By Anushka Joshi

From a young age, my family and I would routinely clean out our closets and take our give-aways to Goodwill. Around high school, I started going back to Goodwill to buy clothes that were cheaper and more unique than the styles carried at the mall. My friends and I would take trips to San Francisco to stop by Buffalo Exchange, Crossroads, Waste Land, and the small second-hand stores in between. Then, we began selling clothes to each other within our high school via a Facebook group as a way for us to make money off of our clothes that were to be given away. Second-hand stores have grown to have a strong presence in the fashion industry for all types of shoppers. Whether it is through occupying the online space through websites like ThreadUp, a brand dedicated to upcycling clothes, or traditional retailers like Macy’s creating spaces for secondhand clothes in their stores, thrifting is pushing the fashion industry towards an environmental and economic change. 

The Instagram Generation is made up of Generation Z and Millennials, and according to a ThreadUp Fashion Resale Market and Trend Report in 2019, resale shopping satisfies their two biggest demands: being seen in new styles, and sustainable shopping. To maintain a constant online presence, people feel pressured to have infinite outfits so that they are never seen sporting the same look twice. 56% of 18-29-year-olds prefer retailers that have new arrivals every time they visit to fulfill this need (ThreadUP). There’s an expectation to walk into a room where no one is wearing the same outfit, and then never wear that outfit again. However, this expectation is detrimental to our wallets and the environment.

Nowadays, it’s as important to appear socially conscious as it is fashion-forward. As the stress of climate change increases, 74% of 18-29-year-olds lean towards shopping from sustainably conscious brands (ThreadUP). Today, the fashion industry makes up 10% of carbon emissions globally, and that number could rise to 25% of the global carbon budget by 2050 if consumer behaviors do not respond. In 2013, 57% of consumers prefer to buy from environmentally conscious companies, but as of 2018 that number has risen to 72%, which proves that sustainability is no longer just a perk, but a priority to consumers (ThreadUP). In a generation where consumers value socially conscious shopping as much as being unique, thrifting has found its home. That 70’s disco-Esque shirt is not actually from Urban Outfitters, but it’s an original swooped up at the thrift store for $7. After decades of sitting on a dusty shelf, clothes can now be seen curated on a clothing rack. One man’s trash is another man’s treasure. 

Second-hand shopping is the consumption of used apparel. This concept was once looked down upon by middle-class consumers, and it was the way of shopping for those who could not afford first-hand shopping. Today, consumers turn to the more than 25,000 second-hand stores around the United States, their peers to buy their worn clothes, online rental services, and apps and websites dedicated to second-hand shopping. Second-hand shopping occupies its own market space–a large and growing one at that.

Thrift shopping used to be an experience filled with digging through racks of unorganized clothes to find the right piece. This experience has been described as primal, interesting and exciting. Shoppers never know what they’re going to get–the idea is that you find something unique to your style as opposed to conforming to the silhouettes of fast fashion. Ines Ramirez, a 21-year-old student at the University of Southern California, turned to thrifting as a response to the damage caused by the fast fashion industry, and found the experience of thrifting to be refreshing as “shoppers are exposed to new styles, and the opportunity to expand their tastes at a lower price point that is more sustainable too”. As thrifting has hit the mainstream, it caters to all audiences ranging from the experience of digging through piles to a curated shopping experience with high-end second-hand boutiques. 

The early adopters of Airbnb, Lyft, and DoorDash are the same ones who spearheaded the growth of the resale market. These companies disrupted traditional industries and were built to cater to the needs of the rising generations and created a sharing-economy. The resale market is another space in which individuals can trade their assets. Generation Z and Millennials grew up with digitization, access, and individuality, with companies and industries like second-hand shopping responding to those needs. According to “The State of GEN Z”, a report by Business Insider, “Being unique–and balancing that with saving money–is a defining trait of this generation”. The same study reports that in 2019, 33% of Generation Z consumers will have bought used clothing. Today, companies like ThreadUp exist, which provide thousands of new items a day, sustainable shopping, and a cheaper price tag. It’s a Gen Z’ers dream. 

Though second-hand shopping started niche, now everyone has a place in the second-hand shopping industry. According to a ThreadUp report, 26% of luxury shoppers, 25% of department shoppers, and 22% of value chain shoppers all shop secondhand. Services like Rent the Runway and the RealReal make boutique items more accessible. From Walmart to Gucci, consumers are looking to buy it resold. 

