Cities and suburbs occupy well-defined roles within the discussion of poverty, opportunity, and social welfare policy in metropolitan America. Research exploring issues of poverty typically has focused on central-city neighborhoods, where poverty and joblessness have been most concentrated. As a result, place-based U.S. antipoverty policies focus primarily on ameliorating concentrated poverty in inner-city (and, in some cases, rural) areas. Suburbs, by con­trast, are seen as destinations of opportunity for quality schools, safe neighborhoods, or good jobs.

Several recent trends have begun to upset this familiar urban-suburban narrative about poverty and opportunity in metropolitan America. In 1999, large U.S. cities and their suburbs had roughly equal numbers of poor residents, but by 2008 the number of suburban poor exceeded the poor in central cities by 1.5 million. Although poverty rates remain higher in central cities than in suburbs (18.2 per­cent versus 9.5 percent in 2008), poverty rates have increased at a quicker pace in suburban areas.

Watch video of co-author Scott Allard explaining the report's findings » (video courtesy of the University of Chicago)

This report examines data from the Census Bureau and the Internal Revenue Service (IRS), along with in-depth interviews and a new survey of social services providers in suburban communities surrounding Chicago, IL; Los Angeles, CA; and Washington, D.C. to assess the challenges that rising suburban poverty poses for local safety nets and community-based organizations. It finds that:

Suburban jurisdictions outside of Chicago, Los Angeles, and Washington, D.C. vary sig­nificantly in their levels of poverty, recent poverty trends, and racial/ethnic profiles, both among and within these metro areas. Several suburban counties outside of Chicago experi­enced more than 40 percent increases of poor residents from 2000 to 2008, as did portions of counties in suburban Maryland and northern Virginia. Yet poverty rates declined for subur­ban counties in metropolitan Los Angeles. While several suburban Los Angeles municipalities are majority Hispanic and a handful of Chicago suburbs have sizeable Hispanic populations, many Washington, D.C. suburbs have substantial black and Asian populations as well.

Suburban safety nets rely on relatively few social services organizations, and tend to stretch operations across much larger service delivery areas than their urban counter­parts. Thirty-four percent of nonprofits surveyed reported operating in more than one subur­ban county, and 60 percent offered services in more than one suburban municipality. The size and capacity of the nonprofit social service sector varies widely across suburbs, with 357 poor residents per nonprofit provider in Montgomery County, MD, to 1,627 in Riverside County, CA. Place of residence may greatly affect one’s access to certain types of help.

In the wake of the Great Recession, demand is up significantly for the typical suburban provider, and almost three-quarters (73 percent) of suburban nonprofits are seeing more clients with no previous connection to safety net programs. Needs have changed as well, with nearly 80 percent of suburban nonprofits surveyed seeing families with food needs more often than one year prior, and nearly 60 percent reporting more frequent requests for help with mortgage or rent payments.

Almost half of suburban nonprofits surveyed (47 percent) reported a loss in a key rev­enue source last year, with more funding cuts anticipated in the year to come. Due in large part to this bleak fiscal situation, more than one in five suburban nonprofits has reduced services available since the start of the recession and one in seven has actively cut caseloads. Nearly 30 percent of nonprofits have laid off full-time and part-time staff as a result of lost program grants or to reduce operating costs.

Downloads

• Full Report
• Suburban Chicago Factsheet
• Suburban Los Angeles Factsheet
• Suburban Washington, D.C. Factsheet

       

Seattle Mayor Ed Murray recently announced a plan to raise the minimum wage in his city to $15/hour over the next few years. The plan emerged from a special business/labor advisory committee, approved by 21 out of 24 its members, after four months of hearings, academic studies, and debate . The measure awaits approval by the City Council, but the move to $15/hour in Seattle seems well underway.

Seattle may be the first, but it won’t be the last, city to take this bold step. Granted, there were some peculiarities in Seattle’s case, including a $15/hour minimum wage ballot initiative that succeeded in the nearby city of SeaTac in November, and the election of a new Socialist Party Seattle City Council member who campaigned on the issue. But with inequality taking center stage as a political issue in big cities around the country, mayors, businesses, and labor advocates are watching Seattle closely.

