Quick Review: The End of the Suburbs

I recently read The End of the Suburbs, written by Fortune journalist Leigh Gallagher. On one hand, the book does a nice job describing some recent trends involving, but, on the other hand, the book is mistitled and I think she misses some key points about suburbs.

1. If I could title the book, I would name it something like “The End of the Sprawling Suburbs” or perhaps “The End of Sprawl.” Neither title is as sexy but she is not arguing that the American suburbs will disappear, rather that demographics and other factors are shifting toward cities. There is a big difference between ending suburbs and seeing them “grow up,” as one cited expert puts it.

2. Some of the key trends she highlights: the costs of driving (the whole oil industry, maintenance/gas/insurance/stress for owners, paying for roads/infrastructure), a changing family structure with more single-person and no-children households, changes among millennials and baby boomers who may be looking to get out of the suburbs in large numbers, a push toward New Urbanism in new suburban developments to increase density and strengthen community, and builders and developers, like Toll Brothers, are looking to build denser and more urban developments with more mixed-uses and smaller houses.

3. But, here are some big areas that I think Gallagher misses:

a. While she highlights the benefits of New Urbanism, does this lead to more affordable housing? In fact, the need for more affordable housing is rarely mentioned. As certain areas become more popular, such as urban neighborhoods that attract the creative class, this raises prices and pushes certain people out.

b. The main focus in the book is on big cities in the Northeast and Midwest. While she mentions some Sunbelt cities, like Las Vegas and Los Angeles, there is a lot more to explore here. There are particular patterns in Northern cities compared to newer, more sprawling Sunbelt cities. And in a book talking about the end of sprawl, how could she not mention Portland’s fight against urban sprawl in the last few decades?

c. It is an intriguing idea that cities and suburbs are starting to blend together. But, some of the examples are strange. For example, she talk about how there is increased poverty in the suburbs, which then could make cities more attractive again. There are still some major differences between the two sets of places, particularly the cultural mindsets as well as the settlement patterns.

d. She highlights thriving urban cores – but what about the rest of big cities? While Manhattan and Chicago’s Loop might be doing all right, what about the poorer parts of those cities? The recent mayoral race in NYC involved this issue and many have complained in Chicago that most of the neighborhoods experience little government help. In other words, these thriving urban and suburban developments often benefit the wealthier in society who can take advantage of them.

e. It isn’t until the last chapter that she highlights some defenders of sprawl – people like Joel Kotkin or Robert Bruegmann – but doesn’t spend much time with their ideas. Indeed, the book reads as if these trends are all inevitably moving toward cities and defenders of suburbs would argue critics of suburbs have been making these arguments for decades.

4. Two questions inspired by the book:

a. Just how much should the American economy rely on the housing industry? Gallagher suggests housing is a sign of a good economy based in other areas rather than one of the leading industries. Sprawl can lead to boom times for the construction and housing industries but it can also face tough times. Perhaps our efforts would be better spent trying to build up other industries.

b. Is the century of sprawl in America (roughly 1910 to today – there were suburbs before this but their mass development based around cars and mass housing really began in the 1920s) an aberration in our history or is it a deeper mentality and period? Gallagher suggests we are at the end of an era but others could argue the suburbs are deeply culturally engrained in American life and have a longer past and future.

Overall, this is an interesting read summarizing some important trends but I also think Gallagher misses some major suburban trends.

The balloon-frame building invented in Chicago in 1833

The building technique that helped give rise to mass-produced suburbia was invented in Chicago in 1833:

But traditional building methods required hand-hewn beams, hand-wrought mortise and tenon joints, lapped half dovetails, and something more crucial — labor-intensive construction at a time when labor was spread too thin.

Then in Chicago, Augustine Taylor got credit for creating balloon-frame construction, a hammer-and-nails forerunner to the light-frame construction that still dominates U.S. housing…

Experienced builders supposedly derided Taylor’s St. Mary’s Church in Fort Dearborn as “balloon-framed” because it looked like a stiff breeze would blow it away. But many accounts suggest the name came from a similar French Missouri type of construction called maison en boulin

Chicago architect John M. Van Osdel attributed the invention to Chicago carpenter George W. Snow in 1832. The Chicago History Museum and other scholars point out that Virginia carpenters in the 17th century — facing similar pressures to build fast — employed similar techniques. But it wasn’t mass-produced like Chicago was prepared to do. Between 1866 and 1875, the Lyman Bridges Company of Chicago sold pre-fab balloon-frame structures to western settlers, one of several purveyors of so-called “sectionalized housing.”

