I have a baby on the way, which means I’m not keeping up
very well with this blog. But it also means that I’m nesting and trying to find
a new home that will be more family friendly. To help with some macro decision
making around where to live and how to choose a new home, I read Who’s Your
City by Richard Florida.
Who’s Your City is intended to be a decision guide for those
who become convinced that where you live is as important a decision in life as
who you marry. I can get behind that thesis, but how to make the best decision
about where to live? First is to go for an economic region where the creative
jobs of the future will be. That makes sense, as everyone needs a job. However,
there are just a handful of places where good jobs tend to cluster – the Northeast
corridor from Boston to DC; the Southeast corridor from Charlotte to Atlanta; a
Midwest corridor from Chicago to Pittsburgh; a Texas belt that includes
Houston, Dallas and Austin; and two clusters in California, one around Silicon
Valley and San Francisco in the North and a second one around Los Angeles and
San Diego in the South. If you don’t live in one of these areas … well, you’re
sort of screwed.
In essence, the book argues that anyone outside of these
regions has an old economy job, like factory work or some other paint by
numbers McJob that can be outsourced and probably will over the long term. Good
jobs tend to cluster in regions where the best, most creative workers are, and good
companies are attracted to areas where there are lots of elite college and post
graduates looking for work. But there’s a specialization component to the
regions as well. For instance, you really can’t be a financial house without a presence
in New York. You can’t be in energy and not have some people in Texas. You can’t
be a filmmaker outside of LA. And you can’t do federal lawmaking anywhere other
than D.C.
It’s an insular feedback loop where the best people go where
their chosen field has set up camp, and the best companies go where the best
people are – it all clusters in the same place.
For me, that means half the battle has been won, as I live in
the Northeast corridor, or the second largest global economy in the world. So, I
can check the box for a good growth region with quality jobs.
Next, though, is how to manage being in one of those cluster
locations – because while the jobs may be there, so are lots of other people all
competing for scarce housing and space resources. And when demand outstrips
supply, you end up with super high prices. So, how to choose a space where you
get the most bang for your buck?
This wasn’t a surprise to me, but the best areas in any of
the urban clusters tend to be those with the highest concentrations of gays and
bohemians. Both these groups tend to “pioneer” up and coming neighborhoods, renovating
homes, creating an open and tolerant vibe and improving the area’s beauty,
safety, retail options, walkability and all the other things that people tend
to value in urban neighborhoods. So, peruse the census data and find out where
the gay households are, cross check that against affordability, pioneer with
them and watch your home appreciate.
But there are other options for those that want to live out
of the city center, such as the suburbs and the exurbs. In both, you can find
more space and a more rural vibe, and sometimes lower prices. But there’s a
hidden tax – the commute. According to Who’s Your City, commuting is the one
thing that almost all people consistently rate as the most unpleasant thing
they do every day. In fact, people hate commuting so much that it’s responsible
for a lot of depression and unhappiness related to place. So, if you choose the
burbs, best to do it only if you have a flexible work schedule that allows for
a fair amount of working from home, or you find a place where the advantages
are so amazing that it compensates you for the daily misery of driving in
traffic.
All in all, Who’s
Your City is pretty basic stuff. If you live in an urban area for long enough,
you don’t need to read a book to tell you to follow the gay pioneers. That’s
pretty obvious. But it was interesting to read why certain areas tend to be cluster
hubs, and why they are so expensive. I’ve been bemoaning the District for a
while, thinking there’s no way that home prices could continue to climb here.
After all, there has to be an upper limit for incomes, and there’s no way
appreciation can continue forever. And it can’t. But according to Richard Florida,
D.C. still has a way to go before it reaches that upper limit – it’s decidedly
not as expensive as New York, San Francisco or Silicon Valley, yet the area
continues to grow and attract more and more people. And because of
that, it’s actually rated as a best buy!
So, I guess I can feel somewhat better that while I will
have to be house poor for a while, buying in DC, even at a high price, still
makes sense.