However, the focus on big cities shouldn’t obscure the fact that wages are a function of regional economics. Seattle is indeed a big city, with 635,000 residents and (by our count) nearly 500,000 jobs. But it’s only part of King County, Washington, which has roughly 2 million residents and more than 1 million jobs. And King County is just one of three counties that make up the wider Seattle metropolitan area, with a population of 3.5 million and 1.8 million jobs.

While low-wage jobs are prevalent in Seattle, they’re even more prevalent in its nearby suburbs. Using data from the American Community Survey, my colleague Sid Kulkarni and I calculated that between 2009 and 2011, there were on average 149,000 jobs (full-time and part-time) in the city of Seattle that paid less than $15/hour. Over the same period, the remainder of King County had an average of 216,000 jobs that paid hourly wages below that threshold. These low-wage jobs represented 30 percent of all jobs in Seattle, and 34 percent of all jobs in the rest of King County.

It stands to reason that low-wage jobs are more suburban than high-wage jobs. Typically, the highest-value jobs in a region are located in central cities. High-paying sectors like finance, advanced health care, information technology (Redmond notwithstanding), and higher education tend to be more urban than suburban. Yes, cities also have lots of low-paying jobs in hospitality and retail, but so do suburbs. Those jobs tend to follow people, and most people in major metro areas live in suburbs. As my colleague Elizabeth Kneebone has found, as population sprawls, so does low-wage work.

To be sure, many people who live in the King County suburbs of Seattle will benefit from a $15/hour Seattle minimum wage, because they work in the city. According to a University of Washington study conducted for Mayor Murray’s Income Inequality Advisory Committee, fully four in 10 people who earn less than $15/hour working in Seattle jobs—and who would thus presumably benefit from the minimum wage increase—live outside of the city. That’s particularly important in a region like Greater Seattle, where suburbs are home to most of the poor. At the same time, the UW study finds that nearly as many Seattle residents in sub-$15/hour jobs work outside the city limits.

None of this amounts to an argument against Seattle taking the first step toward increasing its minimum wage. Residential and commercial demand is so strong in the city these days that Seattle may have more latitude than its suburbs to boost its minimum wage significantly without encountering negative employment effects. And maybe the city needs to move first in order to convince its neighbors (and itself) that a $15/hour minimum wage won’t make the sky fall.

But these statistics offer an important reminder that the problems of low wages, inequality, and social mobility do not stop at city borders. Ultimately, more cities might try acting in coordination with their surrounding jurisdictions, as the District of Columbia did with two Maryland counties, to boost their minimum wages and ameliorate any “border effects.” And as Seattle contemplates other key policy initiatives, like universal preschool and backfilling state cuts to transit funding (a King County ballot initiative failed last month), it should keep open the lines of communication with its neighbors, and act as one county—or region—where it can.

       

Since December 2007, working families and communities across the country have faced an increasingly difficult economic reality. Growing unemployment and cutbacks in work hours and wages have made it harder and harder for people to make ends meet.

So the census numbers released in September really just confirmed what many Americans have already been feeling during this “Great Recession.” U.S. poverty is once again on the rise. In the first year of the downturn alone, the poor population grew by 2.6 million people to reach a total of 39.8 million, or 13.2 percent of the population.

But that’s not the whole story. The national lens obscures an important fact: place matters. Yes, 2008 brought a significant uptick in poverty, but whether or not your community was a part of this trend has a lot to do with where you live and what kind of jobs are located there.

Certain regions of the country have disproportionately borne the brunt of this recession. Areas hit hardest by the collapse of the housing market and those metro areas that depend on auto manufacturing have experienced the deepest downturns, while regions concentrated in more recession-proof industries – like educational and medical institutions or government – have fared better.

