The Biggest Cities Are Past Their Prime

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As the centers of media and political discourse, large cities, notably New York, have a unique ability to promote themselves, asserting that dense, core urban areas own the future. Yet in reality, even during good times, and well before the pandemic, Americans have been headed, in increasing numbers, to suburbs, exurbs and to smaller cities. Romantic illusions to past urban recoveries may make people feel better, but they ignore both long-lasting trends and new realities.

People vote with their feet, and today, only a small percentage of Americans live in or around the core urban counties. In 1950, the core cities accounted for nearly 24% of the U.S. population; today the share is under 15%. In contrast, the suburbs and exurbs grew from housing 13% of the metropolitan population in 1940 to 86% in 2017, a gradual increase of 2% a year. Despite all the talk of young people and families and others coming “back to the city,” suburbs accounted for about 90% of all U.S. metropolitan growth since 2010; over that time, suburbs and exurbs of the major metropolitan areas gained 2 million net domestic migrants, while the urban core counties lost 2.7 million.

Much the same can be said about the economy. During the last decade, roughly 80% of all job growth has been in the suburbs. Suburbs also generate the bulk of patents; in fact, three-quarters come from areas with less 3,500 people per square mile, less than half the density associated with urban centers.

The pandemic accelerated these already existing trends. New census numbers show that San Francisco, New York and Los Angeles led the population loss sweepstakes over the past year, while people headed to the Sunbelt, suburbs, exurbs or even small towns.

But the real issue now is not so much the pandemic per se but the rise of dispersed work. Midtown offices are still more than half empty — and that’s not just the pessimist’s way of seeing the glass. While they will recover some, they will likely not replace a large portion of what was lost. Stanford economist Nicholas Bloom suggests that remote workers will ultimately constitute at least 20% of the workforce, more than three times the pre-pandemic rate.

This leaves the large central business districts such as Midtown particularly exposed. As long-time urban booster Richard Florida notes, central business districts represent “the last gasp of the old Industrial age.” He adds, “This idea that you have to pack and stack these office workers and they have to commute in at 9 and leave at 5 and work in cubicle farms— it’s just silly. It is completely out of touch with the way people work.”

Read the rest of this piece at NY Daily News.

Joel Kotkin is the author of The Coming of Neo-Feudalism: A Warning to the Global Middle Class. He is the Roger Hobbs 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.

Photo:Steve Guttman via Flickr under CC 2.0 License.

Exurbia Rising

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Perhaps nowhere is the gap between America’s cognitive elite and its populace larger than in their preferred urban forms. For nearly a century—interrupted only by the Depression and the Second World War—Americans have been heading further from the urban core, seeking affordable and safe communities with good schools, parks, and a generally more tranquil lifestyle. We keep pushing out despite the contrary desires of planners, academic experts, and some real estate interests. In 1950, the core cities accounted for nearly 24 percent of the U.S. population; today, the share is under 15 percent, according to demographer Wendell Cox. Between 2010 and 2020, the suburbs and exurbs of the major metropolitan areas gained 2.0 million net domestic migrants, while the urban core counties lost 2.7 million.

This is less a growth in “bedroom suburbs,” supplying workers to the urban core, but one that serves multiple employment centers and commercial development. The latest edition of Commuting in America estimates that almost 70 percent of metropolitan-area workers now live and work in the suburbs; trips within suburbs or suburb-to-suburb commutes constitute more than double the commutes with a central business district as the final destination.

The urban fringe is where the American dream is now being re­discovered. But these fringes remain widely disdained in academia, media, and the planning community. This was most evident during the financial crisis when there were widespread media accounts suggesting, among other things, that the exurbs would become “the next slums,” the equivalent of “roadkill” doomed by changing economics and demo­graphics. The New York Times even suggested how to carve up the suburban carcass, with some envisioning that suburban three-car garages would be “subdivided into rental units with street front cafés, shops and other local businesses,” while abandoned pools would become skateboard parks. Yet this is exactly what did not happen.

