ISSUE #4 Why do Cities Face Challenges?

INNER-CITY PHYSICAL PROBLEMS Major physical problem is the poor condition of housing as it deteriorates over time Deteriorating housing can either be: demolished and replaced Rehabilitated Basic spatial distinction between inner-city residential buildings and suburban residential buildings?

PROCESS OF DETERIORATION # of low income housing increases and neighborhoods shift from middle-class to low income as middle-class families move out Houses are sold or rented to low- income families FILTERING&REDLINING

1.You are a landlord who owns a multi-dwelling building occupied by low-income tenants. Your expenses to maintain the building (taxes, trash removal, painting…..) actually exceed what you receive in rent from your tenants. What do you do? a. Raise the rent and hope people can afford it b. Sell the building c. abandon the building. You still own it but do not rent it out or pay for the maintenance 2. You are a bank president and make the final decision on all loan applications. You notice that one area of your city is very-low income and many of the residents there may have difficulty repaying their loans. A married couple from that area comes to your bank and asks for a $100,000 loan so they can buy a house. What would you do?

URBAN RENEWAL – Public Housing What is Urban Renewal? Used to demolish/replace substandard inner- housing Criticisms of urban renewal Destroys social cohesion of older neighborhoods Reduces supply of low-income housing Public Housing Reserved for low-income households, must pay 30% of income to rent U.S. trend vs. Europe Condition of public housing Recent decline in supply vs. increase in demand (U.S.); result of U.S. government policies? Cabrini Green Clip

Gentrification in Boston The Back Bay area near downtown Boston has attracted many wealthy residents.

Racial Change in Chicago Fig : Racial & ethnic change in Chicago, Dots represent where race and ethnicity increased. White population increased in the inner city and North Side, while African American and Hispanic population increased in the outer city and inner suburbs.

CHANGIG URBAN SOCIAL GEOGRAPHY Inner city residents are often referred to as a permanent underclass Why? Characteristics? Familial issues? Segregation?

CHANGIG URBAN SOCIAL GEOGRAPHY In some areas the inner-city social problems are spreading to older suburbs adjacent to the city Gentrification changes where people live See examples of Cincinnati and Chicago on page 493

URBAN ECONOMIC GEOGRAPHY CHALLENGES Concentration of low income residents in cities leads to financial problems Lower tax base leads to a dilemma a.Reduce services? b.Raise taxes? Lingering effects of the 2008 recession Some CBDs are combining leisure activities with consumer services to lure customers