Market Urbanism http://marketurbanism.com Urbanism for Capitalists | Capitalism for Urbanists Sat, 04 Jul 2015 03:38:53 +0000 en-US hourly 1 http://wordpress.org/?v=4.2.2 It’s Time To Reform Jaywalking Lawshttp://marketurbanism.com/2015/07/03/its-time-to-reform-jaywalking-laws/ http://marketurbanism.com/2015/07/03/its-time-to-reform-jaywalking-laws/#respond Sat, 04 Jul 2015 03:38:53 +0000 http://marketurbanism.com/?p=4882 1. I wrote three Forbes articles this week: about how black churches were burning across the South, perhaps in response to the Charleston shooting and Confederate flag takedown; about how new presidential candidate Chris Christie has handled his 5-year partial control of Atlantic City; and about a new app that aims to help people find bathrooms in New York City.

2. There are two layers in the ongoing debate about whether cities should cater to cars or pedestrians. The first concerns the design of roads themselves—should roads be made one-way, as to ease traffic flow, or two-way, as to slow it? Should they dedicate space for alternative, presumably less dangerous modes like bikes and transit, or be used mainly for private autos? Should they be entirely asphalt, to maximize road capacity, or have “calmers” like medians and parklets?

The other layer of the debate concerns the conduct of pedestrians–and central to this is jaywalking.

For decades, U.S. cities have taken a uniform approach to jaywalking. Most policies are rigid, allowing pedestrians to cross solely in designated crosswalks when given the walk sign. But because these laws contradict the way pedestrians actually move, they are routinely broken, with most people sneaking across when cars aren’t coming, and some taking this liberty anywhere along the street. In the worst cases, this has created tension between pedestrians and police, but mostly just ambiguity.

Some sustainability advocates have thus called for “legalizing jaywalking.” Here are the different arguments they’ve made.

a.   One is the historical argument. In January, Vox published an extensive history of jaywalking laws in the U.S. Author Joseph Stromberg explained that as recently as the 1920s, the notion of jaywalking scarcely existed, as urban streets were meant for pedestrians. But attitudes changed with the rise of the automobile, and so too eventually did the laws, urged on by the car industry. As attitudes have shifted back in favor of pedestrians, however, it is worth reevaluating these laws.

b.   Jaywalking is an organic form of traffic calming that doesn’t require the government expenditures used for other calming measures.

c.   The social justice argument, which posits that jaywalking fines are disproportionately expensive—and enforced more—against poor blacks, often as an excuse to search them. This seems plausible, since jaywalking fines have been one part of the broken windows policing strategy.

d.   And there is the argument, made recently by Michel Lewyn in a 2-part series for Planetizen (here and here), that confining pedestrians to crosswalks isn’t even safer:

The basic assumption behind these policies is that pedestrians are safe if they don’t jaywalk, and unsafe if they do. But this claim is not necessarily correct.

Why not? Because traffic lights are not very accurate guides to safety. Suppose you are at an intersection, and the light across the street from you says “Walk.” That usually means that there is a red light above you, and that the traffic heading towards you cannot move…But that fact alone does not make me safe from cars, because a motorist turning left or right into Ninth Avenue might be governed by a green light which allows him or her to turn. So if I cross when the light says “Walk”, I can easily be crushed by a driver making a turn. In fact, turning motorists may be even more risky for pedestrians than a head-on attack, since they are harder to notice.

Lewyn continues that “crossing midblock may actually be safer when traffic is light, because a pedestrian need only look in two directions (or only one, where each side of the street is separated by a median) at a time to be sure that there are no cars coming.” It’s also possible that pedestrians, in hand, are more visible to drivers when crossing mid-block, than when in a driver’s turn radius at intersections.

e.   But there’s one argument that I haven’t yet heard: legalizing jaywalking on behalf of economic development. Nowadays, the stated goal of every city is to increase the livability of their downtown areas, since this is integral to a regional economy. Improving the pedestrian experience has been one part of such revitalization efforts, and wouldn’t reforming jaywalking laws advance this goal? Specifically, it would decrease the wait times that are required to get from place to place, thus increasing productivity. After all, many of the highly-skilled professionals who locate in downtown areas do so because they desire proximity to other industry professionals, a concept advanced by Richard Florida. For many, walking from function to function is an imperative part of daily business, and being able to do so quickly is key to mobility, just like good roads and transit. Growing the residential population is also vital to downtown development, and the same concept applies–people who walk to get morning coffee, nightly dinners, or any array of daily errands must be able to do so quickly, if living downtown is to become worthwhile.

It is thus bizarre to read about the ongoing efforts to ticket jaywalkers, for example, in downtown Los Angeles, where minor violators are being charged $197. Here is a city that is spending billions to repurpose its downtown into a 24/7 urban destination filled with bars, pro sports, entertainment, artists, and rich young professionals. Do officials not understand how enforcing against jaywalking contradicts these goals, by making it difficult to walk quickly in the very areas that are being sold as “walkable”?

In places like Los Angeles, these laws either shouldn’t be enforced, or, more to activists’ point, should be diminished. How might this happen? I’m not in favor, like others, of abolishing jaywalking laws altogether, as this might create yet more ambiguity in a nation so accustomed to automobile use. But I do favor employing more common sense into the process–by allowing pedestrians to cross the street as long as they are not endangering themselves nor obstructing automobiles. This would mean crossing at any part of the road when cars aren’t coming, and walking in-between cars when they are backed up at lights. Many people already do this, and legalizing it would erase the grey area, while opening up streets to people who were previously intimidated by law enforcement. Cities might even ease the process by installing more crosswalks halfway down certain blocks, as to create the safer and more visible experience described by Lewyn. I’ve already seen new crosswalks like this—often equipped with flashing lights–installed in many cities, and building more would help in the legalization process.

