According to Charlotte’s 2008 Neighborhood Quality of Life report, which measures the economic and social health of the city’s 173 neighborhoods, neighborhoods close to the city’s center are prospering while the suburban communities show signs of decline(http://www.charlotteobserver.com/2008/08/05/106835/life-on-upswing-in-neighborhoods.html). I think this is interesting in light of our recent class discussions on the sub-prime mortgage crisis. In reading a New York Times blog post entitled Slumburbia, I wonder how much what seems to be a shifting trend in Charlotte (moving from the suburbs to the cities), has been influenced from high rates of foreclose in suburbs.
In a New York Times article No Help in Sight, More Homeowners Walk Away, published February 2, 2010, it states, “New research suggests that when a home’s value falls below 75 percent of the amount owed on the mortgage, the owner starts to think hard about walking away, even if he or she has the money to keep paying”(http://www.nytimes.com/2010/02/03/business/03walk.html). In addition, “The number of Americans who owed more than their homes were worth was virtually nil when the real estate collapse began in mid-2006, but by the third quarter of 2009, an estimated 4.5 million homeowners had reached the critical threshold, with their home’s value dropping below 75 percent of the mortgage balance” (http://www.nytimes.com/2010/02/03/business/03walk.html). This phenomenon resulted in millions of people jumping ship and leaving many of their homes vacant. Where have all of these residents gone? In Charlotte, the data seems to suggest that many of this populace is moving closer to the center of the city (where house prices have increased but) are still affordable. In addition, more money is being funneled into these inner ring neighborhoods and helping them to become more stable. As might be expected, as these center city neighborhoods are prospering, the suburbs are continuing to decline. Although, despite the higher crime rates, presence of vacant lots, and high unemployment in suburbs, I do not think this inward migration will continue. On a whole, America is continuing to expand and when the market stabilizes, these currently empty suburban homes will once again become affordable, and many will move back out.
I have to agree that it is unlikely that this inward migration to the cities will continue inevitably. In fact it is simply impossible. Our cities could do not have the ability to house all of those who live in the suburbs, nor do all people have the financial luxury to move to many of the nations most bustling urban areas. However, I do believe that this is an interesting topic, in light of class discussions. Could this possibly give way to a resurgence of stagnant city economies? Obviously Charlotte is simply one case study in the context of the broader American situation, but it will be interesting to see if more industry based towns face the same circumstances as the national economy continues to falter.
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