Eight (unlikely and unpopular) policy options for addressing housing issues

After a recent conversation with colleagues prompted by reading together the sociological work Evicted as well as my own thinking about residential segregation, I wanted to put together a blog post summarizing possible policy solutions to housing issues. I am not optimistic but here are the possible options I see at multiple levels:

  1. Provide incentives for developers and builders. This is a common strategy across different government levels: builders and developers are given access to choice properties or are able to build higher-end housing if they build cheaper housing or provide monies that could be used for cheaper housing. A number of major cities, including Chicago, have such incentives. However, it does not seem to have made a major dent in the amount of affordable housing that is needed. I have heard that argument that governments have simply not offered big enough incentives – there is a tipping point where this could really push builders and developers to construct cheaper housing. I don’t think I buy this argument. Even though there is clearly a market right now for cheaper housing, why would builders and developers not try to build the priciest stuff they can to bring in more profit?
  2. Other market-driven solutions beyond incentives. I’m on the record here as skeptical that free markets can address issues of residential segregation and housing. Vouchers have their supporters since they theoretically would allow poorer residents to access areas of the housing market they otherwise could not. At the same time, introducing vouchers leads to other issues such as inflated prices/rents and negative reactions to those with the vouchers.
  3. Local government action. Municipal officials have a good amount of control over what can be built within their boundaries. However, they are constrained by (1) local residents who want to protect their community (examples of NIMBY in action here and here) and (2) limited budgets and revenues so they are typically trying to maximize property and sales taxes while minimizing use of social services. The biggest tool municipalities have are local zoning guidelines that often constrict what can be built (see recent suburban non-housing examples here and here). One way that wealthier areas exclude those who are not so wealthy is to not allow multi-family housing or set guidelines requiring larger lot sizes.
  4. Metropolitan action. Housing is really an issue that spans municipalities as the majority of people live in one place and commute to another for work (plus drive elsewhere for other amenities). Yet, metropolitan governance does not exist on a large-scale in the United States. Outside of a few regions, this is not a viable option: people in different communities do not have ways to collaborate nor would they necessarily want to. This is particularly true of wealthier communities. Residents would argue that this is the purpose of local government: local residents should get to make decisions about their own communities rather than handing off money and/or control to an outside body that wishes to damage their quality of life. See examples of how this can play out regarding affordable housing in one region and another involving transportation across a whole region.
  5. State governments. States could decide to impose regulations and guidelines but then they would have to overrule municipalities. This is difficult. For example, Illinois in 2004 an affordable housing guideline where every community was supposed to have a certain percentage of their housing stock within affordable limits. The guidelines could have been useful but they had no teeth and what counted as affordable was loosely defined. As this 2015 Chicago Tribune article suggests, wealthier communities did not submit to the guidelines and “Lee acknowledged that the agency has no authority to enforce the mandate if municipalities do not submit affordable housing plans.” Nothing really changed – and I’m guessing this was intentional.
  6. Federal government. Even though the United States has public housing, it was difficult to get off the ground and is not viewed favorably by many. That whole single-family homes fights communism thing plus the American ideal is everyone owning a home. Even if public housing had some successes, on the whole federal efforts have promoted white suburbs mortgages for single-family homes are subsidized. Results for federal initiatives involving vouchers, such as Moving to Opportunity, are mixed as many of the residents end up in similar poor neighborhoods and it is not clear if certain long-term outcomes such as education and employment are positively affected. Federal efforts consistently draw negative responses from conservatives. Operators in the housing industry – the National Association of Home Builders, the National Association of Realtors, lenders, and others – mobilize to protect the mortgage interest deduction and single-family homes. American Apartheid suggested we lack the political will to enforce the 1968 Housing Act and thus we still have discrimination in housing (from mortgages to real estate agents to landlords and more).
  7. The court system. Given the relative lack of action by local and state officials, housing and zoning cases do occasionally make it to state and federal courts. I argued a few years back that I could envision the Supreme Court approving inclusionary zoning (I’m not sure I still think this given the current makeup of the court). They can indeed take action and compel other governmental bodies to address issues. Some famous cases include the Gatreaux case in Chicago where a court ordered scattered-site housing and the Mount Laurel cases in New Jersey combating exclusionary zoning. The problem with these is that they require taking legal action in the first place, they can take a long time to litigate, and while the results may be compelling, they are still often viewed unfavorably and putting the changes into action are not easy.
  8. Non-profits and religious groups. Either sets of groups have limited resources – housing is a very expensive proposition on a large scale – or are more interested in other concerns. Groups like Habitat for Humanity may do good things but they can only build so many houses and not all communities or neighborhoods are welcoming to their projects. Churches, particularly big ones, could access a good amount of resources but housing is more of a structural issue that many conservative Christians may not want to get into.

