{"id":169023,"date":"2024-03-06T16:06:19","date_gmt":"2024-03-06T23:06:19","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=169023"},"modified":"2024-03-28T04:27:06","modified_gmt":"2024-03-28T10:27:06","slug":"americas-suburbs-the-controversies-conspiracies-and-greed-that-built-them","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/americas-suburbs-the-controversies-conspiracies-and-greed-that-built-them","title":{"rendered":"America&#8217;s Suburbs: The Controversies, Conspiracies, and Greed That Built Them"},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm\/?e=BIGPOC1838715466\" width=\"100%\"><\/iframe>\r\n  \n\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">In recent years, a sizeable amount of criticism has been leveled against what many see as endless sprawl and \u201clifeless\u201d suburbia that surrounds many American cities. In fact, it happens so often that I\u2019m actually a bit surprised that while the difficulty and opportunity of rural investing comes up fairly often, there isn\u2019t a large amount of discussion regarding the merits and challenges of urban versus suburban investing (although there is certainly some in&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/forums\/62\/topics\/197409-rentals---city-vs-suburbs\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">the BiggerPockets forums<\/span><\/a><span data-preserver-spaces=\"true\">).<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Regardless, for those who haven\u2019t noticed, amongst urban planners and the growing&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/en.wikipedia.org\/wiki\/Car-free_movement\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">car-free movement<\/span><\/a><span data-preserver-spaces=\"true\">, the suburbs represent a capitalist conspiracy created by ruthless developers and a dastardly plot by General Motors to create an atomized, soulless, car-reliant hellscape Ponzi scheme that has indebted local governments up to their eyeballs and will soon come crashing down catastrophically. A few \u201canti-car activists\u201d have even gone so far as to commit&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.reddit.com\/r\/Autos\/comments\/tqhskc\/anticar_activists_in_germany_deflating_random\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">low-level terrorism<\/span><\/a><span data-preserver-spaces=\"true\">, such as deflating random people\u2019s tires while posting threatening letters.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Given real estate investors are rather dependent on the cities they invest in&nbsp;<\/span><em><span data-preserver-spaces=\"true\">not&nbsp;<\/span><\/em><span data-preserver-spaces=\"true\">collapsing, the truth of this matter should be of some interest here. Unfortunately, this topic is quite large, so I will cover it in two pieces.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Here, we will cover the complex origins and unique characteristics of the American suburb. Part 2 will cover its critiques in more depth and look at the viability of suburbs, particularly for real estate investors.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">The History of the Suburbs<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">The biggest problem when critiquing (or defending) the suburbs is that the definition is rather squirrely.&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.google.com\/search?sca_esv=3a7bfd77522cf669&amp;q=suburb&amp;si=AKbGX_qMqBjhUm3ZRWjCp4_5aZjJneC2QMZJX--zFk_owO_biBVz5cLgNx-cZXPhsxXa2EzsxotKVsCQvNMyOdQVarYKZKBBHg%3D%3D&amp;expnd=1&amp;sa=X&amp;ved=2ahUKEwjL092227WEAxWSOTQIHTkhC2kQ2v4IegQIHhA2&amp;biw=1777&amp;bih=850&amp;dpr=0.9\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Google\u2019s dictionary<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;just defines \u201csuburbs\u201d as \u201can outlying district of a city, especially a residential one.\u201d&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">And by that definition, the suburb has existed since the invention of the city. As far back as ancient Jerusalem, Rome, or Persepolis, cities have always had a central district (or several) that is the most dense and then gradually becomes less dense and more residential the further you get from it.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Indeed, this partially mirrors the layout of Medieval castles. The lord\u2019s castle was typically surrounded by the farmland and villages of his serfs. When threatened with an attack, the serfs would retreat to the castle and defend themselves from there.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">In other words, the suburb, as defined, is nothing unusual, and criticizing it would be absurd. Indeed, the word \u201csuburb\u201d came into common English speech&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/books.google.com\/ngrams\/graph?content=suburb&amp;year_start=1500&amp;year_end=2019&amp;corpus=en-2019&amp;smoothing=7\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">in the middle of the 18th century<\/span><\/a><span data-preserver-spaces=\"true\">, long before the \u201ccar-free movement\u201d argues the modern American suburb was created.