Daily insights for city builders, delivered every morning at 6 AM ET. I’m Brandon Donnelly — a Toronto-based real estate developer and founder of Globizen. I’ve been writing here since 2013.

Tag: richard florida

  • Balancing oil and ideas

    Colorado Sunset by Travis Bredehoft on 500px.com

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    Canada is a resource rich country. And one of the things that commonly happens to countries with a lot of resources is that they begin to myopically focus on the immediate gains from resources at the expense of long term innovation and economic development. 

    This is known as the “resource curse.”

    The Martin Prosperity Institute here in Toronto recently published a report that looks at this exact topic: Canada’s urban competitiveness through the lenses of its resource economy and its knowledge economy. In the end, Richard Florida and Greg Spencer conclude that two can and should work together, but that we need to stop neglecting our cities:

    “The oil and gas industry is not necessarily a constraint on the creative economy, but in the past decade or so it has come to dominate thinking around economic development policy-making. It is time to use the resources from the energy economy to build a more secure future as an urban knowledge economy. We can also use
    talent and technology to deepen and expand the resource economy.”

    And one of their key recommendation is something I have argued for many times here on Architect This City:

    “A New Federalism for Cities: It is time to give cities the taxing and spending powers they require. Cities must be given more control over their own destinies if they are to prosper
    in the 21st century.”

    Now, here are a few interesting charts from the report.

    This first one looks at the relationship between a city’s population and its creativity levels. The two are positively correlated, which means that, in this context, bigger is better.

    This second one splits Canada in half – east and west – and then looks at how average income levels are affected by creativity levels (the knowledge economy). Here we see that in eastern cities, income levels are positively correlated with creativity levels. But in western cities, changing creativity levels have almost no impact on income levels. 

    Finally, this third chart compares the relationship between oil and gas employment (LQ = location quotient) and average income levels. What it finds is that income levels and oil and gas employment are positively correlated in the west, but there’s almost no relationship in eastern cities. 

    The way to read this chart is to think of the LQ as the employment multiple relative to the national average. So for example, a LQ = 10 means that the oil and gas employment levels are 10 times the national average. As you probably guessed, the pink dot way out on the right is Fort McMurray.

    If you’d like to read the entire report, you can do that here. I hope that our new Prime Minister, Justin Trudeau, will read reports like this and spend more of his efforts investing in our knowledge economy – which means investing in our cities.

  • Why we should fight the divided city

    No man

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    There has been and continues to be many divided cities around the world.

    Berlin had the Berlin Wall

    Northern Ireland (mostly Belfast) has its Peace Walls that still separate Protestant loyalists and Catholic republicans from each other. 

    Beirut had the Green Line, which separated the predominately Muslim side in the west from the predominantly Christian side in the east during the Lebanese Civil War. And I understand this is still the case today.

    Detroit has 8 Mile Road, which is a psychological barrier rather than a physical one, but one that still sharply separates whites (blue dots, below) and blacks (green dots, below). The image below is from Wired Magazine.

    image

    And even here in Toronto you could say that we’ve become a divided city, albeit without the civil wars or race riots that have plagued the other cities listed above. Our voting patterns suggest a real urban-suburban divide and the many ethnic groups in this city continue to concentrate themselves in specific areas.

    I’ve been thinking about this phenomenon in the context of a recent article I read talking about closed vs. open social networks. The article was talking about career success, but I think the lessons are also transferrable to cities.

    The argument made in the article is that people who are able to position themselves in open networks – that is, become the connector between diverse kinds of social groups – are more likely to succeed than people who position themselves in closed networks where they are only surrounded by people they already know and by people who are similar to themselves.

    And the reason for this is because people in open networks end up getting exposed to a broader set of viewpoints and ideas. They get a more accurate view of the world and they are able to problem solve better than those who may be coming at it from a more myopic or singular perspective.

    But the challenge with open networks, is that there seems to be an innate human tendency towards closed networks. We love what is familiar. We love what is comfortable to us. In other words, we are attracted to people that are similar to ourselves. This is known as homophily.

    So it’s not surprising that we tend to cluster ourselves in cities. Yes, there are economic benefits to doing so (known as agglomeration economies), but there’s also a certain feeling of solidarity that comes from being around other people with the same view of the world. There’s no tension because everyone has the same beliefs, whether that be religion or politics or sports or what to eat.