The 2008 poverty numbers reflect this varied experience. Out of the 100 largest metros areas, a little more than one in five saw a significant change in its poverty rate between 2007 and 2008, most of them increases (see map). Not surprisingly, many of these metro areas are located in California and Florida. The early timing of the burst of the housing bubble put these Sun Belt metro areas on the leading edge of what is sure to be a more widespread upward trend in poverty, reflecting a recession that deepened and spread in 2009. In contrast, metro areas like El Paso and Houston actually experienced a decline in poverty rates from 2007 to 2008, reflecting the later onset and milder effects of the downturn in much of Texas.

Although they represent regional economies, metro areas are themselves collections of cities and suburbs that do not necessarily experience poverty or respond to economic shocks uniformly.

Cities remain poorer places overall. In 2008, city residents in the 100 largest metro areas were almost twice as likely as their suburban counterparts to live in poverty—18.3 percent versus 9.5 percent. However, over the first year of the downturn, suburbs actually added more than twice as many poor people (578,000) as cities (218,000). Sun Belt suburbs – like those in the Florida metros of Lakeland, Palm Bay, Tampa, and Miami – led the list for increased poverty. These numbers reflect the fact that the suburbs are home to more people than their primary cities, but they also reflect the growing economic diversity of America’s suburbs.

In fact, an important shift has taken place in the geography of metropolitan poverty over the course of this decade. Between 2000 and 2008, the suburban poor population grew almost five times as fast as the city poor population, so that suburbs are now home to almost 1.9 million more poor people than their primary cities.

Brookings’ recent study on the “Landscape of Recession” within the country’s largest metro areas suggests that the current downturn will further accelerate the suburbanization of poverty.

More so than in the last recession, suburbs are bearing the brunt of this downturn alongside cities. City and suburban unemployment rates increased by nearly equal degrees and in May 2009 were separated by less than a percentage point—9.6 and 8.7 percent, respectively. And rather than concentrating in the older suburbs that surround cities, problems have spread to lower-density “exurbs” and “emerging suburbs” at the metropolitan fringe. These types of suburban communities showed the greatest spikes in their unemployed populations, with an increase of roughly 77 percent.

Clearly, city and suburban residents alike are experiencing increased economic stress, and the coming months and years will test the adequacy and availability of local safety net and emergency services. Here again, place makes a difference.

Case in point: as poverty increased in 2008, more families turned to food stamps (now called the Supplemental Nutrition Assistance Program, or SNAP) to help make ends meet. Just as the poor population grew faster in the suburbs, so did SNAP receipt. And yet participation in the program remains much higher in urban counties (8.9 million recipients) than suburban counties (5.3 million recipients). This disparity raises questions about whether families in suburban communities know how to connect to safety net services like food stamps, and how accessible these services are in these communities.

Understanding the shifting local geography of poverty is a critical first step in effectively addressing its alleviation. In our largest metropolitan areas, safety net services and social service providers traditionally have been concentrated in central city neighborhoods. As the geography of metropolitan poverty continues to change, policymakers and service providers must ask whether or not the growing suburban poor population has access to the same kinds of services and programs that can help families weather downturns in the economic cycle or connect to opportunities to work their way out of poverty.

The Great Recession is only likely to exacerbate gaps between available services and growing need, as government programs and nonprofit providers struggle to do more with less. Knowing where the need is, and where it is growing fastest, can help regions more effectively align existing social services and programs to respond to the new map of metropolitan poverty.

Editor's Note: This article originally appeared in the online forum Spotlight on Poverty and Opportunity on October 19, 2009.

      

An important federal program that tends to fly under the radar received some unprecedented real estate this past weekend--an enormous spread on page A1 of Sunday’s New York Times.

Jason DeParle’s article, and some nifty interactive maps on the Times website, portray the recent rapid growth of the food stamp program, now officially known as the Supplemental Nutrition Assistance Program, or by its rather unfortunate acronym, SNAP. DeParle documents how, in the wake of welfare reform in the mid-1990s, successive administrations--from Clinton to Bush, and now Obama--have worked in a bipartisan fashion to erase the stigma that once haunted the program, and ensure that eligible families receive access to its benefits.