The trend of sustainable shopping comes after the fast-fashion takeover of the 2000s. Fast fashion refers to purchasing replica items of trends for lower quality and lower price. This concept was born out of a desire to fill consumer’s needs immediately, instead of waiting months for a runway style to hit the department stores. Many members of Generation Z and Millennials grew up in the fast-fashion boom. It provided instant gratification while shopping and affordable prices. However, the cheap quality, environmental impact, and the fact that someone always owned what you did were deterring factors. Since 2000, clothing production has doubled and that is no coincidence with the rise of fast fashion. There is a massive turnover of owning clothes due to the constant outpouring of products streaming from the fast fashion industry. Traditional fashion labels used to put out 2 collections a year, but Zara puts out 16. The impacts this has on the environment are unparalleled. Up to 85% of textiles go into landfills each year, which is enough to fill the Sydney Harbor. 

An allure to fast fashion was being able to get high-end styles at a fraction of the cost. But through consignment stores and companies like TheRealReal, consumers can buy used luxury items at a fraction of the cost. For example, a Louis Vuitton bag that would regularly retail for $1,100 is listed for $475 on TheRealReal. Shoppers can also opt to rent clothing through Rent the Runway. Knowing that someone has used the clothing before and the lower price tag caters to consumer’s desire to wear clothes once or just a few times––a result of our desire for individuality–then sell it without feeling guilty about sunk cost or material waste. 

Each year, 108M tons of non-renewable sources are used to produce clothing, and the textile waste crisis is accelerating, according to the Ellen MacArthur Foundation. One garbage truck’s worth of textiles is landfilled or incinerated every second. Goodwill NYNJ alone saved 38 million pounds of clothing from the landfill last year. The collective impact of all of the consignment/second-hand stores and businesses around the country are sure to make an impact on the waste each year. 

Millennials and Gen Z’ers are more socially conscious than the generations that preceded them and they are inclined to shop sustainably. This value-driven economy is changing our consuming experience as a whole. The fashion industry used to be led by top-down influence, coming from fashion designers and runway shows. Today, it is driven by bottom-up forces, meaning influencers and the prominence of social media (Forbes). With Generation Z having a buying power of more than $500 billion already, companies will have to adjust to their needs. With young shoppers swarming to second-hand shopping, the resale economy has already begun to slow down fast fashion. 

Habits have shifted from quality over quantity, to the embrace of fast fashion, but the end of long-term ownership has arrived with the popularization of second-hand shopping. The average number of items in consumers closets is declining and will continue to do so as craze’s like “Kondomania” emerge. When Marie Kondo’s show aired on Netflix, ThreadUP saw an 80% increase in closet cleanout kits (ThreadUP). If 1 in 10 viewers cleaned out their closets, it would create 667M pounds of trash, and resale responsibly generates an endless supply chain. 

As consumers become more environmentally conscious, these numbers will grow and large corporations will begin to notice the shift––and will make changes in their own companies to become more sustainable too. Companies follow the money, and thankfully consumers are leading them to more sustainable ways. 

According to a ThreadUp Fashion Resale Market and Trend Report in 2019, 72% of secondhand shoppers shifted spend away from traditional retailers to buy more used items. The fashion industry adapted to the fast fashion market, and it will confidently accommodate to the new demands–both from consumers and the world at large. According to an article in the Wall Street Journal, mass-market retailers like Macy’s and JC Penney are adding resale boutiques to their store layouts, further expanding the secondhand apparel market. Mass market/fast-fashion brands like Urban Outfitters have added “vintage” sections and their “one of a kind” pieces are promoted on their Urban Renewal line. There are popular brands that are sustainable from the start like Re-Done, and Reformation. According to a report by Colliers International Knowledge Leader blog, “From 2017 to 2019, Millennial and Gen Z secondhand sales increased by 37% and 46%, respectively.” According to Fortune, grown 21 times faster than the retail market in the past three years. As consumers become more environmentally conscious, these numbers will grow and large corporations will begin to notice the shift. 

Business practices are shifting to become more unique and sustainable. Nearly 9 out of 10 senior retail executives are finding ways to get into the resale business. As per the same ThreadUp report, these executives are first motivated by revenue boosts, then sustainability, and finally customer loyalty. Whether or not their first reason is environmental responsibility, these large companies will make a huge impact. This year, if everyone bought one used item instead of a new item, that would save the amount of CO2 as 500,000 cars being taken off the road for a year, enough energy to light up the Eiffel Tower for 141 years, enough water to fill up 1,140 Bellagio fountains, and the weight of 1M polar bears of trash (ThreadUP). The average secondhand shopper replaced 8 new apparel items with used items in the past year. As the number of secondhand shoppers increases, the carbon savings will grow exponentially. 

