Quick Review: The Great Inversion

I recently read The Great Inversion, a book by Alan Ehrenhalt (see an interview about the book here), about how more Americans are seeking denser living areas. This is not a new idea as plenty of commentators have addressed this in recent years but this book attempts to provide a broad overview of the phenomenon. Here are four thoughts about the urban trends discussed in this book:

1. This book is built around case studies. This is both a strength and weakness. As a strength, Ehrenhalt examines several American cities such as Phoenix, Atlanta, and Denver that don’t get as much attention from urban sociologists. Even as urban sociologists admit that the urban landscape in America has changed a lot since the beginnings of the Chicago School in the early 1900s, most studies examine “traditional” American cities like Chicago, Philadelphia, New York City, and Boston. But these case studies seem more impressionistic than anything else; hard data is difficult to find in this book. There are few figures about how many Americans have actually made the choice to move (versus surveys that suggest Baby Boomers and Millennials desire denser homes). The case studies often look at smaller areas of a metropolitan region, such as the Sheffield neighborhood in Chicago, but don’t address the big picture across regions or throughout the United States.

2. Ehrenhalt is careful to try to straddle the middle line between urbanists and suburbanists (defined a few times as people like Joel Kotkin). But the problem with this is that I don’t think he makes his argument very strongly. Here is what he wants to argue: American urban areas will look quite different in a few decades as more Americans seek out denser housing. However, he doesn’t want to argue this too strongly and backpedals from this at points. Here is his conclusion about Tysons Corner, the last case study of the book:

I’m convinced of that because I see all around me a generation of young, mainstream, middle-class adults who are looking for some form of midlevel urban experience: not bohemian inner-city adventure, but definitely not cul-de-sacs and long automobile commutes. There are more of them coming into the residential market every year. They like the idea of having some space, but they aren’t feeling in terror at the mention of density. They aren’t willing to sell their cars, but they appreciate the advantage of having another way to get around. If Tysons Corner is rebuilt on a reasonable human scale and with a modicum of physical appeal, they will go for it, imperfect as it may be.

And then we will begin to see experiments of this sort in suburbs all over the country, launched by developers and local governments that may still be a little nervous about density but will know one thing for sure: If Tysons Corner can be reborn, nothing in the suburbs is beyond hope. If the effort to rebuild Tysons Corner somehow succeeds, it will become a national model for retrofitting suburbia for the millennial generation.

It is less of an argument that there is a strong push for these options and more of an argument that demographics will change urban forms. This may be correct but it seems like Ehrenhalt seems unwilling to push too hard for this.

3. Ehrenhalt suggests our cities will look more European in a few decades as poorer Americans move to the suburbs and wealthier Americans move back to the cities. This may indeed happen but I think Ehrenhalt generally downplays the cultural factors behind American suburbia and the difficulties that may occur in this demographic inversion (see #4 below).

4. This book reminds me that there are a lot of potentially interesting things that could happen in American suburbs in the coming decades. In particular, the densification of suburbs has the potential to change the character of a number of larger and/or thriving suburbs. Many communities might turn to retrofitting out of desperation in order to start generating tax revenues from vacant properties. However, while Ehrenhalt thinks that demographics will push in this direction, I think there will still be substantial pushback in some places. I’m thinking of a suburb like Naperville, a community that definitely could incorporate high-rises in the downtown and along the I-88 corridor but has thus far resisted big projects. Perhaps circumstances could change but I imagine it might take a while for this to happen.

Builders constructing denser, more urban developments in the suburbs

USA Today reports that more builders are constructing denser suburban subdivisions:

The nation’s development patterns may be at a historic juncture as builders begin to reverse 60-year-old trends. They’re shifting from giant communities on wide-open “greenfields” to compact “infill” housing in already-developed urban settings…

“It’s the kids (ages 18 to 32), the empty nesters (Baby Boomers with no kids at home),” says Chris Leinberger, president of Smart Growth America’s LOCUS (Latin for “place”), a national coalition of real estate developers and investors who support urban developments that encourage walking over driving. “These two generations combined are more than half of the American population.”…

Most major builders have created “urban” divisions in the past five years to scout for available land in already-developed parts of cities and closer suburbs — even if it means former industrial and commercial sites or land that may require environmental cleanup…

Even traditional communities built on greenfields are transforming. In Southern California’s Inland Empire, an area where housing prices are lower and appeal to first-time buyers, Brookfield is building Edenglen in Ontario. The homes are built on smaller lots — 4,500 square feet instead of the more conventional 7,200 square feet — and priced from $200,000 to $300,000.

