Loss of housing wealth hits black suburbanites hard

The housing and economic crisis of the last decade has hit black suburbanites particular hard:

But today, the nation’s highest-income majority-black county stands out for a different reason — its residents have lost far more wealth than families in neighboring, majority-white suburbs. And while every one of these surrounding counties is enjoying a strong rebound in housing prices and their economies, Prince George’s is lagging far behind, and local economists say a full recovery appears unlikely anytime soon…

The recession and tepid recovery have erased two decades of African American wealth gains. Nationally, the net worth of the typical African American family declined by one-third between 2010 and 2013, according to a Washington Post analysis of the Federal Reserve’s Survey of Consumer Finances, a drop far greater than that of whites or Hispanics…

Not only is African American wealth down, but the chances of a quick comeback seem bleak. Just over a decade ago, homeownership — the single biggest engine of wealth creation for most Americans — reached a historic high for African Americans, nearly 50?percent. Now the black homeownership rate has dipped under 43?percent, and the homeownership gap separating blacks and whites is at levels not seen in a century, according to Boston University researcher Robert A. Margo…

Many researchers say the biggest portion of the wealth gap results from the strikingly different experiences blacks and whites typically have with homeownership. Most whites live in largely white neighborhoods, where homes often prove to be a better investment because people of all races want to live there. Predominantly black communities tend to attract a narrower group of mainly black buyers, dampening demand and prices, they say…

Scholars who have studied this dynamic and real estate professionals who have lived it say the price differences go beyond those that might be dictated by the perceived quality of schools, or the public and commercial investment made in particular neighborhoods. The big difference maker, they say, is race.

In other words, simply promoting homeownership – a key part of the ideal of the American Dream and also something taken as a sign that various groups have made it – is not the complete answer for thinking about equality among different groups. What homes people own and where they are located also matter. Decades of research in urban sociology and related areas shows that blacks and other minorities often don’t live in the same suburban settings as white suburbanites. Their homes tend to be located in poorer neighborhoods and neighborhoods that have higher non-white populations. This is due to a variety of reasons including long-term white wealth that gives whites better opportunities to move to wealthier and whiter places, zoning practices in wealthier communities that tend to limit cheaper or affordable housing (examples here and here), mobility patterns among whites that show they leave neighborhoods and communities as they become more non-white (the process of “white flight” continues in some suburban areas), and patterns of mortgage lending as well as renting that tend to take advantage of poorer and non-white residents. Tackling the issue of residential segregation still matters today even as more minorities and poor residents move to the suburbs.

 

Siblings dealing with an in-family wealth gap

Inequality by wealthy doesn’t just occur across groups or families – it can be an issue within families.

Experts see a growing trend. The same forces that have increasingly separated the richest Americans from everyone else is dividing brothers and sisters, too. It’s given rise to a mix of often conflicting emotions, jealousy and resentment, disappointment and distance, but also frequently understanding and respect…

As the wealth gap has widened, some mental health professionals say they’ve seen more patients for whom such a divide has become a personal issue.

In 35 years practicing psychotherapy, Janna Malamud Smith says she’s never had so many clients troubled by sibling wealth. The complaints have grown so familiar to her she can riff on them without pause…

A decade ago, sociologist Dalton Conley produced research suggesting that income inequality in America occurs as much within families as among them. Yet the similarities tend to end there. With siblings, “you had pretty much the same advantages and disadvantages growing up,” he says, so big difference in wealth can feel like a judgment on intelligence or drive.

How Americans feel about the wealth gap within their families shapes how they feel about it nationally, whether or not they see it as an inequity that must be addressed, says Lane Kenworthy, a sociologist at the University of California, San Diego…

Poll results suggest that many Americans feel the same way. Asked in October by Pew Research to name the most important reason for the wealth gap, 24 percent chose “some work harder than others,” more than tax policies, foreign trade or the educational system.

One review of Conley’s book The Pecking Order suggests Conley isn’t surprised to find inequality in the home:

Conley takes an opposing view, saying, “The home is no haven in a harsh world—it both creates and reflects that world” (p. 112). The problems of capitalism, racism, sexism, and bigotry that hinder and hurt people in society are the same ills that trickle unnoticed into the home.