This technique was perfectly suited for mass produced suburban housing in the post-World War II era as it could involve standardized parts, be constructed quickly, and be done cheaply. Builders like the Levitts could quickly construct the frame of a home (after a foundation was laid) and then have a series of other workers come through to complete the home. The majority of American homes rely on wood studs nailed together – not complicated but relatively sturdy.

It is interesting to see that this is the #5 innovation from Chicago’s history. Considering the work that went into some of the others (like #8 Reversing the Chicago River), the balloon-frame structure had an outsized impact on American life.

Persistent homelessness in the Chicago suburbs shouldn’t be a surprise

Homelessness is an ongoing concern for Chicago suburbs:

Advocates say her story reflects an ongoing dilemma for those working to end homelessness. The problem often is dismissed as an urban one, but thousands of homeless people seek emergency overnight shelter across Chicago’s suburbs each year. In DuPage County, nearly three-quarters of the homeless are from the county, officials said.

Although the number of people served by homeless support agency DuPage Pads has remained steady at about 1,400 people for the past three years, officials counted an additional 29 people who refused shelter this year in favor of sleeping in parks, building entryways and other public areas, said Carol Simler, executive director for the agency.

Many of these homeless people are affected by mental illness, substance abuse or debilitating health conditions. Yet stringent suburban law enforcement — which keeps homeless people from congregating or loitering — coupled with an increase in foreclosed buildings in some areas make the fringe group difficult to reach, advocates say…

In Lake County, 2,000 people receive assistance or shelter from PADS Lake County each year. Officials estimate that an additional 200 choose to sleep outdoors — a group that can be elusive, said Joel Williams, executive director of PADS Lake County.

A few thoughts:

1. Homelessness in the suburbs might be even more pernicious for those without a home because it is harder to access local services or they are less present. As this article notes, there are several organizations in the Chicago suburbs tackling the issue and the PADS organizations in DuPage and Lake County take advantage of the Metra lines or busing, respectively.

2. It shouldn’t be surprising in 2013 to see “urban” issues in suburban areas. For example, the number of people in poverty in the suburbs now exceeds the number in poverty in big cities. Or, see the recent set of articles in the Chicago area about an uptick in heroin usage in the suburbs. Yet, it is still common to see articles like this or reactions from suburbanites that say things like, “isn’t it strange to see urban issues in the suburbs?” It could be that there are still suburbanites who aren’t expecting these issues or who intentionally moved to the suburbs to get away from such concerns. Yet, I also wonder if this isn’t really code for something: this is really more concern in wealthier suburbs who would like to keep these sorts of troubles far from their borders.

Who pays in and receives tax money for transit in the Chicago metropolitan region

Amidst the fight over tax dollars for mass transit in the Chicago region, here is a breakdown of where the tax money comes from and who gets to spend it:

Metra, the CTA and Pace receive around half of their operating revenues from fares, but most of the remainder comes from sales taxes. It’s calculated using unbelievably complicated state formulas that incorporate geography into divvying up the spoils. However, a 2008 state law change raising the sales tax left the disposal of some of the money up to the Regional Transportation Authority. That’s meant power struggles the last two years.

A look at 2012 sales tax dollars received by the RTA shows that 27.5 percent of that revenue derives from Chicago. The biggest chunk, or 50 percent, comes from suburban Cook County. Elsewhere, DuPage County contributed 8.6 percent, Lake 5 percent, Will about 4 percent, Kane about 3 percent and McHenry not quite 2 percent.

There are two different ways to interpret those numbers. Cook County, including Chicago, delivers 77 percent of transit funding. Or — the suburbs combined provide 72 percent of transit funding compared to Chicago.

In terms of revenue going out in 2014, the CTA will get $661 million in operating funds from the RTA, Metra receives $365.4 million, and Pace $151.6 million. When you cut up that pie, it’s 56 percent CTA, 31 percent Metra and 13 percent Pace.

So it sounds like complaints from DuPage County about the money they are contributing is a smaller slice of the pie overall – it is suburban Cook County that is chipping in the most.

Another issue: suburbanites might complain that they are not getting in return the money they put in but isn’t more expensive to run good mass transit in the spread-out suburbs? In other words, if the collar counties wanted mass transit similar to that of Chicago, wouldn’t it cost more from everyone?

Wheaton joins other communities in zoning medical marijuana dispensaries in manufacturing and industrial zones

Similar to Naperville, Wheaton wants to restrict medical dispensaries to manufacturing and industrial zones, near the city’s downtown:

City council members Monday gave their preliminary approval of zoning changes that would limit any dispensing operations to the industrial and manufacturing zones immediately south and west of the city’s downtown…

“[State law] pretty much excludes all property in Wheaton from having a cultivation center. The dispensing organizations have slightly different restrictions,” said James Kozik, director of planning and economic development. “It seems to be the trend that the locations where a community is permitting them seems to be in the manufacturing or industrial area.”

