ECONOMIC MOBILITY
While wealth indicators reveal where a population is today, economic mobility indicators including broadband access, homeownership, and college degree attainment can reveal whether residents have the resources needed to access higher-paying jobs and build generational wealth.
SELECT FINDINGS
Averages
Homeownership​
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Rochester and Gainesville have the lowest homeownership rates among the 25 cities, despite having relatively affordable housing. The average home price in Rochester is $191k, $183k lower than the average home price across the 25 cities, and significantly lower than the national average home price of $479,500 (as of Q4 2022). Gainesville also has an average home price below both the 25 city and national averages at $285k.
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While geography has little correlation with homeownership rates - Boulder, Richmond, and Lowell all have relatively similar homeownership rates - home prices vary widely. The average home price in Boulder is north of $900k, a full $500k+ higher than the national average and nearly $300k higher than the next highest city, Santa Rosa, CA. Despite this, Boulder does not have significantly lower-than-average homeownership rates, and has among the lowest income inequality - but has one of the highest racial income disparities - suggesting a community that is largely white and wealthy, with the non-white population largely concentrated in low-paying jobs.
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Though many factors influence homeownership, cities can increase their homeownership rates by pursuing strategies including:
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Down payment assistance programs: These programs provide financial assistance to low- and moderate-income families to help them cover the down payment and closing costs associated with purchasing a home.
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Homeownership education and counseling: Providing education and counseling services to potential homeowners can help them understand the home buying process, improve their credit score, and make informed decisions about homeownership.
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Land banking: Land banking involves acquiring and holding onto vacant, abandoned, or tax-delinquent properties with the goal of revitalizing the property and the surrounding neighborhood. These properties can be sold to potential homeowners at a reduced cost.
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Community land trusts: Community land trusts are nonprofit organizations that acquire and hold land in trust for the benefit of the community. The trust then leases the land to homeowners at an affordable price, while retaining ownership of the land.
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Tax incentives: Offering tax incentives to developers who build affordable housing or to homeowners who make improvements to their homes can encourage homeownership and revitalization in low-income neighborhoods.
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Collaborations with lenders and financial institutions: Cities can work with lenders and financial institutions to create special loan programs and incentives for potential homeowners. These programs may offer lower interest rates or more flexible lending requirements to help low- and moderate-income families purchase a home.
Broadband Access
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Though broadband access was relatively high across the 25 cities, above 72% on average, "snow belt" and "rust belt" cities such as Rochester and Syracuse, Akron and Allentown had lower broadband access.
Broadband is essential for more than just streaming TV shows - it is critical for connecting to telemedicine, higher-paying jobs, and wider educational opportunities. As was witnessed during the pandemic, broadband access is not shared equally in most cities. Cities can improve access to broadband through:
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Public-Private Partnerships: Cities can work with private internet service providers (ISPs) to expand broadband access to underserved areas. Public-private partnerships can be established through incentives, grants, or subsidies that encourage ISPs to invest in broadband infrastructure in areas where there is low demand.
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Municipal Broadband Networks: In some cases, cities may decide to build and operate their own broadband networks. Municipal broadband networks can provide affordable and reliable high-speed internet to underserved communities, including low-income households and rural areas.
Digital Inclusion Programs: Digital inclusion programs are designed to increase access to technology and help people develop digital skills. These programs can include training on computer skills, internet literacy, and other digital skills necessary for participating in the digital economy.
Hotspot Lending Programs: Hotspot lending programs allow people to borrow mobile Wi-Fi hotspots, which they can use to connect to the internet from home or other locations. These programs can be particularly useful for low-income households that cannot afford to pay for internet service.
Wireless Access Points: Cities can install wireless access points in public areas, such as parks, libraries, and community centers. These access points can provide free Wi-Fi to people who do not have access to the internet at home.
Subsidies for Low-Income Households: Cities can provide subsidies to help low-income households pay for internet service. These subsidies can be funded through government programs or private sector partnerships.
Regulatory Policies: Cities can establish policies and regulations that require ISPs to offer affordable broadband services to underserved areas. These policies can also encourage competition among ISPs, which can help drive down costs and increase broadband access.
Educational Attainment
(residents who have earned a bachelor's degree or higher)​
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As the attainment of a bachelor’s degree or higher is correlated with higher lifetime earnings, it’s worth noting that Boulder and Ann Arbor have the highest bachelor+ degree earners. At 63%, Boulder has nearly double the average percentage of bachelor+ residents and Ann Arbor, at 67% has more than double. On the other end, Allentown is nearly 20% lower than average in the percent of bachelor+ residents – 53% lower than Ann Arbor.
Some strategies that cities can use to increase the number of residents who hold a college degree include:
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Educational Partnerships: Cities can partner with local colleges and universities to develop programs that encourage more residents to pursue higher education. These partnerships can include programs such as dual enrollment, which allows high school students to earn college credits, or adult education programs that provide pathways for working adults to earn a degree.
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Scholarship Programs: Cities can offer scholarships to local students to help offset the costs of higher education. Scholarships can be targeted to students from low-income families or those who are the first in their families to attend college.
Job Training Programs: Cities can develop job training programs that require or incentivize participants to pursue a college degree. These programs can provide on-the-job training while also encouraging participants to pursue higher education.
Affordable Housing: Access to affordable housing can be a barrier to higher education for some residents. Cities can work to increase the availability of affordable housing near colleges and universities to make it easier for residents to attend school.
Public Transportation: Access to public transportation can also be a barrier to higher education. Cities can invest in public transportation systems that connect residents to colleges and universities, making it easier for them to attend school.
Financial Education Programs: Financial education programs can help residents understand the costs and benefits of higher education, as well as how to navigate the financial aid process. These programs can be particularly useful for low-income residents or those who are the first in their families to attend college.
Employer Incentives: Cities can work with local employers to provide incentives for employees who pursue higher education. These incentives can include tuition reimbursement programs, flexible work schedules, or other benefits that support employees while they pursue a college degree.
PROMISING PRACTICES
A selection of ideas to inspire change. Download the report for a full list of recommendations and promising practices
Chatanooga Home Investment Partnership Act​
The city of Chattanooga, Tennessee created a Homeownership Zone program that offers incentives for residents to buy homes in designated areas. The program provides down payment assistance, home rehabilitation grants, and tax incentives to eligible homebuyers. Beginning in July, almost $3 million in federal funds will be available to support the creation of affordable housing units in Chattanooga as part of three local programs managed by the city's division of housing and community investment.
Greater Syracuse Land Bank​
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The city of Syracuse, New York has implemented a land banking program that acquires abandoned or foreclosed properties and sells them to developers or new homeowners at a reduced price. This program has helped increase the availability of affordable housing in the city. Other cities have used Land Banking to increase affordable housing in their communities while stabilizing neighborhoods.
Chatanooga Municipal Broadband Network​
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Several mid-sized cities have established their own municipal broadband networks to provide high-speed internet access to residents. For example, the city of Chattanooga, Tennessee established its own municipal broadband network, EPB Fiber, which has been recognized as one of the fastest and most affordable internet service providers in the country.
Kalamazoo Promise​
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Cities can establish college promise programs that provide free tuition to eligible students. For example, the city of Kalamazoo, Michigan has a program called the Kalamazoo Promise, which provides free tuition to graduates of the Kalamazoo Public Schools district who attend one of several Michigan colleges or universities. As many college graduates live and work in communities where they attend college - these programs have the further benefit of stabilizing populations and reducing outflow migration.