This reminds me of Marx’s suggestion that the first exploitation occurred in the family. Also, this hints at the micro-level effects of broader conversations about inequality. It is one thing to have public discussions about the 1% or .01% but it is another to come face to face with these differences within your own family. How often do these kind of close interactions between unequal persons happen? Given our propensities to gather with people like us in our social networks plus the durability of social class in shaping our tastes and life chances, it may not be that often. Hence, the uniqueness of a show like Undercover Boss where the head of the company interacts with the average worker. Perhaps this means we need a show called Unequal Families

The American Dream and how Chicago magazine determined “Chicago’s Best Places to Live”

Chicago has a new list of the best places to live that includes 12 Chicago neighborhoods and 12 Chicago suburbs. Here are the factors the magazine used to identify these communities

First we looked at the factor that tends to be uppermost in the minds of families these days: safety. We eliminated from contention all community areas that notched violent crime rates higher than 7.0 offenses per 1,000 inhabitants last year (the city average: 9.3 per 1,000). That meant tossing out the Loop (9.9 per 1,000) and the historic South Side neighborhood of Pullman (11.2 per 1,000), for example. And we eliminated suburbs with violent crime rates above their county’s average—which removed from contention such otherwise appealing places as Evanston (2.2 per 1,000) and Oak Park (2.7 per 1,000), both in Cook County (2.1 per 1,000).

Then we turned to education. If a town or community lacks a public school whose students score above average on standardized tests, we dinged it. And because raising kids in an area that’s at least somewhat diverse is a goal of most parents, we nixed spots where more than 92 percent of residents are of any one race. (Bye-bye, Kenilworth, Western Springs, and Winnetka.)

For the places that remained, we looked at ease of transportation downtown, giving extra points to those that have several el stops and at least one Metra stop. (Places with outstanding schools and low rates of property crime also got bonus points.) And we considered how home prices in these places have fared in recent years compared with prices in neighboring areas, as well as whether buyers there can get good value for their money—which is not the same thing as paying the smallest amount. (For detailed price charts covering all Chicago suburbs and neighborhoods with at least 20 home sales in 2013, see this page with all the housing data.)

Finally, I hit the pavement to assess which spots possess those hard-to-define qualities that matter hugely when you’re looking for somewhere to live. Things like vibrancy (are there lots of bustling restaurants and shops?). Beauty (are there architecturally interesting buildings or just cookie-cutter developments?). Friendliness (does the community have a natural center that brings people together?). Is it, quite simply, a great place to call home?

So it boils down to safety, good schools, good transportation, higher than average housing values, and quality of life. Such measures are not uncommon on Best Places to Live lists.

However, it struck me upon reading this list that these traits tend to match a particular vision of a good community. If I may put it this way, it is a middle to upper-class ideal where kids are safe and nurtured and communities are protected from the difficulties of the world. It roughly matches the American Dream where people can live in small-town type places (even though most Americans do not live in such areas, they harbor the ideal of living in a tight-knit community – even if they may not want to contribute much to it) in relative comfort.

Just to take the two examples from DuPage County, Wheaton and Hinsdale, these communities partly derive their ranking from protecting this particular vision over the decades. Not everyone can move into these communities; it requires a certain amount of money as the affordable housing the communities discuss has much more to do with allowing senior citizens and recent college graduates to have somewhere to live rather than truly addressing low-income residents.

Maybe this methodology does reflect what many Americans want. The suburbs on the list are nice and the Chicago neighborhoods, while having more diversity, tend to be the more sought-after ones. At the same time, such lists could reinforce the notion that protected and wealthy places are the best ones, the ones we should all aspire to live.

Some Chicago suburbs welcome luxury apartments

A number of Chicago suburbs have new or recently approved luxury apartment complexes:

Suburbs that have long thought of themselves as bucolic communities filled with houses and families are warmly embracing the very type of residence that used to make them leery: the apartment.

Just don’t call them rentals, a word that conjures up an image different from the projects that municipal governments are selling to their constituents. Almost 4,000 apartments in well-appointed, amenity-filled buildings with rents to match are under construction or proposed in suburbs throughout the Chicago area. They are designed to attract young professionals and empty nesters with roots in the suburbs…

Some, but certainly not all the projects are transit-oriented, constructed near suburban downtowns and train stations or they are being used to create a downtown where there never was one before. But as they move forward, communities are grappling with concerns about density and traffic congestion, and affordable housing advocates worry that low and moderate-income residents who rely more heavily on public transportation don’t have the option of living near it…

“Many of them equated rental housing with low-income property,” Strosberg said. “It’s more recent that they’ve appreciated that rental comes in all different forms. There’s market-rate housing that appeals to a significant portion of their residents who don’t want to make a commitment to buying a place today.”