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Free parking isn’t freehttp://marketurbanism.com/2015/07/02/free-parking-isnt-free/ http://marketurbanism.com/2015/07/02/free-parking-isnt-free/#comments Thu, 02 Jul 2015 18:55:24 +0000 http://marketurbanism.com/?p=4877 Donald Shoup estimates that about one-third of cars in central business districts are cruising for parking.

Donald Shoup estimates that about one-third of cars in central business districts are cruising for parking.

Last week I wrote a piece for City Journal on how smart parking could allow New York City to implement variable pricing. Street parking sensors allow prices to change to maintain an empty spot on each block, as parking expert Donald Shoup recommends. By eliminating the incentive to drive around looking for parking, this policy could drastically reduce traffic congestion and save drivers significant amounts of time.

All of the comments on my post argue that charging for parking according to demand would increase the cost of living in already expensive cities and hurt low-income people. While this argument is very common among supporters of underpriced street parking, it’s false. In actuality, today’s standard policies of underpriced street parking and off-street parking requirements increase costs of living, and low-income people bear a disproportionate share of the costs of these policies.

Properly implemented variable pricing systems may not even increase the total price that drivers pay to park their cars. San Francisco has gone farther than any other city to implement variable parking. Its SFPark system updates the prices on the city’s meters periodically with the goal of keeping the occupancy on each block below 80%. While this objective has led to significant price increases for the most in-demand blocks, it has actually reduced the city’s total parking meter revenues because prices were allowed to fall on many blocks to reach the 80% target.

Whether they cause total parking meter revenue to increase or decrease, variable parking prices are key to reducing off-street parking requirements, which is a huge cost of development. The political pressure for off-street parking often stems from homeowners who live near commercial destinations. Because people who drive to businesses prefer free parking to paid parking, they may park in a zero-price curb spot in a residential neighborhood near their destination rather than at a paid spot on the commercial street. This increases traffic in the neighborhood and reduces parking availability for residents. Residents then demand that businesses provide their patrons with enough free on-site parking to eliminate the demand for free nearby curb spots.

While off-street parking requirements reduce demand for street parking, they also create a significant cost for businesses. Shoup estimates that “the total subsidy for parking (the total cost of parking not paid for by drivers in their role as parkers) … was between $127 billion and $374 billion, or between 1.2 percent and 3.6 percent of the gross domestic product” in 2002. Some businesses would undoubtedly provide free parking for their customers without parking requirements, but these regulations cause developers to build more parking than they otherwise would. The cost of these mandatory spaces is ultimately passed on to consumers, resulting in higher prices for everything that we buy. This parking tax is like a sales tax on all consumer goods, and because it eats up a larger portion of low-income budgets than high-income budgets, it’s regressive.

Ultimately, parking requirements that are repeated on every lot across a city lead to an environment in which destinations are very spread out from one another. This sprawl makes living without a car more difficult. Foregoing a car can save households of any income level thousands of dollars per year, an option that can provide low-income households in particular with the choice to free up a large percentage of their budget for other priorities, but its an unattractive choice in many American cities that have been shaped by parking requirements.

Variable street parking prices will increase the cost of car ownership for drivers who prioritize parking in highly-demanded spots. However, city residents can avoid these charges by parking in places out of the way, varying the times of their trips to avoid peak-pricing, not driving to destinations that will require expensive parking, or even choosing not to own a car entirely. Pricing parking high enough to eliminate queuing for spots will require drivers to pay for their spots with their money rather than their time, but people at any income level face choices that allow them to reduce their parking costs. Current parking policy is an unavoidable regressive tax, and pricing street parking to manage its demand is the first step toward reform.

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The Key Word In Conservative Urban Reform: “Openness”http://marketurbanism.com/2015/06/28/the-key-word-in-conservative-urban-reform-openness/ http://marketurbanism.com/2015/06/28/the-key-word-in-conservative-urban-reform-openness/#comments Sun, 28 Jun 2015 08:27:39 +0000 http://marketurbanism.com/?p=4858 1. I published two articles this week. The first was a Governing Magazine piece about how Miami’s pro-development policies have delayed downtown gentrification. The second was an update, published by Forbes, on Philadelphia’s mass eminent domain scheme for a blighted neighborhood. That issue first became public for this audience when reader Adam Lang posted in the Market Urbanism Facebook group that he was one of many residents whose property would be seized. Emily followed with a description of the plan on this site, and my Forbes piece provides an update following the June 18th approval by city council. Far as I can tell, my article was the first mainstream national press coverage of the issue, and we can only hope from here that the floodgates open…

2. For America’s urban conservatives, it has been frustrating to see the indifference shown towards cities by the Republican Party. Even as the nation continues urbanizing, and election results are increasingly tied to the city vote, the GOP continues to identify with suburban and rural constituencies. This causes them to take positions which offend city voters, like opposing immigration reform and gay rights, while flat ignoring other principally urban issues like public transit and homelessness. And while there have been some conservative urban reforms, like charter schools and data-driven policing, there has not been a unified agenda. So it was exciting to see a recent article—reposted, naturally, on the MU Facebook group—advocating for this.

National Affairs, a quarterly journal that is associated with “reform conservatism,” published “An Urban Agenda for the Right.” The article was written by Michael Hendrix of the Chamber of Commerce, in collaboration with NA editor Andrew Evans. While it did not list every possible reform, it mentioned many of the macro-level ones long discussed on this site. What I liked even more, though, was that it suggested a change in messaging, wherein the Democrat establishments that have long controlled cities are described as “closed,” while conservative reformers are portrayed as “open.” This, wrote the authors, would create a more accurate perception of modern U.S. cities.