The state also prohibits businesses that will dispense medical marijuana from being within 1,000 feet of the property line of a school or day care, from opening in any type of residence or residential area, and from referring patients to a physician.

Under the state statute, Kozik said, without city action, dispensing operations could also be located in the Danada shopping area, East Roosevelt Road, portions of the Wheaton College campus and portions of the DuPage County Complex along County Farm Road.

City Manager Don Rose said he believes law enforcement officials would prefer to have dispensing facilities limited to the manufacturing district. Most council members agreed.

It will be interesting to watch how this plays out in Wheaton, given the community’s conservative political and religious character, as well as in other suburban communities.

When Dominick’s stores close, suburbs lose tax dollars, gathering places

Amidst the news stories detailing the closing of Dominick’s stores in the Chicago area, one article highlights its effects on suburban communities:

Bruce Evensen, a DePaul University journalism professor, compared the news with the closing of Marshall Field’s in 2006. He said he has been a longtime Dominick’s shopper after living in the Arlington Heights and Mount Prospect area for the past 20 years.

“It’s a sad day,” said Evensen, 62. “To see it close is not just the closing of a store but the closing of an experience. After years of checking out, you get to know the staff, their families and their dreams. It’s the ending of that part of their lives.”…

Naperville City Manager Doug Krieger called the stores significant sales tax contributors, and expressed hope that new tenants would fill the locations.

Michael Cassa, president of the Downers Grove Economic Development Corp., said that it’s too early to know the potential effect, but the village’s only Dominick’s sits in a busy commercial complex along the main business corridor.

There are two arguments as to how closed stores will affect suburbs:

1. They will lose out on tax dollars. Grocery stores are the sort of businesses that have regular consumers – we all have to eat. Additionally, it can be hard to refill big box stores that close down. New businesses might want to construct new buildings and it would be hard for a single large company to take over all of the closed stores. That means individual suburbs will have to try to attract new businesses into large buildings.

2. In suburbs which are marked by fragmentation and more home-centered social life, persistent social institutions are limited. Local schools and religious congregations help fill that void but grocery stores could also play that role. Again, since people have to eat, customers are likely to be in and out regularly. They may even be there enough to know a lot of the details about the store as well as get to know employees and fellow customers. Interestingly, the same claims are rarely made about Walmarts or Targets – but perhaps similar arguments will be made in the future once these stores have been in communities for decades.

It is interesting to watch the sadness over Dominick’s closing. There are certainly lots of workers affected and it is unclear where they will all end up. However, this cycle of corporate merging and sell-offs seems fairly normal to me. Perhaps that is because I grew up in the Chicago area going to other grocery stores. Or perhaps it is because I’m used to our times where companies are viewed less as community institutions and more of places providing services that could be here one year and not the next.

Route to primary win for Republicans in Illinois governor’s race runs through the Chicago suburbs

A pattern has emerged as Republican candidates for Illinois governor: each ticket includes someone from a Chicago collar county.

Wheaton City Council member Evelyn Pacino Sanguinetti will be Republican governor hopeful Bruce Rauner’s running mate, he announced this morning.

The daughter of an immigrant from Ecuador and refugee from Cuba, Sanguinetti is in her first term on the Wheaton council and worked as an assistant attorney general under Republican Jim Ryan…

His pick puts a suburban name on every Republican ticket for governor.

State Sen. Bill Brady of Bloomington chose former Long Grove Mayor Maria Rodriguez as his running mate, and Illinois Treasurer Dan Rutherford chose businessman Steve Kim of Northbrook. Dillard picked state Rep. Jil Tracy of Quincy.

Additionally, the main Republican primary candidates (Rauner, Brady, Rutherford, and Dillard) are all white males who selected a running mate who is not a white male: three women and a man who is “potentially the first Asian American to hold state office.”

So the strategy appears clear: try to win the suburban Republican vote, particularly in the populous Lake County and DuPage County, and appeal to various demographics (Illinois is now 71.5% white, 15.8% Latino, 14.5% black, and 4.6% Asian American). Expect to see the Republican candidates plenty in the Chicago suburbs in the months ahead…

Peak sprawl does not mean the end of suburbs but rather their densification

One researcher argues the suburbs of the future will be less sprawl and have more density:

Since 2009, 60 percent of new office, retail and rental properties in Atlanta have been built in what Christopher Leinberger calls “walkable urban places” – those neighborhoods already blessed by high Walk Scores or on their way there. That new construction has taken place on less than 1 percent of the metropolitan Atlanta region’s land mass, suggesting a shift in real estate patterns from expansion at the city’s edges to denser development within its existing borders.

