Tag Archive for: demographic decline

Downtown San Francisco is Beyond Redemption

The recent announcement that Ian Jacobs, a scion of the famous Toronto-based Reichmann real estate clan, was coming to buy upwards of $900 million of San Francisco real estate, has offered the beleaguered California city a rare moment of hope. Some suggest that we could see a repeat of New York’s recovery from its nadir in the 1970s, during which the Reichmanns made a fortune gobbling up depressed buildings shortly before the city’s resurgence.

Yet any effort to restore San Francisco’s appeal will need more than an infusion of vulture capital. The city’s problems are essentially demographic and political, and have transformed San Francisco from an icon to a disaster zone, particularly as workers opt for remote work. The city’s office vacancy rate continues to rise, now surpassing 35%, the highest in its history.

To be sure, San Francisco has been losing its middle class for decades, replaced initially by young single people, many of whom are tied to the tech industry. But as early as 2015, the city began losing net domestic migrants as growth shifted to the further exurbs.

Since the pandemic, the city’s population has dropped and its social problems, long festering, have become a running sore. That’s likely why up to 10% of San Francisco’s residents have left the city — far more than in New York. “A lot of people have had it,” Heather Gonzalez, a longtime Democratic activist and mother of two, told me. “We have had neighbours and an elderly grandfather beat up on a bus and my kids have to watch people poop in public on Market Street. This is what we have to go through.”

Yet there is some hope, Gonzalez suggests. She points to the recent recall of ultra progressives including the District Attorney and three school board members. There’s also been a concerted effort by moderate Democrats to root the radical Left’s hold on the party as well as an effort to replace several far-Left members of the Board of Supervisors.

Amid a severe budget deficit, these efforts are critical. The city’s understaffed police department is almost certain to lose the battle for resources with the city’s dominant and fervently Leftist public employee unions. That the city now suffers the second highest violent crime rate in California illustrates just how important this battle is.

These reform efforts finally have some backing now from the tech oligarchs, who in recent years have been indifferent or even supportive of the progressive agenda. This has roiled the Left-wing activists who see any movement backed by the billionaire class as a hostile takeover.

Yet even if the city somehow regains its ballast, Reichman may be looking at the wrong places to invest. Although the office market may recover, the movement of business out of the state continues in a way far more profound than in New York back in the 1970s.

Read the rest of this piece at UnHerd.


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 under CC 2.5 License.

Europe Is Burning

Ever since the earliest days of the Republic, American intellectuals, artists, and statesmen looked to Europe for models. Conservatives felt attracted to the continent’s sense of continuity and tradition, and as the base for Christianity. More recently, progressives saw in European social democracy and globalist pacifism a role model to be embraced. Read more

The Unexpected Future

We are entering an unanticipated reality—an era of slow population growth and, increasingly, demographic decline that will shape our future in profound and unpredictable ways. Globally, last year’s total population growth was the smallest in a half-century, and by 2050, some 61 countries are expected to see population declines while the world’s population is due to peak sometime later this century.

Slowing population growth creates an unexpected future

Chart credit: Our World In Data under CC 4.0 License.

This kind of long-term global demographic stagnation has not been seen since the Middle Ages. World population has been growing for centuries, but the last century has dwarfed previous rises. About 75 percent of the world’s population growth has occurred in the last hundred years, more than 50 percent since 1970. But now, population growth rates are dropping, especially in more developed nations, according to the United Nations (all subsequent references to UN research in this essay are drawn from these data).

It’s not a matter of if but when global populations will start to decline. Under the UN’s medium variant projection, the world’s population will peak in 2086, while under the low variant, the peak will occur in 2053, and by 2100, the population will be about a billion below today’s level. Demographer Wolfgang Lutz and colleagues project a global population of between 8.8 and 9.0 billion by 2050 falling to between 8.2 and 8.7 billion by 2100. The projected declines are concentrated in countries with high fertility rates, especially in sub-Saharan Africa. In the process, we will inhabit a rapidly aging planet. In 1970, the median world age was 21.5 years. By 2020, it had increased to 30.9 years, and the UN projects that it will be 41.9 years in 2100.

We are well past the time when we need to concern ourselves with Paul Ehrlich’s long-standing prophecy that humanity will “breed ourselves to extinction.” On the contrary, we need to worry about the potential ill-effects of depopulation, including a declining workforce, torpid economic growth, and brewing generational conflict between a generally prosperous older generation and their more hard-pressed successors. The preponderance of low fertility in wealthier countries also presages a growing conflict between the child-poor wealthy countries and the child-rich poor countries.

The shrinking of the rich world

Europe’s population shrank by 744,000 in 2020 and by 1.4 million last year—the largest fall on any continent since records began in 1950. Although worsened by the pandemic, this was largely an acceleration of a longstanding pattern. The EU’s population growth has been tapering for a generation, with fertility rates well below the 2.1 rate required to simply replace population The largest EU country, Germany, is forecast to drop five percent by 2050 while Italy is projected to lose 10 percent of its population. Overall, the 27-nation European Union projects that its population will drop from its 2022 figure of 447 million to 416 million by the century’s end.