As a result of decades of Democratic governance and misplaced priorities…American cities do not offer the opportunities for success and growth that they should, especially for those looking to climb the socio-economic ladder. In many cases, city governments are utterly dysfunctional. And the reason for this dysfunction is that our cities are too often closed—closed to businesses and closed to outsiders. For the middle class and those striving to make it up the ladder, the taxes, housing, and other costs leave cities simply too expensive to afford—especially with a family. Excessive regulation makes it difficult, if not downright impossible, to get the permits necessary to start a business. Cronyism and a lack of transparency make it difficult to know whether anyone is trying to fix the situation.

In response to this restrictiveness within cities, “conservatives should seek to make them open.”

What I found interesting about their wording was that it inverted how most Americans view the political parties. At the national level, Democrats are portrayed as the open and tolerant ones, and Republicans as the reactionary ones trying to uphold the status quo. These distinctions have been established largely because of the parties’ differing approach to social issues.

But this is hardly applicable to cities, where issues are rooted more in economics and quality-of-life. A large number of urbanites—whether they want to call themselves liberals, progressives, or Democrats—are in fact quite reactionary themselves, a point emphasized by the authors. Housing regulations have been used by the urban left to restrict new construction, as if city neighborhoods are gated country clubs that should never allow change or new people. The liberal business elite have fortified the business permitting process so much that, in many cities, it is nearly-impossible for competing entrepreneurs to enter basic professions like hair-styling. And to carve out a voting bloc, the left has defended unionized public monopolies that deliver services at far higher cost, and less efficiency, than is necessary.

To the authors, making cities more “open” would mean embracing economic and administrative liberalization. They call for housing deregulation, so that cities can accommodate growing populations; one-stop shops for business permitting; and civil service reform, so that bureaucracies are either held to better standards, or replaced through privatization. They also call for better online data, so that residents can easily view info on their cities’ spending and debt, and gain access to officials.

All these measures would, in fact, open up cities in the technical sense–by allowing in more people, and granting them more options once there. If such openness regarding cities was promoted more by Republicans, it might change the perception about which party best embodies this core urban value.

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Havana, Cuba–Stagnation Doesn’t Preserve Cities, Nor Does Wealth Destroy Themhttp://marketurbanism.com/2015/06/20/havana-cuba-stagnation-doesnt-preserve-cities-nor-does-wealth-destroy-them/ http://marketurbanism.com/2015/06/20/havana-cuba-stagnation-doesnt-preserve-cities-nor-does-wealth-destroy-them/#comments Sun, 21 Jun 2015 01:07:28 +0000 http://marketurbanism.com/?p=4798 [My second in a two-part series on Havana, Cuba. Here’s the first article.]

Havana, Cuba

Before taking my trip to Havana, one thing that I was curious about was how a half-century of Communism had affected the built fabric. While there are obvious disadvantages to economic stagnation, I figured that it would have at least created a charming-looking city. There are, after all, a handful of U.S. cities, and numerous European ones, that have resisted growth, modernization, and the automobile, only to remain quaint and historic. But it didn’t take even a 10-minute cab ride from the airport to realize that my assumption about Havana had been naïve—even if it is still held by many of the city’s blissfully uncurious tourists.

In fact, very little about Havana has been “preserved.”  Instead, everything in the city is merely old, and because little gets produced, nothing is replaced. This applies to the automobiles, furniture, hand tools, manufacturing equipment—and most certainly the buildings. Collectively, this stagnation has destroyed the look of the city, with a physical blight that stretches nearly every block from downtown to the outer slums.

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If I could define in one statement what Havana looks like, after four days of extensively biking and walking through, I’d call it the Latin American Detroit. It was a once-great city that declined because of bad policies, and its pervasive ruination serves as a constant reminder of this. The houses themselves, while large and ornate, are almost uniformly inadequate by U.S. standards. If they have not crumbled to the ground altogether, many are caving in. The foundations are crooked, full of holes, and marred by broken windows and doors. Because of Havana’s European roots, stucco is a common material, but on most buildings is falling off, or in some cases has disappeared. Almost every building has dirt and grime, while some are covered in it.

And this is for Havana’s nice parts. Once I began biking out of the central neighborhoods and into the slums, I found that symbols of past wealth disappeared altogether, and were replaced with what in the U.S. would be considered shacks. These structures were usually patched up with knotted wood, metal scraps, and thatching. One gentlemen who lived in the poor neighborhood of Cerro, and who I spoke with at length, described his area as akin to a Brazilian favela—which I found believable. The two pictures I took below were from his front porch, and mirrored the aesthetic of such areas.

So what is it like to live and work in these buildings? As one might expect, the outside decay permeates to the inside. The best access I got was through a 24-year-old working-class woman named Indira. I met Indira on my first night in Havana when stopping to ask directions, and after noticing that she spoke good English, took her to dinner. We became friends, and she invited me into her downtown apartment, where she lived with her mother and father-in-law. The apartment was roughly 150 square feet—far smaller than a typical New York City micro-unit. Because it had a high ceiling, the family had built a horizontal wooden floorboard halfway up the wall that served as the second floor, and built a makeshift staircase leading up. This upstairs “room” was for the mother and father-in-law, while Indira lived in the main room below, sleeping crammed against the kitchen.

Even in such a small space, there were numerous malfunctions. There was no hot water, either for cooking or showering. In fact, the shower did not even work, meaning that the family instead took scrub baths. Because the toilet didn’t flush, they had to pour water into it each time after use to accelerate the draining. The built-in wooden floorboard was clearly sagging under the weight of the upstairs furniture, raising concerns that it would one day collapse. As for the actual roof—it had been crumbling for years, and was fixed recently by a neighborhood handyman. To pay for the work, the family had to spend over a year saving up $150.

