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My Zip Code Has the Lowest Average Credit Scores in the St. Louis Region

March 20, 2023 Economy, Featured Comments Off on My Zip Code Has the Lowest Average Credit Scores in the St. Louis Region

A new database uses average credit scores as a measure of a community’s financial wellbeing:

The Financial Wellness Index dashboard and mapping – created in partnership with Experian – provides a unique snapshot of a community’s financial health as measured by the average credit scores of its residents. Credit scores are important because they affect residents’ ability to borrow, the likelihood they can be resilient during difficult times, and their ability to achieve financial goals like purchasing a home or starting a business. — Operation Hope

I checked the zip codes for both sides of the Mississippi River and my zip code (63106) was the lowest of all, hence the worst in terms of financial health. There’s a direct correlation between primarily using currency instead of credit cards and having lower credit scores.

Before going further a brief credit score 101 is necessary:
We don’t have just one credit score, we have numerous. There are 3 major credit bureaus (TransUnion, Equifax, and Experian). Each maintains a file on our loans, credit cards, payments, etc. Each will vary slightly from the others, even without errors.
Credit scores are calculated based on information from one of the three credit bureaus, but there are two major formulas used currently: FICO8 and VantageScore 3.0. Both scoring methods use a range of 300-850.

The credit bureaus collect information voluntarily reported to them. Many payments such as utilities, rent, handshake loans, etc haven’t been reported because it involves extra work to do so. When I was a landlord I don’t think there was a way to report payments/delinquencies by my tenants — but technology is changing to allow more into the files.

Ok, end of credit scores lesson.

Average credit score for 63106 as of March 20, 2023. Click image to view wellness index and check out your zip code.

The Operation Hope database uses Experian data and the VantageScore 3.0 formula. The national average was 698, Missouri & Illinois averaged 694 & 702, respectively. The City of St. Louis had an average of 681. My zip code (63106), just north of downtown & downtown west was just 589.

Downtown (63101) & downtown west (63103) both averaged 645. This is low, but it’s nearly 60 points higher than the adjacent zip code of 63106.

The 7 city zip codes mostly north of Delmar average 604, the highest is 63112 (646)– which includes the Debaliviere & Debaliviere Place neighborhoods. Credit scores in five of the seven north side zip codes are between 589-601. In the rest of the city the lowest average is 619 (63111), the highest is 714 (63139).

What do these numbers mean?

VantageScore rates them as such:
300-499: Very Poor
500-600: Poor
601-660: Fair
661-780: Good
781+ Excellent

Again the average score (Experian/VantageScore 3.0) for my zip code of 11k people is 589. Individually that’s a Poor score. What about from a community perspective? I think the same classifications apply. If the average is 589, what are the low and high scores? After decades of low scores, mine have all been in the classification for over three years now.

Poor credit scores prevent people from getting loans altogether, or at least without paying through the nose interest rates. This might look like buying an overpriced well-use car at a ”we finance anyone” place to get wheels to get to work. The high rate of interest means the payments are steep. The dealer doesn’t care if you pay in full because they can repo and resell to someone else.

While a prospective employer or landlord can’t see your specific score, they can ask your permission to see your credit report. A lack of credit history, or bad history, can mean a person needs to keep looking for a job or apartment.

What does this have to do with cash, printed currency? A lot!

Today, roughly four-in-ten Americans (41%) say none of their purchases in a typical week are paid for using cash, up from 29% in 2018 and 24% in 2015, according to a new Pew Research Center survey.

Pew Research

I’m in that ”none” group. I use cash only for the occasional lottery ticket or very rare medical cannabis purchase. But many are the opposite, using cash for everything. Back to Pew Research:

Americans with lower incomes continue to be more reliant on cash than those who are more affluent. Three-in-ten Americans whose household income falls below $30,000 a year say they use cash for all or almost all of their purchases in a typical week. That share drops to 20% among those in households earning $30,000 to $49,999 and 6% among those living in households earning $50,000 or more a year.

Even so, growing shares of Americans across income groups are relying less on cash than in previous years. This is especially the case among the highest earners: Roughly six-in-ten adults whose annual household income is $100,000 or more (59%) say they make none of their typical weekly purchases using cash, up from 43% in 2018 and 36% in 2015.

There are also differences by race and ethnicity in cash usage. Roughly a quarter of Black adults (26%) and 21% of Hispanic adults say that all or almost all of their purchases in a typical week are paid for using cash, compared with 12% of White adults who say the same.

Pew Research

The areas with the lowest credit scores are the same as those that use cash almost exclusively. Can’t expect a good credit score if you never/rarely use credit!

The part that stumps me is how to change the current paradigm. It’s necessary as the population increasingly goes cashless, otherwise those on the economic fringe will be even more isolated financially they are currently. Future posts on credit scores will look at how the scoring models have improved since their inception, what still needs to be done, how can the region lift scores — and how this will indirectly reduce crime.

— Steve
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St. Louis urban planning, policy, and politics @ UrbanReviewSTL since October 31, 2004. For additional content please consider following on Facebook, Instagram, Mastodon, Threads, Bluesky, and/or X (Twitter).

