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Thursday, June 28, 2012

Young Adults Like to Stay in the City

Story first appeared in The Associated Press.
For the first time in a century, most of America's largest cities are growing at a faster rate than their surrounding suburbs as young adults seeking a foothold in the weak job market shun home-buying and stay put in bustling urban centers.The number of available Apartment Rentals in Philadelphia PA has risen dramatically.

New 2011 census estimates released Thursday highlight the dramatic switch.

Driving the resurgence are young adults, who are delaying careers, marriage and having children amid persistently high unemployment. Burdened with college debt or toiling in temporary, lower-wage positions, they are spurning homeownership in the suburbs for shorter-term, no-strings-attached apartment living, public transit and proximity to potential jobs in larger cities.

While economists tend to believe the city boom is temporary, that is not stopping many city planning agencies and apartment developers from seeking to boost their appeal to the sizable demographic of 18-to-29-year olds. They make up roughly 1 in 6 Americans, and some sociologists are calling them "generation rent." The planners and developers are betting on young Americans' continued interest in urban living, sensing that some longer-term changes such as decreased reliance on cars may be afoot.

The last time growth in big cities surpassed that in outlying areas occurred prior to 1920, before the rise of mass-produced automobiles spurred expansion beyond city cores.

New Orleans, which saw its population shrivel in the mid-2000s due to Hurricane Katrina, saw the biggest rebound in city growth relative to suburbs in the last year, 3.7 percent vs. 0.6 percent. Atlanta, Denver, Washington, D.C., and Charlotte, N.C., also showed wide disparities in city growth compared to suburbs.

Other big cities showing faster growth compared to the previous decade include Boston, Chicago, New York, Philadelphia, Minneapolis and Seattle. The general rental rates in Philly Apartments has risen steadily in accordance with the growth.

Businesses are taking notice. Companies are really seeking to meet the need of younger people who are choosing to live in cities.  The ratings agency has a "positive fundamental outlook" on residential real estate investment trusts, particularly those with holdings in multifamily apartment buildings, citing in part a demographic shift.

The recession hit suburban markets hard. What we're seeing now is young adults moving out from their parents' homes and starting to find jobs. There's a bigger focus on building residences near transportation hubs, such as a train or subway station, because fewer people want to travel by car for an hour and a half for work anymore.

A sociologist and dean of arts and sciences at Johns Hopkins University who chronicled the financial struggles of young adults in a recent book, said they are emerging as a new generation of renters due to stricter mortgage requirements and mounting college debt. Rent in most Philadelphia Apartments is higher monthly than the average mortgage payment. From 2009 to 2011, just 9 percent of 29- to 34-year-olds were approved for a first-time mortgage.

The numbers are based largely on an analysis of census estimates as of July 2011 for cities and "primary cities," defined as boundaries of incorporated divisions and closely interrelated adjacent areas, by William H. Frey, a demographer at the Brookings Institution. They are supplemented with data from the New York Federal Reserve as well as Kenneth Johnson, a sociology professor at the University of New Hampshire.

Primary cities in large metropolitan areas with populations of more than 1 million grew by 1.1 percent last year, compared with 0.9 percent in surrounding suburbs. While the definitions of city and suburb have changed over the decades, it's the first time that growth of large core cities outpaced that of suburbs since the early 1900s.

During the mid-decade housing boom, city growth came close to a standstill as the wide availability of low-interest mortgages pushed new residential development outward.

In all, city growth in 2011 surpassed or equaled that of suburbs in roughly 33 of the nation's 51 large metro areas, compared to just five in the last decade.

City growth in recent years clearly has ramped up faster than suburban growth has declined, suggesting an increased attractiveness of cities. The real question is, will cities continue to hold their own when the suburban housing market picks up? Cities that market themselves well to young people and that offer job growth, cultural amenities and access to rapid transit are likely to see continued growth.

In Denver, for instance, civic leaders have been actively promoting their city to young, educated professionals ages 25 to 34, touting in brochures the city's "walkable urbanism" including a newly formed Theatre District, pedestrian walkways, high-rise apartments, bicycle lanes and a variety of sidewalk cafes and restaurants.

Similar efforts have been under way in other larger cities across the U.S., including Chicago, New York, Philadelphia, San Francisco, Seattle and Washington, D.C., seeking to turn excess city asphalt to greenery with new planters, small parks and pedestrian plazas.

In recent years, the share of 16- to 39-year-olds with driver's licenses has declined markedly. The suburb also is no longer a refuge from poverty, now surpassing cities in numbers of poor people.

Still, some economists aren't so certain "generation rent" will last. They point to practical considerations such as better schools in the suburbs, continued government tax breaks for home ownership and subsidies for travel in rural areas, as well as rapidly rising downtown rents, that are likely to push young adults to the suburbs once they sort out decisions about jobs, kids and finances.