 

The main story of Indira's apartment.

The main story of Indira’s apartment.

 

The second story, upheld by a wood board

The second story, upheld by a wooden board

 

Public Infrastructure

Just as peoples’ private houses were crumbling, so too was the public infrastructure—again, much like Detroit. The public spaces, while well-used, were typically full of trash, overgrown weeds, and broken objects. Many parks, for example, were defined more by concrete than grassland. Streets, if they were even completely paved, were filled with potholes and had such poor drainage that, after it rained, they would gather huge puddles.

A water-less pool

A water-less pool

 

I wasn’t able in my short time there to analyze the underground infrastructure. But if it is like everything else in Havana, I would assume that it, too, is crumbling. For example, contrary to what tourist brochures say, Havana’s tap water is considered undrinkable by locals, and I was routinely offered bottled water to avoid catching chlorida.

Indeed, the substandard nature of Havana’s built entities were so common that after awhile I stopped noticing. For example, when I attended a rainy futbol match at a renowned Havana stadium, I sat underneath a roof that leaked constantly, getting soaked alongside other fans. Can anyone imagine this being tolerated at a U.S. arena? When I used bathrooms even in nice establishments, I would find that there often weren’t toilet seats, door locks, or (you guessed it) toilet paper. Schoolyards had swimming pools without water and basketball hoops without rims. And on it went.

This is how life is in Havana. And I soon realized, given this, how buffoonish it would have been to go around looking for examples of “historic preservation.” Such preservation is an aesthetic notion from the First World, driven by those who are willing to pay more to retrofit attractive old housing. But in a city of extreme poverty, preservation is the pragmatic steps people take to prevent their roofs from caving in.

a public park...

and a public waterfront

So How Does Havana Compare To…San Francisco?

Have you ever read an article that was so hilariously wrong that you wanted to pick your laptop up and chuck it across the room? This was my reaction to one article I read several days after returning from Havana, with the city’s horrific conditions still on my mind. On June 8, MarketWatch.com published an article by columnist Therese Poletti called “New Tech Money Is Destroying The Streets Of San Francisco.” Poletti explained that a flood of wealthy executives were moving into San Francisco, buying old homes, and altering the interiors.

It is now hard to find a Victorian home for sale that has not been gutted, its architectural details stripped and tossed. And owners or developers — looking to sell at a premium in the frenzied real estate market to “techies with cash” — hope to appeal to the tastes (or lack thereof) of current buyers, by turning once-charming homes with detailed woodwork, built-ins and art glass, into clones of Apple’s minimalist retail stores.

This trend has been developing for several years, but it seems far more prevalent today, with construction sites sprouting across the Bay Area and especially in San Francisco. And in addition to the remodeling frenzy, older buildings appear to be disappearing at a scary pace.

Before even addressing Poletti’s point, let me just set the record straight: San Francisco is not being “destroyed.” I can testify from having lived there in 2012, and visiting several times more, that the city is an architectural gem that has largely stayed in character since being rebuilt after the 1906 earthquake. Much of the city—including almost the entire northeast portion—is an oasis of historic Italianate, Queen Anne, Craftsman, and Art Deco construction. These buildings roll along the hills flanked by clean, well-paved streets, and small, impeccably-landscaped yards. From a purely aesthetic standpoint, San Francisco surpasses any other major U.S. city, and perhaps any European one.

The reason for this is two-fold. San Francisco has expansive historic preservation laws that make it difficult or illegal to alter thousands of structures. Compelling arguments have been made that the city takes this preservationist impulse too far, to the detriment of adding new housing supply–although such laws help maintain its unique character. But the other factor—to which Poletti seems oblivious—is that the city has a large professional class with the financial wherewithal to maintain these homes.

I would argue that this second factor, more than the first, has preserved San Francisco. You could put a historic overlay designation across Detroit, and it wouldn’t change much. The Motor City suffers from decay because it has undergone six decades of depopulation, and this has left no one around to preserve its own large historic stock. But the Bay Area has been flooded with capital during this period, and this has strengthened its culture of preservation. Maintaining a historic home, after all, can be an expensive endeavor that requires ripping out floorboards, replacing pipes, and other structural changes. It is usually done by educated, well-off households who have either the money to fund repairs, or the time to dedicate sweat equity. Perhaps not every family preserves their homes precisely to Poletti’s specifications, and I don’t blame them, since it is difficult to live in a floor plan that was laid out a century ago. But she should not miss the broader point, which is that San Francisco has remained as it is because of the demographics it attracts.

Instead, she claims that these groups are “destroying” the city. She is thus spouting the same myth that is advanced about historic preservation by urban progressives, who seem to think that wealth and gentrification works against preservation. But a fair-minded look at U.S. cities demonstrates the opposite. If one looks at America’s most notable historic neighborhoods–the Back Bay in Boston; Capitol Hill in DC; the French Quarter in New Orleans; much of northern San Francisco; much of Manhattan and northern Brooklyn; downtown Savannah; and downtown Charleston–a unifying feature is that they have great residential wealth. Meanwhile, there are numerous cities—Baltimore, Philadelphia, Detroit, St. Louis, Cleveland—that have a similar number of historic structures. But many of them sit hollowed-out because of decline.

The same could be said when comparing Havana with Poletti’s San Francisco. Both cities have similar architecture and planning, but their differing economic histories have led to opposite preservationist destinies. Wealthy and growing San Francisco is a city where thousands of structures remain in superb shape, and where people grieve over minor alterations. Havana’s system has produced a crumbling city where the desire for preservation gets lost in a sea of basic needs. If Poletti really wants to see a “destroyed” city, she should visit the latter.

a public housing complex from the outside...

a public housing complex from the outside…

 

and from the inside.

and from the inside.

