Shifting resources away from the “fringe suburb[s]”

In an op-ed in the New York Times, an academic argues that “fringe suburb[s]” are dying and we should shift resources to communities that need reinvestment:

Simply put, there has been a profound structural shift — a reversal of what took place in the 1950s, when drivable suburbs boomed and flourished as center cities emptied and withered.

The shift is durable and lasting because of a major demographic event: the convergence of the two largest generations in American history, the baby boomers (born between 1946 and 1964) and the millennials (born between 1979 and 1996), which today represent half of the total population…

Over all, only 12 percent of future homebuyers want the drivable suburban-fringe houses that are in such oversupply, according to the Realtors survey. This lack of demand all but guarantees continued price declines. Boomers selling their fringe housing will only add to the glut. Nothing the federal government can do will reverse this…

For too long, we over-invested in the wrong places. Those retail centers and subdivisions will never be worth what they cost to build. We have to stop throwing good money after bad. It is time to instead build what the market wants: mixed-income, walkable cities and suburbs that will support the knowledge economy, promote environmental sustainability and create jobs.

This is not an unusual argument. Based on survey data, a number of commentators have suggested that the demand for the sprawling suburbs will shrink and builders and governments should get ahead of this shift. The suburban critiques delivered by academics and others since the post-World War II suburban boom may have finally gained some traction as the young and old seek out community over a big, cheap house. How much of this shift will be “durable and lasting” remains to be seen but it would certainly be helped if “the market” goes in this direction.

Two claims in the final sentence of this op-ed are intriguing. The argument that density = greener neighborhoods is common but the arguments about benefits for the knowledge economy and creating jobs is less common. A little more about each of these:

1. I assume the knowledge economy bit is tied to ideas like “the creative class” from Richard Florida. Younger adults, in particular, want to live in places with some culture and neighborhood life, not on the metropolitan fringe in bland neighborhoods. These places become centers of innovation and culture, attracting more residents and businesses.

2. The jobs claim is a bit less clear to me. If money was spent redeveloping older neighborhoods, this could create jobs – but so could building new balloon-frame homes in new subdivisions. Perhaps the creative cities will create so much innovation that this leads to job growth? Does Richard Florida have data that shows a link between the creative class and job expansion overall?

Overall, this is another voice calling for a new urban strategy where the government and businesses stop subsidizing sprawl and start providing money to promote denser, more New Urbanist type developments that some Americans desire.

Australian critiques of suburbia

As part of a larger discussion about the green (or not-so-green) features of high-density living, an Australian academic describes typical Australian critiques of suburbia:

The intellectual misadventure of high-rise urbanism also perpetuates a pernicious bias in Australian environmental debates in which less affluent suburban dwellers are treated as environmentally unsophisticated “bogans” – a stereotype recently denounced by Melbourne University’s David Nichols.

It fits within a long and regrettably continuing Australian tradition of denigrating suburbia whose recent version sneers at “aspirationals” in suburban “McMansions” driving “monster-trucks”. That complaints about suburban consumption lack objective scientific foundation, raises suspicions that the anti-suburban prejudice serves to deflect scrutiny from the more harmful consumption patterns of wealthier – and typically denser – inner urban households.

Those who criticise high-rise urbanism, though, risk being cast as apologists for urban sprawl. Disagreeing with Sydney’s Barangaroo proposal, for example, doesn’t equate to support for the latest fringe growth area splurge.

More single, detached dwellings in low density estates at the suburban fringe also causes harms. These range from the destruction of bio-diverse habitats to the social isolation of new residents from work and services. My own work on household oil vulnerability clearly reveals the future perils from higher fuel prices already planned into the fabric of many of our car-dependent fringe suburban zones.

The argument here is that being green isn’t so easy as simply saying suburbs are bad and cities are good. Unfortunately, the suburbs tend to receive blanket criticism.

It would be interesting to trace the rise of these attitudes in Australia compared to the United States. The US has a long history of these critiques which emerged quickly after World War II, particularly as examples of mass-produced suburbs like the Levittowns became widely known. Out of all of the countries in the world, Australia might have the most similar suburbs to the US (see a recent debate about McMansions in Australia as an example). Did Australian critics of suburbia simply borrow American critiques or did they develop their own independently? Sounds like a very interesting comparative project.

When a suburb doesn’t support the big tax break supported office park

An interesting story is brewing in Hoffman Estates where the State of Illinois wants to keep the Sears headquarters by continuing a major tax break but the local school district and some in the community don’t want to live with the reduced tax revenue for years to come. Central to the story: the tax break didn’t help fill up the 780 acre office park, leading to less tax revenue than expected even with Sears located there.