The future of second-hand shopping will disrupt the fashion industry as we know it today. According to a report by Colliers International Knowledge Leader blog, “From 2017 to 2019, millennial and Gen Z secondhand sales increased by 37% and 46%, respectively.” While the fashion industry at large is worth more than $2 Trillion, the secondhand market is projected to hit $41 billion by 2022. According to Fortune, grown 21 times faster than the retail market in the past three years. As of 2018, the second-hand economy was valued at $24 billion and is projected to grow 1.5 times the size of the fast fashion market within the next 10 years. Second-hand shopping has unlocked an endless supply chain of buying and reselling clothes and continues to benefit all parties involved through the constant exchange of goods. Thrifting is now a tradable asset, which means that there is still value even after the first time it was purchased. 

We’ve moved into a sharing economy, and the popularization of second-hand shopping is an extension of that. However, the sustainability of the resale market is not limited to clothing and it is inspiring new shifts. Companies have begun to design new products that are meant to be shared. Airbnb is looking to build homes that are designed to be shared and not owned. IKEA will start renting furniture instead of just selling it, and companies like Rent the Runway and ThreadUP are exclusively producing lines of clothing that are only for renting or reselling. Just as technology and the internet forced companies to rethink their business models, sustainability efforts will do so as well. 

Where does it end?

According to a 2018 study by Cigna, loneliness is an epidemic in the United States. Approximately half of the 20,000 U.S. adults surveyed report feeling lonely or left out. Generation Z is found to be the loneliest generation. As always, I will explore the economic impacts of the new habits, needs, and preferences that Generation Z brings to the markets. 

Alcohol is extremely present in social situations, especially for Generation Z. About 4 out of 5 college students consume alcohol, and 50% of those consumers participate in binge drinking culture (Alcohol Rehab Guide). 

Alcohol in moderation is relaxing and provides a boost of dopamine, and acts as a “social lubricant” (Drug Rehab). Many people imbibe to destress or to ease social anxiety. However with the easy access to alcohol, and the binge drinking culture embedded in America, especially within college campuses, the consumption of alcohol can leave people feeling more disconnected than before. According to the Addiction Center, “binge drinking can be particularly damaging to college students struggling with loneliness and depression. Excessive drinking will only worsen these feelings and can lead to cyclical drinking behavior” (Addiction Center). 

While there are immediate health and safety consequences to excessive drinking, there are also long term effects that impact communities–and would most likely have a negative economic impact at large. While college introduces many people to alcohol in an unhealthy manner, they are then set up to be stuck in cyclical drinking that seeps into life past a college party culture. “A 2017 study found Americans are drinking more alcohol now than ever—more than 70 percent of all adults—and as a result, more people qualify for alcohol-use disorder.” (Newsweek). Walking the line of the “almost-alcoholic zone”, leads to “alcohol-related problems with their health, their relationships, and social lives and even their work, but don’t connect the dots between these problems and their drinking” (Newsweek). The effects of binge-drinking touch nearly every aspect of life, and it poses a threat to society at large. 

With all of this knowledge at hand, I strongly believe that alcohol companies have a civic duty to capitalize on responsible drinking, without sacrificing their financial motives. The alcohol industry is continuing to grow. As of 2019, the U.S. Spirits Market is valued at $29 billion, and in 2026 it is projected to reach $38 billion (Market Watch). People will not stop spending money on alcohol, but there is a way where consumers and companies can meet in the middle for quality, experience, and moderation. To combat loneliness, young people need a space where they can connect face-to-face to form meaningful relationships, according to Douglas Nemecek, MD, Chief Medical Officer for Behavioral Health at Cigna (Addiction Center)

According to a 2019 market report, “the past year has seen the continued growth of craft beer and craft spirits, an increased number of microbreweries, and a rise in experiential drinking (Beverage Daily). By the end of 2018, brewpubs, taprooms, and game-based bars saw a surge in popularity according to the same source. Consumers are more drawn to experiential locations than not. These bars with more allure than just alcohol provide a multi-sensory experience that allows consumers to slow down and connect over alcohol in a non-traditional way. According to a Nielsen report, these experiential bars allow for consumers to not just engage with the culture of the alcohol, but “a golden opportunity to engage with drinkers in a memorable, meaningful, and interactive way” (Beverage Daily). While these pubs and breweries are increasing in popularity and significance for America’s drinking culture, I believe that other alcohol companies will follow suit with heightening customer engagement and connection with one another in new ways.

