REGENERATION AND INEQUALITY IN AMERICA’S LEGACY CITIES

Alan Mallach, Senior Fellow Center for Community Progress Washington, DC [email protected]

Setting the stage

• A dramatic reversal of long-term urban decline began in coastal cities in the 1990s • Since 2000, that reversal has spread inland to many post-industrial cities. • It is closely related to national and global trends: • Globalization and the growth of the knowledge economy • Increased income and wealth inequality in American society. • The changing profile of urban jobs • Demographic and cultural trends leading to changing urban migration patterns • Growing economic inequality and segregation in American society Urban regeneration is driven by the “march of the millennials”

6 % 25-34 BA+ 5 % Change 25-34 BA+ 4 2000-2012

3

2

1 National Average

0 All city figures are shown relative to national averages

Where are the millennials going?

18.0% Magnets 16.0% 14.0% Contenders

12.0% Catch-up 10.0% 8.0%

6.0% Lagging 4.0%

2.0%

0.0% Regeneration is spatially confined

Population change in St. Louis 2000-2010

NORTH

CENTRAL

SOUTH

Map by PolicyMap Spatial disparities in income are great

Income distribution In 2012

Map by PolicyMap Many downtowns are thriving

Inner Harbor Baltimore

Washington Avenue St Louis Some neighborhoods have been transformed

Central West End St. Louis MO

Over-the-Rhine …but far more remain in distress

East

Baltimore

St Louis Most urban jobs are held by suburban commuters

Work in Camden But live outside CAMDEN NEW JERSEY Camden (86%)

Work in Camden and live in Camden (14%)

The problem is not the number of jobs, but who holds the jobs

300000 Jobs in city

250000 Resident workforce

200000 Residents working in city 150000

100000

50000 Jobs/worker ratios Numberjobs/workersof 0 Populations are increasingly sorting spatially by income

60

10 7 50 1999 2012

40 23 4

30

20

10 Numbercensusof tracts

0 0-50% 50-80% 80-120% 120-150% 150%+ Change in number of census tracts by income range in New Orleans

Far more areas are losing than gaining ground

Areas of severe Likely pocket market decline of gentrification

House price change In Milwaukee 2007 to 2012 Economic disparities by race are growing at the household level

60 % Change in median household income 2000-2010 50

40

30

20 All 10 White 0 African-American

-10

-20 …and at the neighborhood level

The great majority of predominately Black Predominately tracts in Milwaukee Black census tracts lost >50% of market value between 2006 and 2013

Predominately white census tracts BLACK POPULATION

PERCENTAGE 2013 MEDIAN SALES PRICE AS PERCENTAGE OF 2006 MEDIAN …exacerbated by middle-class Black flight

35

30

25 All white 20 families

15 White families >$50K

10 All black families 5 Black families %population loss 2000-2012 0 >$50K Cincinnati St. Louis Key findings

• Inequality in regenerating post-industrial cities is spatial, economic and racial • Economic functions of the city are increasingly separating from the city’s population and workforce • More neighborhoods are declining than reviving: decline is affecting far more people than gentrification, particularly African-Americans. • Powerful economic, demographic and migration trends are sharply widening the gap between white and Black urban populations. Challenges of local action

• Inequality is a people AND a place issue: • Inequality of opportunity and resources for individuals and families • Inequality of neighborhood conditions within cities • Inequality of cities within their regional framework • Feedback loops dictate that strategies to address one dimension of inequality may conflict with or undermine others. • Capacity of governance systems may not be adequate to address inequality issues. How can we create local frameworks to link multiple elements into an integrated attack on inequality and lack of opportunity?

Economic Improved delivery of Wage & benefit diversification public services enhancementJob targeting Blight elimination strategies strategies Neighborhood Workforce marketing development “Promise” Drawing new strategies populations Educational ? Anti-displacement Reform Crime prevention strategies Retaining Regional revenue-sharing middle-class and service delivery models households