 

From Dated to State of the Art: 100 North Broadway

January 18, 2023 Downtown, Economy, Featured, Planning & Design Comments Off on From Dated to State of the Art: 100 North Broadway

Buildings are expensive to construct, so frequently renovation makes more sense than razing & replacing. If the structure is sound changing the finishes, fenestration (windows & doors), technology, etc is cost-effective and green. The office tower at 100 North Broadway is a good example. Most was good, very little was bad — but the bad was so prominent it overshadowed the positives. I posted about this building in 2015, suggesting the 2-story section get reimagined. The building’s owner thanked me for my interest.

The owner hired longtime tenant Trivers Architects to sketch up some ideas. Not for them, but to help sell the building. In February 2020 a new local owner took possession of the building. Then the pandemic hit, office employees worked from home. Ouch! What was initially going to be a simple interior update turned into a major project — kudos to the owner & investors for seeing the big picture, playing the long game.

building
The renovated pavilion & plaza of 100 N. Broadway in November 2022
The original greenhouse design was well past its prime.

Granted, the former branch bank inside was even more horrendous.

Looking toward the building lobby, July 2015
Inside looking East along the South atrium/greenhouse wall we can see those inward points

The timing at the beginning was actually a good thing. The owner & architects from Trivers were able to rethink amenities for attracting tenants. The former bank offices on the 2nd floor became a common areas and high-tech conference rooms. Let’s take a look.

First up, a monumental staircase. The bank tenant didn’t want everyone going to their offices instead of tellers, but now an inviting stair makes sense. Elevators on the east & west sides were also replaced.
A huge preserved moss wall brings color to the new lobby, adds natural warmth.
Again, this isn’t a high-maintenance living wall — it’s the largest preserved moss wall in the region. Note the seating below.
A view of the lobby from the 2nd floor.
Yes, under the stair is a small meeting space enclosed by orange glass.
The other side is space for eating. behind me is a cafe space, with room for a commercial kitchen including exterior exhaust.
At the top of the monumental stair is a kitchen space, for tenant events.
Just off that kitchen is an outdoor space. A group from one tenant was gathered when I was there.
The outdoor space has great views.
Back on the main floor, the security/reception ares is between the lobby and elevators.
This is significantly larger than before, the elevators are more visible.
These efforts helped attract McCormack-Baron when their lease was up in the old Laclede Gas building. Their new space is on several floors. Trivers also designed their offices.
Outside the 2-story part was clad in horizontally ribbed terra cotta, a nice contrast to the metal of the tower. Both the east & west plazas were totally redone so the roof of the underground parking garage could be resealed. The east entrance now has this ramp rather than just steps.

The only criticism I have is one that’s easily corrected. The only bicycle parking is for tenants, in the garage — none for a guest. bike rack on each side would solve this.

As a person who saw the before and envisioned how it could be I’m so glad the new owner, investors, architects, consultants, and contractors made something happen. As a former designer I loved seeing tired buildings rethought around current requirements, materials, technology, esthetics. For additional building information see Loopnet, for project info see Trivers Architects.

— Steve
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St. Louis urban planning, policy, and politics @ UrbanReviewSTL since October 31, 2004. For additional content please consider following on Facebook, Instagram, Mastodon, Threads, Bluesky, and/or X (Twitter).

 

Newish Book — ‘ Recast Your City How to Save Your Downtown with Small-Scale Manufacturing’ by Ilana Preuss

December 11, 2021 Books, Downtown, Economy, Featured Comments Off on Newish Book — ‘ Recast Your City How to Save Your Downtown with Small-Scale Manufacturing’ by Ilana Preuss

It’s possibly human nature that causes us to look for a magical silver bullet to fix our cities, towns, and villages. Examples might include a sports team, corporate headquarters, even a monorail.  Lasting success is never that easy, it takes more effort.

Too many U.S. cities and towns have been focused on a model of economic development that relies on recruiting one big company (such as Amazon), a single industry (usually in technology), or pursuing other narrow or short-term fixes that are inequitable and unsustainable. Some cities and towns were changing, even before the historic retail collapse brought on by COVID-19. They started to shift to a new economic model that works with the community to invest in place in an inclusive and thoughtful way, with short-term wins that build momentum for long-term growth. A secret ingredient to this successful model is small-scale manufacturing.

In Recast Your City: How to Save Your Downtown with Small-Scale Manufacturing, community development expert Ilana Preuss explains how local leaders can revitalize their downtowns or neighborhood main streets by bringing in and supporting small-scale manufacturing. Small-scale manufacturing businesses help create thriving places, with local business ownership opportunities and well-paying jobs that other business types can’t fulfill.

Preuss draws from her experience working with local governments, large and small and illuminates her recommendations with real-world examples. She details her five-step method for recasting your city using small-scale manufacturing: (1) light the spark (assess what you can build on and establish goals); (2) find and connect (get out of your comfort zone and find connectors outside of your usual circles); (3) interview (talk to people and build trust); (4) analyze (look for patterns and gaps as well as what has not been said); and (5) act (identify short-term actions to help build long-term change). This work is difficult and sometimes uncomfortable, but necessary and critical for success. Preuss supports and inspires change by drawing from her work in cities from Knoxville, Tennessee, to Columbia, Missouri, to Fremont, California.

