Effects of Regional Housing Dynamics on Older Suburbs Thomas Bier Center for Housing Research and Policy Cleveland State University American Planning Association.

Effects of Regional Effects of Regional Housing Dynamics on Housing Dynamics on

Older SuburbsOlder SuburbsThomas BierThomas Bier

Center for Housing Research and PolicyCenter for Housing Research and Policy

Cleveland State UniversityCleveland State University

American Planning Association

“Tuesdays at APA”May 8, 2007

The same dynamics that undermined The same dynamics that undermined cities cities

have begun to undermine suburbshave begun to undermine suburbs(It was only a matter of time)(It was only a matter of time)

Emergence of suburban decline in the Emergence of suburban decline in the 1990s1990s

Lucy and Phillips. 2000. Lucy and Phillips. 2000. Confronting Suburban DeclineConfronting Suburban Decline

Puentes and Orfield. 2002. Puentes and Orfield. 2002. Valuing America’s First Valuing America’s First Suburbs: Suburbs:

A Policy Agenda for Older Suburbs in the MidwestA Policy Agenda for Older Suburbs in the Midwest

Hudnut. 2003. Hudnut. 2003. Halfway to Everywhere: A Portrait of Halfway to Everywhere: A Portrait of America’s First-Tier SuburbsAmerica’s First-Tier Suburbs

Puentes and Warren. 2006. Puentes and Warren. 2006. One-Fifth of America: One-Fifth of America:

A Comprehensive Guide to America’s First SuburbsA Comprehensive Guide to America’s First Suburbs

CoalitionsCoalitions

Chicago: South Suburban Mayors and Managers Chicago: South Suburban Mayors and Managers AssociationAssociation

Detroit: Michigan Suburbs AllianceDetroit: Michigan Suburbs Alliance Kansas City: First Suburbs CoalitionKansas City: First Suburbs Coalition Minneapolis: North Metro Mayors AssociationMinneapolis: North Metro Mayors Association Virginia First Cities CoalitionVirginia First Cities Coalition Wisconsin Alliance of CitiesWisconsin Alliance of Cities National League of Cities’ First-Tier Suburbs CouncilNational League of Cities’ First-Tier Suburbs Council Ohio First Suburbs ConsortiumOhio First Suburbs Consortium

First Suburbs Consortium of Northeast First Suburbs Consortium of Northeast OhioOhio

First meeting 1996, 3 suburbs; now 17First meeting 1996, 3 suburbs; now 17 Suburbs adjacent to or near the city of ClevelandSuburbs adjacent to or near the city of Cleveland Range in population from 600 to 85,000 – total Range in population from 600 to 85,000 – total

488,000 (35% of county)488,000 (35% of county)

Linndale

ChagrinFallsTwp

Brooklyn

ParmaHts

NorthRoyalton

BroadviewHts

EastCleveland

Richmond Hts

Highland Hts

Mayfield Hts

GatesMills

Pepper Pike

Hunting Valley

ChagrinFalls.

MorelandHills

HighlandHills

NorthRandall

Orange

Valley ViewSeven

Hills

BrooklynHts

Cuyahoga Hts

NewburghHts

MiddleburgHts

OlmstedFalls

RockyRiver

Bay Village

Walton HillsGlenwillow

Oakwood

Beachwood

Lyndhurst

Bratenahl

Independence

Strongsville

BereaOlmsted Twp

North Olmsted

Westlake

Cleveland

Mayfield

Bentleyville

Solon

Brecksville

Lakewood

SouthEuclid

ShakerHts

University Hts

ClevelandHts

Warrensville Hts

BedfordHts

MapleHts

GarfieldHts

BrookPark

FairviewPark

BedfordParma

EuclidFirst Suburbs ConsortiumCuyahoga County, Ohio

First Suburbs relative to rest of county’s suburbsFirst Suburbs relative to rest of county’s suburbs

Older housing (median 60 years) and lower value (35% Older housing (median 60 years) and lower value (35% lower)lower) Built-outBuilt-out DenseDense DeterioratingDeteriorating Declining populationDeclining population More minoritiesMore minorities More foreclosuresMore foreclosures Lower income (25% lower)Lower income (25% lower) Less tax-base growthLess tax-base growth

Goal of First Suburbs: change public Goal of First Suburbs: change public policies topolicies to Invest in older communitiesInvest in older communities Revitalize traditional neighborhoods and tax baseRevitalize traditional neighborhoods and tax base Enhance quality of life and economic stabilityEnhance quality of life and economic stability Preserve farmland and open spacePreserve farmland and open space Protect the environment Protect the environment

Activities – “Inside game/Outside game” Activities – “Inside game/Outside game” (Rusk)(Rusk)

Inside gameInside game New housingNew housing

Activities – “Inside Game/Outside Game” Activities – “Inside Game/Outside Game” (Rusk)(Rusk)

Inside GameInside Game New housingNew housing Commercial revitalizationCommercial revitalization

Activities – “Inside Game/Outside Game” Activities – “Inside Game/Outside Game” (Rusk)(Rusk)

