Michael Lewyn

Michael Lewyn

On coexistence

One common NIMBY* argument is that new housing (or the wrong kind of new housing) will “destroy the neighborhood.” For example, one suburban town’s politicians fought zoning reform in New York by claiming that allowing multifamily housing “is a direct assault on the suburbs.“ Indeed, many people do seem to believe that apartments and houses are somehow incompatible. But I saw an interesting counterexample recently. A couple of weeks ago, I attended the CNU (Congress for the New Urbanism) conference in Charlotte, North Carolina. CNU usually sponsors neighborhood tours, and I toured Myers Park, one of the city’s richest neighborhoods. Myers Park was built in the 1910s; most blocks are dominated by large single-family houses with an enormous tree canopy. Although Myers Park is only a couple of miles from downtown Charlotte, it certainly looks suburban, if by “suburban” you mean low-density and dominated by houses. (According to city-data.com, the neighborhood density is just below 4000 people per square mile, less than that of affluent Long Island suburbs like Great Neck and Cedarhurst). And yet on one of the neighborhood’s major streets (Queens Road) apartments and houses seemed to alternate. This does not seem to have reduced home values; the average value of detached homes there is over $1 million, about four times the statewide average. Moreover, Myers Park apartments are not the sort of “missing middle” housing that is virtually indistinguishable from a house. I saw a five-story building in Myers Park: not a skyscraper but definitely not something that looks like its neighbors. Not far away is a four-story building that looks like it has a few dozen units. In other words, apartments and houses can coexist, even in places that are very suburban in many ways. *As many readers of this blog probably know, NIMBY is an […]

Another of these studies that don’t mean what some people thinks it means

A group of researchers at the Urban Institute came out with a new study on zoning and housing affordability. At governing.com, a headline about the study screamed: “Zoning Changes Have Small Impact on Housing Supply.” The Governing writer’s spin was, of course, “there’s no evidence it [upzoning] makes housing cheaper.” Governing has published numerous articles that criticize pro-supply zoning reform (one of which I critiqued on this blog), so this conclusion seems to fit in with its general point of view. The most important conclusion (to me) of the study is that it reinforces the commonsense view that lower housing supply leads to higher costs. In particular, the study concludes: “Reforms tightening regulations are associated with increased rents, potentially worsening conditions for low- and moderate-income renters.” (page 4, emphasis mine). What about upzonings (reforms that allowed more construction)? The study concludes that they “lead to a 0.8 percent increase in housing supply, on average.” (p. 28). How small is 0.8 percent? In fast-growing Harris County, Texas (Houston and its inner ring suburbs), 17 percent of the county’s 1.885 million units have been built since 2010, or about 1.7 percent per year. So 0.8 percent increase would be only five or six months’ worth of new housing in Houston- not a huge amount. Given the miniscule amount of reform the lack of impact on housing prices should hardly be surprising. In other words, if zoning allows six months’ worth of new housing (compared to the pre-reform status quo), things stop getting worse but don’t really get better. If zoning allows less housing, things get worse.

Do The Cities Need The Suburbs?

Aaron Renn has an interesting article in Governing. He suggests that even though urban cores are responsible for a significant chunk of the regional tax base, “[t]he city is dependent on the suburbs, too.” In particular, he notes that downtowns are dependent on a labor and consumer pool that extends far beyond downtown. For example, Manhattan is valuable because it is at the center of a vast region. He’s right- if you define “suburb” broadly as “everything that isn’t downtown.” A downtown that isn’t surrounded by neighborhoods is just a small downtown. But that isn’t always the way Americans understand suburbs. If you think of suburbs as “towns outside the city with a different tax base that are usually much richer than the city” , suburbs aren’t good for the city at all. Because of the growth of suburbs, cities have stunted tax bases because they have a disproportionate share of the region’s poverty, and have to pay for a disproportionate share of poverty-related government programs. By contrast, if cities resembled the cities of 100 years ago that included nearly all of their regional population, they would have stronger tax bases. (This may seem like a pipe dream to residents of northeastern cities trapped within their 1950 borders, but plenty of Sun Belt cities include huge amounts of suburb-like territory). Similarly, if you think of suburbs as “places where most people have to drive to get anywhere” their existence is not so good for the city. When suburbanites drive into the city they create pollution, and they lobby for highways that make it easier for them to create even more (while taking up land that city residents would otherwise use for businesses and housing). And when jobs move to car-dependent suburbs, that devalues city living, either because carless city residents […]

