Does a thriving tech sector really benefit a city – or does it just increase inequality?

500m around Silicon Roundabout. Is this as far as its benefits stretch? Image: Google Maps.

The tech sector has been making its presence felt in many larger cities for a number of years now, and in an uncertain era is proving to be one of the dynamos behind the “next economy”. That’s a good thing right? More jobs, more money, smarter cities?

Well, yes – but who exactly is it a good thing for?

Some of the cities that profess to be the smartest, most data driven, tech paradises – London and San Francisco come to mind – have both a flourishing tech sector and high levels of inequality. How smart are these cities, really, if they are teeming grounds of unfairness?

Research shows that, left to its own devices, the tech industry can be quiet self contained, producing an insular organism with few spillover benefits for the wider city. Positive externalities from tech clusters can be highly localised: spending by firms tends to occur in a particular zone, sometimes in a radius as small as 500m of their base. (This of course differs with location.)

Nevertheless there is a global trend of tech growth leading to one part of the city benefitting disproportionately, creating gentrified ghettoes and social tension of the sort witnessed in San Francisco. Tech growth in the Bay Area has driven property prices to levels far out of kilter with the average local salary, pricing out smaller firms, and costing the city infrastructure funding due to tax exemptions and privately run transport services.

This need not be the case. Tech is not an untameable force of nature. Its impact on a city and who gets to share in its potential benefits are grounded in the choices we make as a society. The question is, as as a tech industry grows, what are the best policy decisions to enhance opportunities on offer to the greatest number of people?

Experience shows that, if there is proactive leadership and public decision making about who should feel the benefits of tech growth, then it can be balanced across a city.

Take Chicago, where mayor Rahm Emmanuel’s office has formulated “The City Technology Plan”. It provides long-term strategies to use the burgeoning tech sector to enhance social as well as economic opportunity for Chicagoans. The main strategies include building a next generation digital infrastructure; fostering tech education through 2smart communities”; and providing for efficient and open government, and civic innovation.

The primary goal of the plan is to provide social and economic opportunities, with resident engagement, access, and skills – as well as job creation – among the top objectives.  Where there is effective leadership, city-level planning can be instrumental in ensuring that the spatial clustering characteristic of tech sector growth leads to positive spill over effects for the whole city.

But it won’t just happen organically; there needs to be planning and engagement if these mutual benefits are to be reaped. City and industry leaders alike need to collaborate and make decisions as to the level and type of interaction between tech growth and the wider city. As the Royal Town Planning Institute has argued, an important function of contemporary planning is recognising and understanding current economic factors and growth trends so that strategic decisions surrounding development add value to the local area. By understanding the needs of a community, planners can assist with achieving successful outcomes by working closely with the private sector, leaders and neighbouring authorities

In The Death and Life of American Cities Jane Jacobs promotes

the need of cities for a most intricate and code grained diversity of uses that give each other constant mutual support, both economically and socially... The science of city planning and the art of city design, in real life for real cities, must become the science and art of catalysing and nourishing these close-grained working relationships.

This may mean the creation of new roles at the city level: employing a tech lead in the mayor’s office as has been done in New York, Dublin, and London. However, if this is the route taken, the remit of the city tech lead needs to be wider than just inviting tech companies to locate in the city.

Ideally the tech lead would liaise with city planners who can articulate the issues being faced by the city – such as housing affordability, infrastructure pressures, and skills shortages. Dialogue with industry leaders about their plans may then reveal how the growth of tech could feed into a plan for addressing these issues.

Industry too should to take account of the affect it has on, and what it owes, the city in which it sets up. After all, it is often planned public investments in infrastructure that makes a city attractive to firms and their aspirational employees in the first place. And it’s this that continues to facilitate growth through the creation of what the Brookings Institute’s Bruce Katz has christened “Innovation Districts”:

…mash ups of entrepreneurs and educational institutions, start-ups and schools, mixed-use development and medical innovations, bike-sharing and bankable investments – all connected by transit, powered by clean energy, wired for digital technology, and fuelled by caffeine.

Whether or not it is acknowledged to the extent it is in places like Chicago, many cities have a relationship with the tech sector. The more this relationship is formalised, the more likely it is that conscious decisions as to how each can mutually support the other’s goals will be made.

One of the RTPI’s current work streams focuses on the relationship between cities and the tech sector. The project will combine case studies and evidence drawn from interviews and round tables with industry leaders, members of the academic communities, and city planners. Taken together, these will articulate the role planning has to play in creating the kind of places that attract tech – and planning's role in ensuring that the economic growth that emanates from tech clusters benefits the wider metropolitan area.

The huge potential for mutual economic and social support that exists between a city and the tech sector should be nurtured into a collaborative relationship that has as its objectives the provision of public goods – as well as economic growth.

Joe Kilroy is a policy offer at the Royal Town Planning Institute. You can find him on Twiter here.

To find out more about the RTPI’s tech project click here.

 
 
 
 

Urgently needed: Timely, more detailed standardized data on US evictions

Graffiti asking for rent forgiveness is seen on a wall on La Brea Ave amid the Covid-19 pandemic in Los Angeles, California. (Valerie Macon/AFP via Getty Images)

Last week the Eviction Lab, a team of eviction and housing policy researchers at Princeton University, released a new dashboard that provides timely, city-level US eviction data for use in monitoring eviction spikes and other trends as Covid restrictions ease. 

In 2018, Eviction Lab released the first national database of evictions in the US. The nationwide data are granular, going down to the level of a few city blocks in some places, but lagged by several years, so their use is more geared toward understanding the scope of the problem across the US, rather than making timely decisions to help city residents now. 

