The recent Brookings study looking at “job growth” and “jobs near the average resident” got me thinking again about how my past two home and workplace decisions have affected my personal finances. For those not familiar with the report, it’s mostly negative news:
Between 2000 and 2012, the number of jobs within the typical commute distance for residents in a major metro area fell by 7%. Of the nation’s 96 largest metro areas, in only 29—many in the South and West, including McAllen, Texas, Bakersfield, Calif., Raleigh, N.C., and Baton Rouge, La.—did the number of jobs within a typical commute distance for the average resident increase. Each of these 29 metro areas also experienced net job gains between 2000 and 2012.
As employment suburbanized, the number of jobs near both the typical city and suburban resident fell. Suburban residents saw the number of jobs within a typical commute distance drop by 7 percent, more than twice the decline experienced by the typical city resident (3%). In all, 32.7 million city residents lived in neighborhoods with declining proximity to jobs compared to 59.4 million suburban residents.
Uptown Transit District [Eric Anspach]
As poor and minority residents shifted toward suburbs in the 2000s, their proximity to jobs fell more than for non-poor and white residents. The number of jobs near the typical Hispanic (-17%) and black (-14%) resident in major metro areas declined much more steeply than for white (-6%) residents, a pattern repeated for the typical poor (-17%) versus non-poor (-6%) resident.
Residents of high-poverty and majority-minority neighborhoods experienced particularly pronounced declines in job proximity. Overall, 61% of high-poverty tracts (with poverty rates above 20%) and 55% of majority-minority neighborhoods experienced declines in job proximity between 2000 and 2012. A growing number of these tracts are in suburbs, where nearby jobs for the residents of these neighborhoods dropped at a much faster pace than for the typical suburban resident (17% and 16%, respectively, versus 7%).
For local and regional leaders working to grow their economies in ways that promote opportunity and upward mobility for all residents, these findings underscore the importance of understanding how regional economic and demographic trends intersect at the local level to shape access to employment opportunities, particularly for disadvantaged populations and neighborhoods. And they point to the need for more integrated and collaborative regional strategies around economic development, housing, transportation, and workforce decisions that take job proximity into account.
Now looking at this from a personal finance perspective, I previously lived and worked in Indianapolis where my one-way commute was roughly 16 miles. For this distance, I found over time that it cost me about $5 a day to get to work.
When I moved to Cincinnati for a new job, I first lived in Covington where I paid $1 to ride the Southbank Shuttle in the morning and usually walked home. After moving to Clifton, I still found that my now driving commute of less than 3 miles came to cost around $1 per day.
So the $5 per day Indianapolis commute cost me roughly $100 per month in gas, where the $1 per day Cincinnati commute cost me only $20. Now this may not seem like a huge amount or difference, but to most people, $80 would nearly be a full day’s work. What’s not reflected in this difference is the reduced frequency and cost related to vehicle maintenance, specifically oil and tire changes. With the greatly reduced frequency of need for these two items, the monthly savings I’ve found is closer to the full $100 amount, essentially a pay raise simply for living close to work.
Employees obviously can have little impact on where an employer chooses to locate, but they do still have control over where they live and as long as I am able, 3 miles is the maximum distance I will live from work. This distance is also interesting as I’ve found it to be the maximum distance where taking the bus is a reasonable time-cost choice, a huge benefit during the recent snowy winters, and it is also a distance where my non-work trips to downtown stay at what I think is a reasonable level for places I like to visit.
EDITORIAL NOTE: This guest commentary was authored by Eric Douglas, a native of Grand Rapids, MI who currently lives in Cincinnati’s Clifton neighborhood. Eric is a member of the Congress for New Urbanism and earned a Bachelors of Science from Michigan State University. Since that time he has worked for Planning, Community Development and Public Works departments in Cincinnati, Indianapolis and Detroit.
If you would like to have your thoughts published on UrbanCincy, simply contact us at editors@urbancincy.com.
Those changes, however, were just the beginning. Work has progressed rapidly on the subsequent phases of work at The Banks and Smale Riverfront Park. The structures and final look of this work is now taking shape and is easily visible.
Much of the work at Smale Riverfront Park will be complete within the next month or so; then the next wave of activity will begin and continue to push the park westward toward its ultimate completion several years later. The second phase of The Banks, which includes 60,000 square feet of street-level retail, 300 apartments and General Electric’s 340,000-square-foot Global Operations Center, is scheduled for completion at the end of 2015. The complete build out of GE’s new $90 million office building will not be fully finished until sometime in 2016.
SW View of Phase 2 of The Banks [Jake Mecklenborg]
EDITORIAL NOTE: All 15 photographs in this gallery were taken by Jake Mecklenborg for UrbanCincy on April 12, 2015.