Inside GameInside Game New housingNew housing Commercial revitalizationCommercial revitalization Code enforcement Code enforcement Nuisance abatement Nuisance abatement CooperationCooperation

Juvenile CourtJuvenile Court Anti-poaching agreementsAnti-poaching agreements Tax sharingTax sharing Joint purchasingJoint purchasing Joint safety servicesJoint safety services

But the Inside Game is not enough. First But the Inside Game is not enough. First Suburbs lack resources to succeed on their Suburbs lack resources to succeed on their own. They need an Outside Game to engage own. They need an Outside Game to engage other jurisdictions and state government in other jurisdictions and state government in solutionssolutions

Outside gameOutside game Can’t be just a Cleveland-area thingCan’t be just a Cleveland-area thing Ohio First Suburbs Consortium (Ohio First Suburbs Consortium (

www.firstsuburbs.orgwww.firstsuburbs.org)) Suburbs of Cincinnati, Columbus, DaytonSuburbs of Cincinnati, Columbus, Dayton

Regional DynamicsRegional Dynamics

The same dynamics that undermined citiesThe same dynamics that undermined citieshave begun to undermine suburbshave begun to undermine suburbs

((It was only a matter of timeIt was only a matter of time))

Economic success drives development and Economic success drives development and movement movement

Most moves are up to higher-value real estateMost moves are up to higher-value real estate Most new real estate is built at region’s edge; thus Most new real estate is built at region’s edge; thus

most “up” options are farther outmost “up” options are farther out Old buildings lose market appeal, become Old buildings lose market appeal, become

obsolete, lose value, are abandonedobsolete, lose value, are abandoned Decline spreads – eventually to suburbsDecline spreads – eventually to suburbs Policy reinforcesPolicy reinforces

Regional Housing DynamicsRegional Housing Dynamics

BuildingsBuildings NewNew Mostly “Out” Mostly “Out”

AbandonedAbandoned Mostly “In”Mostly “In”

MovementMovement High ValueHigh Value Mostly “Out” Mostly “Out”

Low ValueLow Value Mostly “In”Mostly “In”

Policy

Supports new out

Ignores middle

Feds target low/mod slum and blight Home Rule: you’re on your own

As a society, we treat buildings the same way we treat cars and refrigerators: build them, use them, use the life out of them – then junk them. Buildings, neighborhoods and cities are just as expendable as cars and refrigerators. It just takes longer.

What is our society’s advice to people in old places that are weakening, deteriorating? “Move, get out, move to a better place.” Most of those who can, do.

Decline and abandonment are inevitable Decline and abandonment are inevitable when regional new housing exceeds when regional new housing exceeds

household growthhousehold growth

Relationship Between Regional New Housing and Household Growth,

1990-2000

BuffaloPittsburghSt. LouisDetroitClevelandBaltimoreColumbusChicagoPortlandOaklandPhoenixBoston

RATIO: NEW TO HOUSEHOLDS*

3.92.91.71.51.51.31.11.01.00.90.90.9

CITY HOUSEHOLD

CHANGE -10.1%

-6.3 -10.8 -10.1 -4.6 -6.7 17.3 3.6 19.5 4.3 25.9 4.8

CITY NEW% OF AREA

7.8%3.21.72.04.51.6

40.69.5

11.95.7

24.82.8

*Ratio of regional housing building permits to regional household growth

Suburban decline raises fundamental Suburban decline raises fundamental issuesissues

(What’s supposed to happen when a place gets (What’s supposed to happen when a place gets old?)old?)

Home RuleHome Rule: Old places are singularly responsible : Old places are singularly responsible for their condition (society hails moving from old for their condition (society hails moving from old to new but not assisting old to renew)to new but not assisting old to renew)

Free marketFree market: Don’t intrude : Don’t intrude PlanningPlanning: Local, fine; regional, no: Local, fine; regional, no

For big cities and small suburbs, solutions For big cities and small suburbs, solutions requirerequire

Shared responsibility for all placesShared responsibility for all places Market intrusion (when construction exceeds growth): Market intrusion (when construction exceeds growth):

growth management and/or regional tax sharinggrowth management and/or regional tax sharing Regional planningRegional planning

But such solutions are “un-American” – they go against “property rights”, “the free market”, “survival of the fittest”, “local control”

Suburban decline is “good” news: Suburban decline is “good” news: creates pressure for fundamental creates pressure for fundamental

policy change;policy change;decline (and angst) will not go awaydecline (and angst) will not go away

Small, “powerless” suburbs are likely to organize Small, “powerless” suburbs are likely to organize coalitions and to recognize how existing policies coalitions and to recognize how existing policies undermine them; big cities think “We can turn this undermine them; big cities think “We can turn this around” around”

Mayors see government cooperation as salvation

They're promoting new roles for county

Tuesday, April 24, 2007

Thomas Ott Plain Dealer Reporter

Fearing that the region is on the brink of disaster, nine suburban mayors will push for a new form of Cuyahoga County government that they say could save money and respond faster to the county's economic problems.

It was only a matter of time