This phenomenon has been noted by a number of commentators in recent years though I wonder if it will last.

A few other consequences of this for suburbs:

1. How will existing suburban residents respond to dense, infill projects? I would guess that a good number of suburbanites would object to these dense projects being built near them, spoiling their neighborhoods.

2. Related to the first question about NIMBYism, how will these new developments change the character of existing suburbs? If a community is used to wide suburban streets and big lots, narrow lots and denser housing could change things.

3. This article hints at this but this could also be a product of the age of many American suburbs. Outside of the suburban fringe or exurbs, many suburbs not have at least a few decades of history and perhaps little to no open land (reaching build-out). If these suburbs want to continue to grow (boosting revenues and fees as well as prestige), infill development might be the only choice.

4. This article makes a common claim: certain generations (emerging adults and baby boomers) desire more urban kinds of housing. However, I wonder if it less about generational differences and more about the changing structure of American households. Is the increasing number of single households (which might be located more in these generations) really driving this? If so, this would be have bigger effects as the American suburbs have traditionally been communities build around family life and child-rearing.

Fuel efficiency goes up, gas tax revenues go down $50 billion (or so)

A new report from the Congressional Budget Office suggests that increasing standards for fuel efficiency will leave a large deficit in highway funding:

This week, the CBO issued a new report that looked at how the upcoming, higher CAFE fuel economy rules will affect the Highway Trust Fund. The short answer? Between 2012 and 2022, the Fund will see revenues that are $57 billion lower than they would be without the new CAFE rules. The slightly longer answer:

The proposed CAFE standards eventually would cause a significant reduction in in fuel consumption by light-duty vehicles. That decrease in fuel consumption would result in a proportionate drop in gasoline tax receipts: CBO estimates that the proposed CAFE standards would gradually lower gasoline tax revenues, eventually causing them to fall by 21 percent. That full effect would not be realized until 2040 because the standards would gradually increase in stringency (only reaching their maximum level in 2025) and because the vehicle fleet changes slowly as older vehicles are replaced with new ones.

To illustrate the effect that the standards would eventually have on the trust fund’s cash flows (in 2040 and beyond), CBO examined how a 21 percent reduction in gasoline tax collections would alter the agency’s current budget projections for the trust fund, which span the period from 2012 through 2022. CBO estimates that such a decrease would result in a $57 billion drop in revenues credited to the fund over those 11 years, a 13 percent reduction in the total receipts credited to the fund.

The CBO suggests three ways to deal with the shortfalls: do nothing (i.e., keep on transferring money from the general fund), spend less on highways and mass transit or raise the gas tax (or other taxes and direct them to the Fund). An increase to the gas tax wouldn’t have to be huge. Just five cents a gallon would be enough to offset the $57 billion, the CBO says. But until Congress can agree on this simple change, there’s always the voluntary gas tax.

This isn’t idle speculation. Joel noted some commentary about this in early February 2012.

This reminds me of a recent post about the possible unsustainability of suburbia. Under the current system, we either need more drivers overall (which could then be based on population growth plus more car ownership) or people to use more gasoline (which goes against a push to be more green). Are either of these options really optimal or even desirable? Of course, the gas tax could be increased by a small amount (perhaps just a few pennies?) and the deficit would disappear. However, would this simply lead to more gas tax hikes down the road compared to the option of resetting the system so that highways are funded through a more consistent mechanism? Which politicians want to tackle this? Perhaps we are closer to a tax per mile driven than we might know?

h/t Instapundit

French suburbs known as “zones of banishment”

The French suburbs are getting more media attention in the lead-up to the run-off election. This article talks about the current status of the “urban sensitive zones”:

Inside the French suburbs, referred to here as “zones of banishment” or “the lost territories of France,” the 2012 presidential elections seemed like a good time to wake up the nation.

In a small office in the suburb of Clichy-sous-Bois, a group of mostly Arab and African 20-somethings hit on an idea: Create a “crisis ministry of the suburbs.” It would address France’s ignorance about the 731 areas ringing the country’s biggest cities, known officially as “urban sensitive zones,” where most of France’s non-European minorities live. Geographically, they are suburbs, but socioeconomically, they resemble the US inner city.

Paris Mayor Bertrand Delanoe gave the upstart “ministry” a temporary office next to City Hall. For two days, rappers, artists, and activists merrily held court with a French media that rarely makes it to the suburbs and worked on a 120-point reform plan. Several presidential candidates, including front-runner François Hollande, showed up.