From a young age, my family and I would routinely clean out our home and take our give-aways to Goodwill. Around high school, I started going back to Goodwill to buy my clothes. My friends and I used to take trips to San Francisco to stop by Buffalo Exchange, Crossroads, Waste Land, and all the small stores in between. Second-hand stores have a strong presence in the fashion industry. Whether it is through occupying the online space through websites like ThreadUp, or traditional retailers like Macy’s creating spaces for secondhand clothes in their stores, thrifting is pushing the fashion industry towards an environmental and economic change. 

Nowadays, it’s as important to appear socially conscious as it is fashion-forward. Nearly everything in my closet has been bought at a flea market, a thrift/consignment store, taken from a friend’s closet. Whether I buy clothes that are new with tags from a thrift store, or a shirt that’s been around since the ’70s, I find solace in knowing like buying clothes that aren’t brand new–it’s less wasteful. According to an article by Forbes, “Millennials prefer to do business with corporations and brands with prosocial messages, sustainable manufacturing methods, and ethical business standards.”

Buying second-hand clothing used to be looked down upon, but it has become one of the trendiest and most mainstream habits. Recently in Austin, Texas, I passed by a Goodwill Boutique. Now that thrifting has become widely accepted, stores are becoming curated in ways that cater to tastes and habits the same way that larger brands do. In 2018, Goodwill launched this new shopping concept with internal stylists and secondhand pieces from fashion influencers. 

Thrifting is beneficial for all parties involved. First of all, the shopper saves money by purchasing second-hand items. Whether shopping at a consignment store, or a non-profit like Goodwill, money is either circulating back to the original owner or through the community. Also, clothes are being upcycled which prevents waste. Goodwill NYNJ alone saved 38 million pounds of clothing from the landfill last year. 

The fashion industry makes up 10% of carbon emissions globally. According to the Ellen MacArthur Foundation, one garbage truck’s worth of textiles is wasted every second. The fashion industry is not only responsible for these environmental concerns, but also provides the lowest-wages in the world with dangerous conditions. These facts go against the values of current and future consumers. If long-standing corporations will not make the changes at their own will, hopefully, they will under the threat of the second-hand retail industry. 

The future of thrifting will disrupt the fashion industry as we know it today. According to a report by Colliers International Knowledge Leader blog, “From 2017 to 2019, millennial and Gen Z secondhand sales increased by 37% and 46%, respectively.” While the fashion industry at large is worth more than $2 Trillion, the secondhand market is projected to hit $41 billion by 2022. According to Fortune, grown 21 times faster than the retail market in the past three years. As consumers become more environmentally conscious, these numbers will grow and large corporations will begin to notice the shift––and will hopefully make changes in their own companies to become more sustainable too. 

Breaking Into the Beauty Industry

The beauty industry is valued at $532 billion and is still growing (Business Insider). Traditionally, the industry is driven by companies that tell consumers who they should be and how to achieve beauty. The companies and the products they sell supposedly hold the power to transform our looks to become the best and most presentable version of ourselves. High-end makeup brands set the tone and make beauty exclusive and unattainable–whether it is because of the values they market or the high product price points. Beauty is marketed as something to aspire to, rather than a quality one already possesses. The marketing from these companies was anything but real life as, according to a report on Glossier by Jumper Media,”Beauty brands lacked the context of real women and real experiences, focusing instead on the illusion of perfection” (Jumper Media). To be as profitable as it is, beauty has become a limited and exclusive commodity. Glossier, the skincare and makeup brand, dug into the market and democratized the beauty industry by building an affordable product with the consumer, not just for the consumer. Glossier revolutionized the industry by flipping the traditional beauty narrative and filled in the gaps where the beauty conglomerates were lacking. 

