U.S. Losing Its Middle-Class Neighborhoods

[DjTj]

From 1970 to 2000, Metro Areas Showed Widening Gap Between Rich, Poor Sections

http://www.washingtonpost.com/wp-dyn/content/article/2006/06/21/AR2006062101735.html

INDIANAPOLIS -- Middle-class neighborhoods, long regarded as incubators for the American dream, are losing ground in cities across the country, shrinking at more than twice the rate of the middle class itself.

In their place, poor and rich neighborhoods are both on the rise, as cities and suburbs have become increasingly segregated by income, according to a Brookings Institution study released Thursday. It found that as a share of all urban and suburban neighborhoods, middle-income neighborhoods in the nation's 100 largest metro areas have declined from 58 percent in 1970 to 41 percent in 2000.

Widening income inequality in the United States has been well documented in recent years, but the Brookings analysis of census data uncovered a much more accelerated decline in communities that house the middle class. It far outpaced the decline of seven percentage points between 1970 and 2000 in the proportion of middle-income families living in and around cities.

Middle-income neighborhoods -- where families earn 80 to 120 percent of the local median income -- have plunged by more than 20 percent as a share of all neighborhoods in Baltimore, Chicago, Los Angeles and Philadelphia. They are down 10 percent in the Washington area.

(more at link)

I know there were some urban planning threads a while back, but this article made me think of the recent discussion on racial segregation.

...Somehow it seems like in a world where we all have more information and more mobility, we have become much better at segregating, especially by income.

[Barney B]

...Somehow it seems like in a world where we all have more information and more mobility, we have become much better at segregating, especially by income.

Exactly. It's not just "white flight" that's occuring - people of all races are getting out. They're then displaced in part by poor people who consume more public services, and contibute less tax revenue, thus stressing the city budget, services suffer, crime goes up, and the next thing you know, the wealthy are leaving.

In Toledo you can buy a mansion for the price of a cup of decaf.

[twa]

"Middle-income neighborhoods -- where families earn 80 to 120 percent of the local median income -- have plunged by more than 20 percent as a share of all neighborhoods in Baltimore, Chicago, Los Angeles and Philadelphia. They are down 10 percent in the Washington area."

I think they are all moving down here...Can you take em back?

The building boom is crazy in this area.

[The 12th Commandment]

I think they are all moving down here...Can you take em back?

The building boom is crazy in this area.

Made me laugh twa. That's exactly what I was going to say. :laugh:

So you're losing middle class neighborhoods in metro areas and gaining middle class cities in the west and south. Pretty much a clean swap IMO. I'd be curious to see what percentage of the loss is attributable to flight and what percentage is attributable to a change in economic status.

[twa]

Made me laugh twa. That's exactly what I was going to say. :laugh:

So you're losing middle class neighborhoods in metro areas and gaining middle class cities in the west and south. Pretty much a clean swap IMO. I'd be curious to see what percentage of the loss is attributable to flight and what percentage is attributable to a change in economic status.

I think examining the reasons for the loss of jobs and quality of life would be in order,including affordability.

I've lived here my whole life,but it is getting too crowded.

Perhaps NM would be a nice change.

[The 12th Commandment]

I think examining the reasons for the loss of jobs and quality of life would be in order,including affordability.

I've lived here my whole life,but it is getting too crowded.

Perhaps NM would be a nice change.

Makes you wonder if infact they wouldn't be changing economic status if they stayed put, but by relocating to a more affordable area they maintain a status quo.

This really does harken to the urban planning concepts. What will become of these metropolis' if all they have are rich and poor? I don't think their economies would be served very well by that.

Oh, by the way, it's horrible in NM. Weather sucks, people are mean and the traffic (I won't even talk about that) trust me no one would want to live here.

[just skins baby]

The building boom has taken over down here as well. What used to be farmland has now become 200k to 300k homes. I just wonder who is going to live in these homes. This is not a high tech area and our industry is fairly old.

We did get a new Wal-Mart about 2 years ago and they have brought a Lowes and Home Depot in but they pay nowhere near the wages to support these types of homes.