All of these options are difficult to implement. On the whole, many wealthier suburbanites and urban residents do not want any kind of cheaper or subsidized housing in their neighborhoods or community.

If I had to pick two levels that provide the best opportunities, I might go with local government and the courts. Zoning guidelines are often developed by average citizens sitting on local committees. Get named to such committees and you can influence this process. The courts are a way to get around the unpopularity of introducing cheaper housing as such measure are unlikely to find broad support. At the same time, as noted above, the court route has its own challenges.

Perhaps the most daunting option in my mind is trying to influence the federal level. Does any political party talk seriously about housing? After all, one journalist captured this quote:

The former governor of the Bank of England, Mervyn King, told me this: “Most countries have socialized health care and a free market for mortgages. You in the United States do exactly the opposite.”

It will be hard to alter an entire system based on providing socialized mortgages for the middle-class and above.

A deep American social problem: residential segregation

This post is about a crucial American social problem. It is not about uncivil discourse, increased immigration, political polarization, a decline in social trust, consumerism, or other regularly-discussed options. Rather, underlying many other American issues is residential segregation which occurs by race and class. Here are just some of the social spheres it affects:

  1. Schools. While Americans tend to see more education as a silver bullet to all social problems, the fate of schools is closely tied to their neighborhoods and communities. This is not mainly about funding. It is more about mixing kids of different socioeconomic backgrounds together. Read about the Coleman Report from 1966.
  2. Social networks. Even in a digitally connected, who you live near affects who you and/or your kids see on a regular basis. Live near people like you and you will interact with people like that more.
  3. Quality of life in the community and availability of social services. Factors like crime, public parks, health care, local amenities (libraries, park districts, civic organizations), and local programs (through local governments as well as non-profits and other civic organizations) are connected to the wealth and resources of a community.
  4. Access to jobs. Spatial mismatch describes situations where jobs available to lower-skilled workers are far in distance from lower-skilled workers. Live in a wealthier community and you are likely closer to better jobs.
  5. Access to good housing. Affordable and quality housing is difficult to find in many places in the United States but those with more resources and whose race and ethnicity are viewed more favorably have more housing opportunities.
  6. Building wealth. Since wealth creation is tied to homeownership and good jobs, those who have harder times accessing these two things have a harder time developing and passing along wealth. The disparities between the wealth of whites and blacks as well as Latinos are huge.
  7. Concentrated poverty. As wealthier communities are able to keep poorer residents out through a variety of methods (even as poverty increases in the suburbs), poorer residents can be limited to certain neighborhoods and communities which can exacerbate problems.

It is difficult to truly address a number of American social problems if this problem of residential segregation is not addressed. Read more about how this residential segregation came to be in an earlier post about the development of American suburbs.

Of course, residential segregation cannot be said to be the deepest American problem since beneath residential segregation is the uglier issue of the “American dilemma” or “America’s original sin“: racism.

 

“[P]eople with tiny house budgets often have McMansion dreams”

The title of this post is part of a larger quote – “On Tiny House Hunters it is painfully transparent that people with tiny house budgets often have McMansion dreams” – as a writer reflects on HGTV’s portrayal of tiny houses:

They too yearn for an open floorplan. They want storage. They want privacy. They want sleek kitchen amenities. They want room to entertain. That desire, to entertain, is the most delusional. In a home built for one, that may, with some dieting and sucking in of the gut, accommodate two, there is no entertaining. When you buy a tiny home, you are also making a commitment to socialize with your friends elsewhere if you hope to keep those friends.