The Exurban Revolution

In the new In the new Urban Reform Institute report, we identified the fifty high­est‑growth large counties in terms of net domestic migration from 2015 to 2019. These areas grew their population at 7.5 times the rate of the country’s other 3,100 counties during this period and gained 1.8 million net domestic migrants. Out of the fifty, all but seven are located in combined statistical areas (CSAs) of more than 500,000 residents. And each of these outer counties are within or close to a two-hour commute time of a central core county. Key areas include Atlanta, Dallas–Fort Worth, and Orlando.

The key demographic headed to these places is young people in prime family formation years. From 2015 to 2019, these counties saw an increase in twenty-five- to thirty-four-year-olds of 12.8 percent, almost four times the 3.4 percent growth rate in the other counties. The high­est‑growth counties also have a far higher rate of school-age children (five- to fourteen-year-olds) per household than the rest of the nation—0.66 compared to 0.43 for the other counties. The highest growth counties have 3.5 times as many school-age children per household as, for example, Manhattan and San Francisco and 75 percent more school-age children per household than other counties in the United States.

This migration is not a repeat of the “white flight” that drove peripheral growth a half century ago. To be sure, during the great mass suburbanization of the mid-twentieth century, many communities—Levittown and Lakewood are well-known examples—excluded ethnic minorities, providing planners and “smart growth” advocates a rationale to claim that single-family neighborhoods are inherently racist ever since. This assertion is seriously out of date, however. Over the past decade, non-Hispanic whites accounted for less than 4 percent of growth in suburbs and exurbs, while Latinos accounted for nearly half, with Asians, African Americans, mixed race, and other groups making up the balance.

These areas tend to be particularly attractive to well-educated immi­grants. The wildly popular Woodlands planned community near Houston is roughly 30 percent Hispanic, African American, and Asian. In Irvine, California, arguably the most successful planned development, a majority of the population is nonwhite and over 40 percent Asian. In the Tres Lagos development in McAllen, Texas, three-quarters of all buyers are middle-class Hispanics, notes developer Nick Rhodes, for houses that average under $200,000. “We have a young population that is looking for larger homes and safety,” suggests the twenty-seven-year-old Rhodes. “These are people who cannot afford Irving or even Dallas but want parks and good schools.”

Read the rest of this piece at American Affairs Journal.

Joel Kotkin is the author of The Coming of Neo-Feudalism: A Warning to the Global Middle Class. He is the Roger Hobbs 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.

Homepage photo: Ken Lund via Flickr CC 2.0 License.

Here’s Why California is Losing Population for the First Time

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California is suffering a major demographic reversal, one that threatens both the state’s economic future and the durability of its progressive model.

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The Left Doesn’t Own Minority Voters

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Demographic transitions present political opportunities, but do not protect politicians from their own folly. The shift in most Western countries to a more racially and ethnically diverse demographic has been widely seen by left-wingers as an opportunity to cement their ascendancy.

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The New Dark Ages

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If ignorance is bliss, the Western world should be ecstatic. Even as colleges churn out degrees and collect fees, and technology makes information instantly accessible, the basic level of literacy, as measured by such things as reading books and acquainting oneself with the past, is in a precipitous decline. Rather than building a vital world with our technological culture, we are repeating the memes of feudal times, driven by illiteracy, bias and a rejection of the West’s past.

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Work or Welfare?

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Throughout history, work has been the common lot of humanity—at least, outside of the idle rich and those who could not find any. It was celebrated by the Calvinist capitalists described in Weber’s The Protestant Ethic and the Spirit of Capitalism as a means for people to achieve their “own salvation.” Labor for its own sake was embraced by the Marxist canon as well—work, wrote Friedrich Engels, “is the prime basic condition for all human existence, and this to such an extent that, in a sense, we have to say that labor created man himself.”

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. He merely exists.
~Martin Luther King, Jr. (1968)

Yet today’s baffling shortage of workers in high-income countries may presage something different: a post-work society, in which only a select few labor. For most, economic maintenance would come from some form of universal basic income (UBI). This notion has been tried as part of the COVID-19 relief program and in President Biden’s proposed Build Back Better initiative, which allows benefits for those who could join the workforce but don’t care to.