But the good vibe didn’t last. Days later, Mohammed Merah, a self-styled Islamist radical born to Algerian parents in a Toulouse suburb, shot and killed two soldiers, three children, and a rabbi. The killings seemed to reinforce all the stereotypes and fears about the troubled suburbs.

A fascinating overview.

A few quick thoughts:

1. I think many Americans would have difficulty processing this given our images of the suburbs.

2. Issues of race/ethnicity and class take place all over the world. The article suggests French students hear that their country is “an egalitarian utopia without issues of race and religion” but the situation on the ground suggests otherwise.

3. It would be interesting to read a more complete story of government involvement in the suburbs. How did this happen (politically and funding-wise) and is this what the government prefers?

Worried about NATO protests in the Chicago suburbs? Look for graffiti, flyers

I know there is a lot of preparation going on for the upcoming NATO summit in Chicago but should this really include warning people in the suburbs? Here is what was printed in the May 2012 edition of our community’s newsletter:

While the G8 Summit has been moved to Camp David, the NATO Summit is still planned for the City of Chicago from May 19 through May 21, 2012. At this time, it is unknown what impact that Summit will have on the City. [Our] Police and Fire Departments are well aware of the upcoming event, and have been involved in pre-event strategy meetings and preparations. Please be assured that there is no anticipation, or information at this point, that any significant incident(s) will occur within the City, and [our] residents may expect the same level of security they have come to know and trust.

Being part of the community, residents and business owners have the unique opportunity to be observant and are encouraged to report suspicious activity, especially graffiti. It is one of the most basic indicators that certain extremist groups are making an appearance. Flyers advocating direct actions against government, businesses, or other institutions are another indicator of suspicious activity. For more information…

One could argue that there is already graffiti in the suburbs; was this done by extremist groups? And flyers about direct action – are we expecting anarchists or violent groups at the local strip mall or subdivision? Additionally, these sound like gross generalizations.

On one hand, perhaps it is good that our local government is trying reassure people about the protests that will get a lot of attention in the media. See all the coverage yesterday about the small May Day protests in Chicago. Even if much doesn’t happen during the NATO Summit, residents of Chicagoland will certainly be aware of the possibilities.  On the other hand, I’m disturbed that suburbanites may think that these protests will affect their suburban paradises more than 15 miles from the Loop…

Argument: we need to question today’s economic equations that are based on the suburban experiment

Here is an interesting argument regarding the American suburbs: Charles Marohn suggests the economic equations behind suburban development need to be questioned.

I’m struck by how strongly our culture associates growth and prosperity with highway construction and expansion. Tom Friedman, a respected left-of-center columnist with the New York Times, had an entire chapter in his most recent book, That Used to Be Us: How America fell behind in the world it invented and how we can come back, devoted to the concept that “our winning equation” is, in part, to invest in infrastructure and then watch prosperity flourish, just like it did in the 1950’s and 1960’s.

Of course, this ignores that fact that our investments during the first generation of America’s Suburban Experiment (1950-1975) were higher return investments that generated a lot of positive cash flow. I like to point out that, when we built the 35W bridge here in Minnesota for the first time, it connected far flung areas of the Minneapolis/St. Paul metropolitan region in a way that had not been done before. Following that investment, new commercial real estate was developed, new residential housing went in and the resulting influx of tax receipts made us feel wealthy. When the bridge fell down and had to be rebuilt, we didn’t experience all that new growth, just the costs of construction and delay. Maintenance has an entirely different set of financial metrics than new construction…

Unfortunately, we base this belief on the illusion of wealth that was created in the early years of the Suburban Experiment, where the first life cycle of horizontal expansion had produced growth for our economy and that pesky overhang of maintenance was still a decade or more away. We should know better by now, but there are few in a position to change the system that don’t benefit, at least in the short term, from it being perpetuated…

Now let me drop the bomb I’ve been alluding too: Those “benefits” that we kind of think of as prosperity, wealth or GDP; they really aren’t. There are derived from a set of narrow correlations between time saved and prosperity that we witnessed in the early 1950’s when we built those initial highways. We connected these far flung places — places only served by railroads or poorly constructed roadways prior — and we saw all kinds of economic gains. We then used that knowledge to build equations to justify expansion of the system. Nobody ever questions those equations today (why would they) and nobody stops to consider the diminishing returns of the system.

So there is not actually any money here, just a few seconds of saved time here and there that economists and engineers equate with money when they are trying to justify a project. Do you take home more money, generate more wealth for the economy or spend more of your income when you can arrive at work 45 seconds more quickly? Not me either. These equations are a joke. (If you want to learn more, read our 2010 series on Costs and Benefits.)

