Ownership and Opportunity: A New Report from Urban Reform Institute

In a new report from Urban Reform Institute, edited by Joel Kotkin, J.H. Cullum Clark and Anne Snyder explore what happens when opportunity stalls. Pete Saunders and Karla Lopez del Rio tell the story of how homeownership enabled upward mobility for their respective families. Wendell Cox quantifies the connection between urban containment policies and housing affordabilty. Read more

Coronavirus and the Office Apocalypse

“We shall never deal with the complex problems of large units and differentiated groups unless at the same time we rebuild and revitalize the small unit. We must begin at the beginning; it is here where all life, even in big communities and organizations, starts.”
— Lewis Mumford

What if they reopened the office and nobody came? This scenario is not as far-fetched as many believe. The office may not be dead, but its post-COVID future, particularly in big cities, may look more like a medieval-style arrangement than the buzzing, super dense science fiction vision from The Jetsons.

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The Limits of Rhetoric

Deep-blue cities and states are eager to declare their social-justice credentials. New York mayor Bill de Blasio has set up a commission designed to uproot the city’s “institutional” racism, while California governor Gavin Newsom brags that his state is “the envy of the world” and will not abandon its poor. “Unlike the Washington plutocracy,” he proclaims, “California isn’t satisfied serving a powerful few on one side of the velvet rope. The California Dream is for all.”

Yet California, though well known for its wealth, also has the nation’s highest poverty rate, adjusted for housing cost. If rhetoric were magic, metropolitan areas like New York, San Francisco, Los Angeles, and Chicago would be ideal places for aspirational minority residents. But according to statistics compiled by demographer Wendell Cox in a newly released report, these cities are far worse for nonwhites in terms of income, housing affordability, and education. New York and California also exhibit some of the highest levels of inequality in the United States, with poor outcomes for blacks and Hispanics, who, population-growth patterns suggest, are increasingly moving away from deep-blue metros to less stridently progressive ones.

The current focus on “systemic racism”—often devolving into symbolic actions like mandatory minority representation on corporate boards, hiring quotas, and an educational focus on racial redress and resentment—is not likely to improve conditions for most minorities. “If a man doesn’t have a job or an income, he has neither life nor liberty nor the possibility for the pursuit of happiness,” Martin Luther King said. “He merely exists.” That remains true. Our lodestar should be upward mobility: improving how well people live, across the board. When it comes to that criterion, blue states and cities are falling short.

The Covid-19 pandemic has inflicted disproportionate harm to the health of Latinos and African-Americans, who, according to the CDC, have suffered rates of infections and deaths higher than the overall population, which makes a focus on upward mobility even more important. To measure progress, we have developed an Upward Mobility Index, with “opportunity ratings” for the nation’s 107 largest metropolitan areas—those with populations of 500,000 or more in 2018—by race and ethnicity. We examined the factors that underpin upward mobility and entry into the middle class. Then, we created a ranking by metro that combined these factors for the three largest ethnic and racial minorities: African-Americans, Latinos, and Asians.

The results confound assertions that nominally progressive policies—affirmative action, programs for racial redress, strict labor and environmental laws—help nonwhites. It turns out that places with low housing costs, friendly business conditions, and reasonable tax rates do much better than cities proclaiming their woke credentials.

African-Americans do best by these measurements in southern metros such as Atlanta, the traditional capital of black America; McAllen, El Paso, and Austin, Texas; and Raleigh, Virginia Beach/ Norfolk, and Richmond, Virginia. The Washington, D.C. metro area, well known for its large, middle-class African-American suburbs, also compares well. Oklahoma City, Phoenix, Lancaster, Pennsylvania, and (perhaps surprisingly) Provo, Utah rank high for black success.

At the bottom of the list, California dominates, with four of the worst ten locations, including Los Angeles, which a half-century ago was widely seen as a mecca of sorts for blacks. Two of the state’s most prominent political leaders of the late twentieth century—four-term Los Angeles mayor Tom Bradley and long-time assembly speaker and San Francisco mayor Willie Brown—came from poor Texas families, not Golden State metros. Other cities traditionally attractive to African-Americans no longer serve as leading places for black ambition, including Miami and New York.

Similar, though somewhat varied, results can be seen for Latinos, now the nation’s largest minority, and Asians, the fastest-growing. Latinos seem to be doing best outside the Northeast Corridor and the West. Fayetteville (Arkansas/Missouri), for example, ranks number 7; it’s an evolving economic hub paced by Walmart, JB Hunt, and Tyson Foods. Latinos have found opportunities in metros tied to basic goods as well as technological production (St. Louis); logistics and agribusiness (Kansas City, Des Moines, and Omaha); energy (Pittsburgh and Oklahoma City); and manufacturing (Grand Rapids and Akron).