“This is indicative that we’re seeing the end of sprawl,” says Leinberger, a research professor with the George Washington University School of Business, who led the study in conjunction with Georgia Tech and the Atlanta Regional Commission. “It does not say that everything turns off. There will still be new drivable suburban development. It’s just that the majority will be walkable urban, and it will be not just in the redevelopment of our downtowns, but in the urbanization of the suburbs.”…

“I think there’s a cause-and-effect issue here,” he says. “I think that when the economy picks up steam, it’s going to be because we learn how to build walkable urban places. Real estate caused this debacle, and real estate has always acted as a catalyst for economic recoveries.”

He figures we’re sputtering along at 2 percent growth precisely because we’re not building enough of the walkable urban product that the market wants. “And it’s signaling with pretty flashing lights,” he says, “to build more of this stuff.”

New Urbanists FTW! The argument here is that the suburbs will continue – with their features of home ownership, cars, local control, autonomy, etc. – but they will look different due to denser designs, feature different kinds of community and social life, and include more features like cultural centers or mixed-use neighborhoods that are more traditionally associated with cities.

One obstacle to this might be how much existing suburbs are willing to increase their densities. This make make financial sense or be good for growth but it could also alter the character of more sprawling communities. For example, many suburbs have already considered or built transit-oriented development where denser housing and space is built near mass transit. But, would they be willing to extend such construction across more of their area?

Fastest-growing American counties are suburban

Joel Kotkin highlights the fastest growing counties large counties in the United States:

Yet an analysis by demographer Wendell Cox of the counties with populations over 100,000 that have gained the most new residents since 2010 tells us something very different: Suburbs and exurbs are making a comeback, something that even the density-obsessed New York Times has been forced to admit. Of the 10 fastest-growing large counties all but two — Orleans Parish, home to the recovering city of New Orleans, and the Texas oil town of Midland— are located in the suburban or exurban fringe of major metropolitan areas.

Fastest Growiing US Counties: 2010-2012
Counties over 100,000 Population
Rank County Equivalent Jurisdiction    Growth
1 Williamson, TX 7.94%
2 Loudon, VA 7.87%
3 Hays, TX 7.56%
4 Orleans, LA 7.39%
5 Fort Bend, TX 7.16%
6 Midland, TX 7.14%
7 Forsyth, GA 7.07%
8 Montgomery, TN 7.04%
9 Prince William, VA 7.04%
10 Osceola, FL 6.97%

What these findings demonstrate is that more people aren’t moving “back to the city” but further out. In the last decade in the 51 largest U.S. metropolitan areas, inner cores, within two miles of downtown, gained some 206,000 people,  while locations 20 miles out gained over 8.5 million. Although the recession slowed exurban growth, since 2011, notes Jed Kolko at Trulia, suburbs have continued to grow far faster than inner ring areas as well as downtown. Americans, he concludes, “still love their suburbs.”

Rather than an inevitable long-range shift, the post-crash slowdown of suburban growth seems to have been largely a response to economic factors. The retro-urbanist dream of eliminating, or at least undermining, suburban alternatives depends very much on maintaining recessionary conditions that discourage relocation, depress housing starts, as well as lowering marriage and birthrates.

Where incomes are growing along with rapid job growth , suburban and exurban growth tends to be strong.  The metro regions that contain our fastest-growing counties — Austin, Houston, Nashville and Northern Virginia — all epitomize this phenomenon. For example, nearly 80% of all housing growth in greater Houston takes place in the areas west of Beltway 8 (the outer beltway). A similar pattern can be seen in the D.C. area, where the number of units permitted in Loudon has more than doubled since 2007. In 2012 permit issuances were the highest since 2005, and the vast majority were for either detached or attached single-family houses.

Kotkin’s conclusion is that the economic crisis slowed suburban growth for a few years, not a growing American move to cities and denser suburban areas. Some of this can’t be known until more time goes by; if Kotkin is right, recent years will be a blip and the kinds of places that were the fastest growing counties from 2010 to 2012 will continue to be fast-growing places.

There might be another approach that would allow both Kotkin and proponents of cities to both be able to claim some victory: outer suburbs might continue to grow as might attractive big cities (think Richard Florida’s creative class moving to the city) while inner suburbs who often have big-city problems, older housing stocks, and tax bases that have a hard time supporting suburban services languish.