Shortly after breaking the news that The Banks development team is in negotiations with AC Hotels to bring the trendy European hotel brand to the central riverfront, UrbanCincy confirmed that the real estate development arm of Western & Southern is close to finalizing an agreement that would bring a boutique hotel to Lytle Park as well.
Multiple sources have confirmed that a deal is being worked out that would bring an Autograph Collection hotel to the former Anna Louise Inn. When reached for comment, Mario San Marco, President of Eagle Realty Group, acknowledged that the company is working diligently to bring an Autograph Collection hotel to the site, but that details had not yet been finalized or presented to City Hall.
Downtown Cincinnati Hotels – 2014 [DCI]
Western & Southern executives had previously stated that they wanted to bring a boutique hotel to the site that would have somewhere around 106 rooms. The plan would fit the company’s larger plans for the historic district that call for creating a high-end enclave surrounding Lytle Park, which Western & Southern helped save from demolition in the 1960s by pushing for the creation of Lytle Tunnel.
Autograph Collection is a unique brand owned by Marriott International. Instead of the rest of their brands which maintain their names, Autograph Collection makes a unique name and concept for each of their sites. The closest such hotel is Cleveland’s 156-room Metropolitan at The 9.
Sources have also confirmed that, like the AC Hotel at The Banks, this boutique concept by Autograph Collection would be managed by Cincinnati-based Winegardner & Hammons.
The two recent hotel announcements appear to be the end of the center city’s recent hotel boom that has included a new 122-room SpringHill Suites, 134-room Residence Inn by Marriott, 160-room 21c Museum Hotel, 323-room Renaissance Hotel, 105-unit Homewood Suites, 144-room Hampton Inn & Suites, and a 144-room Aloft Hotel.
The boom has also included major, multi-million dollar renovations of the Hyatt Regency and Westin Hotel in the heart of the central business district. The remaining unanswered question continues to be what will happen with the deteriorating Millennium Hotel, which, at 872 rooms, is the center city’s largest, and serves as the region’s primary convention hotel.
Despite the addition of more than 1,100 new hotel rooms over the past several years, occupancy rates have held relatively constant. More critically, room rates and RevPAR – the hotel industry’s calculation of revenue per hotel room – have been steadily increasing over the same period and are now well above regional and national averages.
Project leaders at Eagle Realty Group declined to provide any specific timeline or budget for the project, but previously stated that they hope to get an operator under contract by mid-2015, with construction commencing shortly thereafter.
The Cincinnati metropolitan area is recovering at a rate equal to that of the nation, and production, income, and GDP are all up in the area. LaVaughn Henry, vice president and senior regional officer of the Federal Reserve Bank of Cleveland’s Cincinnati Branch, cited the area’s diversified economy as one reason for robust growth.
More specifically, the Fed pointed to Cincinnati’s large employment percentages in the consumer marketing field as a reason for its success. As the nation continues to recover and consumer confidence and consumption rise, Cincinnati is poised to benefit at a greater rate than other metropolitan areas.
Further bolstering the region’s growth are the construction and manufacturing sectors, having grown 7% and 4% over the last year, respectively. Healthcare and education are also growing, while the area’s business and professional sectors are lagging behind national averages.
Overall Cincinnati’s performance seems to be mirroring that of the nation, with high growth in manufacturing and construction, stagnant growth in government, and large drops in the information sector.
The region’s employment rate now stands at 4.5%, nearly a point lower than the national average and the lowest level in 10 years. The average Cincinnatian is seeing the fruits of this economic growth, with wages growing faster than the rest of Ohio and other nearby metros. Henry says that wages are poised to reach an average of $840 a week – a level not seen since 2007.
The region, however, has not yet managed to reach pre-Recession employment levels. This is in line with the national trend, although behind local metropolitan areas.
The Federal Reserve Bank of Cleveland also cited recent announcements from companies planning major job expansions as reason for continued optimism that the area’s employment growth will continue. While the local housing market has seen sluggish growth, the Henry says that shrinking housing supply and increased construction will strengthen the sector.
Between 2000 and 2013, an additional 78 counties throughout the United States joined the rank of those where whites no longer made up a majority of the population. In total there are some 266 counties nation-wide, including Ohio’s three most populous. More from CityLab:
By 2040, the country’s white population will no longer be the majority. But for many regions around the country, this demographic shift has already arrived. A new map created by the Pew Research Center pinpoints the 78 counties in 19 states where, from 2000 to 2013, minorities together outnumbered the white population.
Pew crunched Census numbers from the 2,440 U.S. counties that had more than 10,000 residents in 2013. Whites made up less than half the population in a total of 266 counties. Even though these 266 counties made up only 11 percent of the counties analyzed, they contained 31 percent of the country’s total population, with many of them home to dense urban areas.