Other findings:

-Roughly 52 of the 73 cities with population of greater than 250,000 showed faster annual growth (or slower rates of losses) in 2011 than their average growth over the last decade. Cities switching from declines to gains included Pittsburgh, Milwaukee, Minneapolis and St. Paul, Minn.

-Texas dominated the list of the 15 fastest-growing large cities from April 2010 to July 2011, including Round Rock, Austin, Plano, McKinney, Frisco, Denton, McAllen and Carrollton.

-The city of Chicago added nearly 9,000 people last year compared to annual losses of roughly 20,000 in the last decade, having benefited as fewer moved to the outlying exurban areas of Will and Kendall counties. Detroit saw much smaller losses last year, a sign that its 25 percent decline over the past decade has bottomed out.

-New York remained the most populous city at 8.2 million, followed by Los Angeles and Chicago. The 15 most populous cities were unchanged since the 2010 census with the exception of Austin, Texas, which moved up from 14th to 13th, supplanting San Francisco.


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Opinions are Anticipated in Court Ruling

Story first appeared in USA Today.

Tea Party and union members, liberals and conservatives, Republicans and Democrats have two things in common as the Supreme Court prepares to announce its verdict on President Obama's health care law Thursday.

They have no clue what the court will decide. And they will have plenty to say outside the court immediately after — in high praise or denunciation.

Much like the court's three days of oral arguments on the Affordable Care Act in late March, Thursday will feature a crowded, hushed courtroom and a cacophonous series of sidewalk demonstrations.

For some lawyers and lawmakers who have fought the health care battle for years — and in some cases, decades — it's an opportunity to witness history inside the marble courthouse.

There's an atmosphere of intense, quiet excitement. People are sitting in that room knowing history is about to be made.

The executive director of the health consumer group Families USA, has been there the past three days the court delivered opinions, just in case health care was among them. Thursday, he plans to arrive several hours early to make sure he picks up every nuance from the nine justices.

His allies will be outside as well, to react before dozens of TV cameras. Within minutes, the group plans to send its analysis and recommendations for further action to more than 100,000 supporters. It has prepared eight news releases based on potential court rulings.

On the other side of the debate, Tea Party demonstrators also will be out in force. They plan a "flash rally" in front of the court, thanks to "Minutemen" coming from hours away.

Within 36 hours, the Tea Party Patriots plan a teleconference for their members with key opponents of the law.

Members of Congress will be inside and outside. The House Speaker will dispatch two members of his leadership team. The Speaker has vowed to seek repeal of any portions of the law left standing by the court.

Liberal Democrats, anticipating that the court's conservative majority may strike at least part of the law, plan to march from the Capitol to the court with signs urging "Medicare for all," a type of government-run health care. The option of Drug Savings Cards are also a hot topic.

Some of the most prominent advocates involved with the case won't attend — they'll be busy reading and responding.

A Georgetown University law professor and plaintiff in the case on behalf of the National Federation of Independent Business, will be reading the justices' opinions, writing on legal blog sites, doing radio commentary and fielding a steady stream of media calls.


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Tuesday, June 26, 2012

Coca-Cola Heads Back to India

Story first appeared in The Associated Press.

The Coca-Cola Co. plans to invest another $3 billion in India over the next eight years as it looks to boost its stake in the rapidly growing market.

The world's biggest beverage maker, whose brands include Minute Maid, Dasani and Powerade, has seen some of its biggest gains come from emerging markets as growth at home has slowed.

In April, Coca-Cola said its first-quarter volume in India rose 20 percent, compared with a 2 percent increase in North America.

Including the new cash infusion, Coca-Cola said Tuesday that it now plans to invest $5 billion in India between 2012 and 2020. That's on top of the more than $2 billion it invested since re-entering the country in 1993. The Atlanta-based company had left India in 1977 to avoid handing control over to its Indian subsidiary and revealing its secret formula.

Globally, Coca-Cola's market share of carbonated soft drinks is 52 percent, versus 21.4 percent for PepsiCo Inc., according to Beverage Digest, an industry tracker.

In most markets outside the U.S., Coke has a very large lead in carbonated soft drinks. In India, however, the gap is smaller; Coca-Cola has 56 percent of the market versus PepsiCo's 40 percent.

Coca-Cola said that its Thums Up - a spicier local soda it acquired in 1993 - and Sprite are the top selling soft drink brands in India, while its Maaza is the top-selling juice. Coca-Cola said its namesake soda also grew 27 percent in the first quarter.

The India business has been growing at a robust rate over the last five years, and Coca-Cola's goal is to continue this momentum.

