Tag Archives: wealthy

McMansion owning Vermont governor criticized for real estate dealing with neighbor

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The governor of Vermont has run into some real estate trouble after buying the property of a neighbor:

Soon after the successful real estate investor built his McMansion on a rural dirt road here outside Vermont’s capital, he began throwing his wealth around, striking a deal to bail out his neighbor from a looming tax sale by buying the man’s property for a quarter of its appraised value.

Such a sale is not uncommon and likely would have gone unnoticed. Except the buyer was the governor of Vermont, Peter Shumlin. And the seller, Jerry Dodge, was a hard-luck ne’er-do-well with a criminal record and what his friends and family describe as limited intellect and diminishing prospects.

Since word of the deal surfaced last week, Shumlin has been under intense scrutiny in the state. Real estate lawyers generally conclude that he did nothing illegal, but that the governor might still have held himself to a higher standard of conduct, raising the question of when a savvy business deal becomes bad for his politics…

Some of Dodge’s dissatisfaction appears to have been fueled by family and friends telling him he took too little for his property. He recalled reciting the Pledge of Allegiance as a child, before he left school in the ninth grade. It’s not justice for all, he said. It’s “justice for the rich.”

Sounds like a sticky situation for a politician who doesn’t want to be seen taking advantage of another resident. At the same time, the use of the term McMansion is intriguing. See a picture of Shumlin’s house here and a wider overhead view here. From these far-off pictures, it doesn’t look too much like a McMansion. The house might have a large square footage but the exterior appears understated and the house does not dominate the large lot. In using the term McMansion, the AP might be referring more to the home’s recent construction by a wealthy resident rather than the architecture and design of a home within a suburban subdivision. The rest of the story does seem to play up the angle that Shulmin’s house is a wealthy and luxurious one, particularly compared with the more run-down property of his neighbor.

Owning a McMansion gives you more of a voice in society

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One Iowa resident suggests McMansion owners have more of a voice in society compared to the marginalized:

There are segments of our population that feel isolated and powerless because it seems no one is listening to their message. Unfortunately we even have a name for them, the marginalized. What exactly does that mean? These are the groups that are left out and not listened to. Examples abound such as the homeless, mentally ill, people with disabilities, inmates, children and the elderly.

For a country so rich in many ways, we have lost the luster by treating those without a voice as if they were not worthy. It speaks volumes about what we do honor.

Is it most important how much money one makes or how powerful they are? Who has the biggest McMansion and the most cars?

Who can boast that they have several vacation homes and multiple residences? Who has a golden parachute ready to be opened when the business goes under and many are left without employment?

There is one idea behind this reference to McMansions that is common but one that is not. First, the common idea: that owning a McMansion is about displaying wealth and status. Critics of the homes suggest those who buy them simply want to show off their money and do so by purchasing homes that are meant to impress. This ties in with images of Americans being obsessed with keeping up with the Joneses, consumption, and materialism.

The second idea is not as common. What if owning a McMansion is more about inequality and who has what resources in society? Even critics who argue McMansions are about people chasing status tend to argue that these people should buy more architecturally sound homes that are less garish. What if McMansions are part of a whole system that privileges those who can purchase homes, provide their children with plenty of support, and enjoy some luxuries in life? This idea does not come up very often. Perhaps this is because the idea implicates owning expensive single-family homes more broadly. Perhaps it is because plenty of Americans still like the suburbs and their private spaces. Regardless, thinking of McMansions more as part of the issue of inequality then could get into ideas how money should be spent, how we should build homes and neighborhoods, and what it means for more people to live the good life.

Anthropologist behind story of Manhattan moms who hire disabled tour guides to bypass Disney lines

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Lost a bit in the story about Manhattan moms who hire disabled tour guides to avoid lines at Disney is how the story came out: from the research of an anthropologist.

“It’s insider knowledge that very few have and share carefully,” said social anthropologist Dr. Wednesday Martin, who caught wind of the underground network while doing research for her upcoming book “Primates of Park Avenue.”