In contrast, California, with the nation’s largest Hispanic population, now includes eight of the bottom 15 metros on the Hispanic Upward Mobility Index. The nation’s largest Hispanic conurbation, Los Angeles, ranked 105th out of the 107 largest U.S. metros. The remaining six worst performers, apart from Honolulu, are on the much-deindustrialized east coast, including New York, Bridgeport-Stamford, and Worcester.

Read the rest of this piece at City Journal.

Charles Blain (@cjblain10) is the president of Urban Reform and Urban Reform Institute. A native of New Jersey, he is based in Houston and writes on municipal finance and other urban issues. Joel Kotkin (@joelkotkin) is a contributing editor of City Journal, the Presidential Fellow in Urban Futures at Chapman University, and executive director of the Urban Reform Institute. His latest book is The Coming of Neo-Feudalism: A Warning to the Global Middle Class.

America After COVID: What Demographics Tell Us

“When there is a general change in conditions, it is as if the entire creation had changed, and the whole world altered.”  —Ibn Khaldun, 14th century Arab historian

The Covid-19 pandemic, it’s clear, will help reshape America’s economic and demographic future. Yet, many of the trends that we may associate with this reshaping—the rise of online work, a growing interest in suburbia and smaller cities—were already in place before the pandemic. The pandemic did not originate these trends, but it will likely accelerate them.

For years, the conventional wisdom from economic observers like Neil Irwin of The New York Times and echoed by public relations aces and property speculators has been that “superstar cities” like New York, San Francisco and Seattle have “the best chance of recruiting superstar employees. In contrast, rural and interior regions would become home to “behind.” And experts like urbanist Christopher Leinberger predict suburban tracts would become “the next slums.”

Yet, in reality, jobs and young people have been increasingly heading toward both the suburban periphery and smaller cities. In fact, a snapshot of America before the appearance of Covid-19 was of a country migrating more to suburbs, exurbs and smaller cities, with the U.S. Census Bureau reporting the fastest growth in domestic migration between 2010 and 2019 taking place in cities with less than a million people—a dramatic change from just a decade earlier.

In contrast, our largest metropolitan areas—New York, Chicago and Los Angeles—lost nearly as many net domestic migrants as the population of Arkansas from 2010 to 2019 (2.8 million compared to 3.0 million). New York’s population growth peaked at 130,000 in 2011 but fell to a 60,000 loss by 2019, according to Census Bureau estimates.

The Geography of Pandemics

The pandemic has been toughest on areas suffering from what we call “exposure density.” Nationwide, the highest fatality rates are in the two highest urban density categories, which are comprised of three New York City counties. Manhattan’s fatality rate, with 2.4 percent of the nation’s deaths, is 4.8 times its proportional share of deaths; Brooklyn and Bronx counties, which have the higher poverty rates associated with higher death rates, do even worse, with a fatality rate 7.5 times the national average.

In contrast, less dense counties—those with urban densities between 2,500 and 5,000—have less than their proportional share of deaths (0.8 percent), with 22.4 percent of deaths and 28.1 percent of the population. Lower density areas have even lower fatality rates, despite the occasional spikes in food-processing plants, Native American reservations and extremely poor areas like those close to the Mexican border. Even with the recent surge, fatality rates in states like Texas, Arkansas, Kansas and the Dakotas remain between one-third to one-eighth of those in New York and New Jersey.

Pandemics, like changes in climate, often alter how and where people live. In the 14th century, plagues wiped out as much as one-third of Europe’s population, but the wreckage also brought opportunities for those left standing. Large tracts of land, left abandoned, could be consolidated by rich nobles or, in some cases, enterprising peasants, who looked to lower rents and higher pay. “In an age where social conditions were considered fixed,” suggested historian Barbara Tuchman, the new adjustments seemed “revolutionary.”

Read the rest of this piece at Chief Executive.


Joel Kotkin is the author of The Coming of Neo-Feudalism: A Warning to the Global Middle Class. He is the Presidential Fellow in Urban Futures at Chapman University and Executive Director for Urban Reform Institute. Learn more at joelkotkin.com and follow him on Twitter @joelkotkin.

Wendell Cox is principal of Demographia, an international public policy firm located in the St. Louis metropolitan area. He is a founding senior fellow at the Urban Reform Institute, Houston and a member of the Advisory Board of the Center for Demographics and Policy at Chapman University in Orange, California. He has served as a visiting professor at the Conservatoire National des Arts et Metiers in Paris. His principal interests are economics, poverty alleviation, demographics, urban policy and transport. He is co-author of the annual Demographia International Housing Affordability Survey and author of Demographia World Urban Areas.

Photo credit: Mike Dunn via Flickr under CC 2.0 License.