There is a rumor in the county that Toyota wants to build a plant here near the airport but the county doesn't want such a big industry moving in.

[LegionOfDoom]

The building boom has taken over down here as well. What used to be farmland has now become 200k to 300k homes. I just wonder who is going to live in these homes. This is not a high tech area and our industry is fairly old.

You will get the retirees from NOVA and the surrounding DC area who will sell their $500,000 - 1million dollar homes and take up residence with you. And you might get the people who don't mind commuting to DC or NOVA to work just to buy an affordable home in your town.

[Thanos]

This article is a crock of doodoo.The middle class areas are being squeezed by gentrification.

[LegionOfDoom]

This article is a crock of doodoo.The middle class areas are being squeezed by gentrification.

Gentrification is a big issue in DC. Many poor folks have been driven out to make way for Market priced homes. And the DC market is insane. Only the upper middle class and rich will be able to afford.

But they still can't get rid of the Rat infestation in the City.

[Fergasun]

What's gentrification?

[LegionOfDoom]

What's gentrification?

http://en.wikipedia.org/wiki/Gentrification

Gentrification is a process in which low-cost, deteriorated neighborhoods experience urban restoration and an increase in property values, along with an influx of wealthier residents. Gentrification changes the demographics of neighborhoods, and can include the displacement of low-income and working-class residents.

The results of gentrification are a source of academic and political contention. Rising property values can be a major benefit to landowners. They can also boost local tax property revenue, which can improve services for all residents. This, along with the related boost to the local economy, can improve crime rates, reduce unemployment, and clean up blighted regions. Resulting rent increases and reduced a supply of low-cost rental housing can displace lower-income and working class residents—often including members of minority groups. The extent of this displacement is often disputed, as is the offset of benefits like new jobs and expanded public services.

BUT!!!!

http://www.adversity.net/Terms_Definitions/TERMS/Gentrification.htm

Minority Definition: Gentrification means that more financially able "non-minorities" are moving into your neighborhood and are improving their properties. Since the improved properties have a higher value, this also means that the local authorities will raise your property taxes to the point where you will no longer be able to afford to live there. But cheer up! Since you are on the government's "preferred minority/color" list there are a large number of tax-payer supported programs which will help you "buy back" into your old neighborhood.

Non-Minority, Poor White Definition: If you are a lower-income NON-minority, gentrification means that wealthier whites have begun moving in and improving their properties. Your property taxes will be raised to the point that you will no longer be able to afford to live there, and you will be forced to flee to suburban locations even further from your work opportunities. But since you are defined as "white" the government will NOT make any tax dollars available to assist you in holding on to your home in the "gentrified" neighborhood".

Summary: If your are a minority, the government defines gentrification as "bad" -- especially if it means that more "whites" are moving into your neighborhood. But if you are "white", the government defines gentrification as "good" as long as it means that you have to leave the neighborhood so that more minorities can live there.

[Fergasun]

Not a fan of Mallrats I see...

[LegionOfDoom]

Not a fan of Mallrats I see...

Not really....

[chomerics]

This article is a crock of doodoo.The middle class areas are being squeezed by gentrification.

Sorry, gentrification is not making the working person's wage go up disproportionately to a wealthy person.

Dj, the Economist has a great article on this exact point, and they come to the same conclusion, the middle class is getting squeezed, and class mobility is MUCH harder now then at any other time in post modern (post WWII) US.

[DjTj]

Made me laugh twa. That's exactly what I was going to say. :laugh:

So you're losing middle class neighborhoods in metro areas and gaining middle class cities in the west and south. Pretty much a clean swap IMO. I'd be curious to see what percentage of the loss is attributable to flight and what percentage is attributable to a change in economic status.

Actually, cities in the west and south are among the worst in terms of middle-class neighborhoods. Anywhere you have a lot of land and a lot of sprawl, you're going to end up with very high segregation by income. Los Angeles is the most segregated city in the country. Houston, Dallas, and El Paso aren't far behind.

This article is a crock of doodoo.The middle class areas are being squeezed by gentrification.

