'New Brooklyns' Replace White Suburbs
Anaheim, CA, has become what Virginia Tech's Metropolitan Institute director Robert Lang calls 'the new Brooklyn' as immigrants move in to avoid crime and congestion and white residents move out to the deserted suburbs. Conservative and white from the start, the city's white population has plunged about 25% from 1990 to 2000; and half of its residents are now Latino, a tenth are Asian and only a third are Anglo. The trend also is evident in other traditionally white suburbs across the country. Experts say these New Brooklyns typically have over 100,000 residents, but are not the largest or most recognized city in a metro area. Additionally, they grow by 10% or more each decade; are home to more foreign-born, non-English-speaking residents than the country as a whole; and are criticized and misunderstood by the surrounding communities. The aging housing stock in these cities provides immigrants with affordable dwellings and gives more affluent residents a reason to move elsewhere. (www.usatoday.com)
USA Today (05/19/03) P. 1A; Rosenstein, Bruce
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Poverty Begins to Lose Its Grip on Some Cities
Recent studies by the Brookings Institution and the Urban Institute reveal that inner-city poverty has decreased substantially across the country. According to the Brookings Institution, the population of high-poverty neighborhoods — where 40% or more of the residents live in poverty — plunged 24% from 10.4 million in 1990 to 7.9 million in 2000. The most significant declines were posted in Detroit, San Antonio and Columbus, OH, where the number of high-poverty residents plummeted 74%, 70% and 55%, respectively. As a result, these cities are seeing less crime, better schools, more businesses and an increase in the number of residents with jobs; and experts say lower poverty rates translate into stronger families and less suburban sprawl. The robust economy of the 1990s, welfare reform, the razing of around 175 public housing projects and minimal industrial decline are credited for the improvements. The transformation occurred as poorer residents moved away from the inner cities to live closer to suburban jobs, the incomes of those who remained rose and more affluent people flocked to the urban core. Still, the overall poverty rate held steady at 11%-12% of the nation's population, and the population of high-poverty neighborhoods in Los Angeles, San Diego and Washington, D.C., continued to climb. (www.usatoday.com)
USA Today (05/19/03) P. 3A; Cauchon, Dennis
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McMansion Passion Is Diminishing
Raleigh, NC-based architect and “The Not So Big House” author Sarah Susanka says move-up buyers are passing over suburban mansions in favor of smaller homes with more personalized details. University of Florida architecture school director Stephen Schreiber concurs, noting that buyers increasingly prefer homes in small, close-knit communities with both commercial and residential components. In addition to economic and international tensions that cause the public to embrace the home, Consumer Eyes Inc. trend analyst Ron Rentel attributes the focus on nesting and bonding to what he calls “a growing cultural backlash in the U.S. against ostentation and over-consumption.” Rentel explains that “huge vehicles and resource-hogging have been scoffed at for a while now, but that attitude seems to be shifting toward housing, too.” Susanka says home owners instead are remodeling to maximize the space they have rather than to expand it. “I'm not saying small, just not so big as you thought you needed. It's the quality and character of your space, not the size of it, that matters.” National Association of the Remodeling Industry President Mark Brick agrees, pointing out that some of the most popular projects have been large showers, sophisticated sound systems and other so-called “creature comforts.” NAHB expects spending on residential improvements to rise from $150 billion in 2002 to almost $200 billion this year. However, Toll Brothers CEO Robert Toll says he has not seen a drop in demand for spacious homes and entryways; and he insists that it is natural for people to want more rooms and accessories and loftier ceilings. (www.usatoday.com)
USA Today (05/16/03) P. 8D; Temple, Linda
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The Legal Minefield in Your Own Backyard
Home owners' insurers lost $11 billion in the past two years, forcing many to hike premiums, exclude mold and water damage from policies and refuse to renew policyholders or insure homes with several claims. Insurers are now banning backyard trampolines, swimming pools with diving boards and certain dog breeds due to an rise in related injuries. However, Insurance Information Institute Chief Economist Robert Hartwig says a growing number of home owners are trying to protect their children from abductors by installing jungle gyms and trampolines in their backyards to keep them from playing elsewhere. Though many home owners are simply removing the prohibited items to retain their coverage, others are paying exorbitant premiums, purchasing separate policies or looking for another insurer. Home owners who wish to reinstate a cancelled policy will have to prove that the offending item has been completely removed. Meanwhile, those who wish to keep the item should surf the Web or consult an independent agent to locate an insurer that provides such coverage. Home owners should keep in mind that insurers are usually unwilling to exclude the banned item from the policy and will simply deny coverage on the entire home. (www.wsj.com)