“Who wants a speed pass when you can use your black-market handicapped guide to circumvent the lines all together?” she said.

“So when you’re doing it, you’re affirming that you are one of the privileged insiders who has and shares this information.”

A win for social science? Perhaps not – Wednesday Martin was trained in comparative literature. I imagine there is some more backstory to this including how Martin found out about this practice and how this information made it to the media. Here is more about the book with an intriguing title which is to be released next year:

What happens when an anthropologist from the Midwest moves to Manhattan’s most prestigious zip code…and raises her children there? Primates of Park Avenue is an anthropological memoir of Manhattan motherhood by Dr. Wednesday Martin, author of Stepmonster: A New Look at Why Real Stepmothers Think, Feel and Act the Way We Do (Houghton Mifflin, 2009).  By turns hilarious, touching and insightful, Primates of Park Avenue reveals the pressures, conundrums and competition that make mothers and mothering in Manhattan unique. From a deconstruction of the exercise and self-care practices of the caste of women with children she calls “Manhattan Geishas” to the lurid details of her own crazed pursuit of a Birkin bag; to an analysis of the rites of passage like the coop board interview, the gut renovation, bed bug battles and “ongoing” school applications that brought her to her knees; to an exploration of what she calls “the world’s most complicated, fraught, and misrepresented relationship, the dance between mothers and the nannies they hire to help them raise their children”; to an inside view of the galas, benefits, kiddie birthday parties and other extravaganzas of conspicuous consumption that define her adopted tribe, Martin spares no detail in exploring what makes Uptown motherhood strange, exotic and utterly foreign and fascinating. At the same time, Primates of Park Avenue illuminates the quests, anxieties and ambitions–for a healthy, happy child, a good night’s sleep, sexual satisfaction, financial security and a concealer that actually works–that connect women with children all across the country and all over the world.

An “anthropological memoir” – this might be easier for the general public to understand than saying it is a personal ethnography. It sounds like the book, in the words of one of my colleagues, will take the familiar, the wealthy in New York City, and make it exotic.

Continued lack of affordable housing in Chicago’s northern suburbs

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Affordable housing is a problem throughout the Chicago region but here is a closer look at the current state of affordable housing in Chicago’s North Shore suburbs:

Under the law, the Illinois Housing Development Authority in 2004 identified 49 communities where less than 10 percent of the housing was deemed affordable. At least nine of them are on the North Shore, including Winnetka, Wilmette, Highland Park, Deerfield, Northbrook, and Lake Forest.

Reactions to the law varied in those communities. Highland Park aggressively pursued ways to make affordable housing available. Northbrook took a more casual approach and set general goals. In Winnetka, after years of heated debate, officials voted in 2011 to just stop talking about the issue…

But over the last ten years, the affordable housing that has been added “is a drop in a bucket,” she said.

“The economy is bouncing back, but a lot of these communities are still catering to the rich,” said Schechter.

A significant barrier for affordable housing in the North Shore is the lack of undeveloped land and the high price of properties, said Richard Koenig, executive director of the Housing Opportunity Development Corporation.

It doesn’t look to me like much has changed. The 2004 Illinois law hasn’t done much as many communities already met the requirements (based on a formula that may then be too lax), it has little ability to enforce anything, and there are still continuing issues of affordable housing. I think there is also some disconnect about who the affordable housing is supposed to serve. In my experience, when suburbs like those on the North Shore talk about affordable housing, they are more willing to do something when they are talking about public servants, like teachers, police officers, and firefighters, or people who have been in the community before, like kids who grew up in the suburb or retired residents, who have difficulty living there on limited incomes. These suburbs are not thinking as much about the retail or service industry or laborers that might work in their communities.

This shouldn’t be too surprising: given the opportunity, most wealthier suburbs will zone land in such a way that the housing prices and options cater to a wealthier crowd. Affordable housing is an issue that should be taken care of by other suburbs, such as more working- or lower-class communities.