Um ... isn't that exactly what the article is saying? Any neighborhood that becomes somewhat desirable becomes gentrified while other neighborhoods become abandoned. The result is more rich neighborhoods and more poor neighborhoods with much less in between.

Here's a link to the full report: http://www.brookings.edu/metro/pubs/20060622_middleclass.pdf

chom, I'm definitely going to have to subscribe to the Economist when I start working in August.

[AdamB]

Oh, by the way, it's horrible in NM. Weather sucks, people are mean and the traffic (I won't even talk about that) trust me no one would want to live here.

:laugh:

The traffic is LC is getting horrid...I took me a whole 8 minutes to drive across town last time I was there.

[Predicto]

This process is well advanced in San Francisco. 60 percent of the City is wealthy, 30 percent is poor, and the middle is maybe 10 percent, and shrinking from both sides. It's too bad, but it is hard to see what can be done about it, at least out here.

[The 12th Commandment]

Actually, cities in the west and south are among the worst in terms of middle-class neighborhoods. Anywhere you have a lot of land and a lot of sprawl, you're going to end up with very high segregation by income. Los Angeles is the most segregated city in the country. Houston, Dallas, and El Paso aren't far behind.

If you have lots of land (Read cheap) I see that possibly producing segregation, but not eliminating middle class neighborhoods. That's counterintuitive. It should increase the number of all types of neighborhoods equally. And I suspect it does. The middle class neighborhoods aren't necessarily disapearing they are moving. To smaller cities, like the one I live in, where real estate is affordable to middle class people. They have usually made a killing off the sale of their property in LA or some other large metro area, spend half of it on a house in a smaller city and have some left to put in the bank.

That would eliminate all of the above from demonstrating this exodus, excepting El Paso, where real estate is even cheaper than it is here. They aren't hemmed in by public land like the rest of the west. It's all private in Tejas and there is a whole lot of it that's empty around EP.

[DjTj]

If you have lots of land (Read cheap) I see that possibly producing segregation, but not eliminating middle class neighborhoods. That's counterintuitive. It should increase the number of all types of neighborhoods equally. And I suspect it does. The middle class neighborhoods aren't necessarily disapearing they are moving. To smaller cities, like the one I live in, where real estate is affordable to middle class people. They have usually made a killing off the sale of their property in LA or some other large metro area, spend half of it on a house in a smaller city and have some left to put in the bank.

It's not that it necessarily "eliminates" middle-class neighborhoods; it's that neighborhoods become very stratified. Once people make more money, they move out into a neighborhood where everyone has higher income, leaving behind a neighborhood with lower income.

What happens is that over team people start to cluster into higher income or lower income neighborhoods and there is less in between.

When you see people moving into smaller towns the same thing probably happens, because the newcomers, who will bring more money and higher incomes, will move into brand new developments separate from where the original residents lived. Every city in the U.S. used to be more evenly distributed, but once you get more development and more migration, economic segregation is bound to increase.

That would eliminate all of the above from demonstrating this exodus, excepting El Paso, where real estate is even cheaper than it is here. They aren't hemmed in by public land like the rest of the west. It's all private in Tejas and there is a whole lot of it that's empty around EP.

It's hard to put charts onto a message board, but look on page 6 of the report:

http://www.brookings.edu/metro/pubs/20060622_middleclass.pdf

Table 3. Top and Bottom Metro Areas by Middle-Income Share of Neighborhoods, 2000