Currently, 182 companies in the beauty industry are owned by 7 major leaders: L’Oreal, Unilever, Johnson & Johnson, Shiseido, Coty, Procter & Gamble, and Estée Lauder Companies (Business Insider).  As a young and independent company, Glossier was provided the freedom and flexibility to reach its audience in a relevant and innovative manner, against the traditional business processes. Glossier used digital tools to create its brand, rather than communicate its brand. According to Megan Quinn, a partner at Glossier’s latest investor, Spark Capital, “Beauty consumers increasingly want to interact with brands and purchase products online. The industry’s conglomerates are ill-equipped to retrofit their businesses to this new reality” (Reuters).  Born in the digital age, Glossier’s advantage was staying connected to its customers at every phase of the business process. 

The rise of digitization increased access to information. People were able to share their opinions online and subsequently form niche communities. Beauty bloggers and vloggers filled in the gap of information between brands and consumers, and the conversation surrounding beauty expanded. The popularity of the “Get Ready With Me” vlog became the new model for advertising.  In this style of vlog, influencers would take their viewers through their daily routine, and advertise the products they swore by in the process. Consumers learned about new products from their favorite vloggers and bloggers that they began to trust. The dispersion of information from other beauty lovers (rather than brands) began to give more power to the consumer rather than the brands. 75% of Americans look at reviews before making a purchase (Cave Social). Glossier created products based on the information from these independent communities and became the first beauty brand that people saw as a trusted friend. 

The New Direct-to-Consumer Model

Glossier was raised alongside other direct to consumer brands like Warby Parker, Dollar Shave Club, and Casper.  All of these companies found gaps in long-standing industries. They understood the pains that had developed within existing industries, and remedied them. These brands are also based on emotion, inclusivity, and accessibility. Warby Parker made trying on glasses at home accessible, and brought down the price of traditionally expensive prescriptions. The Dollar Shave Club changed the narrative of the homogenous razor blade ad, and captured vulnerability while selling a subscription to shaving razors. Casper took the tiresome experience of buying mattresses and turned it into a trendy brand by using marketing methods such as social media influencers and Twitter memes.  

All of these brands capitalized on digitization to create a brand with and truly for the customer. The story and brand values are more important than the product itself. Businesses first turned to social media as a platform for marketing, but social media is as much for listening as it is for sharing. They used digitization to not only market their products, but to also capture the ethos of their products. Brands like Glossier sell consumers on their ideas, and from the start have an empowered relationship because of prioritizing the customer’s values.  These new brands have used their independence to their success as they are able to find innovative ways to reach the customer rather than operating under the traditions of a conglomerate. 

Marketing and Customer Acquisition

In the digital space, the best way to stand out is to fit in. Glossier does a phenomenal job of marketing itself as a best friend or older sister, passing down advice in the form of selling products. It’s approach to Instagram is to mimic the coolest it-girl, simultaneously chic, yet down-to-earth. Glossier changed the narrative on marketing make-up. Glossier contradicts the traditional makeup advertisement that projects a dark and sultry image. Weiss is driven by the value that, “Snobby isn’t cool, happy is cool” (Buzzfeed). The marketing of Glossier was not intended to intimidate people into trying its products, but rather appear as approachable as possible. 

Glossier was so spot on with the branding and creating products for its target audience because it listened to what the customers had to say. Glossier employs 150 of its most active customers on a Slack channel for quick focus group feedback (Quartz). Glossier posted the question, “what’s your ideal face wash?”, to the internet and 382 comments and a year of development later–Milky Jelly was released (Buzzfeed). Glossier’s social-media marketing strategy was not just to share and promote content, but to also listen to and engage with its following. 

Glossier and its cult following established a mutual loyalty to one another. For as long as Glossier vows to give them what they want, its followers will continue to be brand evangelists. Glossier created a brand that people were excited and proud to represent. Engaging with Glossier on Instagram is like getting recognized by your favorite celebrity on the internet. People upload their photos using the products or tag Glossier in their selfies–to be recognized by the brand, but also to let their following know that they are a part of this “It-Girl” cult. 

By fostering this sense of community, Weiss somehow convinced millions to purchase cosmetics without even trying it on–further revolutionizing the traditional makeup shopping experience. From readers to followers, followers to product advisers, advisers to the community, community to a customer, customer to a promoter (Buzzfeed), Glossier’s growth is attributed to their relationship with their audience.

Glossier’s commitment to the consumer is so strong that instead of selling through larger channels like department stores, it sells direct to consumers–only ever online or at one of the few stores. Glossier pop-up stores are not to be experienced without a line that wraps around the block. Once you enter the store, Glossier’s Instagram comes to life in the form of a playroom. Customers are encouraged to try on the product and snap a selfie–for some free marketing of course–before making a purchase. 