    But just like there’s an argument to be made that successful people should try and resist the pull towards closed networks, I think there’s also an argument to be made that successful cities should try and resist the pull towards closed and divided cities.

    That’s why some people believe that tolerance is a critical ingredient to fostering creativity in cities.

  • The crisis of success

    I’m back and it feels great. I missed blogging the past 2 days. Though, there was something nice about not touching a computer all weekend.

    This morning I got up extra early and listened to a brief conversation between Aaron M. Renn of The Urbanophile and urbanist Richard Florida. The topic is New York’s “Great Reset”, and the impetus was a recent report (of the same name) that was put out by New York University.

    The conversation starts by talking about the resilience of New York City and its ability to accept and then reinvent itself in the wake of “creative destruction.” Destruction such as the financial crisis of 2008/2009. 

    But they then go on to talk about the challenges that New York, as well as many other cities, are now facing. Challenges brought about, not by failure, but by their tremendous success. Challenges such as income inequality and the dwindling middle class.

    The overarching premise is that we are still in the early stages of a new urban and creative economy. And that there’s lots of work to be done in order to figure out how to make it an inclusive one.

    There’s even mention of former Toronto mayor, Rob Ford.

    You can listen to the talk below. If you can’t see the embedded play button, click here.

    [soundcloud url=”https://api.soundcloud.com/tracks/221338706″ params=”color=ff5500″ width=”100%” height=”166″ iframe=”true” /]

  • Cities with the most single men and women

    There are thousands of people who read this blog via email or by following on Tumblr. The rest of the readership just stops by on the web and visits periodically.

    But of the thousands of regular readers, I know that many do not click through to the comment section. And that’s a shame. Because oftentimes I find the comments more interesting than my actual post.

    Take for example yesterday’s post on The Millennial Dream

    The initial post was about Millennial housing choices (and some stats on marriage and fertility rates). The comments provided some additional color on the trends, but they also got into mobile dating apps and whether or not it’s easier or harder to meet people in cities, today. It was a fun discussion.

    This got me thinking and reminded me that people come to cities not only because of labor markets, but because of dating markets. 

    So for today’s piece, I thought I would post the following diagram from Richard Florida’s book, Who’s Your City? It shows how many more singles (aged 20-64) there are – according to gender – in the largest US metro areas.

    I couldn’t find an equally detailed map for Canada, but based on this, it looks like Toronto is slanted towards single women and Calgary is slanted towards single men.

    Does the above look right to you?

  • Toronto is at the center of an emerging megalopolis

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    With the recent talk around downtown Cleveland’s resurgence, I am reminded that for those of us living near the Great Lakes, we are living in one of the most important urban agglomerations in the world: The Great Lakes Megalopolis.

    In 1962, French geographer Jean Gottmann wrote a seminal book called, Megalopolis: The Urbanized Northeastern Seaboard of the United States. And in it, he described the remarkable clustering of cities in the northeast, running from Boston in the north to Washington D.C. in the south. He called this the Northeast Megalopolis.

    The term megalopolis simply refers to a clustering or chain of generally adjacent metropolitan areas.

    Then in the 1960s and 1970s, architect and planner Constantinos Doxiadis started writing about the emergence of what he called the Great Lakes Megalopolis. In his mind, a contiguous urban region was forming that stretched all the way from Chicago in the west to Quebec City in the north east. And at its economic center was the city of Detroit.

    More recently, Richard Florida, as well as others, have been referring to these urban clusters as mega-regions. And in the case of the Great Lakes, Florida broke the area down into two distinct regions: Chi-Pitts in the west and Tor-Buff-Chester in the east. (I think you can guess how the names were derived.)

    According to his research, these two mega-regions have a combined population of almost 60 million people and an economic output equivalent to almost $3 trillion. That places it in line with the Northeast Megalopolis. But according to the Brookings Institution, the output coming from the Great Lakes could be closer to $4.5 trillion.

    Whatever the case may be and whatever you want to call it, the Great Lakes Megalopolis is unquestionably an economic and cultural powerhouse. But this has me wondering whether or not we’re doing enough to unleash its full potential.

    When I attended Joe Berridge’s talk last week on Toronto as a global city, I asked him how he thought we should be organizing our cities and regions. Do city-states make sense? Should we be rethinking the relationship between provinces/states and cities?