Rank Metro Area Lower-Income Middle-Income Higher-Income

1 Scranton—Wilkes-Barre—Hazleton, PA MSA 13.2 74.2 12.6

2 Nassau-Suffolk, NY PMSA 15.1 64.7 20.2

3 Grand Rapids-Muskegon-Holland, MI MSA 23.7 59.4 17.0

4 Tacoma, WA PMSA 21.9 58.1 20.0

5 Harrisburg-Lebanon-Carlisle, PA MSA 24.6 57.2 18.1

6 Allentown-Bethlehem-Easton, PA MSA 23.9 55.1 21.0

7 Sarasota-Bradenton, FL MSA 22.4 54.5 23.1

8 Greenville-Spartanburg-Anderson, SC MSA 26.7 54.4 18.9

9 Wilmington-Newark, DE-MD PMSA 24.5 54.0 21.6

10 Seattle-Bellevue-Everett, WA PMSA 22.6 53.9 23.5

91 Tucson, AZ MSA 34.9 32.8 32.3

92 Orange County, CA PMSA 30.9 32.7 36.4

93 El Paso, TX MSA 38.9 32.5 28.6

94 Bakersfield, CA MSA 33.6 32.1 34.3

95 Dallas, TX PMSA 39.2 31.3 29.5

96 Newark, NJ PMSA 39.5 30.4 30.2

97 Houston, TX PMSA 39.7 30.0 30.3

98 Memphis, TN-AR-MS MSA 41.8 29.7 28.5

99 New York, NY PMSA 34.5 29.6 35.9

100 Los Angeles-Long Beach, CA PMSA 37.3 28.3 34.4

[twa]

Quote:

Originally Posted by DjTj

Actually, cities in the west and south are among the worst in terms of middle-class neighborhoods. Anywhere you have a lot of land and a lot of sprawl, you're going to end up with very high segregation by income. Los Angeles is the most segregated city in the country. Houston, Dallas, and El Paso aren't far behind.

Either I'm missing your point or we are a oddity, I would put the middle class here as the largest sector and for the most part it is not segregated much by income...most of the truly rich go elsewhere or live among us peasants

The lowest income areas are however

[DjTj]

Either I'm missing your point or we are a oddity, I would put the middle class here as the largest sector and for the most part it is not segregated much by income...most of the truly rich go elsewhere or live among us peasants

The lowest income areas are however

According to the study, Houston is the 4th-worst metroplitan area in America regarding income segregation:

Only 30% of the neighborhoods in the Houston Primary Metropolitan Statistical Area are characterized as "middle-income" meaning that the median income is between 80 and 120% of the area's total median income.

*I also should note that the median income for the Houston PMSA is around $45k, so a middle-class neighborhood according to this study is where the median income is between $40k and $50k.

http://www.census.gov/acs/www/Products/Profiles/Single/2003/ACS/Narrative/385/NP38500US33623360.htm

[chomerics]

chom, I'm definitely going to have to subscribe to the Economist when I start working in August.

I would highly recommend it. The Economist is one of the only non-partisan publications out there, and they are usually correct with their analysis. It is a bit pricey, but well worth the money, and their world affairs section is worth the price of admission in and of itself

Here is the article I was talking about BTW. . .

http://www.economist.com/world/displaystory.cfm?story_id=7055911

[Thiebear]

Gentrification is a big issue in DC. Many poor folks have been driven out to make way for Market priced homes. And the DC market is insane. Only the upper middle class and rich will be able to afford.

But they still can't get rid of the Rat infestation in the City.

As a White man in Alexandria.. I couldnt move out of my house into the house next to me... and our area is only 38% over what it should be...

My house went from 148 to 440......and its a piece of crap that is only worth 148..... But living just outside of old town I'd have to move to Manassas and enjoy a 2 hour commute to get the same deal..

Has nothing to do with rich and or poor... I swear everyone drives a beamer/hummer/mercedes in this damn region.... I'm puttin along in my CRV...

They say houses are staying on the market forever: 70% of the house in this region sell in under 90 days... That doesnt appear to be a burst to me... And Homeland Security is hiring by the 1000's it seems so its not going away.......

[LegionOfDoom]

As a White man in Alexandria.. I couldnt move out of my house into the house next to me... and our area is only 38% over what it should be...

My house went from 148 to 440......and its a piece of crap that is only worth 148..... But living just outside of old town I'd have to move to Manassas and enjoy a 2 hour commute to get the same deal..

Has nothing to do with rich and or poor... I swear everyone drives a beamer/hummer/mercedes in this damn region.... I'm puttin along in my CRV...

But gentrification is about rich and poor....your situation is like alot of people...

You have a overvalued home in a sought after area. think about this when you retire and you will have a nice jump start to retirement. Take all of the equity and move South and buy a brand new single family home in NC for 175,000.