In Recast Your City, Preuss shows how communities across the country can build strong local businesses through small-scale manufacturing, reinvest in their downtowns, and create inclusive economic opportunity. Preuss provides tools that local leaders in government, business, and real estate as well as entrepreneurs and advocates in every community can use. (Island Press)

St. Louis still has manufacturing downtown, TUMS is the example that comes to my mind. We certainly could use more downtown and throughout the region.

This newish book has a video trailer featuring the author!

As usual, I like to use the contents to show how the author makes her case:

Chapter 1: What it Means to Recast Your City
Chapter 2: Why We Need a New Economic Development Model
Chapter 3: A Stronger Economic Development Model with Small-Scale Manufacturing
Chapter 4: Five Steps to Recast Your City
Chapter 5: Step 1: Light the Spark
Chapter 6: Step 2: Find and Connect with New People
Chapter 7: Step 3: Start the Conversation and Get Great Information from Your Interviews
Chapter 8: Step 4: Analyze the Input and Understand What it All Means
Chapter 9: Step 5: Be Impatient and Act Now

As Preuss said in the video, this book is for local leaders that want to change the economic outlook where they live.  Any of you might be the local leader to make it happen here.

You can get a link to download the first chapter emailed to you here.

Steve Patterson

 

It’s Opening Day! No, Not Baseball

May 18, 2020 Economy, Featured, Politics/Policy Comments Off on It’s Opening Day! No, Not Baseball

Source: Food & Drug Administration

Every year opening day in the St. Louis region is a big deal, Cardinals baseball fans celebrate every year. But baseball isn’t starting today — some businesses in St. Louis City & County are being permitted to reopen, with restrictions. Not all businesses that can open, will open. Others that want to reopen aren’t yet permitted to do so, such as gyms.

Many will still be celebrating today. In contrast, others think reopening businesses now is a huge mistake. As businesses reopen today it’ll be impossible to enforce new reduced occupancy and other rules.

As someone that hasn’t been able to work for over a decade I understand getting bored at home, money running out, etc. I wanted to get back to normal, but I had to accept that my stroke meant I had to adjust to a new normal. This took me over two years.

The normal that everyone had at the start of 2020 will not be returning. Ever. Anyone who thinks otherwise will struggle to adapt.

This is not a democratic hoax, Coronavirus won’t just “disappear”. In fact, it may “never go away”.  A mass-produced vaccine won’t be ready to distribute this year, that won’t happen until at least the 2nd quarter of 2021. It could well take more than a year from now.  When it does arrive we don’t know if it’ll be free.

In the meantime we’re going to see repeated waves of infections, deaths will continue to escalate. Our economy will be stopped again with each wave. Until at least 70% of the population is vaccinated social  distancing, face masks, etc need to continue — 2021 or after.

Hopefully I’ll be proven wrong, but I don’t think I need to worry about that happening.

— Steve Patterson

 

Labor Unions Needed More Than Ever

September 4, 2019 Economy, Featured, Politics/Policy Comments Off on Labor Unions Needed More Than Ever

One of the many cute dogs in Monday’s Labor Day Parade

The few at the top have been using the masses to pass laws designed to diminish unions — increasing their profits. As income inequality gets worse, labor unions are needed more than ever.

Collective bargaining is an important force in reducing inequality and ensuring that low- and middle-wage workers are given a fair return on their work. As productivity has risen over the last several decades, wages have remained flat for the majority of working people, while skyrocketing for those at the top. Union decline can explain one-third of the rise in wage inequality among men and one-fifth of the rise in wage inequality among women from 1973 to 2007. Among men, the erosion of collective bargaining has been the largest single factor driving a wedge between the middle class and the top 1 percent.

Working people in unions use their power in numbers to secure a fairer share of the income they create. On average, a worker covered by a union contract earns 13.2 percent more in wages than a peer with similar education, occupation, and experience in a nonunionized workplace in the same sector. But importantly, collective bargaining also raise wages for nonunion workers—as an economic sector becomes more unionized, nonunion employers pay more to retain qualified workers, and norms of higher pay and better conditions become standard. If union density had remained at its 1979 level, weekly wages of nonunion men in the private sector would be 5 percent higher today. (Economic Policy Institute)

Given the results of the recent non-scientific Sunday Poll it’s clear a majority of participants agree.with me.

Q: Agree or disagree: Labor unions are no longer necessary because laws protect worker’s health & safety.

  • Strongly agree: 4 [9.09%]
  • Agree: 4 [9.09%]
  • Somewhat agree: 1 [2.27%]
  • Neither agree or disagree: 0 [0%]
  • Somewhat disagree: 3 [6.82%]
  • Disagree: 3 [6.82%]
  • Strongly disagree: 29 [65.91%]
  • Unsure/No Answer:  0 [0%]

As usual, about 20% take the conservative viewpoint.

— Steve Patterson

 

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