The future of e-commerce is emotional commerce. Technology not only allows businesses to access consumers, but their thoughts and minds as well. While all of these companies utilize social media to reach their customers, the brands that will truly reach their customers are the ones built with them. Glossier disrupted the market and is an example for many companies to follow. It put the customer above the product and catered to the beliefs of a generation. It was innovative because it valued emotion and connectivity, and built a community instead of a business hierarchy. 

Glossier’s Story

While the conglomerates are pivoting to catch up to the new e-commerce model, Glossier was born from the internet. Glossier sprung from a blog called Into The Gloss. The founder of the two brands, Emily Weiss, was working as a fashion assistant at Vogue when she founded Into The Gloss in 2010 and focused on sharing beauty tips and tricks online. In her featured column “The Top Shelf” she sat down with celebrities like Kim Kardashian and Karli Kloss and interview them on their routines, favorite products, and would learn more about their insecurities. These moments led her to find gaps in the beauty industry where people felt let down, and also what they couldn’t live without. She read every response that came through Into The Gloss’s blog and Instagram to understand what it was that people loved, and what they felt they were missing. Into The Gloss became her focus group for customer discovery, and from that community, Glossier was born.

In 2014, Glossier launched with four products– a cleaner, priming moisturizer, lip balm, and misting spray. The brand intention was to create products for the everyday girl–not the creative makeup artists as other brands such as MAC cater to. The brand has now developed into a line of 40 products ranging from fragrance, skin and body care, and a thorough makeup line. As the range of products grow, Glossier returns to the idea of producing a brand and product based on the needs and opinions of its customers.

Economic Impact

During the Series D funding round in March 2019, Glossier raised $100 million from investors led by Sequoia Capital (Bloomberg). The company was then valued at 1.2 Billion, earning its status as a Unicorn. From 2014-2019, over 5 rounds of investment Glossier has raised $186.4 million in funding (Crunchbase). In 2019 they raised the most money following a year in which their sales had doubled. At the end of 2018, the company had grown to $100 million a year in sales, which was double the revenue from 2017 (Forbes). With the rapid expansion of its product line, and the additional $100 million in funding from 2019, Glossier expects unprecedented growth in the coming years. 

Health is the new wealth, but the two are far from mutually exclusive. From clothing to food to hobby trends–wellness is something to aspire to and is correlated to status. Whether it is sporting the newest athleisure brand, the new diet fad that is organic, vegan, free of toxins, and packed with micro and macronutrients, or paying upwards of $30 per workout class–being healthy is elite. According to the Global Wellness Institute, wellness expenditures ($4.2 trillion) are now more than half as large as total global health expenditures ($7.3 trillion), and businesses are catching on. They have capitalized off of early trends, and the wellness industry has grown about 13% in a short two years from 2015-2017 (GWI).  

If you are familiar with basic economic principles and the rules of supply and demand, the increased popularity surrounding healthy foods sent prices flying high for everyone involved, thus making them more exclusive. Access to healthy food should be a basic right–instead, it is cheaper to get a full meal from a fast food stop than to have fresh vegetables at dinner. There is no shortage of food in the United States. 50% of produce in the United States is thrown away each year–some 60 million tons (or $160 billion) (The Atlantic). Yet 13% of the country’s population lives in a food-insecure household, meaning that they do not have full access or ability to purchase healthy foods (Medium.com). This leads to a large population experiencing malnutrition–whether that means hunger or obesity, it impacts more than just those directly involved. 

Although the obesity epidemic in the United States falls across all socioeconomic status’, there is a concentration of food insecurity in lower socioeconomic status. The high demand and limited access to healthy foods is a huge reason to blame for obesity and its correlation to lower socio-economic status. “More than 23 million Americans, including 6.5 million children, live in low-income urban and rural neighborhoods that are more than a mile from a supermarket. These communities are known as “food deserts” since they lack access to affordable, nutritious food. Lack of access is one reason why many children are not eating recommended levels of fruits, vegetables, and whole grains.”(Letsmove.gov). Low-income neighborhoods offered greater access to food sources that promote unhealthy eating. The distribution of fast-food outlets and convenience stores differ by the racial/ethnic characteristics of the neighborhood (NCBI). Rather than presenting these communities with nutritious and energizing food, they are presented with options that have an adverse effect. 

