Tag Archive for: suburbs

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.

The Great Office Refusal

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The pandemic has cut a swath through our sense of normalcy, but as has been the case throughout history, a disastrous plague also brings opportunities to reshape and even improve society. COVID-19 provides the threat of greater economic concentration, but also a unique chance to recast our geography, expand the realm of the middle class, boost social equity, and develop better ways to create sustainable communities.

Driven partly by fear of infection, and by the liberating rise of remote work, Americans have been increasingly freed from locational constraints. Work continues apace in suburbs and particularly in sprawling exurbs that surround core cities, while the largest downtowns (central business districts, or CBDs) increasingly resemble ghost towns.

This shift has made it more practical for individuals and particularly families to migrate to locations where they can find more affordable rents, and perhaps even buy a house. But such a pattern may be countered by investors on Wall Street, who seem determined to turn the disruption to their own advantage by gearing up efforts to buy out increasingly expensive single-family homes, transforming potential homeowners into permanent rental serfs and much of the country into a latifundium dominated by large landlords.

We are in the midst of what the CEO of Zillow has called “the great reshuffling,” essentially an acceleration of an already entrenched trend of internal American migration toward suburbs, the sunbelt, and smaller cities. Between 2019 and 2021 alone, a preference for larger homes in less dense areas grew from 53% to 60%, according to Pew. As many as 14 million to 23 million workers may relocate as a consequence of the pandemic, according to a recent Upwork survey, half of whom say they are seeking more affordable places to live.

This suggests that the downtown cores of U.S. cities will continue to struggle. Since the pandemic began, tenants have given back around 200 million square feet of commercial real estate, according to Marcus & Millichap data, and the current office vacancy rate stands at 16.2%, matching the peak of the 2008 financial crisis. Between September 2019 and September 2020, the biggest job losses, according to the firm American Communities and based on federal data, have been in big cities (nearly a 10% drop in employment), followed by their close-in suburbs, while rural areas suffered only a 6% drop, and exurbs less than 5%. Today our biggest cities—Los Angeles, New York, and Chicago—account for three of the five highest unemployment rates among the 51 largest metropolitan areas.

The rise of remote work drives these trends. Today, perhaps 42% of the 165 million-strong U.S. labor force is working from home full time, up from 5.7% in 2019. When the pandemic ends, that number will probably drop, but one study, based on surveys of more than 30,000 employees, projects that 20% of the U.S. workforce will still work from home post-COVID. 

Others predict a still more durable shift: A University of Chicago study suggests that a full one-third of the workforce could remain remote, and in Silicon Valley, the number could stabilize near 50%. Both executives and employees have been impressed by the surprising gains of remote work, and now many companies, banks, and leading tech firms—including Facebook, Salesforce, and Twitter—expect a large proportion of their workforces to continue to work remotely. Nine out of 10 organizations, according to a new McKinsey survey of 100 executives across industries and geographies, plan to keep at least a hybrid of remote and on-site work indefinitely.

The shift of work from the office to the home, or at least to less congested spaces, threatens the strict geographic hierarchy of many elite corporations. Some corporate executives, like Morgan Stanley’s Jamie Dimon, are determined to force employees back into Manhattan offices, like it or not. It’s now a common mantra among like-minded executives, especially those connected to downtown office development, that workers are “pining” to return to the office. Some have even threatened employees who do not come back in person with lower wages and decreased opportunities for promotion, while offering to reward those willing to take the personal hit of coming back on-site every day.

Read the rest of this piece at Tablet.

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 credit: Steven Zwerink via Flickr under CC 2.0 License.

To Make Homeownership Affordable in California, Rethink the Suburbs

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California’s future as a place of aspiration is fading for all but the wealthiest residents — with that promise nearly out of reach for young people and new immigrants.

This state has become a place marked both by spectacular successes and by not-so-welcome superlatives. The rise of the tech giants, engines of wealth creation, coexists with the nation’s highest cost-adjusted poverty rate, the second-lowest rate of homeownership among the states and the greatest concentration of overcrowded housing in the nation.

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Millennials Are a Lot Less Progressive Than You Think

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Millennials have long been cast as the great progressive hope, or “New Progressive America: The Millennial Generation,” as one study would have it. 25- to 40-year-old Americans, already the largest portion of the current adult population, have been cast by progressives as “a hero generation” that will escape the material trappings of their Boomer parents’ suburban lives and pull American politics far to the Left.

To be sure, millennials are the most Democratic-leaning of generations, as the Pew Research Center found; they have close to a 60 percent fealty to Democrats, and their votes clearly helped get rid of Donald Trump. So it’s fitting that their avatar is the congressional “Squad” led by the ubiquitous 30-year-old Rep. Alexandria Ocasio-Cortez, one of their own.