Eviction Lab’s new Eviction Tracking System, however, provides weekly updates on evictions by city and compares them to baseline data from past years. The researchers hope that the timeliness of this new data will allow for quicker action in the event that the US begins to see a wave of evictions once Covid eviction moratoriums are phased out.

But, due to a lack of standardization in eviction filings across the US, the Eviction Tracking System is currently available for only 11 cities, leaving many more places facing a high risk of eviction spikes out of the loop.

Each city included in the Eviction Tracking System shows rolling weekly and monthly eviction filing counts. A percent change is calculated by comparing current eviction filings to baseline eviction filings for a quick look at whether a city might be experiencing an uptick.

Timely US eviction data for a handful of cities is now available from the Eviction Lab. (Courtesy Eviction Lab)

The tracking system also provides a more detailed report on each city’s Covid eviction moratorium efforts and more granular geographic and demographic information on the city’s evictions.

Click to the above image to see a city-level eviction map, in this case for Pittsburgh. (Courtesy Eviction Lab)

As part of their Covid Resource, the Eviction Lab together with Columbia Law School professor Emily Benfer also compiled a scorecard for each US state that ranks Covid-related tenant protection measures. A total of 15 of the 50 US states plus Washington DC received a score of zero because those states provided little if any protections.

CityMetric talked with Peter Hepburn, an assistant professor at Rutgers who just finished a two-year postdoc at the Eviction Lab, and Jeff Reichman, principal at the data science research firm January Advisors, about the struggles involved in collecting and analysing eviction data across the US.

Perhaps the most notable hurdle both researchers addressed is that there’s no standardized reporting of evictions across jurisdictions. Most evictions are reported to county-level governments, however what “reporting” means differs among and even within each county. 

In Texas, evictions go through the Justice of the Peace Courts. In Virginia they’re processed by General District Courts. Judges in Milwaukee are sealing more eviction case documents that come through their courtroom. In Austin, Pittsburgh and Richmond, eviction addresses aren’t available online but ZIP codes are. In Denver you have to pay about $7 to access a single eviction filing. In Alabama*, it’s $10 per eviction filing. 

Once the filings are acquired, the next barrier is normalizing them. While some jurisdictions share reporting systems, many have different fields and formats. Some are digital, but many are images of text or handwritten documents that require optical character recognition programs and natural language processors in order to translate them into data. That, or the filings would have to be processed by hand. 

“There's not enough interns in the world to do that work,” says Hepburn.


Aggregating data from all of these sources and normalizing them requires knowledge of the nuances in each jurisdiction. “It would be nice if, for every region, we were looking for the exact same things,” says Reichman. “Instead, depending on the vendor that they use, and depending on how the data is made available, it's a puzzle for each one.”

In December of 2019, US Senators Michael Bennet of Colorado and Rob Portman of Ohio introduced a bill that would set up state and local grants aimed at reducing low-income evictions. Included in the bill is a measure to enhance data collection. Hepburn is hopeful that the bill could one day mean an easier job for those trying to analyse eviction data.

That said, Hepburn and Reichman caution against the public release of granular eviction data. 

“In a lot of cases, what this gets used for is for tenant screening services,” says Hepburn. “There are companies that go and collect these data and make them available to landlords to try to check and see if their potential tenants have been previously evicted, or even just filed against for eviction, without any sort of judgement.”

According to research by Eviction Lab principal Matthew Desmond and Tracey Shollenberger, who is now vice president of science at Harvard’s Center for Policing Equity, residents who have been evicted or even just filed against for eviction often have a much harder time finding equal-quality housing in the future. That coupled with evidence that evictions affect minority populations at disproportionate rates can lead to widening racial and economic gaps in neighborhoods.

While opening up raw data on evictions to the public would not be the best option, making timely, granular data available to researchers and government officials can improve the system’s ability to respond to potential eviction crises.

Data on current and historical evictions can help city officials spot trends in who is getting evicted and who is doing the evicting. It can help inform new housing policy and reform old housing policies that may put more vulnerable citizens at undue risk.

Hepburn says that the Eviction Lab is currently working, in part with the ACLU, on research that shows the extent to which Black renters are disproportionately affected by the eviction crisis.

More broadly, says Hepburn, better data can help provide some oversight for a system which is largely unregulated.

“It's the Wild West, right? There's no right to representation. Defendants have no right to counsel. They're on their own here,” says Hepburn. “I mean, this is people losing their homes, and they're being processed in bulk very quickly by the system that has very little oversight, and that we know very little about.”

A 2018 report by the Philadelphia Mayor’s Taskforce on Eviction Prevention and Response found that of Philadelphia’s 22,500 eviction cases in 2016, tenants had legal representation in only 9% of them.

Included in Hepburn’s eviction data wishlist is an additional ask, something that is rarely included in any of the filings that the Eviction Lab and January Advisors have been poring over for years. He wants to know the relationship between money owed and monthly rent.

“At the individual level, if you were found to owe $1,500, was that on an apartment that's $1,500 a month? Or was it an apartment that's $500 a month? Because that makes a big difference in the story you're telling about the nature of the crisis, right? If you're letting somebody get three months behind that's different than evicting them immediately once they fall behind,” Hepburn says.

Now that the Eviction Tracking System has been out for a week, Hepburn says one of the next steps is to start reaching out to state and local governments to see if they can garner interest in the project. While he’s not ready to name any names just yet, he says that they’re already involved in talks with some interested parties.

*Correction: This story initially misidentified a jurisdiction that charges $10 to access an eviction filing. It is the state of Alabama, not the city of Atlanta. Also, at the time of publication, Peter Hepburn was an assistant professor at Rutgers, not an associate professor.

Alexandra Kanik is a data reporter at CityMetric.