Food fuels you with energy to perform at one’s potential, but fast food does the opposite. It causes health issues–primarily obesity. Obesity is related to some of the leading causes of death, including heart disease, some cancers, stroke, and type 2 diabetes (PRB.org). Obesity is a grave public health threat, and accounts for 18 percent of deaths among Americans (Commonwealthfund.org). These health issues naturally lead to higher health care costs and create a cyclical trap where people are stuck in a cycle of poor eating because of the food they can access. 

Introducing poor eating habits from a young age teaches children and instills the pattern for the rest of their life. The cycle of poor eating habits and bad health negatively impacts them as well as communities at large. Without the ability to perform at one’s full potential, it can lead to reduced economic productivity. According to a study, obesity “costs the nation over $8 billion per year in lost productivity” (Yale.edu).
Despite the thriving U.S. weight-loss market (worth $66 billion in 2017), (Webwire.com) we need a long term sustainable option. The diet industry commodifies and glamorizes health and wellness when in reality it should simply be accessible to all. Health is not something that should be a fleeting trend, but the exclusivity factor in conjunction with our farming techniques, our country is headed into a serious health crisis. To have a prosperous next generation, it is important to invest in the health of all communities for a better future together.

Owning a home is part of the American Dream. While it goes hand in hand with the social idea of raising a nuclear family, the economic value of owning a home brings security. Historically, the value of a property has almost always increased over time. “Even with modest inflation of 5 percent a year, a typical house will be worth more at the end of a 30-year mortgage than the purchase price plus all interest, taxes, and insurance combined” (NY Times).  

However, the American homeownership rate peaked at 69.20% in the second quarter of 2004 and dropped to below 63% in 2016 (Trading Economics). While the homeownership rate is rising again, the trend of the past decade shows a clear decrease in homeownership. Simultaneously, the Case-Shiller Index has been increasing over the same period. The Case-Shiller Index is a lesser-known economic indicator that “tracks changes in the value of residential real estate, both nationally and in 20 metropolitan regions” (CNBC), and can explain homeownership rates and construction rates in the economy. The Case-Shiller Index is calculated by measuring changes of single-family homes by comparing the sale prices of the same properties over time (Investopedia). 

The increase in the Case-Shiller Index means an increase in home sale price, which can lead to fewer people being able to purchase a home. This result is usually related to a low supply and high demand for housing which encourages developers to create new housing units. 

Let’s take a closer look at how the Case-Shiller Index impacts specific communities and reflects the state of the community’s economy–specifically in the San Francisco Bay Area. The most recent Case-Shiller Index in the San Francisco Bay Area reads 270.23 index points––this measurement is double the value in 2012. The resale value of homes has skyrocketed, and the homeownership rates are plummeting. According to The Mercury News, as of July 2019, “homeownership in the Bay Area hit a seven-year low last quarter,” coming out to be 51.7%. Homeownership in the Bay Area is extremely expensive due to the strong demand for housing in the Bay Area, however, it has encouraged an increase in supply. It led to a construction boom in the Bay Area for housing that has since slowed. In the years 2016-2019, there have been close to 14,000 units or homes built in San Francisco (SF Chronicle), but the start of new construction has slowed dramatically. Reasons cited include “a combination of higher construction costs, escalating fees, a softening market and increased interest rates has persuaded many builders to wait on the sidelines” (SF Chronicle). Now developers are saying that “projects with a projected price of $1,300 or $1,400 per square foot are not worth it to developers,” but projects above the $2,000 per square foot price point will be built (SF Chronicle). This means that even as new construction occurs, it won’t contribute to the desperate need for more affordable housing in the Bay Area. However, in June, Google promised $1 billion to create new housing units to alleviate the Bay Area housing crisis. They have pledged their money to develop 15,000 new homes and contribute to affordable housing, too (LA Times). The drop in overall home construction permits is the “start of a worrisome trend” (Mercury News). Not only will people continue to struggle to afford housing but the halt on construction projects puts people out of jobs as well. 

Regardless, the Bay Area economy will continue to boom because it is sustained and backed by the tech industry. Even if the Case-Shiller Index continues to rise in the Bay Area, the tech industry will continue to supply high wages and residents will continue to pay the inflated prices. This scenario applies to the people employed by the large tech-giants. People who are caught in the Bay Area without high wages will struggle to afford housing, but the overall economy will still excel based on the spending and circulation of high wages.