Defining what makes for a luxury home

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Here is how one data firm defines what it means to be a luxury housing unit:

Although upscale housing is selling better in some cities than in others, a monthly analysis by the Altos Research data firm for the Institute for Luxury Home Marketing says that overall, that segment of the market is gaining momentum and prices are rising…

Q: “Luxury home” is probably one of the most abused phrases in real estate-ese. How do you define it?

A: A price range that’s considered the high end of the market in one place might be something that’s average in another. So, “luxury” is local: Our organization generally defines it as the top 10 percent of an area’s sales in the past 12 months. But for the purposes of the research that we do with Altos for our monthly Luxury Market Report, we’ve taken the ZIP codes within each of 31 markets that have the highest median prices, and for about five years we’ve tracked the sales of homes in those (areas) that are $500,000 and above.

There are two techniques proposed here:

1. The highest 10 percent of a local housing market. Thus, the prices are all relative and the data is based on the highest end in each place. So, there could be some major differences in luxury prices across zip codes or metropolitan regions.

2. Breaking it down first by geography to the wealthiest places (so this is based on geographic clustering) and then setting a clear cut point at $500,000. In these wealthiest zip codes, wouldn’t most of the units be over $500,000? Why the 31 wealthiest markets and not 20 or 40?

Each of these approaches have strengths and weaknesses but I imagine the data here could change quite a bit based on what operationalization is utilized.

Interestingly, the firm found that luxury sales rebounded quicker than the rest of the market:

The interesting thing about this recovery is that the luxury segment, that group of affluent households, was able to recover fairly quickly. They shifted their assets around, and a lot of them were able to see opportunities in the down market. By 2010, there were almost as many high-end households as before the downturn, not just in the United States, but internationally, as well. This group focused on residential real estate as a pretty desirable asset — for them, a second or third home turned out to be a portfolio play.

This shouldn’t be too surprising – when an economic crisis hits, the wealthier members of society have more of a cushion. While the upper end is doing all right, others have argued the bottom end, those looking for starter homes, are having a tougher time.

What Naperville residents like, dislike about the suburb

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A recent survey of Naperville resident shows what they like and what they don’t about the community:

The 2012 community survey was Naperville’s first in four years, netting 1,581 responses that will be used to create a strategic plan this summer…

The survey found 91 percent of respondents were satisfied with the overall quality of life in Naperville. Looking at city services, 92 percent were satisfied with fire and emergency medical services, 85 percent gave good marks to garbage and recycling services and 84 percent were satisfied with police services. Overall city service satisfaction levels were consistent no matter which part of town the resident lived in…

Traffic flow fared the worst with only 40 percent of residents saying they are satisfied, which is a 10 percent increase from the previous survey…

Compared to the rest of the country the city scored at or above the national average in 36 of 44 areas like overall quality of city services, city streets, sidewalks and infrastructure and overall image of the community. Residents’ satisfaction with overall quality of city services rated 32 percent above national average.

The city scored below the national average in eight areas including traffic flow, public transportation and household hazardous waste disposal service.

The national comparisons are pretty interesting here. The article goes on to suggest this is due, at least in part, to effective planning and responses from the city. This is likely true to some degree; Naperville sees itself as a leader for providing efficient and effective local services. On the other hand, I wonder how much of this is due to the relative wealth of Naperville. Considering its size, Naperville is unusually wealthy with plenty of good jobs which can then lead to good schools and more money for quality of life concerns like parks, libraries, parks, and lots of retailers.

The traffic issue is a tough one to solve in Naperville. Of course, much of the suburb is made up of auto-dependent neighborhoods. Couple this with Naperville’s wealth of jobs and attractive downtown and there is plenty of driving around. The city has three highways on its edges, I-88 on the north, I-355 on the east, and I-55 on the south, but the local main streets are quite clogged. This is an issue particularly going north-south as Route 59, Washington Street, and Naper Boulevard are quite crowded. Mass transit is available to Chicago, and Naperville has two of the busiest stops in the entire Metra commuter system, but transit is limited within the city outside of some shuttles to and from the train stations. I think the real question is whether the traffic in Naperville is bad enough for residents and business to not locate or stay in the community. If a number of the other indicators are so high, I would think not but bad traffic, particularly in auto-dependent places like big suburbs, can be quite irritating.

