I am surprised, although maybe I shouldn't be, by how quickly many seem to be allegedly turning their back on cities. According to the New York Times, cities were "losing their allure" well before this pandemic, and this might just be the tipping point. The underlying argument: Density is bad. We should probably all move somewhere bucolic, where the cost of housing is less and work isn't so stressful. Zoom only when necessary.
But as the chief economist for Indeed, Jed Kolko, rightly points out in the article, how people behave (and think) during a global pandemic is probably not a great indicator for how they will want to live their lives when this is all over. It's also not clear that urban density is really the contributor of spread. Hyper-dense cities such as Seoul and Hong Kong have been performing relatively well. (Joe Cortright has some thoughts on this.)
Once we get to the other side, we will see the data and we will get a better understanding of this current situation. And then in hindsight, we will find ways to rationalize the outcomes to ourselves. In the interim, I'm not about to bet against cities. Here's how Paul Romer, professor at New York University, put it in this recent interview in City Journal:
"I think the underlying economic reality is that there is tremendous economic value in interacting with people and sharing ideas. There’s still a lot to be gained from interaction in close physical proximity because such interaction is a large part of how we establish trust. So I think that, for the rest of my life, cities are going to continue to be where the action is."
The North American rule of thumb is that young people -- specifically people in their 20s -- are the most likely to to live in an urban neighborhood. After that it's all down hill and, broadly speaking, the percentages decline. But at some point, much later in life, the data suggests that there is a reversal and people start to return to urban neighborhoods, albeit not to the same extent. Part of the explanation for this is that as people age they start to look to more walkable neighborhoods where they don't need to get a car to get around.
But in this recent NY Times article, Jed Kolko points out two interesting trends. One, the "urban boomer" appears to be on the decline in the US. In 1990, about 21.6% of Americans aged 54 to 72 lived in an urban neighborhood (categorized by density). As of 2018, this number had dropped to around 17.8%. And two, the age at which there is a reversal (and people start returning to denser neighborhoods) is also increasing. Perhaps because people are living longer.
Jed's conclusion: American boomers, today, are actually less urban than previous generations.
Graph: New York Times
The US Census Bureau just released its population estimates for 2018. As has been the case in previous years, the counties that added the most people (largest numeric growth) are all located in the south and west. Texas holds 4 out of the top 10 spots.
Here is a Tweetstorm by Jed Kolko, the chief economist of Indeed, with a couple of graphs summarizing the findings (click through to see the full thread):
https://twitter.com/JedKolko/status/1118854499810996224
Despite the narrative that people are returning to cities and urban centers, the data is pretty clear: the flow of domestic migration within the US is largely from dense urban counties to more suburban -- and affordable -- ones. Big cities are expensive.
I am surprised, although maybe I shouldn't be, by how quickly many seem to be allegedly turning their back on cities. According to the New York Times, cities were "losing their allure" well before this pandemic, and this might just be the tipping point. The underlying argument: Density is bad. We should probably all move somewhere bucolic, where the cost of housing is less and work isn't so stressful. Zoom only when necessary.
But as the chief economist for Indeed, Jed Kolko, rightly points out in the article, how people behave (and think) during a global pandemic is probably not a great indicator for how they will want to live their lives when this is all over. It's also not clear that urban density is really the contributor of spread. Hyper-dense cities such as Seoul and Hong Kong have been performing relatively well. (Joe Cortright has some thoughts on this.)
Once we get to the other side, we will see the data and we will get a better understanding of this current situation. And then in hindsight, we will find ways to rationalize the outcomes to ourselves. In the interim, I'm not about to bet against cities. Here's how Paul Romer, professor at New York University, put it in this recent interview in City Journal:
"I think the underlying economic reality is that there is tremendous economic value in interacting with people and sharing ideas. There’s still a lot to be gained from interaction in close physical proximity because such interaction is a large part of how we establish trust. So I think that, for the rest of my life, cities are going to continue to be where the action is."
The North American rule of thumb is that young people -- specifically people in their 20s -- are the most likely to to live in an urban neighborhood. After that it's all down hill and, broadly speaking, the percentages decline. But at some point, much later in life, the data suggests that there is a reversal and people start to return to urban neighborhoods, albeit not to the same extent. Part of the explanation for this is that as people age they start to look to more walkable neighborhoods where they don't need to get a car to get around.
But in this recent NY Times article, Jed Kolko points out two interesting trends. One, the "urban boomer" appears to be on the decline in the US. In 1990, about 21.6% of Americans aged 54 to 72 lived in an urban neighborhood (categorized by density). As of 2018, this number had dropped to around 17.8%. And two, the age at which there is a reversal (and people start returning to denser neighborhoods) is also increasing. Perhaps because people are living longer.
Jed's conclusion: American boomers, today, are actually less urban than previous generations.
Graph: New York Times
The US Census Bureau just released its population estimates for 2018. As has been the case in previous years, the counties that added the most people (largest numeric growth) are all located in the south and west. Texas holds 4 out of the top 10 spots.
Here is a Tweetstorm by Jed Kolko, the chief economist of Indeed, with a couple of graphs summarizing the findings (click through to see the full thread):
https://twitter.com/JedKolko/status/1118854499810996224
Despite the narrative that people are returning to cities and urban centers, the data is pretty clear: the flow of domestic migration within the US is largely from dense urban counties to more suburban -- and affordable -- ones. Big cities are expensive.
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