Because welfare reform transformed what was an individual entitlement into a block grant to states, cash welfare caseloads in many states have remained relatively flat despite the worst recession in generations. As a result, food stamps--which remain a federal entitlement--have become an even more important countercyclical tool for fighting poverty, and enrollment has expanded by about one-third since 2007. DeParle charts that rise over the past two years across a broad cross-section of U.S. communities, all of which are feeling the economic pain of rising foreclosures, mounting job losses, and declining family incomes.

Of particular note, the article discusses the significant increases in food stamp receipt occurring in many suburban communities, now that a majority of the nation’s metropolitan poor live outside central cities. Indeed, the counties in which food stamp receipt has doubled, and which have at least 5,000 recipients today, are largely suburbs--around Atlanta, Florida’s Gulf Coast, Austin, and Youngstown. As my colleagues Elizabeth Kneebone and Emily Garr reported earlier this year, however, increases in food stamp enrollment in outer suburban counties have been somewhat lower than might be expected based on the rapid unemployment increases they have suffered. Lack of familiarity, distance to the nearest welfare office, stigma, or real eligibility differences may be to blame for under-enrollment in these farther-out areas.

All of which is to say, as food stamps become the de facto federal support system for millions of families during the next few years of elevated unemployment, plugging participation gaps in suburbia may be an important new frontier for fighting hunger and poverty in America.

      

Two years after the country entered the Great Recession, there are signs the national economy has slowly begun to recover. Thus far recovery has meant the return of economic growth, but not the return of jobs. And just as some communities have felt the downturn more than others, recovery has not and will not be shared equally across the nation’s diverse metropolitan economies.

Within metropolitan areas, many communities continue to struggle with high unemployment and increasing economic and fiscal challenges, while at the same time poverty and the need for emergency and support services continue to rise. Even under the best case scenario of a sustained and robust recovery, cities and suburbs throughout the nation will be dealing with the social and economic aftermath of such a deep and lengthy recession for some time to come.

An analysis of unemployment, initial Unemployment Insurance claims, and receipt of Supplementary Nutritional Assistance Program (SNAP, formerly known as food stamps) benefits in urban and suburban communities over the course of the Great Recession reveals that:

• Between December 2007 and December 2009, city and suburban unemployment rates in large metro areas increased by roughly the same degree (5.1 versus 4.8 percentage points, respectively). By December 2009, the gap between city and suburban unemployment rates was one percentage point (10.3 percent versus 9.3 percent)—smaller than 24 months after the start of the first recession of the decade (1.7 percentage points) and the downturn in the early 1990s (2.2 percentage points).
  
  
• Western metro areas exhibited the greatest increases in city and suburban unemployment rates—5.8 and 5.6 percentage points—over the two-year period ending in December of 2009. Increases in unemployment rates tilted more toward primary cities in Northeastern metro areas (a 5.3 percentage-point increase versus 4.2 percentage points in the suburbs), while suburbs saw slightly larger increases in the South (5.0 versus 4.4 percentage points).
  
  
• Initial Unemployment Insurance (UI) claims increased considerably between December 2007 and December 2009 in urban and suburban areas alike. The largest increases in requests for UI occurred in the first year of the downturn—led by lower-density suburbs—with new claims beginning to taper off between December of 2008 and 2009.
  
  
• SNAP receipt increased steeply and steadily between January 2008 and July 2009 across both urban and suburban counties. Urban counties remain home to the largest number of SNAP recipients, though suburban counties saw enrollment increase at a slightly faster pace during the downturn—36.1 percent compared to 29.4 percent in urban counties.
  

Even as signs point to a tentative economic recovery for the nation, metropolitan areas throughout the country continue to struggle with high unemployment. Within these regions, the negative effects of this downturn—as measured by changes in unemployment and demand for safety net services—have been shared across cities and suburbs alike. Standardizing sub-state data collection and reporting across programs would better enable policymakers and services providers to effectively track indicators of recovery and need in the nation’s largest labor markets.