Instead, two decades after the special taxing area was created, some 200 acres remain undeveloped in the 780-acre park anchored by Sears Holdings Corp.’s headquarters. A swath of land that was supposed to generate $50 million in property taxes in 2012 raised only $25 million in the past tax year…

The ambitious project’s inception came at the pinnacle of “euphoria” over a booming commercial real estate market, said John McDonald, who teaches land economics and real estate at Roosevelt University. But that party ended with the economic slowdown of the early 1990s, and the market, he said, has not rebounded. There is no “desperate need for office space anywhere right now,” he said…

The inability of the park to pull in the predicted revenues underlies the battle over Sears’ future. The fight has largely centered on Community Unit School District 300, a financially strapped taxing body whose officials claimed it stood to lose more than $10 million in revenue per year under the original plan to extend the taxing area’s term.

The parties and legislators are continuing to discuss whether Sears would be required to keep some 4,000 of the roughly 6,100 jobs at its headquarters well into the future. The potential consequences should the company not meet that condition remain unclear, said Hoffman Estates Corporation Counsel Arthur Janura.

Typically, suburbs are thought to be in favor of these tax breaks as it helps lure new businesses to town. However, this situation is a cautionary tale about tax breaks: just because one is granted doesn’t necessarily mean that businesses will necessarily move in. If everyone is building big industrial or office parks and offering tax breaks, can everyone win? And in an era of falling tax revenue and rising costs, suburbs need to maximize their assets.

Of course, the State of Illinois will look really bad if Sears leaves as it will feed a (growing?) narrative that Illinois is generally bad for business. It will be fascinating to see how the State and Hoffman Estates come to some sort of agreement that everyone can live with.

Describing “suburban bliss” while also pursuing urban planning and living

A student at Columbia discusses her feelings of wanting to become an urban planner and live in the city while also retaining a warm spot in her heart for the suburbs:

Coming to New York from more suburban hometowns, it’s not uncommon for us to miss our cars, big box stores, and front yards. But for me, the conflict between urban and suburban living is more than simple nostalgia for my hometown. It is a question of ideology, and one that concerns my professional future.

I’ve known I wanted to be a city planner since the tenth grade, when I happened to pick up a copy of Jane Jacobs’ “The Death and Life of Great American Cities” while doing homework at the Scotch Plains Public Library. I devoured the book in a few days. It was a revelation for me—someone put into words the vitality of urban streets I so eagerly took in anytime I visited New York. As an urban studies major at Columbia, I’ve studied cities in sociology, political science, history, and architecture classes. My studies have confirmed what I felt the first time I read Jane Jacobs: Urban living is the best kind of living.

I’ve read about the racial discrimination that stopped non-white Americans from taking part in the suburban American dream, the urban renewal projects that devastated working class neighborhoods with expressways, the disinvestment in urban centers that led to riots—all the mid-century injustices that remind us of the true cost of our driveways, lawns, and cul-de-sacs. I understand the environmental danger of car (and oil) dependence, low-density housing, and sprawl. I understand how unfulfilling it can be to live in a socially homogeneous town with little street life or walkability. I feel so strongly about these issues that I even want to go to graduate school to learn how to begin solving them.

Yet I really, really like coming home to my car and to my favorite strip mall restaurant on Route 22—a highway that severely isolates my own neighborhood from the rest of my town. In my time here at Columbia, despite my urban-centric curriculum, I’ve also learned that the suburbs are here to stay, and there’s no sense wishing they didn’t exist. I might end up a city planner with a very urban lifestyle, and I most certainly won’t be moving back to New Jersey, but there’s no reason I can’t relish a trip to the mall. Of course it’s not terrible, I told my friend. Home—with all its unsexy suburbanity—always makes me happy, too.

This piece contrasts a professional ideology versus personal emotions. The key here is that the suburbs are equated with home. I wonder if her viewpoint will change after years of living in the city or, perhaps more interestingly, years of working within the field of urban planning where she may not find too many people willing to defend the suburbs.

Of course, this doesn’t always have to be a dichotomous choice: we certainly need people to do urban planning in the suburbs. In fact, one of the complaints opponents of sprawl often have is that it looks like there was little foresight into how suburban developments, subdivisions or big box stores included, affect their residents and how different types of development do or don’t work together. And if the wave of the future is indeed a denser suburban landscape, particularly in desirable locations, there may be room for a number of planners to bring together city and suburb.