 

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Havana, Cuba–The City Of Scarcityhttp://marketurbanism.com/2015/06/12/havana-cuba-where-can-i-even-start/ http://marketurbanism.com/2015/06/12/havana-cuba-where-can-i-even-start/#respond Fri, 12 Jun 2015 23:00:48 +0000 http://marketurbanism.com/?p=4712 [My first in a two-part series on Havana, Cuba. Here’s the second article.]

Havana, Cuba

1. I’m now a week removed from my Cuba trip, where I spent 4 days in Havana biking through the city’s near-hourly mix of high heat and torrential rainfall, returning to my bed & breakfast each night covered in soot. My first few days back in Miami I spent sick and exhausted in a hotel, but managed in the latter half to pump out a Forbes article on Miami’s inequality. The piece was slammed the next morning by the Miami New Times–a local alternative rag–for making arguments that staff writer Kyle Munzenrieder found “structurally racist.” I sent an email asking him to elaborate on the racism charge (since he didn’t in the article), but haven’t heard back.

2. That said, my mind mostly remained in Cuba. It would be hard to summarize on this page everything that I learned there, since the nation has a complex history, and enforces a dizzying array of Communist-inspired regulations that would mystify Americans, and that has impoverished average Cubans. In coming weeks, I’ll explore these economic policies–and the effects of the U.S. embargo–in depth for other publications. But I’ll say a quick word here about Havana’s living conditions, peppered with a few of the more than 300 photographs I took.

While exploring Havana’s neighborhoods, the thing that jumped out was not the city’s poverty (although there was plenty of that), but its scarcity. Because Cuba’s government does not value or comprehend mass production–namely not for agriculture–there are shortages of everything. In America, we take for granted that any basic convenience is but a short drive away. But in Havana, running errands isn’t that simple. City residents have limited mobility: the bus system is cheap but unreliable, the newly-private taxi system is efficient but costly, and for most Cubans, owning a bicycle–much less an automobile–requires years of savings. So they must stick to neighborhood stores with minimal inventory, and even if they did all have cars, there would still be few outside options.

To understand why, just imagine a city where every store is literally 1% of what it would be in America.

A typical bakery in Havana.

A typical bakery in Havana.

 

While a U.S. pharmacy like Walgreens or CVS sells not only drugs, but numerous foods, beverages, household goods, etc., the average Havana farmacia has a few shelves with maybe 100 drugs–and that’s it. Modern U.S. grocery stores often exceed 50,000 square feet, and sell thousands of products. In Havana, different food types are sold separately in small, rickety stores that often contain one or two items. Mercados sell fruit and veggies; carnicerias sell meat; and many panaderias (pictured above) sell a low-nutrition roll that would be served as a side at a crappy American road diner. The typical gas station had not even one-tenth of what you would find in a 7-Eleven.

A mercado that sold only mangos and potatoes.

A mercado that sold only mangoes, plantains and potatoes.

 

Half of the available meat supply at a downtown carniceria

Half of the available meat supply at a downtown carniceria

 

This isn’t surprising, since most Cubans earn about $20/month, and thus have minimal spending power. But the scarcity effects all income groups. For example, as an American tourist, I was considered massively wealthy by Cuban standards. That said, my expenditures were mostly limited to my B&B, my bike rental, bottled water, cheap cafes, and cab fares. My one splurge was taking a local couple who I had befriended out to a restaurant that, by Cuban standards, was exquisite, but that didn’t exceed the quality or cost of an Applebee’s. Over 4 days, all this cost $360. Compared to the few other U.S. tourists I met, this was an extremely economical budget–but was still more than what many Cubans spend annually.

Yet despite this, I found myself unable to buy basic things. For example, during my first night in Havana, I didn’t realize–until it was too late–that the B&B landlord had not provided toilet paper. In America, this would be a glaring oversight, but in Havana, I would discover, is normal. This forced me to navigate my neighborhood at 3am, offering pesos to the many teenage boys still standing outside, to bring out “papel higienico” from their houses. Every time I tried this, they would each explain, in rather comical fashion, that none was available. Finally I found a teenager who spoke passable English, and asked him how this could be. After sending his little brother in to find something, he explained that “in Havana, toilet paper is a delicacy–like chocolate,” and that most residents don’t just have any sitting around. So how did people cope?

“Here in Havana, we have a saying,” he quipped. “We say, ‘Cubans have a good ass. Our asses work for all kinds of paper. Toilet paper, newspaper, book paper–any kind of paper’.”

When his younger brother reemerged from the house, he was holding for me a single sheet torn from his school journal. I would later learn while interviewing impoverished Cubans that other “delicacies” included soap, meat, milk, cheese, and ice cream, not to mention the hundreds of gadgets and appliances found in a typical American home.

3. One thing I mentioned before leaving for Havana was that I wanted to see how urban street life functioned in a city suffering from 50 years of stagnation. I found much that was good and bad, but for the sake of brevity, will describe this week what was good.

Havana, both in downtown and the neighborhoods, offers a scintillating street culture dominated by people, music, and commerce (spartan as it may be). In many ways, it is an urban flaneur’s dream, as one can spend hours weaving through crowded streets full of friendly people who will spill their life details to a stranger. There are, in fact, few places one can go without finding numerous people on each block, and rather than ignoring one another, many are in perpetual communication, often yelling to each other from adjacent buildings.

Just blocks from the Capitol building.

 

A busy street in the southwestern Havana slum where I stayed.

A busy street in the southwestern slum where I stayed.