It’s also undeniable that the ideological cast of millennials, who will be the largest voting block by 2024, will shape our political future. But a closer look at millennial attitudes suggests that the difference between their lives and the lives of their parents is not always by design, and that given the choice, many millennials would prefer to be parents and enjoy family life in the suburbs (and the attendant centrist politics) than be the “heroes” of a left-wing movement.

You can see this in the fact that millennials have been increasingly leaving big cities like New York, Los Angeles and Chicago for more conventional locales, as an analysis of the past decade found. Millennials have spent the past 10 years moving en masse to less expensive, redder metros in the Sunbelt and to the suburbs and exurbs of select Midwestern cities like Columbus, Des Moines and Indianapolis.

Millennials just aren’t the overwhelmingly enthusiastic urbanites that people say they are; big skies and small towns are in high demand for a significant number of younger Americans. Some 26 percent told researchers they would like to end up in small-town or rural America, while another 39 percent are headed for the suburbs. This even applies to better educated workers, nearly 70 percent of whom prefer suburban or small-town living. This pattern is strongest among whites and Latinos, but even among African Americans, roughly half opt for suburban living.

And this desire to leave cities is correlated strongly with marital status. Almost a third of married millennials want to move out to the country—compared to 21 percent of singles. It reflects a political divide between primarily childless, left-leaning urbanites and more conservative or centrist families on the periphery.

Reflecting their geographic diversity, millennials are also proving less uniformly Left than imagined, as Ruy Teixeira, author of The Optimistic Leftist, found; as they age and start families, millennials tend to focus more on economic improvement than abstract notions of cultural or social justice.

A poll of over 1,400 people sponsored by the Los Angeles Times and Reality Check Insights after the November 2020 elections revealed that a plurality of millennials consider themselves centrists. 50 percent are politically independent or lean only a bit in one direction, while another 16 percent are conservative. Just a third identify as liberal.

Read the rest of this piece at Newsweek.

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.

Samuel J. Abrams is professor of politics at Sarah Lawrence College and a visiting scholar at the American Enterprise Institute.

Photo: picjumbo via Pexels.

Joe Biden’s Imaginary America

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After two painful recessions and ever greater national discord, there is considerable support for a new beginning, even if it takes massive federal spending. The question we must ask now is what kind of spending makes sense given the character of the country, its geography, and its economic challenges. America remains a vast and diverse place, and decisions that make sense for one locale do not necessarily make any sense in others. A dispersed country needs dispersed decision-making, not edicts issued from on high by the D.C. nomenklatura.

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Could COVID Exodus Speed the Heartland Revival?

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Over the past two decades America’s largest urban areas enjoyed a heady renaissance, driven in large part by the in-migration of immigrants, minorities and young people. But even as a big-city dominated press corps continued to report on gentrification and displacement, those trends began to reverse themselves in recent years as all three of those populations started heading in ever larger numbers to suburbs, sprawling sunbelt boomtowns and smaller cities and out of the biggest ones.

That shift preceded the COVID pandemic, but has rapidly accelerated with the expansion of remote work, which has undermined the economic basis for high-end urban and post-industrial economies. Meanwhile, the severe lockdowns Democratic governors and mayors favored devastated the service and small business economies that had provided sustenance to immigrant and minority entrepreneurs and workers.

The same “canaries in the coal mine” that spurred America’s urban renaissance have been leaving its big cities in growing numbers since 2014, notes demographer Wendell Cox. New York, Los Angeles and Chicago have all begun to lose population while people have flocked to new employment hubs like Austin, Dallas, Phoenix, Columbus and Nashville that have led the way in terms of both overall new jobs and high-end business and professional service jobs.

Nowhere is this shift more evident than with immigrants. The share of the foreign born settling in big coastal “gateways” has plunged from 44 percent in 2010 to barely 35 percent in 2019. Foreign-born populations, notes Cox in research for the think tank Heartland Forward, stagnated or even declined in New York, Los Angeles and Chicago as they surged in Houston (over 25 percent growth), Dallas-Ft Worth (30 percent) Charlotte (nearly 40 percent) and Nashville (a remarkable 44 percent).

Houston, in fact, is now the most diverse major metropolitan area in the country. In 1960, Harris County, which includes Houston and many of its suburbs, was 70 percent white, non-Hispanic and 20 percent African American. Today, the county’s total population is 31 percent white and non-Hispanic, 42 percent Hispanic, 19 percent Black and 8 percent Asian. The share of foreign-born Houstonians now approaches one-fourth of the population—almost twice the average for the nation’s 50 most populous metros.

