There is another option besides denser cities or more sprawling ones: People can just relocate to other cities altogether. And increasingly, that’s what Americans have been doing. If the only way to afford a place in a safe neighborhood in some metropolitan areas is to bear the enormous costs of long commutes, those are just cities with little if any housing that’s truly affordable. The natural choice is to go to the cities that aren’t choked with these problems.
As Forbes magazine put it, “It’s no secret that the Southeast and Western United States are booming. The costs of living and doing business there are often cheaper than in big coastal cities.” People have to go somewhere, and by and large they’re going where it’s cheap. That’s why between 2000 and 2010 the Dallas and Houston metropolitan areas each added about 1.2 million people, dwarfing the approximately 500,000 each added by the much bigger New York, Los Angeles, and Chicago metro areas. But this kind of boom driven by a low cost of living is a particular kind of boom. The relatively sluggish population growth in New York City and its suburbs during this period wasn’t a repeat of the urban collapse of the 1970s. The financial services sector at the core of the region’s economy was, for all the (oft-deserved) opprobrium it’s attracted over the past several years, one of the decade’s major money-making success stories. The city’s specialization as the main headquarters of American journalism and publishing seemed relatively unaffected by the sweeping technological change reshaping media. The crime drop of the 1990s that turned the city’s momentum around in the first place continued. A wave of gentrification swept through the Lower East Side, vast swathes of Brooklyn, important parts of Queens, and even Hoboken and Jersey City across the Hudson River.
But while this kind of gentrification demonstrates the continuing appeal of the Big Apple, it represents only a small net increase in the population. The people moving in are largely replacing other people who are moving out as rents go up. Some of this is due to working-class families moving out of now-expensive neighborhoods. Other times, it is the cycling of twentysomething professionals out of the city as they start families and want more space. In both cases, the city can prosper without its population increasing very much.
By contrast, the “booming” cities of the Southeast and the western United States aren’t necessarily booming in the sense of getting rich. The ten metropolitan areas with the fastest population growth between the 2000 and 2010 censuses were, in order, Palm Coast, Florida; St. George, Utah; Las Vegas, Nevada; Raleigh, North Carolina; Cape Coral, Florida; Provo, Utah; Greeley, Colorado; Austin, Texas; Myrtle Beach, South Carolina; and Bend, Oregon. That geographical distribution supports the idea of a boom in the Southeast and West. But it’s striking that in 2009 all ten of these metro areas had per capita personal incomes below the national average of $40,757. Indeed, only Cape Coral was even close.
It may be a long-term mistake, but the localities that control building height, parking minimums, and so forth have ensured that people move to the desert states.
People are moving to the South in general because housing is cheap there—as Matt Yglesias discusses in The Rent is Too Damn High: http://www.amazon.com/Rent-Too-Damn-High-Matters-ebook/dp/B0... :
There is another option besides denser cities or more sprawling ones: People can just relocate to other cities altogether. And increasingly, that’s what Americans have been doing. If the only way to afford a place in a safe neighborhood in some metropolitan areas is to bear the enormous costs of long commutes, those are just cities with little if any housing that’s truly affordable. The natural choice is to go to the cities that aren’t choked with these problems.
As Forbes magazine put it, “It’s no secret that the Southeast and Western United States are booming. The costs of living and doing business there are often cheaper than in big coastal cities.” People have to go somewhere, and by and large they’re going where it’s cheap. That’s why between 2000 and 2010 the Dallas and Houston metropolitan areas each added about 1.2 million people, dwarfing the approximately 500,000 each added by the much bigger New York, Los Angeles, and Chicago metro areas. But this kind of boom driven by a low cost of living is a particular kind of boom. The relatively sluggish population growth in New York City and its suburbs during this period wasn’t a repeat of the urban collapse of the 1970s. The financial services sector at the core of the region’s economy was, for all the (oft-deserved) opprobrium it’s attracted over the past several years, one of the decade’s major money-making success stories. The city’s specialization as the main headquarters of American journalism and publishing seemed relatively unaffected by the sweeping technological change reshaping media. The crime drop of the 1990s that turned the city’s momentum around in the first place continued. A wave of gentrification swept through the Lower East Side, vast swathes of Brooklyn, important parts of Queens, and even Hoboken and Jersey City across the Hudson River.
But while this kind of gentrification demonstrates the continuing appeal of the Big Apple, it represents only a small net increase in the population. The people moving in are largely replacing other people who are moving out as rents go up. Some of this is due to working-class families moving out of now-expensive neighborhoods. Other times, it is the cycling of twentysomething professionals out of the city as they start families and want more space. In both cases, the city can prosper without its population increasing very much.
By contrast, the “booming” cities of the Southeast and the western United States aren’t necessarily booming in the sense of getting rich. The ten metropolitan areas with the fastest population growth between the 2000 and 2010 censuses were, in order, Palm Coast, Florida; St. George, Utah; Las Vegas, Nevada; Raleigh, North Carolina; Cape Coral, Florida; Provo, Utah; Greeley, Colorado; Austin, Texas; Myrtle Beach, South Carolina; and Bend, Oregon. That geographical distribution supports the idea of a boom in the Southeast and West. But it’s striking that in 2009 all ten of these metro areas had per capita personal incomes below the national average of $40,757. Indeed, only Cape Coral was even close.
It may be a long-term mistake, but the localities that control building height, parking minimums, and so forth have ensured that people move to the desert states.