The Big Sort continues? Fewer Americans live in middle-income neighborhoods

Here is another way to look at the gap between the rich and poor in the United States: the percentage of Americans living in middle-income neighborhoods has shrunk in recent decades.

In 2007, nearly a third of American families — 31 percent — lived in either an affluent neighborhood or a mainly low-income one, up from just 15 percent in 1970, according to the study conducted by Stanford University, and released in partnership with the Russell Sage Foundation and Brown University.

Meanwhile, 44 percent of American families lived in middle-class neighborhoods in 2007, down from 65 percent in 1970…

For the study, researchers used data from 117 metropolitan areas, each with more than 500,000 residents. In 2007, those areas were home to 197 million people — or two-thirds of the US population.

This study covers about two-thirds of the American population. I assume the study is restricted to larger metropolitan areas because of how the researchers defined a neighborhood but couldn’t they adapt to smaller cities in order to represent more of the US population? Also thinking about the research methods, I hope the researchers used analogous cutoff points for these different classes in 1970 and 2007.

Moving past methodological issues, this does bring to light an interesting issue: how many Americans experience residential segregation based on social class? Of course, race and social class is linked. Do Americans care that people of different income strata live in completely different areas? Based on American history, I would say no: Americans don’t seem terribly concerned about concentrated poverty or pockets of affluence. If you have money, it is generally expected that you go live with people who also have money. You might provide incentives for the classes to mix (example: mixed-income neighborhoods on the site of former housing projects) but this is rare.

It would be interesting to see a breakdown here between cities and suburban areas. Some of the earliest American sociological research focused on these disparities in the city, such as Zorbaugh’s work The Gold Coast and the Slum where the rich and poor lived in incredible proximity but rarely mixed. Is class-based residential segregation higher in the suburbs?

Residents in Chicago suburb of Palatine oppose proposed Starbucks

For suburban communities, the arrival of a Starbucks can be seen as a sign that the suburb has the ability to attract national stores. But some residents in suburban Palatine are opposed to a proposed Starbucks:

The Palatine village council Monday referred the proposal back to the Zoning Board of Appeals on the village attorney’s advice so that it can review the results of a traffic study despite its earlier unanimous vote to recommend the project. The postponement also grants a request by McDonald’s Corp., which operates an adjacent restaurant, the opportunity to look the study over.

The Starbucks would make up one of three tenant spaces to be built on a vacant lot between the fast-food restaurant and Harris Bank on Northwest Highway near Smith Road. Charley’s Grilled Subs would fill the second space with the third still undetermined.

A couple dozen residents attended the council meeting to oppose the national coffee chain, which they believe will ultimately force nearby Norma’s Coffee Corner to close.

“We as a town should embrace diversity, and I would hate to see Palatine become a national franchise town if there are no mom-and-pops around,” Roman Golash of Palatine said.

Four things strike me about this story:

1. Traffic is a common complaint in NIMBY cases. However, this Starbucks would be located near several other chain/strip mall type businesses on an already busy road. Is Starbucks the problem or the type of development that is already there?

2. The residents seem interested in buying local and Starbucks is one of those companies, perhaps along with Walmart, Walgreens, and others, that represent sprawl and big box stores. At the same time, as far as I can tell from Google Maps, Norma’s is also in a strip mall. So are these residents opposed to all national stores in town? Why is Starbucks singled out in particular? This isn’t quite the battle of a long-time downtown business versus the big national chain. While national stores may not be local businesses (unless they are franchises), they can still bring in tax revenue.

3. Diversity equals having a mix of national and local businesses? This doesn’t sound like the traditional definition of diversity which is typically associated with race and perhaps social class. I wonder if suburbanites use these altered definitions of diversity because they really think that racial or class diversity is not really desirable but they think people like to hear about diversity. (To be fair: Palatine is 76.9% white, 10.3% Asian, and 18% Latino.)

4. Some Chicago suburbs are interested in attracting Starbucks and similar businesses to their downtowns in order to bring in more people. For example, the Starbucks that opened in downtown Wheaton in the late 1990s was seen as a sign that Wheaton’s downtown was an important shopping area (and had a wealthy enough demographic to support such a business).

The BBC on Levittown 60 years later

The BBC goes back to Levittown, Pennsylvania and finds that it looks like much of America:

Now, as then, the community is home to a diverse cross-section of middle-class voters. But whereas in 1960 unemployment rates were less than 6% and business in Levittown could not expand fast enough to meet growing demand, the outlook for current residents is grimmer…

Now, the outer roads around Levittown are lined with strip malls, and in them a dozen different grocery and convenience stores, a Super WalMart, McDonalds, and hotel chains.

