Blogs

Economist Thomas Sowell, who has taught at Cornell University and UCLA and has worked at the Urban Institute and the Hoover Institution at Stanford University summarizes the economics of the housing market in a recent article:

"Anyone who has taken Economics 1 knows that preventing the supply from rising to meet the demand means that prices are going to rise. Housing is no exception."  read more »

According to the U.S. Census Bureau, Chicago’s population peaked a long time ago.  In 1950, Chicago had 3. 6 million people. Recent estimates put Chicago’s population at 2.7 million. With the growth of American suburbs, many Chicago families have fled to public schools in the suburbs. Chicago’s horrible public schools have been an embarrassment for Chicago’s elite.  read more »

Time Magazine's Sam Frizell imagines that the American Dream has changed, in an article entitled "The New American Dream is Living in a City, Not Owning a House in the Suburbs." Frizell further imagines that "Americans are abandoning their white-picket fences, two-car garages, and neighborhood cookouts in favor of a penthouse view downtown and shorter walk to work." The available population data shows no such trend.  read more »

"Free Exchange" in The Economist has come down strongly on the side of economics in a review of housing affordability.  read more »

The travel website escapehere.com has published an article with a list of the world's "10 most dangerous cities to travel." I was obviously interested, but was soon deterred by advertisements that kept popping up and a web architecture intended to ensure that for every city viewed another ad would be placed in the way.  read more »

The shocking extent to which urban containment policy (urban consolidation policy) is associated with higher land (and house) prices is illustrated by a recent press release from RP Data in Australia. The analysis examined the vacant building lot prices for the period of 1993 to 2013.
During the period, the median price of a vacant lot rose 168 percent after adjustment for inflation. This is nearly 5 times the increase in the median household incomes of the seven largest capital cities (Sydney, Melbourne, Brisbane, Perth, Adelaide, Canberra and Sydney).  read more »

Texas metropolitan areas continue to dominate economic growth, according to the latest Metro Monitor, produced by the Brookings Institution. The four top metropolitan areas in overall economic growth through the recession and "recovery" (our parentheses) have been:  read more »

Note: I owe both the concept for this measurement of income segregation and much of the actual data – all of it, except for 2012 – to Sean Reardon andKendra Bischoff, who wrote a series of wonderful papers on the subject and then were kind enough to send me a spreadsheet of their data from Chicago a while ago. The maps, however, are mine, as is all the data from 2012, and any mistakes in them or in the interpretation of the data is entirely my responsibility.

I think one reason I’ve felt less than compelled by Chicagoland, CNN’s reasonably well-made documentary series, is that its tale-of-two-cities narrative is so worn, so often repeated, that it’s become a little dull. Not the actual fact of inequality – which only seems to cut deeper over time – but its retelling.  read more »

In the "letter of the week" in The North Shore Times, Save Our Suburbs President Tony Recsei decries the rising traffic congestion that is occurring in Sydney from the densification policies. Urban planners had misled residents into believing that higher population densities would reduce traffic congestion as more people shifted to mass transit.  read more »

A new book by the original yellow journalist of Wall Street, Michael Lewis, initiated global coverage about the flaws of American capitalism. The culprit in Lewis’ new book is High Frequency Trading or “HFT.” There is no doubt that US capital markets are imperfect.  read more »