&nbsp;<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1367\" height=\"580\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/03\/image1-2.jpeg\" alt=\" Prevalence of books with the word &quot;Suburb&quot; (1500-2019) - Google Books Ngram\" class=\"wp-image-169025\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/03\/image1-2.jpeg 1367w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/03\/image1-2-300x127.jpeg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/03\/image1-2-1024x434.jpeg 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/03\/image1-2-768x326.jpeg 768w\" sizes=\"auto, (max-width: 1367px) 100vw, 1367px\" \/><figcaption class=\"wp-element-caption\"><em><span data-preserver-spaces=\"true\"> <\/span>Prevalence of books with the word &#8220;Suburb&#8221; (1500-2019) &#8211; <span data-preserver-spaces=\"true\"><a href=\"https:\/\/books.google.com\/ngrams\/graph?content=suburb&amp;year_start=1500&amp;year_end=2019&amp;corpus=en-2019&amp;smoothing=7\" target=\"_blank\" rel=\"noreferrer noopener\">Google Books Ngram<\/a><\/span><\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Instead, what \u201csmart growth\u201d promoters complain about is the particularly car-centric model of development that became extremely popular following the Second World War. As&nbsp;<\/span><em><span data-preserver-spaces=\"true\">Strong Towns<\/span><\/em><span data-preserver-spaces=\"true\">\u2014an advocacy group critical of suburbia\u2014<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.strongtowns.org\/journal\/2020\/9\/4\/seven-key-differences\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">describes the \u201csuburban experiment\u201d<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;as a model of development that \u201cisn\u2019t defined by the automobile\u201d but \u201cscaled for cars\u201d and \u201cbased on the assumptions of abundance and endless growth\u201d while being designed \u201cto accommodate a living arrangement based on automobile travel.\u201d<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Think of the sprawling subdivisions of similar-looking houses splitting off from major roads lined with almost identical-looking strip malls, retail outlets, and the like\u2014places where owning a car is effectively mandatory to get around.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">This model of development likely found its start near the end of the Great Depression. In 1938, the federal government created Fannie Mae with the express interest of increasing homeownership. Then, after the war, when the last remnants of the Great Depression were finally over, Congress passed&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/en.wikipedia.org\/wiki\/G.I._Bill\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">the GI Bill<\/span><\/a><span data-preserver-spaces=\"true\">, which provided zero-down, low-interest loans for veterans. And given that 16 million Americans served in World War II, this bill applied to an enormous number of people.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">The effect it had on homeownership is rather obvious when&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.researchgate.net\/figure\/Home-Ownership-Rate-United-States-1900-2010_fig1_239810464\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">looking at it graphically<\/span><\/a><span data-preserver-spaces=\"true\">.&nbsp;<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"789\" height=\"552\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/03\/image3-1.jpeg\" alt=\"Homeownership rates in the United States (1900-2020) - Matthew Chambers, Carlos Garriga, Don E. Schlagenhauf\" class=\"wp-image-169027\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/03\/image3-1.jpeg 789w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/03\/image3-1-300x210.jpeg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/03\/image3-1-768x537.jpeg 768w\" sizes=\"auto, (max-width: 789px) 100vw, 789px\" \/><figcaption class=\"wp-element-caption\"><em><span data-preserver-spaces=\"true\">Homeownership rates in the United States (1900-2020)<\/span> &#8211; <span data-preserver-spaces=\"true\"><a href=\"https:\/\/www.researchgate.net\/publication\/239810464_Did_Housing_Policies_Cause_the_Post-War_Boom_in_Homeownership_A_General_Equilibrium_Analysis\" target=\"_blank\" rel=\"noopener\">Matthew Chambers, Carlos Garriga, Don E. Schlagenhauf<\/a><\/span><\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">This was likely the high point of American optimism. The United States was victorious in the biggest war in human history and, unlike the other major victors, wasn\u2019t nearly bankrupt (Britain) or devastated (the Soviet Union). In fact, in 1945, the United States accounted for&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/medium.com\/the-worlds-economy-and-the-economys-world\/a-short-history-of-americas-economy-since-world-war-ii-37293cdb640\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">roughly half of the world\u2019s GDP<\/span><\/a><span data-preserver-spaces=\"true\">! (Today, it\u2019s fallen to&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.visualcapitalist.com\/u-s-share-of-global-economy-over-time\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">24%<\/span><\/a><span data-preserver-spaces=\"true\">.)