Sitting in a McMansion at the Kentucky Derby?

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An overview of the seating arrangements at the Kentucky Derby suggests some spectators will be treated to a McMansion-like setting:

For those who may wonder what sorts of seating arrangements (and pecking orders) have been established in the 138 years of this aggressively social event, here’s a breakdown: Industry types settle into third-floor boxes at the finish line. Hot-shot corporate leaders plant their flags in fifth-floor suites. The celebrity headliners for Friday night’s charity fundraisers can usually be seen on the fourth-floor Skye Terrace or the Turf Club.

Prime stalking ground this year is “The Mansion,” a new luxury hideaway with a dedicated elevator and private wine cellar designed to feel like a McMansion.

Major sponsors such as Yum! Brands (Taco Bell, KFC) and Brown-Forman (the spirits company behind Jack Daniel’s and Woodford Reserve), have fifth-floor “Finish Line” suites. Prominent Louisville figures buy seats at large tables within the dining areas on “Millionaire’s Row,” which some dismiss as “Thousandaire’s row.”

Horse-industry insiders lock in seats, tables or boxes with personal seat licenses, the best of which can cost up to $75,000 for multiple years or $46,000 for one year. The heart of the industry is in the third-floor numbered boxes: sections 316 to 318 are closest to the finish line. Owners with runners in the Derby are given an assigned box here.

Sounds like there is plenty of money thrown around. But, I wonder what exactly makes “The Mansion” similar to a McMansion: just the elevator and wine cellar? Is there something about the flashiness of the space? Its poor design or architecture? Its appeal to the nouveau riche? Here is an inside look at the newly opened space:

And while the name inspires thoughts of Gone With the Wind’s Tara, or maybe PBS’ Downton Abbey, The Mansion decor better resembles a high-rise suite in a Las Vegas hotel for high rollers, with oversized couches and striking chandeliers…

“This is an experience that’s unlike anything else in sports,” track spokesman Darren Rogers said. Where someone at the Super Bowl or World Series is constantly watching a game, horse racing has periods of 30 minutes or more between races for Mansion customers to be pampered in “the finest amenities that these exclusive customers are used to.”

Churchill’s paddock can be seen from a balcony that also has a prime view of the almost 120-year-old Twin Spires. Mansion patrons who want to watch the races can walk out onto another three-tier balcony that, from the lower rows, affords some of the best views of the track.

“When we started with the design process, we started with a theme. And really the theme of this venue is ‘past meets present,’ ” Churchill track General Manager Ryan Jordan said. “So you’ve got a great historical venue here, and we wanted to bring it up to the modern times with this (Mansion) venue specifically.”

I’m seeing why it is labeled “The Mansion” but still not seeing the McMansion piece which implies some negative aspects…

When Main Street features multi-million dollar houses

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Main Street evokes a particular image that is certainly challenged by the expensive homes on some of these Main Streets featured on Curbed. Here is one example:

Nantucket’s historic Main Street has been home to impeccably-maintained million-dollar mansions for decades, so it surprised the Times to find 141 Main in a shoddy state in 2001. That very house has since been fully renovated and listed for $7.9M. The historic columned manse, known as the George C. Gardner House, dates to 1835 and sits on a half-acre lot, but lacks any view of the ocean. There is, however, a private swimming pool, which, according to the listing, could no longer be installed under Historic District regulations.

As suggested by the Wall Street versus Main Street political rhetoric in recent years, Main Street is a powerful idea. Or look at the entry area in Walt Disney’s theme parks: a recreated version of the Main Street of the town in which he grew up.