The houses, once indistinguishable from one another, have developed individual flair: on one street, one house has painted pink brick face, while another has built a covered front porch…

It’s not a greying district by any means – thanks in part to the housing collapse, Levittown is once again an abundant source of inexpensive housing, and as a result more new families are moving here to get their start.

The Levittowns are often held up as exemplars of the massive suburban boom in the United States in the decades following World War Two. The mass production of the homes was unique then though the techniques would look fairly normal today. I like that this article emphasizes the changing nature of this suburb that was once derided for its similar looking homes and relatively homogenous population. We would do well to have such a view of all suburbs: they change over time even if some of the physical pieces, such as single-family homes or strip malls, are the same.

The two best books I can recommend on Levittown(s):

1. The Levittowners by Herbert Gans. Based on ethnographic work conducted during the early years of the development, Gans combats some of the common suburban stereotypes.

2. Expanding the American Dream: Building and Rebuilding Levittown by Barbara Kelly. Kelly gives more details about how Levittown residents have customized their homes and what this means for the community.

How much it costs to live in the cheaper suburbs or expensive New York City

Opponents of sprawl argue that while many prospective buyers move further away from work in order to buy bigger yet cheaper homes, there is a cost. One website argues that the each mile closer to work is $15,900 that could be spent on a house:

We all know that driving to and from work every day is costly, but exactly howmuch of a toll does each mile of commuting take on your finances? This True Cost of Commuting graphic breaks it down.

Taking stats and calculations previously mentioned by Mr. Money Mustache, the infographic illustrates just how expensive commuting is. Each mile you live from work costs $795 in commuting expenses per year (assuming a driving cost of 34 cents per mile and factoring time lost with a salary of $25 per hour). $795 a year for just one mile! You could buy a house worth $15,900 more with that, as Mr. Money Mustache pointed out in his article, since $795 would cover the interest on a 5% mortgage rate.

If you don’t want to calculate in the time-is-money factor, each mile (one way) of commuting will cost you $170 a year. It’s a compelling reason to move as close to work if you can (or bike to work or telecommute).

See the large infographic here. I don’t know about Mr. Money Mustache’s calculations but this is a sizable number.

At the same time, there were reports this week that the Occupy Wall Street protestors tend to live in pricier homes. As Megan McArdle notes, this is a consumption choice where people decide to spend more of their income on a home in a great city:

My initial reaction was the same as many people I’ve seen in comments sections: the protest is in New York, which is expensive.  This is hardly surprising.

But on second thought, I don’t think that’s quite right.  At least some of the houses identified by the Daily Caller are in places like Texas and Wisconsin.  But more importantly, I’m not sure we should “discount” these home values for location.  The fact is that living in an expensive city is a consumption choice.
You hear this argument all the time from people in New York.  “Rich?  Hah!  We’ve got four people in 1600 square feet, and our school bills are going to put us into bankruptcy.”  Many New Yorkers believe that they should be given some sort of income tax abatement because of the expense of living there (with the lost revenue being made up from “really rich” people, natch).  Slightly less affluent New Yorkers frequently believe that landlords should be forced to offer them “reasonably sized” apartments at a modest fraction of their income, because after all, otherwise they couldn’t afford to live in New York…
Living in a blue state is a choice.  If coming to New York meant that you had to put four people in a three bedroom apartment that’s uncomfortably far from a subway line, instead of buying a nice little condo in Omaha, this does not mean that you are not “really” better off than your counterpart in Omaha; it means that you have chosen to consume your extra wealth in the form of “living in New York” rather than in the form of spacious real estate, cheap groceries, and an easy commute.

So what people in the Midwestern suburbs might spend on a daily 20 mile each way commute in a SUV translates into a more expensive apartment in New York City.

Both stories cited above suggest consumption is a choice. But is it truly an unfettered choice? What would lead some people to aim for the bigger yet cheaper house in the suburbs and others to spend more money on a smaller place in a cosmopolitan paradise? Perhaps this information would help both sides engage in conversation rather than talk past each other and try to force the other side to follow their logic…

Of course, we could look at the broader trend of American political and cultural discourse on this subject. On the whole, government policies have promoted suburban living while a few big cities, such as New York City, have successful dense, mass-transit oriented living. Cultural discourse, even if it is shifting toward the younger generation’s increased interest in denser living, still privileges the suburban American Dream.