An interesting update to an old argument: the suburbs are unsustainable in the long run because they are based on new growth and continuous reinvestment. In the end, there won’t be enough money left to sustain it all, even if we could keep the infrastructure up to date.

Is Marohn really saying that the economic growth of the United States since the 1950s is largely an illusion? I’d like to hear about more of this aspect of the argument…

This reminds me of some of my research on suburban communities that are approaching build-out. In their earlier growth phases, these communities could expect a certain amount of money to flow in from new development and fees. However, once this stopped (and combined with the recent economic crisis), these towns are left scrambling for money. Without a good amount of new development, the budgets aren’t increasing much even as residents continue to push for equal or increased levels of service plus everything is aging (infrastructure, housing stock which makes it less attractive, municipal buildings, etc.). Is this an analogous situation?

Bonus: you even get a financial analysis of a diverging diamond interchange!

100 year old Wilmette L station illustrates suburban exclusion

A celebration today for a 100 year old L station in Wilmette illustrates some of the issues between cities and suburbs:

The station [today serving more than 315,000 people per year] originally came as an unwelcome overnight surprise. After coming to loggerheads with village officials, a crew secretly worked “under cover of darkness” to create a small depot at Fourth Street and Linden Avenue.

According to a story in the Chicago Tribune on April 3, 1912: “During the night the Northwestern Elevated company invaded the suburb with a large force of men. At dawn the evidence of their work was plainly visible.”

Back then, the people of Wilmette enjoyed their lakefront, and their seclusion.

“Exclusive residents opposed the entrance of a new line largely because they believe trainloads of picnic parties will be dumped there in summer,” the Tribune story said.

Some things haven’t changed. During a recent Wilmette Park District discussion regarding a fence to limit access to the south beach at Gillson Park, resident Fred Fitzsimmons referred to nonresidents picnicking lakeside as “freeloaders.”

The period one hundred years ago was an interesting period for relationships between cities and suburbs. Prior to 1900, many cities annexed adjacent suburbs. These suburbs were generally agreeable to this as they needed the infrastructure that cities could provide (sewers, water, fire protection, etc.) and the status of being part of the growing city was exciting. But around 1900, things changed. More suburbs rejected annexation. Building their own infrastructure became cheaper. Being part of the big city, seen more and more as big, dirty, and home to many new residents, was no longer a draw. It was at this point that the size of many cities in the Northeast and Midwest drastically slowed.

Thus, a new L stop was seen as a threat in Wilmette, a means by which the city could still come to the suburbs. Back then, just as today, part of the reason for moving to Wilmette was to get away from the city and its residents, not to have encounter them through public transportation. It is intriguing that the Chicago Tribune ties these old concerns to current concerns in Wilmette. In this sense, the suburban mindset promoting exclusivity has not changed much in a century. (At the same time, I assume many in the Wilmette area see the L stop as a nice amenity since it means they don’t have to drive into Chicago.)

Another thought: could this also illustrate why suburbanites might be opposed to public transportation? There could be more than just the idea that cars are considered more convenient; public transportation could be associated with different kinds of people. If you can afford it in the United States, you generally pay (outside of a few denser cities) to avoid having to ride public transportation.

Fighting for presidential votes in the French suburbs illustrates a different kind of suburbia

American suburbs are often considered home to a lot of white and wealthy residents who have fled the city. This is not how suburbs work in some European settings: two stories about politicians fighting for presidential votes in France illustrate these differences.

It was here that Marine Le Pen managed to secure the greatest percentage vote for any village in the country; of its 60 residents, nearly three quarters put the far-Right candidate above all others…

“What has worked has been to turn this campaign towards rurality, and the far suburbs, poor France,” said Bertrand Dutheil de La Rochère, one of Miss Le Pen’s campaign spokesmen. “Her people versus the elites seems to have taken root.”…

According to sociologist Christophe Guilluy, these rural areas, along with many middle-sized towns hit by de-industrialisation and layoffs represent, 40 per cent of the electorate.

Here is another report:

But “rural” areas today does not mean villages full of farmers. It means small provincial towns, and the new housing-estate commuter belts being built on the distant outskirts of the cities.

“The rural underclass is no longer agricultural. It is people who have fled the big cities and the inner suburbs because they can no longer afford to live there,” says Mr Crepon.

“Many of these people will have had recent experience of living in the banlieues (high immigration suburbs) – and have had contact with the problems of insecurity.”

In this semi-urbanised countryside, people feel the hopelessness of a life in poverty uncompensated-for by the traditions and structures that would have made it bearable in the past.

