Joseph G Blake
I wanted to add a few comments about Dana's story about what happened to her home on Avalon.
The house was torn down. Shaker like many inner Cleveland suburbs that ring the city from Cleveland Heights to Lakewood have to face two harsh realities. Cleveland has lot 2/3 of its population since 1960 when it was the 7th largest city. IT was 5th largest in 1930.
Cleveland like Detroit and many major industrial driven economies has lost its economic engine and its population. Cleveland Trust at 9th and Euclid is a Heinen’s; the Huntington Bank Building is virtually empty (it has more space per floor than any other office block in the USA except for the Pentagon.
Shaker Heights was 37,000 in 1960 and today is 28,000. All of this reflects the changing demographics of the region and its impact on Shaker. More on that in a moment.
Housing priced peaked in Shaker in 2005 and have not come back from the housing collapse of 2007-08. A good bit of this was caused by the insane housing market financed by insane practices that securitized crap and called it AAA. Between 2000 and 2006 hosing was appreciating at 10% per annum versus a norm of 3 or 4%
Shaker housing prices have recovered much better than Cleveland Heights which was really clobbered in the period
It should be no surprise that foreclosures were the highest in Cleveland and Detroit and that reality impacted the pricing in Shaker and elsewhere. Dana you join good company. Mitt Romney's childhood home in Palmer Woods in Detroit was torn down. The house was purchased at the peak of the boom at over 500,000 dollars. When the owner lost the house it was looted and damaged. The house was not worth restoring and was torn down. My cousin told me a similar story about his parents’ home in another formerly well off section of Detroit. The house is still there and in good shape but probably worth no more than my uncle sold it for more than 50 years ago.
Detroit and Cleveland have torn down many houses.
I spoke with the current mayor of Shaker Heights Earl Leiken last month in preparation for this talk. What are the challenges the city faces? If shaker Heights were a suburb of Boston, New York, Philadelphia or Chicago every house would be worth twice as month- my comment not his. But the city faces challenges from its location which has a declining economic engine. I asked about housing demolition. There has been more demolition in Moreland than any other section. Some of the lots have been given to residents or made into parks with the proviso the neighbors maintain them. That seems to be happening. Now keep in mind more than half of Moreland was annexed into Shaker around 1920. The area south of Chagrin (Kinsman) and west of Lee was annexed to control it. The housing there is more akin to adjacent housing in Cleveland. Hence very atypical to the rest of Shaker.
The Vans always planned on a grand scale be it Shaker, The Terminal Tower or railroads. They had very high standards for everything but this also created a lot of financial risk. But they planned big in a way no one else ever did in Cleveland but Rockefeller. He thought in a massive scale for the oil industry and it worked. He owned 90% of the refining market and also reduced the price of kerosene 90% between 1860 and 1900.
But the scale of Shaker Heights created a need to recover the investment. Keep in mind that 4 (Sussex, Lomond, Moreland and Ludlow) of the original 9 school districts are south of Van Aken and therefore so is the population density. To make that work you had to develop housing that would create lot/home sales that covered the cost of the infrastructure of the whole community. And the Vans never cut corners. What city has the infrastructure Shaker had then and still does?
The vision was to build housing for the rising affluent and affluent in all stages of their life. I will use my
parents as an example. They were married in 1927 and lived in the Sovereign Hotel at University Circle. In 1928 they rented in a two family on Avalon right across from the old Budin's deli. It was close to the Rapid and they soon bought a lot in Fernway which was always in running distance of the Rapid.
By late 1930 they bought the lot, got an architect to do the plan, build it and move in that November. IN 1981 they sold it because my father's health collapsed and he needed to live in nursing home and my mother joined her widowed friends in an apartment in upper Van Aken. She died in 1989. Many of you may know that process.
But that was in the design. Winslow was called diaper alley because of the young married couples that flocked there. No one ever called upper Van Aken or Shaker Square widows alley but I know the ladies did meet each afternoon to sip sherry around 4PM and share friendly gossip.
The Vans however knew they needed the density but it had to look like a single house. The two family houses that are common on Winslow and in Lomond have one door and often very elaborate second floor living rooms which have big windows akin to some of the grander residences to the North. Often someone bight the house and rented the other apartment to pay for it. The third floor often had two bedrooms sometimes used by each family for a maid or another family bedroom.
I mentioned the problem of corners previously. Streets wind a lot in Shaker Heights. It’s easy to get lost when you first get there. In addition to the two family (up and down apartments with one entrance), there are also a good number of duplexes, There are two houses each facing different streets but share a common wall. Sussex and Fernway have a good number of these. For example the houses at Avalon and Daleford and Avalon and Dorchester are duplexes,
But in the 70s the city was concerned that the area not become only tenants who rented from landlords not living there and began rigorous inspections.
When the housing market turned south badly in 07 there was a new dynamic. Shaker required high escrow balances so that absentee landlords would not do to Shaker what happened in Cleveland. And to limit purchases of multiple houses by one landlord. And I noted in the video Dana provided that the price for these houses was very low which suggests a lot of violations that may make repair and sale very unlikely but each house its own story. The question would be how many houses came down and where. I do not know
Those who still live there know well that Shaker has the highest real estate and income tax in Ohio. Does this mean they spend wildly? Shaker always offered very high services. They may still have trash pickup in the backyard. I still recall all you had to do was out the trash at the back door and they got it. No trash bins on the tree lawns. Not in Lomond or on South Park. But the demographics have really changed and this impacts the schools.
Shaker in a sense has two schools systems. It still does all the AP stuff we have come to expect as necessary and its college acceptance rates are very impressive. It still is a leader in SAT semi finalists and all that. But there is also another school system that has to address the learning issues of children from less affluent families. These may be children who have moved into Shaker from Cleveland. They often live in areas where rental housing is more common.
At the reunion in 2014 at the high school staff talked about the school today and some of us asked about these issues. It is not the Shaker we knew but it is addressing the challenges of the shifting demographics.
The city is trying to address those issues and maintain services that will continue to attract the affluent. The schools get a major part of their revenue from real estate taxes and the city from income taxes. Keep in mind that about half of Shaker households have incomes greater than 300,000 dollars and 33% more than 500,000. Their taxes matter in the equation and they expect good services.
Since 1970 if you look at the population decline for Cleveland, Cuyahoga County and Shaker Heights, Shaker has lost less relatively speaking as a percent of the 1970 census. Shaker has also done much better than Cleveland Heights, Lakewood or Parma. That takes creative leadership in the face of economic challenges.
The real issue is can Cleveland reverse the trend and become part of the economy based on intellectual capital. This is true of America in general which needs to develop a better trained work force possibly like Germany which leads in vocational training. But I leave that to better heads than mine.
The outcome of that debate will definitely shape the future of Shaker which I hope will always rank among the most beautiful of the garden suburbs that appeared in America in the pre WW2 world.
Finally Shaker Heights still has a AAA bond rating.
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