<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">The term \u201c<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.investopedia.com\/terms\/a\/american-dream.asp\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">American Dream<\/span><\/a><span data-preserver-spaces=\"true\">\u201d was popularized in 1931 but came into its own in the late \u201940s and early \u201950s. The image of every American family having their suburban home with a big backyard perfect for barbecues, with their trusty Chevy sedan in the driveway, might be a bit stereotypical of the times, but it definitely resonated back then.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">There were certainly simmering issues just underneath the surface. After all, the civil rights movement was just getting started, and the counterculture movements of the 1960s were just a decade away. But economically, Americans had never done better, and the suburban home represented the epitome of it.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">A Conspiracy to Create the Suburbs?<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">What I\u2019ve described is true, although only part of the story. In fact, some would argue it\u2019s simply a sanitized account that leaves out the critical factors. As noted, another account sees the suburb as a conspiracy of rapacious capitalists to increase profits to the detriment of the inhabitants and the city\u2019s long-term viability.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">The most popular of these is the&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/en.wikipedia.org\/wiki\/General_Motors_streetcar_conspiracy\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">General Motors streetcar conspiracy<\/span><\/a><span data-preserver-spaces=\"true\">, popularized in the 1996 documentary&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.youtube.com\/watch?v=p-I8GDklsN4\" target=\"_blank\" rel=\"noopener\"><em><span data-preserver-spaces=\"true\">Taken for a Ride<\/span><\/em><\/a><span data-preserver-spaces=\"true\">&nbsp;and film&nbsp;<\/span><em><span data-preserver-spaces=\"true\">Who Framed Roger Rabbit?<\/span><\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">The allegation goes like this: General Motors bought up the numerous electric streetcars you see in footage from the 1920s and 1930s. They then started their own bus line called National City Lines. Then, they started removing the streetcars one by one so that the only mode of public transportation remaining were their buses.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Thus, there was less public transportation, and at the same time, those pesky streetcar tracks were out of the way, which made more room for cars. This also meant GM provided the carrot and stick to increase consumer demand for automobiles.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">The smoking gun to this theory is supposedly that GM was convicted in 1949 of conspiracy. However, this is where the theory\u2014at least for the most part\u2014 falls apart. As Mark Henricks noted, the conspiracy GM&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.cbsnews.com\/news\/the-gm-trolley-conspiracy-what-really-happened\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">was convicted of was for<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;\u201cconspiring to monopolize the market for transportation equipment and supplies sold to local bus companies,\u201d not destroying public transportation in the United States.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Cliff Slater wrote a&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"http:\/\/www.cliffslater.com\/TQOrigin_all.pdf\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">20-page takedown<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;of the streetcar conspiracy in&nbsp;<\/span><em><span data-preserver-spaces=\"true\">Transportation Quarterly,&nbsp;<\/span><\/em><span data-preserver-spaces=\"true\">which pretty thoroughly discredits it. First, he notes that the story had only first started circulating in 1974 (almost three decades after it supposedly happened) when a newly hired antitrust attorney for the U.S. Senate named Bradley Snell stated that the government had charged \u201c&#8230;General Motors and allied highway interests for their involvement in the destruction of 100 electric rail&#8230;systems&#8230; throughout the country.\u201d<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Again, GM had actually been convicted of trying to monopolize transportation equipment and supplies. Snell\u2019s arguments were debunked in the same Senate hearing by UCLA professor George Hilton, the Federal Transit Administration, and the \u201cpro-rail\u201d&nbsp;<\/span><em><span data-preserver-spaces=\"true\">New Electrical Railway Journal,<\/span><\/em><span data-preserver-spaces=\"true\">&nbsp;but that didn\u2019t prevent those accusations from taking on a life of their own.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">What really happened to the streetcars was much more mundane. As Slater explains:<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em><span data-preserver-spaces=\"true\">\u201cThe streetcar made no significant technical advances during the 1920s, whereas the motor bus changed beyond recognition. The motor bus was not taken seriously until about 1920, but from then on, growth was explosive. Manufacturers made significant improvements to chassis and engines during this time. The improvements in speed, handling, and comfort made buses less costly and more comfortable. America&#8217;s cities were rapidly paving their city streets, and this helped the bus.