European fertility has largely declined since the 1960s and the birth rate has slumped to “a 60-year low of 4 million births.” Compared to 1970, when 16.4 babies were born for every 1,000 persons, the crude birth rate dropped to 9.1 in 2020. Last year, the birth rate in England and Wales also hit a record low, with fertility rates for women under 30 at their lowest levels since records began in 1938. A fifth of all British women are childless by mid-life.

The lowest fertility rates are found in the countries of Eastern Europe, which have long been exporters of their shrinking youth populations. According to UN projections, Ukraine’s population will fall 18 percent from 2022 to 2050, even without accounting for the impact of the Russian invasion. Poland will be down 13 percent. Arch-rival Russia also faces inexorable depopulation: during 2019 (pre-pandemic), deaths were running about 50 percent higher than births there. With a 2022 population of 145 million, Russia is expected to drop to 133 million by 2050, according to the UN.

Plummeting fertility rates

Europe was the trailblazer of these new demographic trends but it is no longer an outlier. Over the past few decades, fertility has dropped precipitously in China, Taiwan, South Korea, Hong Kong, and Singapore. Today, all are saddled with birth rates well below replacement rates. South Korea’s birth rates have fallen for so long that the country plans to reduce its armed services to about half their current size within 20 years.

Read the rest of this piece at Quillette.


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.

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, a Senior Fellow with the Frontier Centre for Public Policy in Winnipeg 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.

Red Dusk

David Goldman’s remarks on America’s challenges against China are, for the most part, spot-on. He is particularly on-target about two realities that may displease traditional conservatives: the failure of Trump’s China policy, and the need for some form of industrial policy.

Goldman may have voted twice for Trump (I did not), but he is no MAGA die-hard. He can read the numbers, which show growing dependence on China and an ever-widening trade deficit: imports from China rose over 30% more starting in January 2018, when Trump imposed tariffs. This 19th-century strategy simply did not work in the 21st.

Read more

California Fleeing

Some longtime Californians view the continued net outmigration from their state as a worrisome sign, but most others in the Golden State’s media, academic, and political establishment dismiss this demographic decline as a “myth.” The Sacramento Bee suggests that it largely represents the “hate” felt toward the state by conservatives eager to undermine California’s progressive model. Local media and think tanks generally concede the migration losses but comfort themselves with the thought that California continues to attract top-tier talent and will remain an irrepressible superpower that boasts innovation, creativity, and massive capital accumulation.

Reality reveals a different picture. California may be a great state in many ways, but it also is clearly breaking bad. Since 2000, 2.6 million net domestic migrants, a population larger than the cities of San Francisco, San Diego, and Anaheim combined, have moved from California to other parts of the United States. (See Figure 1.) California has lost more people in each of the last two decades than any state except New York—and they’re not just those struggling to compete in the high-tech “new economy.” During the 2010s, the state’s growth in college-educated residents 25 and over did not keep up with the national rate of increase, putting California a mere 34th on this measure, behind such key competitors as Florida and Texas. California’s demographic woes are real, and they pose long-term challenges that need to be confronted.

Source: Derived from U.S. Census Bureau Estimates

Source: Derived from U.S. Census Bureau Estimates

The state has suffered net outmigration in every year of the twenty-first century, but its smallest losses occurred in the early 2000s and the years following the Great Recession, when housing affordability was closer to the national average. Home prices have risen since then—and so have departures. Between 2014 and 2020, net domestic outmigration rose from 46,000 to 242,000, according to Census Bureau estimates.

The outmigration does not seem to have reached a peak. Roughly half of state residents, according to a 2019 UC Berkeley poll, have considered leaving. In Los Angeles, according to a USC survey, 10 percent plan to move out this year. The most recent Census Bureau estimates show that California started falling behind national population growth in 2016 and went negative for the first time in modern history last year.

The comforting tale that only the old, bitter, and uneducated are moving out simply does not withstand scrutiny. An analysis of IRS data through 2019 confirms that increasing domestic migration is not dominated by the youngest or oldest households. Between 2012 and 2019, tax filers under 26 years old constituted only 4 percent of net domestic outmigrants. About 77 percent of the increase came among those in their prime earning years of 35 to 64. In 2019, 27 percent of net domestic migrants were aged 35 to 44, while 21 percent were aged 55 to 64. (See Figure 2.)

Source: IRS data

Source: IRS data

To be sure, the largest increase in net domestic migration was among those aged 65 and over. But the second-largest increase came in the 25 to 34 categories—with the state’s exorbitantly high cost of living the likely culprit.

Read the rest of this piece at City Journal.


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, a Senior Fellow with the Frontier Centre for Public Policy in Winnipeg 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: Beatrice Murch, via Flickr under CC 2.0 License