Read the Full Paper » (PDF)
Read the Related Report: Job Sprawl and the Suburbanization of Poverty »

Downloads

• Full Paper
• Appendix A
• Appendix B
• Appendix C

      

Martha Ross spoke to the Advisory Board of the Community Foundation for Prince George’s County, describing research on the suburbanization of poverty both nationally and in the Washington region.

Despite perceptions that economic distress is primarily a central city phenomenon, suburbs are home to increasing numbers of low-income families. She highlighted the need to strengthen the social service infrastructure in suburban areas.

Full Presentation on Poverty in the Washington-Area Suburbs » (PDF)

Downloads

• Full Presentation

       

Seattle Mayor Ed Murray recently announced a plan to raise the minimum wage in his city to $15/hour over the next few years. The plan emerged from a special business/labor advisory committee, approved by 21 out of 24 its members, after four months of hearings, academic studies, and debate . The measure awaits approval by the City Council, but the move to $15/hour in Seattle seems well underway.

Seattle may be the first, but it won’t be the last, city to take this bold step. Granted, there were some peculiarities in Seattle’s case, including a $15/hour minimum wage ballot initiative that succeeded in the nearby city of SeaTac in November, and the election of a new Socialist Party Seattle City Council member who campaigned on the issue. But with inequality taking center stage as a political issue in big cities around the country, mayors, businesses, and labor advocates are watching Seattle closely.

However, the focus on big cities shouldn’t obscure the fact that wages are a function of regional economics. Seattle is indeed a big city, with 635,000 residents and (by our count) nearly 500,000 jobs. But it’s only part of King County, Washington, which has roughly 2 million residents and more than 1 million jobs. And King County is just one of three counties that make up the wider Seattle metropolitan area, with a population of 3.5 million and 1.8 million jobs.

While low-wage jobs are prevalent in Seattle, they’re even more prevalent in its nearby suburbs. Using data from the American Community Survey, my colleague Sid Kulkarni and I calculated that between 2009 and 2011, there were on average 149,000 jobs (full-time and part-time) in the city of Seattle that paid less than $15/hour. Over the same period, the remainder of King County had an average of 216,000 jobs that paid hourly wages below that threshold. These low-wage jobs represented 30 percent of all jobs in Seattle, and 34 percent of all jobs in the rest of King County.

It stands to reason that low-wage jobs are more suburban than high-wage jobs. Typically, the highest-value jobs in a region are located in central cities. High-paying sectors like finance, advanced health care, information technology (Redmond notwithstanding), and higher education tend to be more urban than suburban. Yes, cities also have lots of low-paying jobs in hospitality and retail, but so do suburbs. Those jobs tend to follow people, and most people in major metro areas live in suburbs. As my colleague Elizabeth Kneebone has found, as population sprawls, so does low-wage work.

To be sure, many people who live in the King County suburbs of Seattle will benefit from a $15/hour Seattle minimum wage, because they work in the city. According to a University of Washington study conducted for Mayor Murray’s Income Inequality Advisory Committee, fully four in 10 people who earn less than $15/hour working in Seattle jobs—and who would thus presumably benefit from the minimum wage increase—live outside of the city. That’s particularly important in a region like Greater Seattle, where suburbs are home to most of the poor. At the same time, the UW study finds that nearly as many Seattle residents in sub-$15/hour jobs work outside the city limits.

None of this amounts to an argument against Seattle taking the first step toward increasing its minimum wage. Residential and commercial demand is so strong in the city these days that Seattle may have more latitude than its suburbs to boost its minimum wage significantly without encountering negative employment effects. And maybe the city needs to move first in order to convince its neighbors (and itself) that a $15/hour minimum wage won’t make the sky fall.

But these statistics offer an important reminder that the problems of low wages, inequality, and social mobility do not stop at city borders. Ultimately, more cities might try acting in coordination with their surrounding jurisdictions, as the District of Columbia did with two Maryland counties, to boost their minimum wages and ameliorate any “border effects.” And as Seattle contemplates other key policy initiatives, like universal preschool and backfilling state cuts to transit funding (a King County ballot initiative failed last month), it should keep open the lines of communication with its neighbors, and act as one county—or region—where it can.