\u201d<\/span><\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Streetcar ridership, on the other hand, peaked in 1920 at 13.8 billion before declining to 11.8 billion in 1929. National City Lines didn\u2019t even start until 1936, at which point, over 40% of cities relied exclusively on buses for public transportation.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Thus, we see streetcar ridership fall below bus ridership as early as 1922 and to less than half by 1948.<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"470\" height=\"294\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/03\/image2-1.jpeg\" alt=\"Streetcar vs. Motor Bus Ridership (1890-1970) - Cliff Slater, Transportation Quarterly\" class=\"wp-image-169026\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/03\/image2-1.jpeg 470w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/03\/image2-1-300x188.jpeg 300w\" sizes=\"auto, (max-width: 470px) 100vw, 470px\" \/><figcaption class=\"wp-element-caption\"><em>Streetcar vs. Motor Bus Ridership (1890-1970) &#8211; Cliff Slater, <a href=\"https:\/\/enotrans.org\/transportation-quarterly\/\" target=\"_blank\" rel=\"noreferrer noopener\">Transportation Quarterly<\/a><\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Many companies other than GM owned streetcars, but all of these still decided to eventually remove them. Several cities, such as San Francisco, had municipally owned streetcars and still chose to remove them, as did many other countries, like the United Kingdom.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Slater finishes his case by summarizing the research on the cost efficiencies of streetcars versus buses:<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em><span data-preserver-spaces=\"true\">\u201cIn 1936,&nbsp;<\/span><\/em><span data-preserver-spaces=\"true\">Fortune&nbsp;<\/span><em><span data-preserver-spaces=\"true\">magazine reported, \u2018The average large bus can be operated for about four-fifths the cost of running a trolley.\u2019 In the United Kingdom, \u2018By the thirties, costs per passenger on buses were comparable to those on (streetcars), instead of more than twice as high as they had often been around 1920.\u2019&nbsp;<\/span><\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em><span data-preserver-spaces=\"true\">\u201cBuses continued to reduce their costs relative to streetcars and electric trolleys, and so generally replaced them. By 1949, San Francisco would report their average hourly operating costs as $4.50 for buses versus $7.11 for streetcars\u201437% less. When Philadelphia changed from streetcars to buses in 1961, they reported their operating costs for rail lines as a prohibitively high 93.5\u00a2 per mile versus the cost of the bus at 47.7\u00a2 per mile\u2014nearly twice as much.\u201d<\/span><\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">I like a good conspiracy theory as much as the next guy, but this one falls flat. It was not the destruction of the streetcars that increased the number of cars, but the increased availability, affordability, and efficiency of cars (and buses) that made the streetcars mostly obsolete.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">One of the major advantages cars had over streetcars (or most other public transit, for that matter) is that they are not bound to a fixed line and thereby remove the problem of only having transport for part of your trip. Even buses have much more flexibility in their routes than streetcars. Thus, other than in very dense urban areas, the streetcar no longer made sense.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">How Policy Did (Help) Create the Suburbs<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Yet, there were corporate initiatives and government policies that contributed to the rise of the suburbs. The main one from the government was the&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/en.wikipedia.org\/wiki\/Interstate_Highway_System\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Interstate Highway System<\/span><\/a><span data-preserver-spaces=\"true\">, which began in 1956 and was largely motivated so troops and military equipment could be moved from one side of the country to the other in case of a&nbsp;<\/span><em><span data-preserver-spaces=\"true\">Red Dawn<\/span><\/em><span data-preserver-spaces=\"true\">&nbsp;scenario.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Cold War paranoia aside, the interstate system made it not only much easier to travel by car around the country but also much easier to traverse urban sprawl, i.e., to live in the suburbs and commute to the city for work.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">The highways also required the widespread use of&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.investopedia.com\/terms\/e\/eminent-domain.asp\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">eminent domain<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;to confiscate private property (with compensation) and build roads where entire neighborhoods once were, uprooting entire communities.