 

This atmosphere continues well into the early morning, as mostly teenagers stand on corners to laugh, drink and sing. For them, a rich gringo passerby is not a target, but a source for amusing dialogue, especially since they will bend over backwards to try overcoming the language barrier.

But this street life seems less rosy when you consider that it is rooted in hardship. Many Cubans are forced by poverty to live cramped together–sometimes 10 to a house, according to one person I spoke with–so naturally they would escape to the street. Because some cannot afford front doors and windows, much less advanced security, there is little privacy, and people treat sidewalks like their extended living rooms. Because so few people own cars–and because those cars run slower than in America–traffic is less menacing, allowing pedestrians to linger in roadways. Because parks are in such disrepair, sporting children instead compete in the streets. And the built fabric itself is so narrow because modern buildings are seldom constructed.

An equally fascinating aspect of Havana’s street culture, to be covered next week, was the physical decline. It was not difficult to tell that Havana was once a very advanced society indeed, defined by a merchant and governing class who had sophisticated urbanist sensibilities. At times while biking through Havana’s mild hills, I would get these weird flashbacks of San Francisco, when observing large, elaborate Spanish architecture that interspersed gracefully alongside pocket parks, public stairways and boulevards. But imagine if San Francisco had undergone 50 years of Detroit-style decline and neglect, and you’ll get an idea of the blight that pervades Havana. Many of the photos I provide next week will alarm you.

4. I could go on and on about other aspects of Havana’s street life, but here are a few tidbits that readers will find interesting.

– As might be expected from a Communist dictatorship, there were few religious symbols, but numerous political insignia celebrating the Revolution’s enduring strength. Ironically, many of these signs were in disrepair.

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Translation: "study, work, rifle."

Translation: “study, work, rifle.”

 

A celebration of CDRs, the network of neighborhood watchdogs tasked with upholding the Communist order

A celebration of CDR, the network of neighborhood watchdogs tasked with upholding the Communist order

 

– Cuba’s many old automobiles might be charming, but are terrible for the environment. Old age and poor maintenance mean that many spew out toxic exhaust that blows into pedestrians’ faces. In the central parts of Havana, where streets were narrow and buildings taller, the stench lingers, making life unbreathable.

They also frequently break down; it’s hard to bike 10 blocks without finding some car on the side of the road, hood popped.

– In America, farmer’s markets have become boutique destinations that sell products of greater quality and expense than what is found in a supermarket. Tables are often run by “gentlemen farmers” who view their activity as a hobby. In Havana, by contrast, such markets expose the desperation of the Cuban people, as many tables offer screws, dishes, spare auto parts, and whatever else a family may have scavenged.

– Street drainage is terrible after it rains.

– And more:

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Here I am with my host family

Here I am with my host family

 

 

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Urban Renewal in Philadelphiahttp://marketurbanism.com/2015/06/11/urban-renewal-in-philadelphia/ http://marketurbanism.com/2015/06/11/urban-renewal-in-philadelphia/#comments Thu, 11 Jun 2015 18:04:24 +0000 http://marketurbanism.com/?p=4657

A vacant building in Sharswood

The Philadelphia Housing Authority will seize  nearly 1,300 properties for a major urban renewal project in the city’s Sharswood neighborhood. The plan includes the demolition of two of the neighborhood’s three high-rise public housing buildings — the Blumberg towers — that will be replaced with a large mixed-income development. The new buildings will increase the neighborhood population tenfold with the majority of the new units to be affordable housing.

The majority of the 1,300 lots slated for eminent domain are currently vacant. At a City Council hearing on Tuesday, Philadelphia Housing Authority CEO Kelvin Jeremiah testified that the redevelopment plan furthers the agency’s efforts to replace high-rise housing projects with lower-density units. However, PHA’s plan misses the forest for the trees. The benefits  of demolishing the two towers are immediately undone by creating an entire neighborhood of public housing, effectively increasing the concentration of poverty in Sharswood.

Adam Lang has lived in Sharswood for 10 years, and he posted about the plan in the Market Urbanism Facebook group. Adam has raised concerns that the PHA does not have an accurate number of how many of the 1,300 properties in the redevelopment territory are currently occupied. Adam’s primary residence is not under threat of eminent domain, however he owns four lots that are. He uses two lots adjacent to his home as his yard. The other two are a shell and a vacant lot. He purchased them, ironically, from the city with the plan to turn them into rentals.

Adam’s concern about the inaccuracy of PHA’s vacancy statistics stem from the method that PHA employees used to create their estimate: driving by homes to see if they look occupied or not. Adam’s own property was on the list of vacants, and he said that he’s aware of other properties in the neighborhood that PHA identified as vacant but are actually lived in. Nichole Tillman, Executive Vice President of Communications for PHA disagreed:

PHA entered into an interagency agreement with the Philadelphia Redevelopment Authority (PRA) in March 2014 to perform eminent domain services on behalf of PHA. They are very skilled in these matters.

 

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The overwhelming majority of parcels are vacant land or structures.  The PRA projects that approximately 70 structures, or 6% are occupied, and the occupants include homeowners, renters, and businesses.

Sharswood is adjacent to the neighborhood of Brewerytown, a rapidly gentrifying area. Sharswood, however, retains many blighted properties and as of 2008 its median income was about 20-percent lower than Brewerytown’s. Adam posits that Sharswood’s prevalence of abandoned properties relative to Brewerytown is driven by the presence of run-down PHA properties and their attendant crime and poverty. “Sharswood hasn’t gentrified so much because of PHA and other subsidized housing, much of it blighted,” he said. The PHA’s redevelopment plan, if realized, will result in a large population increase in the neighborhood, with 83-percent of the new housing designated as affordable units, according the Jeremiah’s testimony.

