wonder if suburbs then can end up being places where Americans do “figure out how to live in difference.” Suburban history is full of examples of exclusion by race and social class. Do suburbanites on a whole today work together to address issues they all care about? Are the suburbs as a whole welcoming places? Can local tensions be resolved effectively? What places and/or groups can help bridge differences in suburbs? Or are suburbs a patchwork of exclusion and different kinds of development that holds together under the place category of suburbs?

Americans on what they think the cutoffs are to be considered “financially comfortable” and “wealthy”

A recent survey asked Americans how much wealth someone would need to fit into different categories. Here are some of the results:

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Charles Schwab today released additional findings from its 2024 Modern Wealth Survey. Since 2017, Schwab has collected data annually on Americans’ perspectives on saving, spending, investing, and wealth. This year’s study reveals that Americans now think it takes an average of $2.5 million to be considered wealthy – which is up slightly from 2023 and 2022 ($2.2 million).

By generation, Boomers have the highest threshold of what it takes to be considered wealthy, at $2.8 million, while the younger generations, Millennials and Gen Z, have lower thresholds of what is considered wealthy. At the same time, Americans say that the average net worth required to be financially comfortable is $778,000. The average net worth required for financial comfort reached a peak last year at $1 million, but this year, Americans’ estimations are more in line with 2022 ($775,000) and show an upward trend when compared with 2021 ($624,000).

Income is one measure of considering status and social class and wealth – adding up assets and subtracting debts – is another way. It may have benchmark figures like income does; perhaps making six figures is similar to being a millionaire or the median income might be akin to median wealth.

The survey referenced above has less intuitive figures after considering all the responses. To be wealthy, $2.5 million is up from previous years. It is certainly above $1 million and $2 million. It feels oddly specific, as if having $2.3 million would not quite qualify but $2.8 million certainly does (even for Boomers!).

The figure for being financially comfortable is also interesting: $778,000. Less than $1 million, more than $500,000. The figure has gone up and done in recent years. Having less than $778k feels uncomfortable and insufficient?

This would be fascinating to track over time with multiple kinds of data. If asked to add up different costs or expenses people might face, would the responses from the survey be revised upward or downward? Does this depend highly on the respondent’s current income level or cost of living or other traits? How much do broader economic factors affect the responses people give?

The key to the American middle class is feeling middle class

Forget material measures of being middle-class; what if the key is that people in the American middle class feel that they are comfortably middle class?

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Vincent is among a growing group of middle-class Americans — most recently defined in 2022 by the Pew Research Center as households earning between $48,500 and $145,500 — who don’t feel they can’t afford to live a traditional middle-class life, replete with a home and a comfortable retirement…

Collins suspects that most middle-class Americans feel anxious about their financial situation due to financial shock fatigue — the exhaustion of navigating one big economic shock after another — as well as a lack of financial planning…

Financial anxiety has hit an all-time high, according to a survey from Northwestern Mutual, and a survey from Primerica found that half of middle-class households say their financial situation is “not so good” or outright “poor.”…

Buying a home may be the greatest example of a tenet of middle-class life feeling out of reach for many, and that struggle is very real rather than merely negatively perceived.

The suggestion is that people feel less certain of their social class status because of financial uncertainty at the moment and in recent years. They may have resources, particularly a certain income level, but they do not feel secure.

What might this mean for defining the middle class? Perhaps this should lead to changing what it means. If people do not feel that certain markers provide a middle class status, then change the markers. These variables might need to change as economic conditions change.

It would also be interesting to see what social class those feeling financial anxiety say they are in. Traditionally, being in the middle class was a sign of making it and being successful. Would someone who might be classified as middle class by income and other markers say they are working class? Is there a big shift away from identifying as middle class?

    The American middle class and a high salary to “live comfortably” in a city with a 50/30/20 budget

    SmartAsset recently looked at the salary needed to “live comfortably” in American metro areas. The numbers are pretty high:

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    Key Findings

    • On average, an individual needs $96,500 for sustainable comfort in a major U.S. city. This includes being able to pay off debt and invest for the future. It’s even more expensive for families, who need to make an average combined income of about $235,000 to support two adults and two children without the pressure of living paycheck to paycheck.
    • A family must make over $300k to raise two kids comfortably in six cities. Two working adults need to make a particularly high combined income in San Francisco ($339,123); San Jose ($334,547); Boston ($319,738); Arlington, VA ($318,573); New York City ($318,406); and Oakland, CA ($316,243) to raise two children with enough money for needs, wants and savings.
    • It takes the most money to live comfortably as a single person in New York City. This breaks down to $66.62 in hourly wages, or an annual salary of $138,570. To cover necessities as a single person in New York City, you’ll need an estimated $70,000 in wages. 

    Here are the budget calculations:

    SmartAsset used MIT Living Wage Calculator data to gather the basic cost of living for an individual with no children and for two working adults with two children. Data includes cost of necessities including housing, food, transportation and income taxes. It was last updated to reflect the most recent data available on Feb. 14, 2024.

    Applying these costs to the 50/30/20 budget for 99 of the largest U.S. cities, MIT’s living wage is assumed to cover needs (i.e. 50% of one’s budget). From there the total wage was extrapolated for individuals and families to spend 30% of the total on wants and 20% on savings or debt payments.

    I would be interested to see how this compares with how different people or groups over time have defined the American middle class. Is it a particular income band or an ability to have certain kinds of experiences? Do Americans in the middle class interpret their own lives as living comfortable?

    Since most residents in cities do not have the salaries listed above, one conclusion is that many people are not able to live comfortably. Do these numbers mean that people below these salary points are living paycheck to paycheck (or think they are)?

    This could lead to helpful discussions of social class, pay, and conditions in American cities. If Americans should be able to live on a 50/30/20 budget, what could be changed to help people achieve this?