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">On local levels, many city planners were also pushing toward a more car-centric model of development. New York City Parks Commissioner Robert Moses epitomized this trend by building all sorts of roads, bridges, and tunnels throughout New York City, and famously got&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.theguardian.com\/cities\/2016\/apr\/28\/story-cities-32-new-york-jane-jacobs-robert-moses\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">into a heated debate with urban activist Jane Jacobs<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;regarding urban planning in general, Washington Square Park in particular.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">All of this road construction directly followed the&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.smartcitiesdive.com\/ex\/sustainablecitiescollective\/brief-history-urbanism-north-america-1940-1949\/28493\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">urban renewal<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;of the 1940s, which culminated in the National Housing Act of 1949. The legislation authorized the construction of 810,000 public housing units, but there was a dark side, namely slum clearing. As an article on Smart Cities Dive says:<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em><span data-preserver-spaces=\"true\">\u201cThe government fell far short of its goal to build 810,000 units of new public housing by 1955. In fact, the Act\u2019s urban redevelopment programs actually destroyed more housing units than they built.\u201d<\/span><\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Such a program also uprooted many communities, pushing many people out into the expanding suburbs. Indeed, more conspiracy theories follow urban renewal given the embarrassing performance, with some&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.law.com\/newyorklawjournal\/2023\/02\/24\/urban-renewal-an-assault-on-black-neighborhoods\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">black leaders<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;as well as leaders of&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"http:\/\/bloggers.iitaly.org\/bloggers\/37144\/why-did-italians-leave-little-italy-part-ii-urban-renewal-elite-wasp-conspiracy-again\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">some predominantly Catholic ethnicities<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;believing it was a policy to break up the ethnic strongholds one thinks of when looking back at that period (i.e., Little Italy, Chinatown, etc.) to reduce these group\u2019s political power. But that\u2019s a bit of a tangent.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Instead, let us turn to the business side of the equation, most notably with a man named William Levitt.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">As&nbsp;<\/span><em><span data-preserver-spaces=\"true\">USHistory.org<\/span><\/em><span data-preserver-spaces=\"true\">&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.ushistory.org\/us\/53b.asp#google_vignette\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">notes<\/span><\/a><span data-preserver-spaces=\"true\">:<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em><span data-preserver-spaces=\"true\">\u201cContracted by the federal government during the war to quickly build housing for military personnel, Levitt applied the techniques of mass production to construction. In 1947, he set out to erect the largest planned-living community in the United States on farmland he had purchased on Long Island, New York. Levitt identified 27 different steps to build a house. Therefore, 27 different teams of builders were hired to construct the homes.\u201d<\/span><\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">This means William Levitt became a sort of Henry Ford-like figure, bringing an assembly-line approach to home construction. While his basic homes weren\u2019t anything special (the first group were all two-bed, one-bath, with no basement), they were immensely affordable, especially when paired with the aforementioned GI Bill.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Indeed, each home in&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/en.wikipedia.org\/wiki\/Levittown\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Levittown<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;sold for a mere $8,500 (even today, only about $111,000)!<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">These types of developments became the model for developers across the country. Thus, suburban homes were and have continued to be&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2016-02-25\/the-growth-of-urban-vs-suburban-housing-prices-zillow-report?embedded-checkout=true\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">significantly cheaper<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;than urban properties. Given&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/en.wikipedia.org\/wiki\/Mid-20th_century_baby_boom\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">the baby boom<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;of the late \u201940s and \u201950s, families needed more space for their kids, too. This provided another incentive for suburbanization, as square footage was cheaper in the suburbs.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Suburban infrastructures also began to fill out. For example, the first American mall\u2014the Southdale Mall\u2014<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/the-rise-and-fall-of-the-american-shopping-mall\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">opened in 1956<\/span><\/a><span data-preserver-spaces=\"true\">.