Adam supports the PHA plan to demolish the high-rise housing projects. Based on his experience visiting residents of the towers, he said, “it’s amazing that the government would house human beings in there.” However, he’s also against the drastic increase in public-housing in the neighborhood that would further concentrate low-income housing in Sharswood. “It will look like it’s done a lot of good,” he said “because new buildings always look better, but the issue will be over time because PHA has an atrocious maintenance record.”

Tillman countered:

In recent years, PHA has demonstrated a proven track record of success in developing and maintaining, low density, cost effective, and energy efficient units that are consistent with the respective neighborhoods.  PHA has a large and effective maintenance program. Challenges that face PHA in regards to maintenance are largely due to funding and considerable large aging housing stock.

Sharswood’s redevelopment will be financed with a combination of local money and funds from HUD’s Choice Neighborhoods Implementation Grants. The first Choice Neighborhood grants were awarded in 2011 for city agencies to undertake redevelopment studies. Now HUD is giving much larger implementation grants to cities across the country, including $30 million for redevelopment in North Philadelphia where Sharswood is located. In the first phase of the project, the Inquirer reports that construction will begin on 57 affordable rental units at a cost of $21 million, or nearly $370,000 per unit in construction costs alone.

Jane Jacobs would have called this arrangement “cataclysmic money” because a large influx of cash from the local and federal governments will finance rapid redevelopment. If redevelopment happened from the bottom up, with residents gradually purchasing homes and businesses and fixing them up, the neighborhood would house greater diversity, which, Jacobs argued, was crucial for a healthy neighborhood. The plan will result in many new housing units, all built in quick succession, and many for a specific income level. This is not the diversity that will allow for the neighborhood to age successfully, nor will it facilitate a diversity of uses. This type of cataclysmic public housing development has a long, failed history in the United States.

Tillman said that PHA’s plan are a departure from disastrous slum clearance efforts of the past:

Many of the failures that are chronicled revolve around the federal model of public housing high-rises constructed during the 50’s and 60’s that isolated neighborhoods and residents, making it hard for them to get to work and to receive services, and also make them vulnerable to criminal activity. Post World War Two, there was a housing shortage that affected everybody. High-rises were an efficient way to build modern apartments for families in need, very often on relatively small footprints, but other times over superblocks.

While just about any urban observer would support PHA’s plan to demolish the Blumberg towers, their tabula rasa plan to redevelop the neighborhood from the top down robs the neighborhood of the chance to develop sustainable market-rate affordable housing. Any city-led redevelopment spanning an entire neighborhood and relying on hundreds of millions in federal funding will fail to create the diverse, organic neighborhood that Jacobs espoused.

 

 

 

 

 

 

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Market Fundamentalism in the Mission?http://marketurbanism.com/2015/06/03/market-fundamentalism-in-the-mission/ http://marketurbanism.com/2015/06/03/market-fundamentalism-in-the-mission/#comments Wed, 03 Jun 2015 15:34:29 +0000 http://marketurbanism.com/?p=4674 There’s a proposal to place a moratorium on all market rate construction in the Mission District, one of San Francisco’s most rapidly gentrifying neighborhoods. Needless to say the proposal has sparked a debate. And Dan Ancona’s Putting Market Fundamentalism On Hold is another rock hurled into that particular fray. But in trying to take the anti-moratorium/pro-supply camp to task, it falls into the same unproductive bomb hurling we’ve been watching now for years. The following are a few thoughts on some of the points Mr. Ancona makes in his recent piece.

Talking Past Each Other

The first point is about a fundamental misunderstanding of the motivations behind the moratorium. Mr. Ancona makes this mistake, but so do the exasperated anti-moratorium/pro-supply advocates he quotes at the beginning of his piece.

Hint: The moratorium is not about lowering housing prices.

To be sure, the anti-moratorium camp wants lower aggregate housing prices throughout San Francisco and the entire region. The indisputable way to accomplish this goal is by building more housing. And as far as the anti-moratorium camp is concerned, this includes plenty of  below market rate (BMR) construction to mitigate some of the distributional effects of development.

For the pro-moratorium camp, however, this doesn’t cut it. Lower aggregate prices are not their goal. Their goal is keeping the existing population of the Mission intact and in place. Even a 70/30 ratio of market rate development to BMR construction wouldn’t do that. There would still be demographic churn and this is specifically what they want to avoid. For the pro-moratorium camp, lower housing prices are all well and good, but not if that means the dispersal of the existing community in the process.

The Mission District

Searching for the Endgame

The second issue is that there’s no endgame for the pro-moratorium camp. Mr. Ancona seems to think there is, but doesn’t go into detail. Here’s what I see.

Pressuring developers for a larger percentage of BMR housing is a no-go. 35% BMR is about where a project’s commercial viability dies and it’ll take way more than that to prevent demographic churn. And without the market rate development that the moratorium would stop, it’s not clear where funds to buy up the available properties and develop exclusively BMR housing would come from.

Now, if you were to put the moratorium into effect…and massively urbanize San Francisco’s western neighborhoods as well as all the peninsula cities…and skimmed the cream off of all that construction to massively develop the Mission with BMR infill…then maybe you have a shot.

But herein lies the problem. Not only do those two areas have no reason to go along with such a plan, they have every reason not to. The higher housing prices climb, the wealthier homeowners in either area become. And because of Prop 13, property owners don’t pay more in taxes even when their holdings appreciate. Why would homeowners accept unwanted change in their neighborhoods when they not only don’t have to but get wealthier by fighting for what they prefer anyway? If demand stays high and wealthier areas aren’t forced to build, relatively poorer areas get gentrified. And with the state’s peculiar tax laws and the region’s insane land use policies, we see this dynamic on steroids.