The Chairman and CEO said that the company's growth in India is part of its plan to double revenue over this decade.

Coca-Cola and its bottling partners are investing more than $30 billion globally over the next five years - including new manufacturing plants, new distribution systems and new marketing in emerging markets - to support expected growth.

The company is also seeking its first stock split in 16 years. The company wants a 2-for-1 stock split. The move is subject to approval by shareholders on July 10.

Its shares fell 15 cents to $74.62 in morning trading Tuesday. They are still trading near the high end of their 52-week range of $63.34 to $77.82.


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News Corp. Talks Splits

Story first appeared in The Associated Press.

News Corp. is reportedly considering splitting its publishing and entertainment businesses into two companies.

The Wall Street Journal, citing people familiar with the matter it did not name, says a split would put the 20th Century Fox film business, the Fox TV networks into a separate company from News Corp.'s newspaper and book publishing businesses.

The Journal reports that a final decision has not yet been made. The newspaper is owned by News Corp.

The newspaper says Murdoch has long opposed the idea but has warmed to it. His family controls about 40 percent of the company.

The discussions come as the company deals with an investigation into alleged phone-hacking by its U.K. newspapers.

A call to News Corp. representatives was not immediately returned.


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Tuesday, June 19, 2012

Asian Immigrants Top in Class

Story first appeared in The Wall Street Journal.

Asians are the fastest-growing, most educated and highest-earning population in the U.S., according to a new report that paints the majority-immigrant group as a boon to an economy that has come to rely increasingly on skilled workers.

The number of Asians in the U.S. quadrupled between 1980 and 2010 to about 18 million, or 6% of the total population, according to "The Rise of Asian Americans," a study released Tuesday by the nonpartisan Pew Research Center. The bulk of Asians in the U.S. trace their roots to six countries: China, India, Japan, Korea, the Philippines and Vietnam.

As a group, Asians place more value than Americans overall on marriage, parenting, hard work and careers, according to the report. Irrespective of their country of origin, Asians overall believe that American parents are too soft on their children.

They are the highly skilled workforce of the 21st century, but they also bring traditional values.

Half of Asians have a college degree, compared with 30% for all Americans, and their median annual household income is $66,000, versus $49,000 for Americans as a whole.

Asians are more likely than the overall U.S. population to be married, or to live in a multigenerational household, and their children are more likely to be raised in a two-parent home, the report says.

Asians exceed Americans on educational credentials and socioeconomic markers of success despite being predominantly first-generation immigrants. This sets Asians, three quarters of whom are foreign-born, apart from previous waves of immigrants.

Immigration from Asia has picked up in recent years, with Asians displacing Hispanics from the top spot. In 2007, about 540,000 Hispanics came to the U.S., compared with 390,000 Asians. In 2010, about 36% of new immigrants were Asian, against 31% who were Hispanic.

Economics plays a role in the shift. Hispanics, including undocumented immigrants, tend to do blue-collar jobs, and have been deterred in recent years by a slowdown in construction, as well as tighter border security. Asians, who have higher levels of education, mainly come legally on student visas or employment programs to work in sectors that are thriving, such as technology.

The Pew report says those trends should help propel the growth of the Asian population in the U.S. to 41 million in 2050, more than double its current size.

That rise can help the country forge ties with fast-growing economies such as China and India, says the first minority mayor of Bellevue, Wash.He has said that one of his goals is to promote relationship-building with China, India and Korea through the growing numbers of Asian immigrants who have settled in the city of 130,000 outside Seattle. Asians, who account for 28% of Bellevue's population, are in close contact with friends and relatives back home.

Bellevue has benefited from the newcomers. Indians have helped raise millions of dollars for a performing-arts center. A statute of Mahatma Gandhi stands outside the town library as a tribute to the community.

Much of the Asian influx has occurred since the 1990s, when technology titans such as Microsoft Corp., based in nearby Redmond, Wash., sought talent. In 2010, U.S. universities awarded 45% of all science and engineering degrees to Asians, according to the Pew study.

After earning mathematics and computer-science degrees at Eastern Michigan University, a local Chinese national worked for Microsoft and Zillow, an online real-estate firm, before starting a mobile technology company, called Propeld, in Bellevue in late 2010. Her firm's team of 10 is almost entirely Asian. She taps into a U.S. network of alumni of Tsinghua University, a prestigious Chinese institution.

The Pew study found Asians three times as likely as immigrants from other parts of the world to get U.S. permanent residency on the basis of employment rather than family ties.

An Indian physician, is among them. The ear, nose and throat specialist completed his training in the U.K. and received a green card based on his professional expertise. He opened his own practice in Cortland, N.Y., in 2007.

Three fifths of Asians say American parents don't put enough pressure on their children to succeed in school, the survey found.


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