THE AVENUE OCTOBER 7, 2010
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Ever since we got our first glimpse of the Great Recession’s impact on metropolitan poverty with last year’s release of the 2008 American Community Survey (ACS), we suspected the 2009 ACS would contain even more dismal results. But when the data appeared last week, the rise in poverty, especially in certain metro areas, superseded even our pessimism.
Over the first year of the recession, 16 of the 100 largest metro areas in the country saw a significant uptick in the share of people living below the federal poverty line ($21,954 for a family of four in 2009). Add the second year to the equation--which saw the downturn deepen and spread to other industries--and fully 57 metro areas experienced significant increases in their poverty rates over the two-year period.
Sun Belt metro areas like Bradenton and Lakeland in Florida and Bakersfield and Riverside-San Bernardino-Ontario in California lead the list of metro areas experiencing significant poverty growth over the course of the recession, reflecting the extent to which these areas have been affected by the fallout of the housing market collapse and subsequent economic downturn. And not surprisingly, a number of manufacturing metro areas in the Midwest--areas that experienced job losses even in advance of the recent recession--also saw poverty rise significantly, including Cleveland and Detroit.
What’s more, within the nation’s largest metro areas suburbs have borne the brunt of growing poverty, not just during the Great Recession, but since the start of the decade. Since 2000, suburbs have seen the number of poor residents increase by 37 percent--well above the national growth rate and more than double the pace of growth seen in the city poor population. And while the second year of the Great Recession brought a similar magnitude of increases in both city and suburban poverty, by 2009 the suburbs were still home to 1.6 million more poor than cities.
These trends underscore the fact that the idea of poverty as a strictly urban issue is outdated. Urban areas continue to struggle with persistent poverty just as suburban areas must adapt to a rapidly growing poor population. The upshot is that the challenges of poverty are increasingly metropolitan. That means policymakers need to think strategically about regional issues like housing, transportation, job growth, and workforce development. Looking at these issues across policy silos and city and county boundaries can help foster strategies and development that will better connect low-income workers to affordable housing and employment opportunities across the region, giving them a chance to work their way up the economic ladder and out of poverty.
These trends also have implications for the social safety net and the ways we connect low-income families to work supports and benefits that help combat poverty. Traditionally, these services have been concentrated in urban centers. Thus, piecemeal and less-developed suburban social safety nets have come under growing pressure over the past several years, and particularly during the latest downturn, as they have faced increasing demand for their services just as budgets and resources have diminished. Recent work on social service providers in the suburbs of L.A., Chicago, and Washington, D.C. by Scott Allard and Benjamin Roth at the University of Chicago demonstrates these pressures definitively using a combination of data from the Census Bureau and the IRS combined with substantial fieldwork. We’ll be reporting out on some of the implications of their work soon.
3 comments
I suggest that those studying and analyzing the "new poverty" not make the mistake of equating poverty observed in one area with the poverty observed in another. Having spent most of my life in Florida, I would also suggest that the "new poverty" in Florida is unlike any before. The vast migration of the population to Florida over the past 25 years is not just retirees, but also (mostly perhaps) refugees from the failed and failing economies elsewhere. And it worked. For awhile. But with the collapse of housing has come the collapse of construction and its related industries, with these recent refugees the first casualties in an area with few ties, family of otherwise, to help them through. In an economy whose largest "industry" is growth, Florida will not recover unless and until that "industry" recovers, which is impossible as long as the housing market elsewhere is depressed: those in Ohio, Michigan, Illinois, Wisconsin, and elsewhere cannot move to Florida unless and until they can sell their houses. What I see in Florida today is a peek at Florida's future, because one day the migration to Florida will end, if for no other reason than the end of baby boomer retirees. And when it ends, so does Florida's "industry" of growth, leaving behind vast areas of deteriorating housing and abandoned real estate developments.
- rayward
October 9, 2010 at 8:37am
As a former resident of Florida, I can't say that I am totally sad about the prospect of Florida's "growth industry" not growing so fast. How much of the state's natural bounty has been plowed under and turned into parking lots? The environmental impact of too many people has also harmed states like Colorado, where people decided that regardless of the obvious evidence to the contrary, there MUST be unlimited reserves of water. And now there are actual traffic jams in the mountains for heaven's sake.
- Sophia
October 10, 2010 at 5:19pm
There's probably two trends at once -- older first and second ring suburbs with aging rental properties gaining low income people from core cities, and the actual impact of the recession on lower middle class suburbanites who had been riding the bubble to material prosperity. The latter are the victims of false prosperity, living in homes they shouldn't have bought with the trappings paid for by easy money that's dried up. I don't think either group is really all that new -- we've always had blue collar enclaves with fairly high unemployment and low incomes. It's just that in the last 10 years they rode a wave of growth, both in terms of employment in the housing industry and in terms of cheap money for lifestyles that were historically beyond their means. Once that rug was yanked from under them, they were back to where they started only this time with a trail of foreclosures and a fleet of aging SUVs and pickups. The urban poor moving to inner rings suburbs isn't a new form of poverty, just the same poverty in a new location, often as a side effect of the housing bubble -- aging apartments that could not draw blue collar workers who had decamped for their suburban "destiny" drew renters from the inner city looking for an upgrade.
- mobocracy
October 11, 2010 at 1:20pm