       

Nearly a week after the death of 18 year-old Michael Brown in Ferguson, Mo., protests continue in the 21,000-person suburban community on St. Louis’ north side and around the nation.

Amid the social media and news coverage of the community’s response to the police shooting of the unarmed teenager, a picture of Ferguson and its history has emerged.

The New York Times and others have described the deep-seated racial tensions and inequalities that have long plagued the St. Louis region, as well as the dramatic demographic transformation of Ferguson from a largely white suburban enclave (it was 85 percent white as recently as 1980) to a predominantly black community (it was 67 percent black by 2008-2012).

But Ferguson has also been home to dramatic economic changes in recent years. The city’s unemployment rate rose from roughly 7 percent in 2000 to over 13 percent in 2010-12. For those residents who were employed, inflation-adjusted average earnings fell by one-third. The number of households using federal Housing Choice Vouchers climbed from roughly 300 in 2000 to more than 800 by the end of the decade.

Amid these changes, poverty skyrocketed. Between 2000 and 2010-2012, Ferguson’s poor population doubled. By the end of that period, roughly one in four residents lived below the federal poverty line ($23,492 for a family of four in 2012), and 44 percent fell below twice that level.

These changes affected neighborhoods throughout Ferguson. At the start of the 2000s, the five census tracts that fall within Ferguson’s border registered poverty rates ranging between 4 and 16 percent. However, by 2008-2012 almost all of Ferguson’s neighborhoods had poverty rates at or above the 20 percent threshold at which the negative effects of concentrated poverty begin to emerge. (One Ferguson tract had a poverty rate of 13.1 percent in 2008-2012, while the remaining tracts fell between 19.8 and 33.3 percent.)

Census Tract-Level Poverty Rates in St. Louis County, 2000

Census Tract-Level Poverty Rates in St. Louis County, 2008-2012

As dramatic as the growth in economic disadvantage has been in this community, Ferguson is not alone.

Within the nation’s 100 largest metro areas, the number of suburban neighborhoods where more than 20 percent of residents live below the federal poverty line more than doubled between 2000 and 2008-2012. Almost every major metro area saw suburban poverty not only grow during the 2000s but also become more concentrated in high-poverty neighborhoods. By 2008-2012, 38 percent of poor residents in the suburbs lived in neighborhoods with poverty rates of 20 percent or higher. For poor black residents in those communities, the figure was 53 percent.

Like Ferguson, many of these changing suburban communities are home to out-of-step power structures, where the leadership class, including the police force, does not reflect the rapid demographic changes that have reshaped these places.

Suburban areas with growing poverty are also frequently characterized by many small, fragmented municipalities; Ferguson is just one of 91 jurisdictions in St. Louis County. This often translates into inadequate resources and capacity to respond to growing needs and can complicate efforts to connect residents with economic opportunities that offer a path out of poverty.

And as concentrated poverty climbs in communities like Ferguson, they find themselves especially ill-equipped to deal with impacts such as poorer education and health outcomes, and higher crime rates. In an article for Salon, Brittney Cooper writes about the outpouring of anger from the community, “Violence is the effect, not the cause of the concentrated poverty that locks that many poor people up together with no conceivable way out and no productive way to channel their rage at having an existence that is adjacent to the American dream.” 

None of this means that there are 1,000 Fergusons-in-waiting, but it should underscore the fact that there are a growing number of communities across the country facing similar, if quieter, deep challenges every day.

A previous version of this post misstated the Ferguson unemployment rate in 2000. It has since been corrected.

       

       

Drive through any number of outer-ring suburbs in America, and you’ll see boarded-up and vacant strip malls, surrounded by vast seas of empty parking spaces. These forlorn monuments to the real estate crash are not going to come back to life, even when the economy recovers. And that’s because the demand for the housing that once supported commercial activity in many exurbs isn’t coming back, either.