More surprising still has been the equally rapid move of immigrants to smaller cities such as Fayetteville, Ark., Knoxville, Tenn,; Cedar Rapids, Iowa, Springfield, Mo., and Fargo, N.D. The fastest growth in foreign-born populations has been in areas with traditionally low immigrant concentrations. Where the foreign-born population grew by 10 percent nationally in the last decades, in states like Georgia, Kentucky, South Carolina and the Dakotas it has expanded by 30 percent.

Racial minorities, too, are heading increasingly to the sunbelt boom towns, the south and to smaller cities. The surges in Latino, Asian and African American growth are not in Los Angeles, New York, Chicago, or the Bay Area, according to an analysis by Wendell Cox for the Urban Reform Institute, but in Atlanta, Boise, Salt Lake City, Phoenix and Las Vegas.

Again, economics is a key factor. Middle-class job creation has been generally stronger in these communities and, due to less regulation and lower taxes, costs are lower. African-American real incomes in Atlanta are more than $60,000, compared to $36,000 in San Francisco and $37,000 in Los Angeles. The median income for Latinos in Virginia Beach-Norfolk is $69,000, compared to $43,000 in Los Angeles, $47,000 in San Francisco and $40,000 in New York City. The highest Asian median household incomes are in Raleigh, Jackson, Fayetteville (AR-MO) and Austin.

Read the rest of this piece at 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.

Photo: Brian Stansberry via Wikimedia under CC 3.0 License.

Battlefield ‘Burbs

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America’s political culture has been shaped by its rural and urban environments, each of which tends to be dominated by one party. Urban Republicans are now as rare as rural Democrats.

Yet the political future of the country lies in the suburban and exurban rings that dominate every metropolitan region. These voters are made up predominately neither of woke city hipsters nor gun-toting rubes, the stereotypes that dominate our competing cultural memes. The suburbs are the last contestable geography in the country. Read more

Economic Civil War

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Our national divide is usually cast in terms of ideology, race, climate, and gender. But it might be more accurate to see our national conflict as regional and riven by economic function. The schism is between two ways of making a living, one based in the incorporeal world of media and digital transactions, the other in the tangible world of making, growing, and using real things.

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Five Ways to Stop the Exodus

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By: Mark Calvey and Allison Levitsky
On: San Francisco Business Times

More companies are making the leap outside California. How can the Golden State bring back its golden touch?

“We cannot solve our problems with the same thinking we used when we created them.”

Albert Einstein might as well have been talking about California’s corporate exodus when he said that quote, once spotted on the walls of Intel’s Santa Clara headquarters.

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Can We Save the Planet, Live Comfortably, and Have Children Too?

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The Covid-19 pandemic has brought about what Zillow calls “the great re-shuffling,” as more people head out of major metropolitan areas to work, often remotely, in less dense, even rural areas. The recent surges in urban crime and disorder, in once-placid London and Paris, and once-triumphant New York, San Francisco, and Los Angeles, are likely to make things even tougher for the urban core.

As technology shifts, particularly for white-collar workers, the economic logic behind urban densification and expanded mass transit weakens. Today, nearly 45 percent of the 155 million-strong U.S. labor force is working from home full-time during the pandemic, up from below 6 percent in 2019. When the pandemic ends, this portion will no doubt drop, but experts like Stanford economist Nicholas Bloom suggest that it will remain at least 20 percent of the workforce.

Some 60 percent of U.S. teleworkers, according to Gallup, wish to keep doing so, at least for now. Globally, some 80 percent of workers expressed a desire to work from home at least some of the time. Equally important, many executives believe that this shift will continue, disproportionately affecting our largest, most celebrated business hubs. Both executives and employees have been impressed by surprising gains, and now many companies, banks, and leading tech firms – including Facebook, Salesforce, and Twitter – expect a large proportion of their workforce to continue to do their jobs remotely after the pandemic.

The coming conflict between reality and the green urban agenda

These preferences counter the narrative, so popular with planners and pundits, of the need for greater density and smaller living units in metropolitan areas, amid the expansion of mass transit.

If the densification agenda was weak before, it is almost delusional now. Even before Covid, the largest core-city populations have been stagnant or declining, including fabled American cities like New York, Los Angeles, and Chicago. Nationwide since 2010, 90 percent of major metropolitan-area growth took place in the suburbs and exurbs. Jobs followed this pattern as well before Covid started undermining the economic rationale for high-rise office towers and massive new transit investment.

To be sure, some industries may choose to concentrate in the core by preference or tradition, and certain groups, largely the childless and the super-affluent, may remain in the urban playground for reasons of culture, social contacts, or easy access to international airports. But with the rise of remote work, most are likely to labor at home or nearby. They will travel less; upward of 33 percent of all business travel, critical to the health of many inner-city economies, could be permanently lost, as people opt for remote meetings and training sessions.

Read the rest of this piece at Real Clear Energy.

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: Frantik via Wikimedia under CC 3.0 License.