In wealthier suburbs, apartments often prompt images of transient residents who don’t care much about the community, lower-income residents, traffic, and large properties in communities proud of nice single-family homes. But, luxury apartments help reduce the perceived issues of social class and can bring money into the city (perhaps they can even help boost property values, residents spend money at nearby businesses, etc.). In other words, luxury apartments don’t create the same kind of issues, particularly if seen as part of reviving an area like a downtown. These communities may not go crazy approving such developments all over the place but I suspect many mature Chicago suburbs will continue to approve apartments that do contribute to higher densities but project a higher-end image.

Thanksgiving and Black Friday expose class differences

What people do on Thanksgiving and the day after is indicative of their class status:

But Black Friday is also, as pseudo-holidays go, more class-conscious than most. It is thus more divisive than most. If you can’t normally afford a flat-screen/iPad/Vitamix/Elsa doll/telephone, Black Friday discounts could offer you the opportunity to purchase those items. If you can normally afford those things, though, you may well decide that the trip to the mall, with its “throngs” and its “masses” and its sweaty inconvenience, isn’t worth the trouble.

Which is another way of saying what a headline last week, from the Los Angeles Times, summed up well: “Black Friday highlights the contrast between rich and poor.” As a spectacle, it may be celebrated by all, but it is participated in, increasingly, by a few. Black Friday stands, both temporally and culturally, in stark contrast to Thanksgiving, which is not a Hallmark holiday so much as a Williams-Sonoma one, and which involves, at its extremes, people who can afford heritage turkeys/disposable centerpieces/vessels designed solely to pour gravy congratulating themselves on how wonderfully non-commercial the whole thing is. With stomachs full of bird and broccolini and bourbon-ginger-apple pie, they settle in to watch the news stories that come out of Black Friday—the stampedes, the stabbings—and gawk in amusement and amazement. “All that for a flat screen,” they say, drinking their wine and clucking their tongues.

Perhaps this helps explain something I saw in a number of news stories about shoppers going out to line up for Thanksgiving evening store openings. A number of those interviewed suggested they didn’t like the idea of having to leave home to shop (some foregoing their family meals) or having retail workers put in holiday hours. Yet, they felt compelled to shop because the deals were too good to pass up.

This all sounds like Bourdieu’s lifestyle differences through class distinctions. How do you celebrate Thanksgiving? It should be little surprise that food and entertainment choices that day are guided by class-influenced tastes. When do you shop and how do you do it? It is all likely (from brands to time you have to spend on it) influenced by class.

I remember one professor of mine suggesting to the class that they needed to go to Walmart to find real (implied: average) Americans. At least one student seemed aghast. Perhaps the peak of that would be to go to Walmart on Thanksgiving and Black Friday…

Anthropologists used to convince Americans to eat organ meats during WWII

Need to get Americans to eat organ meats so beef can be sent to soldiers during World War II? Bring in anthropologists:

To head the committee, the NRC recruited anthropologist Margaret Mead, along with German-born psychologist Kurt Lewin (considered to be one of the founders of social psychology). At the top of their agenda: addressing the looming meat shortage. More specifically, they needed to devise a way to convince Americans to abandon their steaks, pork chops, and other familiar cuts in favor of the meats that the soldiers wouldn’t eat—the hearts, livers, and other organs that remained plentiful stateside.

The committee members had their work cut out for them. Organ meats at the time were largely shunned by all but the poorest Americans, considered a marker of low social status or a rural, unsophisticated upbringing—and of all the social taboos, those related to food are among the most difficult to dispel, said Barrett Brenton, a nutritional anthropologist at St. John’s University…

One of the major reasons, they soon found through their research, was organs’ unfamiliarity—people balked at the idea of serving something without knowing its taste or even how best to prepare it. In response, the committee urged the government to produce materials that couched the new meats in more comfortable terms…

And thus, “variety meats” were born. Butchers, who already sold organ meats for fewer ration points than premium cuts, were encouraged to adopt the new term with their customers; so were reporters with their readers…

The effect, though, lasted barely longer than the war itself.

Not quite the glamor of Indiana Jones but still fighting the Nazis by replacing beef with lesser cuts of meat. This also hints of American’s long interest in beef, not just an invention of fast food or post-World War II prosperity.

Would leading anthropologists be willing to join such a war cause today?