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">As noted, the idea of the American Dream grew in prominence, as well as phrases like \u201ckeeping up with the Joneses\u201d and even the idealization of&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.smithsonianmag.com\/history\/history-white-picket-fence-180971635\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">the white picket fence<\/span><\/a><span data-preserver-spaces=\"true\">. Owning a home in an American suburb became synonymous with having become a productive member of the American middle class.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">1960s Riots and White Flight<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">The last major cause of the suburbanization in the United States was a combination of increased crime during the \u201960s and 70s and the urban riots of the mid-to-late \u201960s in places such as Watts (<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/en.wikipedia.org\/wiki\/Watts_riots\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">1965<\/span><\/a><span data-preserver-spaces=\"true\">), Detroit (<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/en.wikipedia.org\/wiki\/1967_Detroit_riot\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">1967<\/span><\/a><span data-preserver-spaces=\"true\">) and&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/en.wikipedia.org\/wiki\/King_assassination_riots\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">throughout the country<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;following the assassination of Martin Luther King Jr.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">The 1960s certainly saw some major accomplishments, like the Civil Rights Act of 1964 and the Voting Rights Act of 1965. Unfortunately, it also had some not-so-good things, including a soft-on-crime approach and the introduction of&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/ifstudies.org\/blog\/family-breakdown-and-americas-welfare-system\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">welfare programs that saw subsequent skyrocketing dependencies and fatherlessness<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;rates.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">For these and a variety of other reasons\u2014including a more youthful demographic after the postwar baby boom\u2014crime skyrocketed in the mid-\u201960s.&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.thetrace.org\/2018\/04\/highest-murder-rates-us-cities-list\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">The murder rate more than doubled<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;from 1960 to 1972, and the urban murder rate increased threefold.&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.researchgate.net\/figure\/Left-Rates-of-different-types-of-property-crimes-in-USA-per-100-000-inhabitants_fig2_236625369\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Other crimes increased<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;at a similar rate.&nbsp;<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1360\" height=\"1021\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/03\/image4-1.jpeg\" alt=\"National Murder Rates (1960-2020) - The Trace\" class=\"wp-image-169028\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/03\/image4-1.jpeg 1360w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/03\/image4-1-300x225.jpeg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/03\/image4-1-1024x769.jpeg 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/03\/image4-1-768x577.jpeg 768w\" sizes=\"auto, (max-width: 1360px) 100vw, 1360px\" \/><figcaption class=\"wp-element-caption\"><em>National Murder Rates (1960-2020) &#8211; <a class=\"editor-rtfLink\" href=\"https:\/\/www.thetrace.org\/2018\/04\/highest-murder-rates-us-cities-list\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">The Trace<\/span><\/a><\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Given this, many people with the means fled the cities. Since most of those with means were white, this became known as&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/en.wikipedia.org\/wiki\/White_flight\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">white flight.<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">This also represented a capital flight. The combination of fewer people, more crime, and less money led to increased urban blight and deterioration in the quality of the schools. These factors increased the \u201cpush\u201d incentive to leave for the suburbs, while the affordability and desirability of Levittown homes and others like them provided the \u201cpull.\u201d<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">This process of urban decay culminated in&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.historycentral.com\/Today\/NYSaved.html\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">New York City requiring a federal bailout<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;while teetering on the edge of bankruptcy in 1975. Indeed, the urban decline permeated the pessimism of the 1970s in everything from films like&nbsp;<\/span><em><span data-preserver-spaces=\"true\">Taxi Driver<\/span><\/em><span data-preserver-spaces=\"true\">&nbsp;to Jimmy Carter\u2019s famous (infamous?)