Austerity in the suburbs: turning off and ripping out the lights in Highland Park, Michigan

As many suburbs face budget shortfalls, some have instituted new measures. While California communities drew attention last year for contracting out services previously provided by the city, the Detroit suburb of Highland Park is trying another option: turning off and ripping out the street lights.

But when the debt-ridden community could no longer afford its monthly electric bill, elected officials not only turned off 1,000 streetlights. They had them ripped out — bulbs, poles and all. Now nightfall cloaks most neighborhoods in inky darkness…

Highland Park’s decision is one of the nation’s most extreme austerity measures, even among the scores of communities that can no longer afford to provide basic services.

Other towns have postponed roadwork, cut back on trash collection and closed libraries, for example. But to people left in the dark night after night, removing streetlights seems more drastic. And unlike many other cutbacks that can easily be reversed, this one appears to be permanent…

The city’s monthly electric bill has been cut by 80 percent. The amount owed DTE Energy goes back about a decade, but utility executives hesitated to turn off the juice…

Most of the 500 streetlights still shining in Highland Park are along major streets and on corners in residential areas. DTE Energy has listed the city’s overdue bill as an uncollectable expense.

It would be interesting to hear what else the community has had to do or has considered in order to lessen the $58 million budget deficit.

While it is certainly a shock to have street lights torn out, I wonder how much of an effect this will actually have. It sounds like lights have been retained at certain places for traffic safety. I vaguely recall reading a piece at The Infrastructurist that suggested street lights on residential streets are there more for nervous residents than actually for reducing crime or improving traffic safety.

The description of Highland Park, losing more than half of its population between 1980 and 2010 plus a 42% poverty rate, suggests that this is an inner-ring suburb. While Detroit is notorious for struggling, many inner-ring suburbs are facing similar issues: once prosperous, the issues facing big cities have moved beyond their boundaries. These suburbs often have limited tax revenues and increasingly poor residents. How can they compete with the big city (if it happens to be at least somewhat thriving) or suburbs further out that have more modern amenities and wealthier populations? This is why people like Myron Orfield suggest that we need more metropolitan revenue sharing in order to help these communities survive and have hope for turning their fortunes around.

Of the suburbs that have had to turn to more drastic measures to close budget shortfalls, how many of them are inner-ring suburbs? Do these places share other characteristics? I would assume many wealthier suburban communities haven’t had to consider such options yet.

Census data shows increase in people living in neighborhoods with concentrated poverty

New Census data shows that the population of the “poorest poor” in America has grown (about 20.5 million Americans), particularly in neighborhoods of concentrated poverty:

After declining during the 1990s economic boom, the proportion of poor people in large metropolitan areas who lived in high-poverty neighborhoods jumped from 11.2 percent in 2000 to 15.1 percent last year, according to a Brookings Institution analysis released Thursday. Such geographically concentrated poverty in the U.S. is now at the highest since 1990, following a decade of high unemployment and rising energy costs.

Extreme poverty today continues to be prevalent in the industrial Midwest, including Detroit, Grand Rapids, Mich., and Akron, Ohio, due to a renewed decline in manufacturing. But the biggest growth in high-poverty areas is occurring in newer Sun Belt metro areas such as Las Vegas, Riverside, Calif., and Cape Coral, Fla., after the plummeting housing market wiped out home values and dried up construction jobs.

As a whole, the number of poor in the suburbs who lived in high-poverty neighborhoods rose by 41 percent since 2000, more than double the growth of such city neighborhoods.

Elizabeth Kneebone, a senior research associate at Brookings, described a demographic shift in people living in high-poverty neighborhoods, which have less access to good schools, hospitals and government services. As concentrated poverty spreads to new areas, including suburbs, the residents are now more likely to be white, native-born and high school or college graduates — not the conventional image of high-school dropouts or single mothers in inner-city ghettos.

Two things to note: the percentage of people living in poverty concentrated areas is back at 1990 levels and these areas themselves have shifted to new places like the suburbs and the Sun Belt. Are we any better off in addressing this issue than we were when scholars called attention to this like William Julius Wilson in the 1980s and Paul Jargowsky in the 1990s?

It is interesting that there is very little in current political or cultural discourse about the “poorest poor” as most of the current talk centers on the middle class or perhaps the working class. Even Occupy Wall Street seems to be about the middle and working classes. Perhaps much of this group’s anger is driven by the middle-class who now feels the pinch of the economic crisis but the “poorest poor” have been dealing with similar and/or worse concerns for decades.