The conspiracy theory of rent increases

An article in Curbed by Lane Brown has gotten much publicity in Twitter.  The article makes two factual claims: 1) New York City is still losing households, and thus there was no reason for rents to go back up in 2021-22; and 2) landlords are conspiring to keep supply down because some apartments are still vacant. Since the city seems extremely busy to me, the first claim seemed a bit insane.  But having said that, I live in touristy Midtown Manhattan two blocks from Central Park, so my experience is probably not an argument-settler.  Brown relies on U.S. Postal Service change of address data.  Brown reasons: more people filed change of address forms to move out of the city than filed change of address forms to move into the city.  Thus, the city is continuing to lose people.  But as Brown himself admits, change-of-address data misses a lot. He admits that this data “misses [moves] to the city from abroad.”  Because of COVID-related travel bans, immigration presumably declined in 2020.  But legal immigration has rebounded to pre-COVID levels, and some of that increase may have spilled over into New York.  Change-of-address data might not include recent graduates and other people who left their parents elsewhere in the U.S. to move into the city, because those people might still be getting mail at their parents’ houses.    Such data also might not reflect people who left the city temporarily in 2020 but didn’t bother with change-of-address requests because they still picked up mail at their old homes. Most importantly,  change-of-address trends do not reflect people deciding to leave roommates and get their own apartments, at least not if people changed addresses within the city.  This means that even if population is stable or declining, the number of households looking for apartments […]

Herbert Hoover reconsidered

In recent years, I have thought of Herbert Hoover as sort of an urban policy villian, thanks to his promotion of zoning. But I recently ran across one of his memoirs in our school’s library. (Hoover’s memoirs were a multivolume set, and this particular volume related to his service as Secretary of Commerce and President). Hoover devotes less than a page zoning, noting that it was designed “to protect home owners from business and factory encroachment into residential areas.” He doesn’t mention the parts of zoning that have stunted housing supply in recent decades, such as the prohibition of apartments in homeowner zones, and minimum lot sizes. In fact, he brags about increases in housing construction when he was Secretary of Commerce, writing that “The period of 1922-28 showed an increase in detached homes and in better apartments unparalleled in American history prior to that time.” In particular, he notes that 449,000 dwelling units were built in 1921, and that this number rose to 753,000 in 1928. He claims some of the credit for this, primarily because the Commerce Department helped formulate a standard building code which he believed would be less costly than existing local codes, and because the Department sought to lower interest rates on second mortgages. One common argument against new housing is that because some new housing has been built, therefore there has been a building boom sufficient to meet demand. By contrast, Hoover was not a believer in the idea that any housing construction equals enough housing construction; he notes that “The normal minimum need of the country to replace worn-out or destroyed dwellings and to provide for increased population was estimated by the Department at 400,000-500,000 dwelling units per annum.”* *By the way you might be wondering how these numbers compare to current levels […]

YIMBYs and liberals

The pro-housing movement (more colloquially known as “YIMBYs” as an acronym for “Yes In My Back Yard” can’t catch a break from either the Left or the Right. On the Left, pundits like to “expose” them as supporters of big business. But conservatives don’t always embrace YIMBYs either; both on this page and on Planetizen I have discussed conservatives who are lukewarm about zoning reform. So are YIMBYs liberals or libertarians? I have been at least somewhat active in New York’s YIMBY group, Open New York, for the past few years. There are some center-right people in the group, but my sense is that the membership tends to be more liberal than not, and that many members are more likely than I am to support regulations designed to protect tenants from landlords. Why might this be? First, New York City is to the left of the nation, and the most expensive and highly educated parts of the city (i.e. Manhattan and Brownstone Brooklyn) are especially liberal. So naturally, any organization (other than one focused on conservative policies) is going to have more liberals than conservatives. If there were YIMBY groups in more conservative places, they would probably be less liberal-dominated. Second, Open New York tends to be dominated by people under 50; older people are more likely to have purchased houses or condos, and thus aren’t really that interested in lower rents. In recent decades, younger voters have been well to the Left of older voters. So naturally, our group leans a bit left. Third, New York is dominated by the Democratic Party, and our city’s Democrats have arguably swung to the left over the past decade or so; a group that takes conservative positions is not going to find it easy to build coalitions or to get the attention […]