This idea is arising at a propitious time. A strong majority of people in 28 countries around the world, according to a recent Edelman survey, believe that capitalism does more harm than good. More than four-in-five worry about job loss, particularly from automation. Rising inequality and general fear of downward mobility have boosted support for expanded government and greater re-distribution of wealth.

Surplus classes

As early as 1995, author Jeremy Rifkin suggested that automation would eliminate work for most and create the basis for a society where “large numbers of people could be liberated from long hours in the formal marketplace.” This would allow them to focus on “leisure activities,” a kind of technological utopia for the masses.

It’s a compelling vision in some ways, but right now it looks dystopic. The ranks of what Marx called the “reserve army of the unemployed” are simply disengaging. A decade ago, Gallup’s Jim Clifton wrote about The Coming Jobs War, in which he predicted a global struggle for diminishing employment. Now there is plenty of work but people are not interested. In the US, labor participation rates have fallen from 80 percent in 1950 to 61 percent now, down from 64.4 percent in 2010. Nearly one-third of American working-age males are not in the labor force, suffering high rates of incarceration, or drug, alcohol, and other health issues.

And, to be sure, opportunities may be further reduced by technology, which could accelerate the loss of many kinds of jobs that once provided a means of upward mobility: postal workers, switchboard operators, machinists, computer operators, bank tellers, travel agents. For the 90 million Americans who work in such jobs—and their counterparts elsewhere—the future could be bleak. By 2030, Oxford Economics predicts that 20 million factory jobs worldwide will fall to automation—1.5 million in the US, 2.5 million in the EU, and 12.5 million in China.

The pandemic clearly accelerated this process, notably in the service sector. With the shift to online and takeout food, chains like McDonald’s are perfecting electronic delivery systems that reduce the need for human labor. Large capital investments are necessary for such adaptations, which—as France’s Thomas Piketty has noted—favors larger corporations as opposed to smaller family businesses.

Globalism, automation, and its effects

A plausible future scenario is a society in which a small, hyper-productive technical and managerial elite delivers food, housing, and pleasure to the plebes, like those in the later centuries of the Roman Empire. Their only role in society would be to take and not threaten the imperial state—a system that only worked due to the presence of slaves and huge territories to pillage.

Read the rest of this piece at Quillete.

Joel Kotkin is the author of The Coming of Neo-Feudalism: A Warning to the Global Middle Class. He is the Roger Hobbs 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.

Homepage photo: Henry & Co. via Unsplash.

The Great Nudge

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When we think of oppressive regimes, we immediately think of the Stalinist model portrayed in Orwell’s Nineteen Eighty-Four, the heavy-handed thought control associated with Hitler’s Reich or Mao’s China. But where the old propaganda was loud, crude and often lethal, the contemporary style of thought control takes the form of a gentle nudging towards orthodoxy – a gentle push that gradually closes off one’s critical faculties and leads one to comply with gently given directives. Governments around the world, including in the UK, notes the Guardian, have been embracing this approach with growing enthusiasm.

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Own Nothing and Love It

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From the ancient world to modern times, the class of small property owners have constituted the sine qua non of democratic self-government. But today this class is under attack by what Aristotle described as an oligarchia, an unelected power elite that controls the political economy for its own purposes. In contrast, the rise of small holders were critical to the re-emergence and growth of democracy first in the Netherlands, followed by North America, Australia, and much of Europe.

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We Need More Families

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Families, and the lack of them, are emerging as one of the great political dividing lines in America, and much of the high-income world. The familial ideal was once embraced by all political factions, except on the extremes, but that is no longer the case.

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America is Built on a Great Culture. Progressives Want to Abandon It

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Here’s a dirty secret: Great nations rest on a great common culture. I say it’s a secret because it’s become almost taboo to discuss this historic fact; progressives across the globe have turned decisively against national legacies, and it’s progressives who by and large dictate mainstream culture. But if the Democratic Party wants to avoid further electoral disasters like those in Virginia, Long Island and elsewhere, it would do well to relearn the obvious truth that a common culture that binds us is not only good and necessary, but popular.

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