&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.youtube.com\/watch?v=kakFDUeoJKM\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">malaise speech<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">This trend didn\u2019t really begin to reverse until crime began to decrease and gentrification increased in the 1990s. This trend has flipped once again in recent years and is notably ignored by many activists for urban densification.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Final Thoughts<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">The American suburbs are not just the less-dense area that surrounds the city center, as in cities from years past or even in many other countries today. The United States\u2019 large land mass, along with the car and a variety of cultural, political, and business decisions, have contributed to its unique character and growth.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">A discussion regarding the desirability and sustainability of the suburbs, as well as their likely future and prospects for real estate investors, will be addressed in Part 2.<\/span><\/p>\n\n\n\n    \n  <div id=\"visibility-group-block_dcbe07be22f0a583abc0be7dc10a5f4c\" class=\"visibility-group  hidden\">\n        \n\n<div id=\"hero-block_5b08b78ed48abcde489acb46ded0e5dd\" class=\"first:mt-0 hero-block py-4  alignwide   has-background has-theme-gold-light-background-color has-text-color has-theme-gold-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-theme-gold-color has-text-color has-large-font-size wp-block-paragraph\" style=\"font-style:normal;font-weight:800\">Get the Best Loan Today<\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color wp-block-paragraph\" style=\"font-size:16px\">Find trusted, <em><strong>investor-friendly<\/strong><\/em> lenders who specialize in your strategy. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<div id=button-custom-event-block_ccd7ae7d6914a70e85780143194ad702 class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/business\/finder\/lenders\" x-on:click=\"window.analytics.track(&#039;Blog Block | B2C Marketplace Lender Finder&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/americas-suburbs-the-controversies-conspiracies-and-greed-that-built-them&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-gold-background-color has-text-color has-white-color\" target=\"_blank\">Find a Lender<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\" first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md hidden lg:block\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/08\/Marketplace-Blog-Blocks-Lender-v3.png\" alt=\"investor friendly lender, investor friendly real estate loans\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>\n\n  <\/div>\n  \n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n    \n  <div id=\"visibility-group-block_64dd31c79f00f\" class=\"visibility-group  \">\n        \n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div id=\"hero-block_64dd2875dba9d\" class=\"first:mt-0 hero-block py-4    has-background has-slate-100-background-color has-text-color has-theme-slate-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<h3 class=\"wp-block-heading my-0 tracking-tight font-extrabold has-theme-slate-dark-color has-text-color has-large-font-size\">Join the community<\/h3>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-theme-slate-color has-text-color wp-block-paragraph\" style=\"font-size:16px;font-style:normal;font-weight:400\">Ready to succeed in real estate investing? Create a free BiggerPockets account to learn about investment strategies; ask questions and get answers from our community of +2 million members; connect with investor-friendly agents; and so much more. <\/p>\n\n\n\n<div id=button-custom-event-block_64dd2888dba9e class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/signup\" x-on:click=\"window.analytics.track(&#039;Blog Block | Acquisition | Free Membership Signup&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/americas-suburbs-the-controversies-conspiracies-and-greed-that-built-them&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Sign Up<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n            <\/div>\n<\/div>\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n  <\/div>\n  <\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Are the suburbs an auto manufacturer-led Ponzi scheme designed to create a soulless maze of homes and streets to keep America car-dependent? Or a government ploy for control? <\/p>\n","protected":false},"author":1689,"featured_media":169030,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8,7119,7384],"tags":[],"class_list":["post-169023","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-trends","category-biggerpockets-daily","category-politics-policy"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/169023","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/1689"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=169023"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/169023\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/169030"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=169023"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=169023"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=169023"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}