Location, Location, Location
Kevin Drum highlights a really regrettable defense of public schools that goes as follows. School systems are neighborhood-based, and so the benefit of good schools is capitalized into home prices. Households that care about education are willing to pay for good schools while those that don’t, aren’t. Freedom! Or something. Commenters on the post in question point out that some people would like to live in neighborhoods with good schools but can’t afford to, leading the author of the original argument, one Erik Kain to write:
You are troubled by the cases of people who value education highly but are still trapped in bad schools. I am troubled by these cases too, though I suspect that the number is smaller than imagined.
To reduce the number of such cases, how about this: since reforming schools is so inherently difficult, we should instead try to make housing more affordable even in the best school districts. I would consider first reforming zoning laws that restrict density and discourage/prohibit rental housing.
Kevin shrugs this off:
Sounds great! Let’s just build lots of affordable housing in nice, upscale suburban neighborhoods. I don’t imagine there will be any political problems associated with that. Should be a piece of cake.
Or, on a more serious note, we could fund poverty and educational interventions with proven track records, allow schools more leeway to deal with incorrigible students…
And so on. Kevin’s ideas for how to improve education are generally good ones, but I wish he would slow down for a minute and think about the issue of affordable housing a little harder. He’s clearly right that it’s anything but a piece of cake to build densely in suburban areas. Developers of infill projects game plan their sales pitches to low density neighborhoods for years, so certain is the appearance of some community opposition. And if you’re aiming for mixed-income housing, well, just prepare yourself for shouting at the community meetings.
But that doesn’t mean that the issue of affordable housing should just be forgotten. It’s really important. The quality of schools isn’t the only thing capitalized into the price of a home. So too is the value of neighborhood amenities, including things like public safety and convenient grocery stores. And of crucial importance to home values is access to employment centers, and the stronger the local labor market, the higher are home values. You’re not just paying for a building or a piece of land; you’re paying for a location that secures for you certain opportunities and a certain quality of life.
Now, folks who live in nice neighborhoods are very, very good at restricting building in their communities. This is true in urban and suburban neighborhoods. And what this means is that supply of homes in high quality areas is held down, and the price of living in the best neighborhoods is extraordinary. And so in the metropolitan areas that have the strongest economies — the Washingtons, Bostons, New Yorks, and San Franciscos — many households can only afford to live by accepting unfortunate conditions. They can opt to live in dilapidated buildings in neighborhoods with few conveniences and high crime levels. Or they can opt for safer communities with newer homes that are miles and miles away from employment centers.
For the poor, the problem is generally insoluble. Many are without reliable automobiles, and so they must live in areas that are either walkable or served by public transit. But the safe, upscale neighborhoods fitting those descriptions are the most expensive of all, and so the poor wind up stuck in ghettos, with crumbling housing, little to no access to fresh groceries, and poor educational options. As troubling, the poor may struggle to access jobs. During the bad old days of mass suburbanization, there were few jobs for unskilled workers in Washington and access to the suburbs, via public transit, was extremely limited. This is one reason why studies of gentrification often find that among the biggest beneficiaries of redevelopment are black residents with high school diplomas. Finally, the jobs have come to them, who were previously isolated away from opportunity. But of course, these opportunities only persist while neighborhoods continue to support a range of incomes.
Middle income households can, and do, get around the problem of unaffordable housing by moving to cheaper metropolitan areas. But this is problematic. Cheaper metropolitan areas aren’t as good at creating the highest paying jobs. Many are often built at much lower densities than the richer cities, which is bad for productivity, and which means that they can absorb far fewer new residents before bogging down in congestion and generally forcing people into awful commutes. And for the poor, wholesale relocation is often not an option. They simply lack the resources to move or to take up residence in a place that requires them to drive everywhere.
And none of the above begins to touch on questions of environmental costs. I just think it’s strange — and really troubling — that writers of all stripes shrug off the huge set of regulatory and legal restrictions that hold down housing supply and density in the country’s strongest economic centers. There are serious consequences to these rules, and we should take them seriously.
March 10th, 2010 at 4:21 pm
I can’t quite get my mind around the rule myself, but there is a precedent in New Jersey called the Mount Laurel Decision that interprets the state constitution in such away that “municipalities [are required to] use their zoning powers in an affirmative manner to provide a realistic opportunity for the production of housing affordable to low and moderate income households.”
It was initially interesting to me as I lived in Mt. Laurel when I was a child and was researching the area and noticed the ruling. It was 70s, so I doubt this sort of thing would happen again, but there was a time in at least one state where the idea that zoning could be used to exclude incomes was frowned upon.
March 10th, 2010 at 4:42 pm
One challenge is that one of the “amenities” capitalized into the land value of exclusive suburbs is their exclusivity - i.e., the lack of any poor people around.
Also, trying to move poor people into the most exclusive of neighborhoods has generally rebounded to the detriment of housing programs. For example, when Section 8 recipients end up in Gold Coast high rises in Chicago.
And, are those who end up in the exclusive districts likely to be those lower income people who just happen to care the most about education, or might other variables play a role?
I’m not saying it is not a good idea to focus on affordable housing, but there are major obstacles. And the only way to really bring quality education to the public at large is to raise the general quality of schools.
March 10th, 2010 at 9:52 pm
The best method to get poor people to live in rich areas is so that poor people will have decent jobs so that they can afford not to be poor. No, I am not being sarcastic. I think that asking to create neighborhoods which require some proportional number of poor people is just more trouble than it is worth.
A poor person who lives in Bedford Hills is still poor. And maybe even more frustrated since they see what they are not gonna get.
I know that this can be an explosive issue so please don’t shoot from the hip.
The complex of problems — historical, cultural, personal etc etc — are so unbelievably complex that it seems crazy to me that a geographic transfer could create any real progress.
Putting it this way: do you have an empirical examples of demonstrating that helping poor people move in rich neighborhoods is any part of eliminating? Any specifics?
The ONLY known ways to create prosperity are long wave and the only ones which make sense to me are
1. education
2. a legal system which protects human, including property
3. and did I say education?
There are no short cuts and moving poor people into rich neighborhoods is just as successful as busing.
March 11th, 2010 at 10:20 am
What’s dismaying is that attempts to introduce multifamily zoning into suburban areas will be attacked from both the right (here comes the gangs and crime) and the left (the city is in bed with the evil developers).
New Jersey’s Mount Laurel II laws have indeed produced a lot of inclusionary developments over the years, mostly due to the blunt hammer of the “builder’s remedy” lawsuit. Unfortunately, it has far from solved the housing problems in a state that Brookings classified as having the most exclusionary land use policies in the nation.
Speaking of schools and housing, I’d be interested to hear Ryan’s take on the recent school board shenanigans in his home county, where 30+ successful years of ensuring diversity in the schools are rapidly being reversed.