 

Rapidly growing suburban poverty illustrated in Ferguson, Missouri

Communities like Ferguson, Missouri illustrate growing rates of poverty in many American suburbs:

In Ferguson, Missouri, a community of 21,000 where the poverty rate doubled since 2000, the dynamic has bred animosity over racial segregation and economic inequality. Protests over the police killing of an unarmed black teenager on Aug. 9 have drawn international attention to the St. Louis suburb’s growing underclass…

Such challenges aren’t unique to Ferguson, according to a Brookings Institution report July 31 that found the poor population growing twice as fast in U.S. suburbs as in city centers. From Miami to Denver, resurgent downtowns have blossomed even as their recession-weary outskirts struggle with soaring poverty in what amounts to a paradigm shift…

Ferguson, once a majority white community that’s now about two-thirds black, highlights that dynamic. Coinciding with the decline in white population is a rapid rise in poverty since 2000, a period that includes the 18-month recession that ended in June 2009…

“Looking at the neighborhood poverty rates, it’s striking how much has changed over a decade,” Kneebone said. “In Ferguson in 2000, none of the neighborhoods had hit that 20 percent poverty rate. By the end of the 2000s, almost every census tract met or exceeded that poverty rate. That’s a really rapid change in a really short time.”

As the Brookings Institution has pointed out and nicely summarized, there are now more people in poverty in suburbs than cities. Of course, just as in cities, the poor in suburbs aren’t evenly distributed across neighborhoods or communities. The demographic shift in Ferguson is common: a community adjacent to or close to the big city – an inner-ring suburb – that offers more low-skill jobs or cheaper housing experiences an influx of non-white residents. In response, whites in the community leave, just as they tended to do in urban neighborhoods during “white flight” in the decades after World War II. The transition period can be tough: these suburban communities aren’t prepared to provide public services, whites remain in powerful local positions even as they represent a smaller percent of the residents, and less wealthy residents can contribute to a declining tax base. All the while, wealthy suburban communities can isolate themselves through zoning, restricting bike lanes, limiting affordable housing, and other means.

In other words, police violence is still limited in most suburbs but the growing issues of class and race are only going to continue to grow in many suburban communities.

The workouts of the upper class aim to avoid “excessive displays of strength”

Workout goals and expectations about the ideal fit body type may just be related to social class:

Soon, however, I suffered a creeping insecurity. Looking into the eyes of a banker with soft hands, I imagined him thinking, You deluded moron, what does muscle have to do with anything?

One day, a skinny triathlete jogged past our house: visor, fancy sunglasses, GPS watch. I caught a look of yearning in my wife’s eyes. That night, we fought and she confessed: She couldn’t help it, she liked me better slender…

Sociologists, it turns out, have studied these covert athletic biases. Carl Stempel, for example, writing in the International Review for the Sociology of Sport, argues that upper middle class Americans avoid “excessive displays of strength,” viewing the bodybuilder look as vulgar overcompensation for wounded manhood. The so-called dominant classes, Stempel writes—especially those like my friends and myself, richer in fancy degrees than in actual dollars—tend to express dominance through strenuous aerobic sports that display moral character, self-control, and self-development, rather than physical dominance. By chasing pure strength, in other words, packing on all that muscle, I had violated the unspoken prejudices—and dearly held self-definitions—of my social group.

I’ve never encountered this literature. But, I wonder how this might be related to historical social patterns, particularly the shift away from and the growing bifurcation between manual labor/unskilled jobs and the growing white-collar job force who often sit in offices all day. While the wealthy classes of the past may not have had to show any physical abilities, now the expectation is fitness across a wider range of classes. With less manual labor on the job, people today have more choices about exercise ranging from whether to do it at all, how much money to spend on what can become a very expensive activity, and what kind of path to pursue from older patterns to the latest trends.

h/t Instapundit

Hypothesis: violence among sports fans related to other social divisions

One sociologist suggests sports violence may not just be about the games but rather other social divisions:

According to a hypothesis put forth by sociologist Eric Dunning in his book Sports Matters, athletic events are realms in which other major issues in society, often related to class, religion, ethnicity, politics, regionalism, historic rivalries, etc. can play out among supporters. Violence, rather than just being about the sport, can be interpreted as an expression of contrasts between populations. That means the conflicts are best studied within the societies where they occur.

“Dunning’s hypothesis is that you can’t separate soccer violence from the wider situation—instead it manifests itself along the fault line in a particular society,” Frosdick said.