    His response was that we should be creating agencies and entities with regional authority (as opposed to fighting to make any constitutional changes). For example, the Toronto region should not have an array of competing transit agencies (as it does today). It should have one regional transit authority that blankets the region. People, ideas, and capital don’t follow borders.

    So with that in mind, what opportunities are there for us to unite the metropolitan areas within the Great Lakes Megalopolis?

    The first idea that comes to my mind is a high speed rail network that seamlessly connects to each city’s local transit network. Imagine a Great Lakes bullet train that could zip you across the region. It would completely reorganize the spatial landscape.

    Here’s an excerpt from a recent report by the Independent Transport Commission called, Ambitions & Opportunities – Understanding the Spatial Effects of High Speed Rail:

    There has been a global shift of economic power and influence from nation states to cities and city-regions. Today’s successful cities collaborate across existing boundaries to form polycentric metropolitan regions. As a result cities function in a much less self-contained manner than they did fifty years ago. Longterm trends in the pattern of urban settlement reflect the interplay between opportunities for dispersal afforded by greater mobility, and economic and social forces promoting concentration.

    But what else could we be doing to empower the Great Lakes Megalopolis? 

    I would love to hear your thoughts in the comment section below. I think there’s a strong case to be made for thinking at the scale of the megalopolis and not just at the scale of our own backyard.

  • The most segregated cities in North America

    The Martin Prosperity Institute here in Toronto just released a new research study called Segregated City: The Geography of Economic Segregation in America’s Metros

    The report looks at the physical sorting and separation of advantaged and disadvantaged groups within cities. And it did so across 70,000+ Census tracts in the US and in terms of 3 different dimensions: income, education, and occupation.

    Here are the most segregated “large metros” in the US:

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    Table Source: MPI

    And here are some of their broader findings – taken verbatim from page 9 of the study (click here for the full report):

    Economic segregation is positively associated with population size and density. It is also positively correlated to two other sets of factors that follow from metro size and density: how people commute to work and the breakdown of liberal versus conservative voters.

    Economic segregation tends to be more intensive in high-tech, knowledge-based metros. It is positively correlated with high-tech industry, the creative class share of the workforce, and the share of college grads. In addition, it is associated with two key indicators of diversity, the share of the population that is gay or foreign-born, which tend to coincide with larger, denser and more knowledge-based metros.

    Economic segregation is connected to the overall affluence of metros, with positive correlations to average metro wages, income, and economic output per capita.

    Race factors in as well. Economic segregation is positively associated with the share of population that is black, Latino, or Asian, and negatively associated with the share that is white.

    Economic segregation is associated with income inequality and even more so than with wage inequality. Its effects appear to compound those of economic inequality and may well be more socially and economically deleterious than inequality alone.

    The research team also looked at how Canada’s 3 largest metros – Toronto, Montreal, and Vancouver – compare to those in the US in terms of segregation. 

    The finding was that Canadian cities are overall less segregated than US cities, but that it should still be considered an area of concern. The most segregated of Canada’s 3 largest metros was found to be Montreal.

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    Image Source: MPI

    My view is that our economy is going through a profound shift right now. We’re transitioning from the industrial age to the information age. And in its wake, we’re seeing a number of disruptions, one of which appears to be rising inequality and segregation. 

    That’s not to say that I think this transition is a bad thing (I don’t think it is), but I do think we should be carefully considering and designing our future.

  • Cities and mountains

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    Having just spent the weekend in Calgary and Banff, I’ve been thinking a lot about importance of picking the right city in which to live. I’m not saying that I don’t love Toronto. Because I do. But I am incredibly envious of cities – like Calgary, Vancouver, and Denver – that have such easy access to incredible mountains.

    The photo at the top of this post was taken on the drive from Calgary to Banff.

    Now, this might not matter to a lot of people, but it does to me. It’s a personal thing. There’s something really nice about landing in a city and seeing people leaving the airport with skis and snowboards in hand. And there’s something really nice about a city where so many people are active, outdoorsy, and fit.

    This, of course, is the topic of Richard Florida’s book, Who’s Your City?: How the Creative Economy Is Making Where You Live the Most Important Decision of Your Life. But it’s still something that I’m not sure many of us give a lot of thought to. Are you living in the right city for you?