In these stories, the wealthy live in cities and inner-ring suburbs while the poor live in more far-flung suburbs (what Americans might call “exurbs”) and more rural areas.

If Americans read about this run-off in France, I wonder how many will notice this difference in suburban life in France compared to the United States. Actually, I wonder if many Americans simply think that Americans suburbs are a common feature of metropolitan areas around the world rather than a more unusual case.

Suburbs: a middle ground between cities and rural life?

I was making the case in a recent conversation that the American suburbs could be seen as an adaptation between city and rural life. Illustrating this point, here is a testimonial from a mother describing the benefits of living in River Forest, Illinois:

We were house poor in New Jersey and miserable in an Ohio McMansion. In the Oak Park area, we found our ideal town: River Forest is close enough to the city to have some diversity and urban edge, yet distant enough to give us a tiny backyard…

They too logged many miles in the stroller, but they played at playgrounds and the library, meeting other babies with whom they will go to school. Finding playgroups for them was actually easier and less transient than in the city.

The steep price of private education drove us out to the suburbs, but attending public school has been an amazing experience. Our oldest two children have thrived in their public school. They have gym every day, as well as a rich music and art programs, and when they walk to school, the crossing guards greet them by name.

In the suburbs, we’ve been able to make our home the neighborhood hangout house. Our children’s friends are always around: in our house, on our teams, and at our local pool. Our house is noisy and busy, but it’s a happy chaos that lets me really get to know my children’s friends.

Great restaurants and culture are just a few exits away, but being so near Chicago keeps us aware of crime and poverty. Bikes are stolen, shopkeepers are held up at gunpoint and the food pantry has long lines. We enjoy the perks of small town life without losing touch with the urban reality of the Chicago skyline we see from our yard.

I wouldn’t want my children growing up any other way.

Here are the trade-offs:

-Cities provide exposure to culture, diversity, and “real life.”

-Rural areas or small towns provide close-knit communities where people know each other, safety, and more open space.

The suburbs provide a little of both worlds: close access to the gritty authenticity of big-city life but good schools and friendly neighbors. Notice I didn’t say “the best of both worlds” but rather access to some of the characteristics of rural and urban life. They may not be ideal places but a majority of Americans live in these communities.

I wonder how living in River Forest itself affects how one might view the suburban life. According to the Census, River Forest is 84.8% white, 76% of those 25 and older have bachelor’s degrees, the homeownership rate is 89.9%, and the median household income is $116,528. Overall, River Forest may have lost 4% of its population between 2000 and 2010 but this is still a mainly white and wealthy suburb. Sure, it is close to more diversity in Oak Park and Chicago but this is upper-middle class suburbia and this may just skew this rosy interpretation.

More Houston residents want to move from suburbs to city than vice versa

Data from the most recent Houston Area Survey suggests that more Houston area residents would prefer to move from the suburbs to the city than vice versa:

Thirteen years ago, the Houston Area Survey started asking people who lived in urban areas if they’d prefer to live in the suburbs.  It also asked people in the suburbs if they’d like to move into the city one day. Survey founder Stephen Klineberg, a Rice University sociology professor, says the survey has revealed a clear shift in opinion.

“In 1999, twice as many people in the city said ‘I want to move to the suburbs,’ than people in the suburbs saying ‘I want to move to the city.’ Those lines have crossed now. And in this year’s survey, significantly more people in the suburbs said ‘I would be interested in, someday, moving to the city,’ than people in the city saying, ‘I want to move to the suburbs.'”

The most obvious reason is the rise in gasoline prices. But Klineberg says shifting demographics are also at play...

And that change in the makeup of households is also reflected in the type of houses people in Houston aspire to own.  The percentage of people who say they’d like a traditional house with a yard in the suburbs has dropped from 59% four years ago, to 47% today. While the proportion who would like a smaller home in a more walkable neighborhood has risen dramatically over the same period of time — from about a third, to more than half.

These findings mirror larger rumblings about where Americans would prefer to live: more people appear to be interested in moving to walkable, denser communities. Are these sentiments primarily coming from those of middle age and above plus young adults?

Two methodological questions:

1. Should we expect that the findings from Houston would be similar to what would be found in other metropolitan regions? Would the sentiments be the same for non-Sunbelt (i.e. Rust Belt) cities?

2. Additionally, how many of those who express an interest in moving from the suburbs to the city will actually follow through on this? Of course, these perceptions matter and could help shape future policy decisions such as building denser developments within the suburbs so that there are pockets of walkability. At the same time, does this indicate long-term behaviorial changes or simply attitudinal shifts at this point of time?