As the reality of tiny living sets in, the hunters often lament how tiny a tiny home actually is. Or they are in complete denial and exclaim that there is just so much space. In one episode of Tiny House Hunters a man sat in the “bathtub” in the tiny bathroom. He looked ridiculous, his knees practically in his mouth as he contorted himself into the improbable space. He, the realtor, and his friend, who were all viewing the property, were nonplussed, as if the goings on were perfectly normal. And there I was, shouting at the television, “What is wrong with you people?”…

Shows like House Hunters and Tiny House Hunters flourish, in part, because even now, after the mortgage crisis and financial collapse, home ownership and the American dream are synonymous. Home ownership represents success and the putting down of roots. Home ensures the stability of the American family. When you own a home, there is always a place where you belong, and where you are the master or mistress of your own domain…

A cheerful television show about homebuying isn’t going to sully itself with a frank examination of economic realities or the fallout from predatory lending practices that made so many people believe they could afford to live beyond their means. Instead, Tiny House Hunters allows people the trappings of a middle-class lifestyle, regardless of their actual economic circumstances. The homes the hunters look at are often stylish, modern reinterpretations of the cookie-cutter prefabricated homes that inspire so much cultural derision. They may not have much space but what space they have is well appointed and chic or quirky. Tiny house hunters can soothe their class anxiety and stay just within reach of what they so very much want but cannot afford to have.

This leads me to two thoughts:

  1. As the piece notes, there is an important connection here to social class. People on this show want to have a middle-class (or higher) lifestyle in a small package. They are often unwilling to give up on certain items just because they are pursuing a smaller house. Additionally, I would argue that this quest to downsize is a largely middle- to upper-class phenomenon. The people on the show are not ones driven to tiny houses solely because of economic necessity. The cost savings may be nice but they also talk about reinforcing familial bonds, being able to move a home around more easily, consuming less, and helping save the environment. As the writer notes, they are not seeking after mobile homes and the class implications associated with them. Instead, they often want customized tiny houses that continue to display their higher than lower-class lifestyle.
  2. Some might applaud these people for realizing they don’t need such a large house. Instead of purchasing a McMansion or even the average size new home (around 2,500 square feet), these people are consuming fewer resources and resisting the strong pull of consumerism. At the same time, they still find something valuable in owning their own home. Why does this interest in home ownership continue? if people truly wanted a more environmentally friendly option, shouldn’t they go move into a small apartment in a dense urban area where they don’t need to drive much? (Many of the tiny houses on HGTV are frequently in more rural settings and still require a lot of driving.) In other words, even having a tiny house still allows these homeowners to participate in the middle-class American Dream which largely revolves around owning your own detached home.

And just as a reminder, there is little evidence that many Americans desire a tiny house. As of now, they largely appeal to a small subset of the population that does not necessarily need them.

The tipping point income for men getting married may be $40,000

Amidst more Americans living alone, here is some discussion regarding at what income point men are more or less likely to be married:

Instead, analysts said, the decline in both marriage and partnerships is likely a result of the declining ability of men to earn a salary large enough to sustain a family.

“All signs point to the growing fragility of the male wage earner,” said Cheryl Russell, a demographer and editorial director at the New Strategist Press. “The demographic segments most likely to be living without a partner are the ones in which men are struggling the most — young adults, the less educated, Hispanics, and blacks.”

Russell pointed to data that shows marriage rates increase for younger Americans in connection with salaries. Fewer than half of men between the ages of 30 and 34 who earn less than $40,000 a year are married. More than half of those who make more than $40,000 a year are married, including two-thirds of those who make between $75,000 and $100,000 a year…

The Pew data underscores the economic marriage gap: Adults who do not live with partners are more than twice as likely to live in poverty than those who have partners.

“Our surveys show us that one of the things that’s holding unmarried adults back from getting married is that they feel they’re not financially stable enough,” Parker said.

While there are likely additional reasons for this (one example: the development of the idea that marriage is about two economically stable people coming together), marriage in American is increasingly tied to social class.