Wall Street Journal (05/22/03) P. D1; Oster, Christopher
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The Wealthy Keep Home Real Estate Market Busy
While the lowest mortgage rates in decades are the primary force energizing the residential property market, American Institute of Architects Chief Economist Kermit Baker notes that this country's pool of wealthy buyers is another notable driver behind the real estate mania. While low- and moderate-income Americans have not enjoyed any significant income growth in the past of quarter of a century, the top 20% of wage-earners have experienced income gains of 50% since 1975 to a 2001 average of roughly $150,000. This upper-level group has helped to pump up the housing industry; but Baker says the run-up may be heading for a decline now that baby boomers are approaching retirement and fixed incomes. As more people make less money, he says, the market for smaller 'pre-retirement' and second homes, and also for condominiums, will take on increasing importance. (seattletimes.nwsource.com)
Seattle Times (05/18/03) P. I1; Rhodes, Elizabeth
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A New Formula for Housing
In Boston, city officials and community groups are offering seniors living alone in triple-decker dwellings incentives to rent their extra space to the homeless and others in need of affordable housing. "Overhousing" exacerbates the housing shortage, and half of the overhoused are seniors who are living longer and choosing to stay in their long-time homes. Meanwhile, there are 6,000 homeless and 20,000 people in line for government subsidized housing. Only 25 home owners have agreed to rent out a portion of their homes in exchange for city grants for renovations, and officials say the reluctance among seniors to share their living space has hindered the program's success. In fact, just five seniors are participating in the Neighborhood of Affordable Housing's year-old East Boston program. A number of the city's three-deckers were used as rentals in the past, but many seniors have been unable to afford the repairs needed to comply with city codes. However, Nuestra Comunidad's program helps home owners secure city grants and low-interest mortgages for extensive renovations, and the group also locates tenants, handles the lease and acts as the landlord. Though thousands of seniors throughout the city could benefit from the initiative and ease the housing crunch, Neighborhood of Affordable Housing program director Phil Giffee notes that it is not "the final answer to solve the affordable housing crisis." (www.boston.com/globe)
Boston Globe (05/19/03) P. B1; Abel, David
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Boomers Shun 'R' Word
Though many baby boomers will turn 60 in just three years, they refuse to think of themselves as old and are avoiding so-called retirement communities. Builders have responded by renaming such developments as “age targeted,” “age restricted” and “active adult for 55 and over” communities. This branding strategy is important, especially since adult community builder Del Webb says 45% of boomers will move during their retirement years. Though buyers of any age can purchase an age-targeted home, their first-floor master bedrooms, dens and increased security are preferred by those in the upper age groups. Many of these dwellings also feature crown moldings, tray ceilings, hardwood floors, granite countertops and other upscale amenities that are more affordable to older buyers who have sold their larger homes. Most boomers are also willing to spend hundreds of dollars per month to forego landscaping and other maintenance tasks. Meanwhile, an increasing number of builders are finding it easy to secure zoning changes that allow age-restricted communities — which prohibit primary tenants under the age of 19 and require one 55-plus resident — because local governments benefit from high-end tax assessments and fewer students burdening the school systems. (www.sunspot.net)
Baltimore Sun (05/18/03) P. 1L; Handley, John
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Environment's All Right in 'Green' Houses
Environmentally friendly homes — which boast recycled products and improved energy efficiency — are in high demand among buyers. Builders and developers, in response, are working to change zoning laws in an effort to minimize urban sprawl and curtail pollution. The Taylorstown, VA-based EcoVillage of Loudoun County, for instance, features a significant amount of open space and housing clusters positioned around a community center. Builders also have focused on mixed-use developments, which feature homes, retail centers and office buildings within walking distance; “in-fill” development, which revitalizes contaminated or blighted locales; and co-housing. However, green buildings can cost as much as 7% more than traditional construction; and green products often are 25% more expensive than conventional materials. Even so, industry experts say “plastic lumber” for decks and fences, roofing tiles made from recycled tires and bamboo flooring are growing more popular and declining in price. According to the U.S. Green Building Council, green construction should grow 3% this year, up from 1% growth last year. (www.washtimes.com)
Washington Times Online (05/16/03) Ross, Audrey