    I’ve lived in cities that weren’t right for me and I know that it can have a profound affect on your happiness.

  • How open are you to experiences?

    This morning Richard Florida published an interesting CityLab article that talks about how different personality types cluster within cities. The study he references was done by a team of psychologists that surveyed 56,000 people in the London metro area.

    Here is a summary of what they found (darker red indicates higher concentration of each personality trait):

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    Probably the most interesting personality trait is the “openness to experience” one, as there appears to be a clear divide between people who live in the center of London and people who live in the suburbs.

    Here’s how Florida describes it:

    The most clustered personality trait the researchers found was “openness to experience” (bottom left map), which is concentrated in the center of London. Openness to experience, according to a wide body of psychological studies, is associated with creativity, innovation and entrepreneurship. This type is concentrated in higher density neighborhoods, with higher housing prices, more ethnic and religious diversity and higher crime ratesMeanwhile, the blue concentrations at the periphery indicate that there are fewer people open to experience in metro London’s suburbs.

    It’s fascinating to think about the role of psychology in city building. It’s not something we often talk about, but it’s there.

    I live downtown and I would definitely classify myself as extraverted and open to experiences. How would you classify yourself?

    Maps via CityLab

  • Are startups causing inequality?

    Earlier this week Richard Florida published on article on CityLab talking about the relationship between tech innovation (in cities) and inequality. Specifically, the article deals with the correlation between venture capital investment and a variety of factors, such as monthly housing costs, wage and income inequality, and so on.

    The intent of the piece was to address the growing backlash against tech workers – in places like San Francisco – who have become the symbol for the growing gap between the rich and poor.

    The strongest correlation appears to exist between venture capital investment and housing costs. As the amount of venture capital goes up, so do housing costs – which probably shouldn’t surprise you. The rich start outbidding the poor for housing. Note: The two outlying dots at the top right, in the graph below, are Silicon Valley and San Francisco.

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    But when it comes to inequality, the relationship isn’t so clear. For wage inequality, there seems to be a relationship. But for the broader income inequality measure, the relationship is fairly weak. Here’s the graph:

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    So this is not as black and white as it might seem. Regardless, Florida ends the piece with the following statement (that I think is spot on):

    It’s time to stop pointing fingers and get on with the far more important task of harnessing the urban tech revolution to create a new urban middle class and a more inclusive urbanism—one in which many more workers and residents can participate, and one from which many more can benefit.

    The answer is not to stop innovating. That would be counterproductive. We should be be encouraging innovation, but at the same time figuring out how best to harness it for society as a whole.

    Tomorrow, I’ll touch a bit more on how we might go about doing that. I have a post planned that I think will tie in really nicely to this discussion. So stay tuned.

  • People in big cities walk faster

    One of the most interesting things about cities is that as they grow their “urban metabolism” also tends to increase. People become more productive. Economic output increases. It becomes easier to hail a cab (which is a test I like to use). And, according to this recent article by CityLab, people walk faster.

    Yes, research has shown that there’s a correlation between population size and the speed in which people walk. And some of the studies go as far back as the 1970s – like this one from psychologists Marc and Helen Bernstein:

    image

    In many ways, this makes intuitive sense. Life in the big city is a fast paced one. But why exactly do people start literally walking faster? The most probable answer seems to be, quite simply, that time is money. Subsequent research from the 1980s and 1990s has revealed that the best predictor of fast walking is economic output.

    When a city grows larger, they wrote, wage rate and cost of living increase, and with that the value of a resident’s time. As a result, “economizing on time becomes more urgent and life becomes more hurried and harried,” Walmsley and Lewis suggest. (Source: CityLab)

    The first thing that crossed my mind when reading all of this is that there must be some sort of upper limit. Humans don’t just keep walking faster and faster as the city in which they live in grows bigger. If that were the case, the mega cities of the world – such as Tokyo – would have people sprinting around all the time. But that’s obviously not the case.

    So this is a topic that could probably use some more data. And I would imagine it would be a lot easier to collect today given that we all now walk around with mobile sensors in our pockets (our smartphones). And pretty soon we may have mobile sensors on our wrists (smart watches).

    I would certainly like to see more data on this. The idea of an “urban metabolism” has always interested me.

    Image: Dundas Square, Toronto via Flickr