In reality, real Main Streets don’t really matter as much today. Most Americans don’t live in small towns (with a majority of Americans now living in suburbs), many post-World War II communities don’t really have Main Streets, and businesses are now spread out all over the place in strip malls, shopping malls, business parks, and lifestyle centers. Americans are not as interested in running into neighbors and acquaintances on Main Street; we’d rather do so on Facebook.

These expensive listings suggest a transformation of Main Street away from the ideals of community life to the best private residences money can buy. Main Street, like many other things, can become commodified and can become exclusive by being priced out of the reach of many Americans. Additionally, these listings remind us of the variability across Main Streets. As we might guess, the Main Street of Santa Monica, California is going to be quite different than the Main Street of small town Kansas.

American driving culture can lead to some opulent garages

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Curbed highlights eight fun quotes from a recent Wall Street Journal story on some unusual American garages. Here are four of the quotes:

6. “Once seen as a catchall space to store bicycles, trash cans and lawn tools, garages are being rediscovered as the ideal place—who knew?—to park cars.”…

4. “Mr. DesRosiers recently completed a 6,200-square-foot garage in the suburbs of Detroit that has a 1,800-square-foot detail shop on the lower level with a penthouse above, accessible via elevator.”

3. “There are seven flat-screen televisions throughout the three levels. “I can build a motorcycle and watch a football game at the same time, which is pretty sweet,” he says.”

2. “He put a glass door in between the wine cellar and underground parking space so the owner can “walk into the lift and touch and feel the car from the wine cellar,” he adds.”

The original story also highlights some broader trends regarding garages:

Even if an existing home has a garage, one or two bays may not be enough. “Those garages are not suitable for today’s vehicles. They’re just too small,” says Mr. Pekel of the Milwaukee construction and remodeling firm.

Of new homes built in 2011, 29% have a three-car or larger garage, according to Home Innovation Research Labs. These spaces have more bays, taller ceilings and greater square footage, says Ed Hudson, director of the market research division at Home Innovation Research Labs.

By and large, men are the primary users of garages, at 70% overall, Mr. Hudson says. For some purposes, like maintaining vehicles or working on projects,more than 90% of all users are men.

There is still room to discuss why people would want such garages in the first place, particularly if it comes at the expense of other items, such as spending money elsewhere in their houses. I would argue you could make a broader argument about the general love Americans have for driving and vehicles which then leads to a “need” for large spaces devoted to these vehicles. On one hand, vehicles are very functional – they get you where you need to go, particularly in a sprawling American built landscape that often requires driving. On the other hand, people can get attached to such functional objects and see them as much more than tools.

If some recent survey data is correct in showing that the younger generation of Americans don’t care so much about cars, perhaps we are in or have already passed “the golden age of garages.” If New Urbanists and other like-minded architects get their way, the garage would lose some of its prominence by being moved from the front facade of homes to the rear. In several decades, these opulent garages may look even more unusual and unnecessary.

Don’t bother with a McMansion on land; get a 557 foot McMansion yacht

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When compared to transportation options, McMansions and SUVs are often linked. Here is a different example: McMansions compared to mega-yachts.

Anyone who’s traveled down New York’s West Side Highway in the past few weeks has seen Roman Abramovich’s mega-yacht, The Eclipse, parked at Pier 92. While it has already been eclipsed by a 590-foot-long yacht as the world’s largest, the oligarch’s floating McMansion, at 557 feet, is a boat like Versailles is a house.

I don’t much at all about the world of yachts but I think the comparison to McMansions here is quite wrong. In fact, the journalist contradicts themselves at the end of this paragraph when he compares the yacht to Versailles. Well, Versailles is certainly not a McMansion and neither is a 557 foot yacht – both are mansions.

So, why use the term McMansion? It may not be as much about the size of the home but more of a commentary about the new wealth of Abramovich. Additionally, Abramovich is well-known for throwing his money around, in purchases like that of Chelsea, and McMansion owners are often thought to be trying to make a flashy statement. With this comparison, the implication is that Abramovich may not be that much different than an American who hopes his home impresses people at first glance.