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Emergency Plans Focus on Real-World Flexibility
Facilities are changing their outlook on disaster plans, ceasing to look at them just as a list of set rules and instead looking at them as a way of fostering flexibility and responsiveness to unforeseen emergencies. "How do you plan for something that is indeterminate?" asks James Eckert, director of corporate real estate and facilities for Owens-Corning, continuing, "You put in place a communication plan that enables you to maximize the speed and effectiveness of your response to any emergency." Owens-Corning's plan stresses the involvement of top management, close links to local officials and teams based at facilities focused on things like safety and business continuity. The Georgia Institute of Technology, meanwhile, has received a number of phone calls about its new flexible emergency plan, which has one person in each building responsible for all aspects of emergency readiness. These individuals report to one of five zone coordinators, who in turn report to the emergency command center. The emergency command center is able to give orders to the separate police, facilities and research security operational centers. CarrAmerica Realty, for its part, has performed several drills in which the staff has vacated the premises, shut down phones and computers and brought everything back up off-site. (www.facilitiesnet.com)
Building Operating Management (05/01/03) Vol. 50, No. 5, P. 32
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New Mortgage Programs Reward Buyers of Energy-Efficient Houses
Home owners who want to do more than install programmable thermostats or add weather-stripping around doors to boost their homes' energy efficiency may want to consider an Energy Efficient Mortgage (EEM). The U.S. Department of Energy says these loans — which are used to make energy-efficient improvements — allow home owners to put the savings from lower utility bills toward their mortgage payments. Home owners can borrower as much as 15% more than the home's value without an extra downpayment or income with the Fannie Mae-backed EEM, which is currently available from Countrywide Home Loans. Since many lenders are unaware of EEMs because they have been focused on the refinancing boom, RESNET executive director Steve Baden urges borrowers to bring the program to their attention. (www.heraldtribune.com)
Sarasota Herald-Tribune Online (05/17/03) McLinden, Steve
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Raines Bullish on Housing
Fannie Mae CEO Franklin D. Raines discredits fears about a nationwide housing bubble, explaining that home prices have soared because of low interest rates and higher incomes. The robust housing market allowed Fannie to post higher profits in January, but the mortgage giant continues to face criticism — particularly from the editors of the Wall Street Journal — for what is perceived as its widening risk. However, UBS Warburg managing director and stock analyst Gary Gordon, who has tracked the firm for more than 15 years, considers Fannie's risks reasonable and accuses the company's critics of a lack of knowledge regarding the housing market. According to Gordon, “[The critics] live in New York or some high-cost area and they worry about [the housing market] but they don't know that in Iowa, Texas and Florida things are very different.” Despite increased competition, Gordon expects another strong year for Fannie Mae. (www.blackenterprise.com)
Black Enterprise (05/03) P. 22; Jefferson, Aisha I.
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Ultra Wideband: Gaining Momentum
Supporters of ultra wideband (UWB) are predicting a surge in home networking products based on the technology thanks to the FCC's February 2002 ruling authorizing commercial, unlicensed UWB implementation. The agency supposedly approved the authorization because of the technology's potential impact on public safety, which includes radar imaging that penetrates the ground and walls to aid in rescue operations. However, industry analysts think UWB-based wireless electronic products could debut as early as Christmas 2003, in the form of camcorders that can transmit wireless streaming video to computers or a TV. Other expected innovations include flat-screen computer monitors that can wirelessly link to a CPU anywhere in the house, wireless TV-to-TV transmission of programs and wirelessly connected TVs and VCRs. To allay concerns from law enforcement, the military and other entities that UWB devices may interfere with essential public services and military operations, the FCC ruled that such devices can only run in the 3.1 GHz to 10.6 GHz frequency band, while operation can only take place indoors or via handhelds if peer-to-peer communication is involved. The FCC hosted an Ultra Wideband event this past February, where several UWB technologies were spotlighted. Technologies on hand included Time Domain's handheld RadarVision device, a radar imaging system that uses the PulsON chipset, which the FCC certified last September; and a UWB intercommunications system from Multispectral Solutions, which was created for the U.S. Navy to reduce cabling clutter and prevent accidents. The odds for UWB's success would be significantly improved if the industry can work out a universal wireless standard interface. (www.internetnews.com)
InternetNews.com (05/16/03) Mark, Roy
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