Quick Review: White Trash and Hillbilly Elegy

I recently read both White Trash by Nancy Isenberg and Hillbilly Elegy by J.D. Vance. These two books address the same topic – the white lower class in America – yet have several notable differences. Here is my quick review:

  1. The topic may be the same but the method and genre are quite different. Isenberg covers 400+ years of history while Vance tells the story of his own life. This difference in genre matters: Isenberg has a lot to cover and has difficulty providing details at points. The early history of poor white settlers is particularly interesting as convicts and lower-class residents of England were sent to the colonies. At the same time, there is little depth for the most recent decades and the narrative tends to solely follow presidential politics. On the other hand, Vance is writing a memoir. While he hints at broader trends, occasionally speaks for all hillbillies, and cites some academic studies, he primarily focuses on his own journey in a geographic area including southeastern Ohio, West Virginia, and eastern Kentucky. Together, these two books provide an outsider and insider perspective.
  2. Their political approaches differ. Isenberg provides some of this in the introduction as well as in the most recent history as she does not think the Republican party has much to offer working-class whites. In contrast, Vance does not think government is the answer to improving the lives of hillbillies and consistently affirms their agency and need to make good choices. Vance’s book is blurbed by prominent conservatives and he leans toward Republican or libertarian approaches. It would be interesting to consider the alternative approaches: an academic history that promotes a conservative approach and a memoir that pushes a liberal perspective.
  3. What they attribute the causes of the poor white or hillbilly life varies and hints at the complexity of this issue. Isenberg shows that the need for cheap labor has always been at the root of American social and economic life. Poor whites have been treated poorly from the beginning of the country. In particular, Isenberg highlights the interaction between poor white labor and slavery which foments resentment between blacks and poor whites even though both were exploited for centuries. On the flip side, Vance focuses more on the passing down of values within families and communities. In other words, hillbillies become hillbillies because this is the life they know and experience from their families and neighbors. Breaking this cycle is very difficult, even for someone who spends four years in the Marines and graduates from Yale Law School.

Even with (or even because of) these differences, I would recommend reading these two books together. There are clearly patterns in American history regarding poor whites (Isenberg) even as individual stories can differ with the influence of notable family members and contexts (Vance). While we do not have to go so far as Vance does in suggesting these problems cannot be solved, these two approaches do display the complexity of the situation. Those looking for a quick political fix in terms of helping Democrats appeal to poor whites again or looking for people to find family values and pull themselves up by their bootstraps will likely to be disappointed. This is a long-standing issue rooted in centuries of oppression and it still brings about much personal pain.

American marriage increasingly related to social class

Continuing a trend of recent years, recent studies show that those getting married in the United States are more likely to be middle or upper class:

Currently, 26 percent of poor adults, 39 percent of working-class adults and 56 percent of middle- and upper-class adults are married, according to a research brief published today from two think tanks, the American Enterprise Institute and Opportunity America. In 1970, about 82 percent of adults were married, and in 1990, about two-thirds were, with little difference based on class and education.

A big reason for the decline: Unemployed men are less likely to be seen as marriage material…

In reality, economics and culture both play a role, and influence each other, social scientists say. When well-paying jobs became scarce for less educated men, they became less likely to marry. As a result, the culture changed: Marriage was no longer the norm, and out-of-wedlock childbirth was accepted. Even if jobs returned, an increase in marriage wouldn’t necessarily immediately follow…

People with college degrees seem to operate with more of a long-term perspective, social scientists say. They are more likely to take on family responsibilities slowly, and they often benefit from parental resources to do so — like help paying for education, birth control or rent to live on their own. In turn, the young adults prioritize waiting to have children until they are more able to give their children similar opportunities.

I have had this thought when seeing middle and upper class couples that have dated or lived together for years: what is their purpose in getting married? Do they need the government (and occasionally religious) backing to their union or is this primarily about social status?

As I’ve written before, perhaps more and more Americans see living alone as the preferred way to live out their adults lives rather than marriage.

Bus ridership down in America

Fewer Americans – 13% – are riding buses compared to ten years ago.

I’ve argued before that Americans perceive mass transit options as having different statuses. For those with more resources, trains and subways are preferable. If those are not easily accessible or the person has reached a certain status in life, driving is a must.

At the same time, bus service is relatively cheap for cities and communities to provide. Because American cities are often planned around cars and have spent decades trying to efficiently move vehicles around, adding or subtracting buses to adjust service levels is doable. In contrast, constructing new trains or subways can be incredibly costly and require years of work. It may be that in the long run trains and subways are better options to plan around but that requires a long-term commitment.