By now, nearly five years after the housing crash, most Americans understand that a mortgage meltdown was the catalyst for the Great Recession, facilitated by underregulation of finance and reckless risk-taking. Less understood is the divergence between center cities and inner-ring suburbs on one hand, and the suburban fringe on the other.

It was predominantly the collapse of the car-dependent suburban fringe that caused the mortgage collapse.

In the late 1990s, high-end outer suburbs contained most of the expensive housing in the United States, as measured by price per square foot, according to data I analyzed from the Zillow real estate database. Today, the most expensive housing is in the high-density, pedestrian-friendly neighborhoods of the center city and inner suburbs. Some of the most expensive neighborhoods in their metropolitan areas are Capitol Hill in Seattle; Virginia Highland in Atlanta; German Village in Columbus, Ohio, and Logan Circle in Washington. Considered slums as recently as 30 years ago, they have been transformed by gentrification.

Simply put, there has been a profound structural shift — a reversal of what took place in the 1950s, when drivable suburbs boomed and flourished as center cities emptied and withered.

The shift is durable and lasting because of a major demographic event: the convergence of the two largest generations in American history, the baby boomers (born between 1946 and 1964) and the millennials (born between 1979 and 1996), which today represent half of the total population.

Many boomers are now empty nesters and approaching retirement. Generally this means that they will downsize their housing in the near future. Boomers want to live in a walkable urban downtown, a suburban town center or a small town, according to a recent survey by the National Association of Realtors.

The millennials are just now beginning to emerge from the nest — at least those who can afford to live on their own. This coming-of-age cohort also favors urban downtowns and suburban town centers — for lifestyle reasons and the convenience of not having to own cars.

Over all, only 12 percent of future homebuyers want the drivable suburban-fringe houses that are in such oversupply, according to the Realtors survey. This lack of demand all but guarantees continued price declines. Boomers selling their fringe housing will only add to the glut. Nothing the federal government can do will reverse this.

Many drivable-fringe house prices are now below replacement value, meaning the land under the house has no value and the sticks and bricks are worth less than they would cost to replace. This means there is no financial incentive to maintain the house; the next dollar invested will not be recouped upon resale. Many of these houses will be converted to rentals, which are rarely as well maintained as owner-occupied housing. Add the fact that the houses were built with cheap materials and methods to begin with, and you see why many fringe suburbs are turning into slums, with abandoned housing and rising crime.

The good news is that there is great pent-up demand for walkable, centrally located neighborhoods in cities like Portland, Denver, Philadelphia and Chattanooga, Tenn. The transformation of suburbia can be seen in places like Arlington County, Va., Bellevue, Wash., and Pasadena, Calif., where strip malls have been bulldozed and replaced by higher-density mixed-use developments with good transit connections.

Reinvesting in America’s built environment — which makes up a third of the country’s assets — and reviving the construction trades are vital for lifting our economic growth rate. (Disclosure: I am the president of Locus, a coalition of real estate developers and investors and a project of Smart Growth America, which supports walkable neighborhoods and transit-oriented development.)

Some critics will say that investment in the built environment risks repeating the mistake that caused the recession in the first place. That reasoning is as faulty as saying that technology should have been neglected after the dot-com bust, which precipitated the 2001 recession.

The cities and inner-ring suburbs that will be the foundation of the recovery require significant investment at a time of government retrenchment. Bus and light-rail systems, bike lanes and pedestrian improvements — what traffic engineers dismissively call “alternative transportation” — are vital. So is the repair of infrastructure like roads and bridges. Places as diverse as Los Angeles, Phoenix, Salt Lake City, Dallas, Charlotte, Denver and Washington have recently voted to pay for “alternative transportation,” mindful of the dividends to be reaped. As Congress works to reauthorize highway and transit legislation, it must give metropolitan areas greater flexibility for financing transportation, rather than mandating that the vast bulk of the money can be used only for roads.

For too long, we over-invested in the wrong places. Those retail centers and subdivisions will never be worth what they cost to build. We have to stop throwing good money after bad. It is time to instead build what the market wants: mixed-income, walkable cities and suburbs that will support the knowledge economy, promote environmental sustainability and create jobs.