Redeveloping communities equitably is challenging everywhere. But it can be especially difficult in Sun Belt cities that have grown rapidly during the past three or four decades.
In most big Southern metropolitan areas, housing has typically been developed through a framework of real estate deals, said Chris Estes, president of the National Housing Conference, at a late September conference on equitable development at the Atlanta Fed's headquarters. By contrast, in older cities of the Midwest and Northeast, housing was planned long ago in a fashion less dominated by a transactional approach.
One consequence: neighborhoods in many Southern metro areas are starkly divided socioeconomically. In places such as Atlanta and Charlotte, these development patterns are one reason it is comparatively difficult for those from low-income backgrounds to ascend the income ladder, according to research by Harvard University experts.
In the South, "We don't have a comprehensive framework with years to build on," Estes said. "It's about thinking of our city and our region in a different way, how we're all in this together."
Atlanta Fed convening forums across Southeast
The Equitable Development Strategies for Neighborhoods forum in Atlanta was the latest in a series of conferences organized by the Atlanta Fed's Community and Economic Development (CED) department. Tailored to focus on issues relevant in each host city, the events explore ways to establish durably affordable communities, touching on matters from blight remediation in New Orleans to a dearth of affordable housing in Nashville.
The forums convene varied parties involved in planning and building thriving neighborhoods. Those stakeholders often include state housing finance officials, nonprofit leaders, researchers and academics, bankers, government officials, representatives from philanthropic organizations, and real estate developers.
"It's really about igniting and galvanizing local people to do this work," said visiting CED adviser David Jackson. Jackson, a former housing official in Atlanta and New York City who studies affordable housing and neighborhood revitalization, has coordinated the forums, starting with a May event in Nashville. "We want to hear their needs and help connect them with educational and other resources that drive the work," Jackson added.
Speakers at the Nashville forum (photo by David Jackson)Equitable development is about more than housing
In addition to the different historical development dynamics of Southern cities versus older urban areas, other major themes discussed at the forums included:
- The importance of local "anchor institutions" like universities, hospitals, and major employers that are engaged in policies and investment decisions that promote equitable economic growth in thriving and distressed neighborhoods.
- The benefit of early planning and the development of housing plans to ensure that successful redevelopments don't price out existing residents, which is a significant issue amid gentrification.
- The need to think of community development holistically to consider, for instance, the critical role of schools, employment centers, transportation, and other factors in addition to housing. Brad Weinig, program director of a Denver group that funds transit-oriented development—a term applied to mixed-use development located near public transportation—noted that low-income families on average spend 60 percent of their gross earnings on housing and transportation. Transportation can be especially problematic. Citing a 2012 study from his organization, Estes noted that in some cities with high housing costs, such as Washington DC, low transportation costs actually make overall living expenses lower than in some places with less costly housing.
Neighborhood revitalization matters to the Atlanta Fed because improving communities holistically and providing safe, affordable places to live is important to the success of the regional economy. Addressing related issues is a critical focus as the CED pursues its mission of activating financial, human, and social capital to foster conditions that support economic growth in the Southeast.
Charles Davidson
Staff writer for Economy Matters