 

 

 

 

 

 

Diversity in a community does not necessarily lead to diversity in interaction

Having a diverse population within a municipality or neighborhood doesn’t guarantee the groups will interact or work together:

Although my neighborhood was majority-black for much of my life, most of my friends were white. The same held for most of my parents’ friends. The kids I played with on my block were white. Diversity segregation of this kind manifested in other ways too. Mount Rainier is divided between single-family homes and the WWII-era brick garden apartment complexes that house two-thirds of the population. By the 1990s, these were overwhelmingly populated by people of color, while almost all of the white population lived in the single-family homes…

“On paper we are so diverse, but we really are not integrated,” Christopherson, Miles’ opponent in the mayor’s race, told me in the spring. “Just because you are exposed to people from the West Indies or El Salvador, or African Americans and whites, that has only a little benefit. But what if you were also coming together in a city committee or city events?”…

At present, Mount Rainier is still majority-black, and there are plenty of Hispanic and black homeowners. But consider the most extreme scenario, in which the single-family housing stock largely becomes the preserve of white professionals while working-class people of color remain in the apartments. In that case, Mount Rainier would experience a dispiritingly familiar form of segregation, where urban design and geography separate races. The two housing stocks in town do not share the same commercial corridors. The residents of the apartments are often transitory, and they do not vote as often. They tend to not identify with the commercial corridor near U.S. 1, which contains the Glut Food Co-op and harbors much of the civic infrastructure. Instead, the residents of the brick, multifamily housing do their shopping on the high-speed autocentric Queen’s Chapel Road commercial corridor.

The proposed solution? More interaction across groups within the public school system:

“The important thing is consistent exposure over a long period of time,” says Camille Z. Charles, professor of sociology at the University of Pennsylvania and director of its Center for Africana Studies. “We are often friendlier with people we actually interact with. We do find there is lasting benefit to that, which is why we think it is important to have [diversity] in schools because kids spend so much time in classrooms and on school campuses.”

Four quick thoughts:

  1. This is where Census data can let us down and experience on the ground is helpful. From a macro level, a community or city can look very diverse. An obvious example is a major city like Chicago which is around 45% white but is one of the most segregated cities in America. However, this also happens in much smaller communities as well. Take Wheaton, Illinois. Starting in the late 1800s, a small population of blacks lived on the east side of the city. This was unusual: very few Chicago suburbs had any black residents. But, how much interaction was there between groups in Wheaton?
  2. The author notes that this community is unusual in that a sizable white population remained even as the black population grew. This doesn’t happen in many places: as minorities move in, whites leave.
  3. While race is highlighted here as the dividing force, it sounds like social class is also a factor. While the two areas are closely intertwined, addressing one without the other may be as profitable.
  4. The proposed solution in the public schools is not an unusual one. Yet, it does highlight how few social institutions in the United States really cut across racial or class lines. Where else might people of different groups interact when most other opportunities (from churches to local government to social clubs and civic groups) are segregated?

Thoughts on “The rise of the McModern” McMansion

Kate Wagner of McMansionHell fame analyzes a subset of McMansions dubbed McModerns:

What makes the McModern a fascinating case study in residential architectural history is its two separate lineages: its foundation as a McMansion, and its origins within the greater historical context of popular modernism—that is, modernism for everyday families…

In the grand taxonomy of residential architecture, the McModern is a genus within the McMansion family. This is not to say that the “modern” part isn’t as important as the “Mc,” because the McModern as we know it derives from a source not often touched upon: the everyday modern houses not designed by famous architects, but by builders, or from pattern books…

The socioeconomic and technological development of the 21st-century McModern is strongly tied to the relentless pursuit of minimalism, beginning with industrial design: At the turn of the millennium, we entered the iPod age. Even more importantly, we fully embraced the internet age, and then subsequently the mobile age. These shifts triggered the beginning of the McModern….

Are old modernist houses definitively better than McModerns? Perhaps not—all styles have their duds, after all. However, it is the indulgent, inefficient, and architecturally botched nature of the McMansion that lies beneath the sleek surface of the McModern. In the eyes of McMansion builders, modern architecture is perceived by potential buyers as the culturally significant, high-brow form of architecture, revered by the educated and glossy magazines. To see something only for its superficial attributes or financial potential and execute it carelessly is perhaps the most “Mc” thing anyone can do.