And, according to Frosdick, the hypothesis fits when we look at recurring incidents of violence. In Spain, regional tensions help intensify soccer rivalries, hence the divide between Barcelona and Real Madrid. In Italy, where the historic split is between the industrial north and the agricultural rural south, tensions arise when Juventus FC plays SSC Napoli.

“In Scotland, religious sectarianism between Protestants and Catholics represents the biggest fault line in society,” Frosdick said. “The manifestation of football violence therefore is when the Catholic Celtics play the Protestant Rangers in the Old Firm Derby.” In 1980, after the Celtics defeated the Rangers 1-0 at the Scottish Cup final, hundreds of fans rioted on the pitch. The incident led to the banning of alcohol at all Scottish stadiums.

This shouldn’t be too surprising given the importance of factors like social class and race in society. Yet, it would also be interesting to then look at how the sports violence is explained by broadcasters and other media. Based on the sports I’ve watched in my life, I would guess sports broadcasts tend to shy away from conversations about social issues or suggest sports bring healing rather than exacerbate existing conditions. While sports may indeed be “just a game,” it is important to many, interwoven throughout social life, and is big business.

San Francisco the country’s “largest gated community” because of limits on development

San Francisco is an expensive place to live and as one writer argues, this is due to intentional housing policies:

Or consider San Francisco, one of the least-affordable major cities in the United States. San Francisco’s population is about 825,000. If it had the same population density as my hometown, New York City, it would instead have a population of 1.2 million. Note that I’m referring to the population density of all five boroughs of New York City, including suburban Staten Island and the low-rise outer reaches of Brooklyn, Queens, and the Bronx. A San Francisco of 1.2 million would not be a Blade Runner–style dystopia in which mole people were forced to live cheek-by-jowl in blighted tenements. San Francisco at 1.2 million people would still be only half as dense as Paris, a city that is hardly a Dickensian nightmare.

One of the many benefits of allowing for more housing in a city like San Francisco is that it would likely lead to sharp reductions in carbon emissions. San Francisco is among the greenest cities in the United States, thanks largely to its superb climate. The same goes for San Diego, San Jose, and Los Angeles. The economists Edward Glaeser and Matthew Kahn have estimated that a San Francisco household spends one-fourth as much on electricity as a comparable household in Houston, as coastal Californians have far less need for air conditioning. To be sure, California does face serious environmental challenges. For example, that California’s water resources are stretched thin. But redirecting water resources from agricultural to residential uses would make an enormous difference, as would pricing water resources more intelligently. The environmental upside of supersizing San Francisco and other coastal California cities far outweighs the downside.

So what exactly is the problem? Well, the idea of a much denser San Francisco strikes many residents as appalling, not least because they fear that new development would threaten the city’s distinctive architectural character and the gorgeous views afforded by its stringent land-use regulations. While I love quirky Victorian houses as much as the next bobo, aesthetic considerations can’t justify the fact that San Francisco has become an oversize gated community. Rents in San Francisco are three times the national average, and they are rising at a fearsome clip. The housing crisis is even more severe in booming Silicon Valley, where the housing stock has barely increased over the last decade, despite the fact that the region has become a magnet for tech professionals from around the world. When skyrocketing demand meets stagnant supply, the predictable consequence is that housing costs soar and low- and middle-income families find themselves displaced…

In The Gated City, Ryan Avent observed that high housing costs in America’s most productive cities had forced large numbers of middle- and low-income households to either accept long, costly commutes, which eat into the ability of families to work and save, or to move to low-cost, low-productivity regions. Over time, this greatly impairs the ability of working- and middle-class Americans to climb the economic ladder. Moreover, when you move large numbers of people from high-productivity, high-wage regions to low-productivity, low-wage regions, you lower the productivity of the entire country. In other words, the rich homeowners who are fighting development in San Francisco and throughout coastal California are actually making America poorer. That’s not cool.

Thus, a gated community with economic gates rather than physical structures intended to keep people out. This is a similar story to that of many suburbs where exclusionary zoning practices intentionally limit development and push up prices to guarantee only certain kind of people can live there. Nothing is done explicitly in the name of class or race but an ongoing set of policies ensures housing availability only for some people.

The irony here is that this is notable in San Francisco, a city many might think would be attuned to these issues. This is also lurking behind the recent animosity between the buses sent by tech companies to take their employees to work and local residents. Yet, these concerns plague many important cities whether labeled with the terms gentrification or affordable housing or right to the city: how to balance or adjudicate the interests of powerful corporations, residents, and politicians versus those of average residents who are just trying to get by?