Democratic Prospects & The Plural Generation with Morley Winograd

In this episode of the Feudal Future podcast, Morley Winograd joins hosts Joel and Marshall on Feudal Future Podcast to talk about the 2020 election, and the prospects for a democratic administration should they win.

Politics, Polarization & The Plight Of The Middle & Working Classes With John Russo

In this episode of the Feudal Future podcast, hosts Joel Kotkin and Marshall Toplansky interview John Russo, co-author of Steel Town USA and a visiting scholar at Georgetown University. John has spent most of his academic career at Youngstown State University in Ohio, and he has spent much time cataloguing the plight of the middle class and working class in the US.

The Roots of California’s Tattered Economy Were Planted Long Before the Coronavirus Arrived

California is in far worse shape economically than the great majority of other states also struggling through the pandemic. COVID-19 may be the primary cause of our current distress, but the evolving structure of our economy has exacerbated this calamity. The worst part is our state leaders should have known this all along. Read more

Podcast Episode 12: Kyle Harper

On this episode of Feudal Future, hosts Joel Kotkin and Marshall Toplansky are joined by Kyle Harper, Professor of Classics at the University of Oklahoma. Their discussion looks to the fall of Rome to help understand the problems of today. Kyle’s book, The Fall of Rome takes a look at infectious disease as part of the destruction of Rome.

The Coronavirus Reopened America’s Wounds — and Poured Salt in Them

Yes, the coronavirus hit the president and his White House hard, likely because of the irresponsible choices this president has made, but let’s not kid ourselves: The virus has devastated with alarming efficiency minorities and the impoverished, particularly in cities, while accelerating America’s return to a more hierarchical and far less democratic society.

The virus has been inconvenient for the affluent, many of whom still could work comfortably from home and who suffered far lower rates of infection. And it’s been a boon for the elite bureaucracy and even more so for the already fantastically wealthy tech oligarchs whose ownership of people’s data is even more valuable with shopping and entertainment largely online.

That’s nothing new. Faced with pestilence in crowded cities, the wealthy in past centuries often escaped to country estates and rentals, as they have this year. Of course, some of those escapees died, too, but at a far lower rate than the hoi polloi. Whether in the towering insulae of Rome, medieval hovels, or the tenements of the Lower East Side, the poor have always been hit first and hardest by economic dislocation, infection, and death. Although far less lethal, COVID-19 has followed this pattern.

Overall, counties with urban densities greater than 10,000 per square mile constitute less than 4 percent of the nation’s population but have suffered 14 percent of deaths associated with the pandemic. By comparison, in the most typical suburban areas (urban densities of 1,000 to 2,500 per square mile), where 53 percent of the population lives, the COVID fatality rate is approximately one-fifth of that. In counties with urban densities under 1,000 (largely rural), it is one-sixth.

The biggest problem lies with what demographer Wendell Cox labels “exposure density,” which results from insufficiently ventilated places like crowded housing, transit, elevators and office environments. Poor people, as a new paper suggests, are far less able to socially distance either at home or at work. As race and class often overlap in America, whites are roughly twice as likely to telecommute as African Americans or Hispanics.

Nationwide, African Americans, who make up 13 percent of the population, account for 21 percent of COVID-related deaths. The difference in hospitalization rates between groups is even more striking, with Native Americans at 300 per 100,000, African Americans at 267 and Latinos at 265, while its 57 for non-Latino whites.

Poverty seems to be the common thread. Even in lower density areas like native American reservations and along the Mexican border, poorer people often live in crowded, pandemic-friendly unventilated places. The worst-hit areas have been those with both high rates of poverty and household crowding, like New York’s outer boroughs and Chicago’s south and west sides. Although California’s infection rate has been lower, the worst effects by far have been felt in impoverished parts of Los Angeles County—home to five of the 10 most crowded zip codes in the U.S. In Houston, poor areas like the First and Third Wards have experienced far higher rates of infection and fatalities. An analysis by the Houston Chronicle revealed that seven of the 10 zip codes with the highest rates of infection were majority-black and low-income communities. Some suffered double or triple the county’s (already high for Texas) average per-capita rate.

Read the rest of this piece at The Daily Beast.


Joel Kotkin is the author of The Coming of Neo-Feudalism: A Warning to the Global Middle Class. He is the Presidential Fellow in Urban Futures at Chapman University and Executive Director for Urban Reform Institute. Learn more at joelkotkin.com and follow him on Twitter @joelkotkin.

Image by Silviu Costin Iancu in Public Domain.

Podcast Episode 11: Fred and Harry Siegel

On this episode of Feudal Future, hosts, Joel Kotkin and Marshall Toplansky are joined by guests Harry and Fred Siegel. Fred is a senior fellow at the Manhattan Institute for Policy Research. His son, Harry is a senior editor at the Daily Beast. Their conversation covers the future trends of cities, the workforce, and Manhattan.