Borrowing from earlier styles of architecture was intended to give McMansions a sense of permanence and power, even if they were mass produced starting in the 1980s. But, what is the aesthetic appeal of modernist architecture? Wagner suggests it is minimalism and a certain kind of cultural cachet but this seems tricky with how modernist architecture has often been treated in the United States. Modernist architecture may be good for skyscrapers but is more suspect for homes where many residents want an appeal to family and traditional neighborhoods (even though modernism is now roughly a century old). Additionally, it is less clear how minimalism works when the house is over 3,000 square feet – not exactly a minimalist amount of space.

I have argued previously that Americans, if given a choice, would prefer McMansions over modernist homes. See earlier posts here and here. Wagner hints at these dynamics in her piece as well; the modernist McMansions may primarily appeal to those who (1) are aware of what high-brow architecture and care to associate with it; (2) those who are choosing to locate in rapidly hip gentrifying neighborhoods; and (3) those with a tech-savvy lifestyle.

Now, we just need some data to back this all up and demonstrate some patterns.

“[American] Dream Hoarders”

A Brookings Institution scholar examines the upper-middle class and how their choices separate themselves from the middle class:

A great, short book by Richard V. Reeves of the Brookings Institution helps to flesh out why these stories provoke such rage. In Dream Hoarders, released this week, Reeves agrees that the 20 percent are not the one percent: The higher you go up the income or wealth distribution, the bigger the gains made in the past three or four decades. Still, the top quintile of earners—those making more than roughly $112,000 a year—have been big beneficiaries of the country’s growth. To make matters worse, this group of Americans engages in a variety of practices that don’t just help their families, but harm the other 80 percent of Americans…

The book traces the way that the upper-middle class has pulled away from the middle class and the poor on five dimensions: income and wealth, educational attainment, family structure, geography, and health and longevity. The top 20 percent of earners might not have seen the kinds of income gains made by the top one percent and America’s billionaires. Still, their wage and investment increases have proven sizable. They dominate the country’s top colleges, sequester themselves in wealthy neighborhoods with excellent public schools and public services, and enjoy healthy bodies and long lives. “It would be an exaggeration to say that the upper-middle class is full of gluten-avoiding, normal-BMI joggers who are only marginally more likely to smoke a cigarette than to hit their children,” Reeves writes. “But it would be just that—an exaggeration, not a fiction.”

They then pass those advantages onto their children, with parents placing a “glass floor” under their kids. They ensure they grow up in nice zip codes, provide social connections that make a difference when entering the labor force, help with internships, aid with tuition and home-buying, and schmooze with college admissions officers. All the while, they support policies and practices that protect their economic position and prevent poorer kids from climbing the income ladder: legacy admissions, the preferential tax treatment of investment income, 529 college savings plans, exclusionary zoning, occupational licensing, and restrictions on the immigration of white-collar professionals.

As a result, America is becoming a class-based society, more like fin-de-siècle England than most would care to admit, Reeves argues. Higher income kids stay up at the sticky top of the income distribution. Lower income kids stay down at the bottom. The one percent have well and truly trounced the 99 percent, but the 20 percent have done their part to immiserate the 80 percent, as well—an arguably more relevant but less recognized class distinction.

The anxiety of being upper middle class: never quite wealthy enough to have all the goods and experiences of the highest group and always striving to stay above the normal/middle people.

Four quick thoughts:

  1. There is a certain lifestyle to be had here. See, my post a few days ago about a healthy lifestyle may have had some merit…
  2. As described here, many of the efforts appear aimed at avoiding downward mobility. In other words, there is some point in income, education, and lifestyle that cannot be crossed going the wrong way. But, there must be people who have this happen through events like losing a job or a major illness. What happens to them? For the “average” upper middle class person, what really are the odds that they would fall down a rung?
  3. There is a suggestion from the author that Americans shouldn’t and/or can’t just ask the 1% to sacrifice; the top 20% need to sacrifice as well. To put it mildly, this would not go over well. Given their anxieties as well as their tendencies to pull up the bridge after crossing the moat, efforts like affordable housing or school integration or significant increases in taxes will be met with opposition. They would use the rhetoric of the middle class – “we worked hard to get here – anyone could do it” – while pushing hard to protect their own status.
  4. Is the ultimate goal of this group to become truly wealthy? Most of them won’t have that opportunity and must know it. Or, is the goal is to simply not be middle class and have some more advantages than most people? Perhaps it really is about the children: is this the group that more than any other tries to give their kids every advantage as a supposed act of sacrifice?