Addressing Inequality

There’s a third argument that Mr. Ancona makes which I thought warranted a response. Regarding inequality, he writes:

If California was some godforsaken European socialist hellscape (you know, where lots of people make roughly $70k a year and people take month long vacations and have time off to take care of their kids and are basically just happy), we wouldn’t be having this problem at the scale we are. Landlords are able to jack rents and developers are building luxury-everything because there’s a large-ish group of people who are willing to pay for it. If we were taxing marginal income above, say, $200k at 80% or something, there’d be a lot fewer people willing to throw this kind of rent around.

This, I must say, is a fascinating policy prescription. It’s essentially a call for active demand management via marginal income tax. It’s a terrible idea. But it’s still genuinely fascinating that someone would see a particular industry being too productive as the problem.

The issue here isn’t that tech people make too much money. It’s that as they create more wealth, real estate becomes infinitely more expensive because the supply of built space is so inelastic. The more wealth that the industry creates, the more it has to pay in rents for the privilege of being in the Bay Area. This puts everyone else in the unenviable position of being in a bidding war for housing with the most dynamic sector in the economy.

If we were serious about addressing material inequality–and we’re not–we would allow the housing supply to become more flexible. We’d focus taxation on land rents and away from productive labor and capital. And we’d directly subsidize individuals in need instead of trying to price fix away all of society’s ills.

The Likely Future

Last night, the San Francisco board of Supervisors voted down the moratorium. That means the pro-moratorium camp will try to put it on a city wide ballot for an up or down vote in November. If they succeed, it’ll be that much less development in San Francisco, but more significantly, other neighborhoods may follow suit in establishing similar bans.

To the extent that these measures slow down construction, prices will continue to climb. The only hope for a real reprieve would be a general slowdown in the tech industry. And with the Fed talking about hiking interest rates, that’s a possibility. But if that happens, it’ll be like giving a drug addict one more hit. Insane prices are the only thing that’s changing land use policy. If that impetus goes away, we’ll slide right back into blissful complacency. And it’ll just be a matter of time till the economy heats up again and we’re right back where we started.

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Travel Update: I’m Going To Cubahttp://marketurbanism.com/2015/05/29/travel-update-im-going-to-cuba/ http://marketurbanism.com/2015/05/29/travel-update-im-going-to-cuba/#comments Sat, 30 May 2015 01:13:59 +0000 http://marketurbanism.com/?p=4659 Miami, FL

1. My two Forbes articles this week included one about how inclusionary zoning has replaced rent control as urban America’s preferred housing price control; and one about how San Francisco’s housing prices are causing creative class exile.

2. There was another interesting recent housing story in San Francisco, when city supervisor David Campos–who represents the Mission District–proposed putting a 2-year moratorium on market-rate housing in the gentrifying neighborhood. While activists support the measure, even San Francisco’s establishment liberals have deemed it counterproductive. Here are formal oppositions published by the San Francisco Chronicle; from the local Democratic Party; and by supervisor Scott Wiener, a renowned affordability champion. Wiener includes in his Medium op-ed a statement that will hopefully one day be read, contemplated, and internalized by every anti-gentrification activist in America:

New residents aren’t moving to the Mission because of new development; rather, they’re moving to the Mission because of the Mission, amazing as it is. People who want to move to the Mission will move there with or without new development. And, without additional housing, they will put more and more pressure on the existing housing stock. Evictions and displacement are the inevitable result of that pressure.

To counter, here’s an editorial by Campos criticizing Wiener for “channeling the ghost of Ronald Reagan.”

3. And yes, you read that headline right–I’m going to Cuba! I’d been flirting with the idea ever since President Obama normalized relations with the nation (just earlier today he removed it from the state sponsors of terrorism list), and being in Miami seemed like an excuse to go. I’m slated to leave early Sunday and return Thursday, June 4.

Traveling to Cuba is still not easy, much less available to the broader U.S. A person must fit one of 12 categories, and they are rather narrow (I qualified as a journalist, and am expected to keep a record of my activities). Few U.S. airlines offer Cuba flights, and the ones that do leave only from select cities. While numerous Cuba travel agencies exist here in Miami, some don’t have a single staffer who speaks English, suggesting that they cater more to Cuban-Americans connecting with their families than gringos. But I wanted to see a country in the final throes of its half-century stagnation, before it inevitably changes from increased tourism and new-found access to U.S. banks. I plan to visit las ciudades de Havana, Trinidad y Santiago de Cuba, while exploring much of the countryside in-between.

I realize that much has been written about the effects of Cuba’s Communist system on its living standards. Two particularly illuminating articles I found were by New York Times columnist Roger Cohen and global traveler Michael Totten, who described what life is like for the many citizens who live on their allotted $20/month. Other journalists have taken a more positive tone by noting that Cuba has full literacy, minimal homelessness, and a relatively efficient health care system. But I’ll suspend judgement until arriving, and don’t know how much I’ll add to the conversation anyway, since I’m only there for 4 days.

One under-represented thing, though, that I’d like to explore is the nation’s reportedly vibrant street culture–and the causes for it. As PlacesJournal noted in an extended essay, Cuba’s urban neighborhoods have not been disrupted in the last half-century by excessive urban renewal, automobile through-traffic, or change in general. This has prevented modernization, but helped preserve their historic character and walkability. Such neighborhoods may be poor, but, as I’ve read and heard from Miami locals, are clean, safe, and full of people, music, and well-defined civic spaces. One doesn’t have to embrace Cuba’s overall political structure to acknowledge that there are probably still design lessons to be learned from its cities, and I’m looking forward to seeing what those are. Hopefully I can report back next week with plenty of photos.

 

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