An Anti-Anti-NIMBY article

During the Trump Administration, liberals sometimes criticized conservatives for being anti-anti-Trump: that is, not directly championing Trump’s more obnoxious behaviour, but devoting their energies to criticizing people who criticized him. Similarly, I’ve seen some articles recently that were anti-anti-NIMBY*: they acknowledge the need for new housing, but they try to split the difference by focusing their fire on YIMBYs.** A recent article in Governing, by Aaron Renn, is an example of this genre. Renn agrees with “building more densely in popular areas like San Francisco and the north side of Chicago, in other cities along commercial corridors, near commuter rail stops, and in suburban town centers.” Since I am all for these things, I suspect I agree with Renn far more than I disagree. But then he complains that YIMBYs “have much bigger aims” because they “want to totally eliminate any housing for exclusively single-family districts- everywhere.” What’s wrong with that? First, he says (correctly) that this would require state preemption of local zoning. And this is bad, he says, because it “would completely upend this country’s traditional approach to land use.” Here, Renn is overlooking most of American history: zoning didn’t exist for roughly the first century and a half of American history, and in some places has become far more restrictive over the last few decades. Thus, YIMBY policies are not a upending of tradition, but a return to a tradition that was destroyed in the middle and late 20th century. To the extent state preemption gives Americans more rights to build more type of housing, it would actually recreate the earlier tradition that was wiped out. Moreover, even if the status quo was a “tradition”, that doesn’t make it the best policy for the 21st century. For most of the 20th century, housing was far cheaper than […]

Would the Vienna strategy work here?

Progressives often argue that American cities should imitate Vienna’s 1920s strategy of building enormous amounts of public housing while controlling rents paid to private landlords. But a look at the birth of Vienna’s public housing system shows why that system is not easily replicated. A book supported by the city government points out that the city had an enormous housing shortage after World War I, and that the working classes “began reclaiming the land surrounding the cities” (p. 13). The city then “offered its support in the form of the redesignation and purchase of sites”. Settlers received housing in return for committing to work on the building site (id.) Obviously, this strategy cannot be replicated today; there is not a huge amount of unowned or extremely cheap land that people can just commandeer and build on, and I am not sure many people can easily become construction workers in exchange for housing. In addition, the city financed housing in ways that are not easily replicated today. The book notes that tax revenue for housing came from a 1923 “tax on housing development .. a simple working-class apartment was taxed at an average annual rate of 2.083% of its pre-war rentable value, this went up to 36.4 for luxury homes.” This might have worked in 1923 because city residents had no suburbs to flee to; however, today, city residents can easily respond to large tax increases by moving. Moreover, in 1923 there was no zoning or environmental review or “community engagement” to give Not In My Back Yard (NIMBY) activists a chance to delay or prevent housing construction. Today, even if government can afford to build new housing somewhere, the bureaucratic obstacles to such housing might made it politically impossible to build in some places, or expensive and time-consuming to build […]

Louisville and density regulation

Lydia Lo and Yonah Freemark have an interesting new paper ? EditSign on zoning in Louisville on the Urban Institute website. They point out that of the land zoned for single-family housing, 59 percent is zoned R4, requiring 9000-square-foot lots, which means no more than five houses per acre. From a transportation standpoint, this is not ideal. Even the most cursory Google search reveals that a neighborhood should have at least eight or ten units per acre to support minimal bus service. This is because if only a few people live near a bus stop, only a few people will ride the bus. So Louisville’s zoning generally prohibits density high enough for decent bus service. Similarly, from a housing supply standpoint, such zoning is not ideal either. Obviously, a development with 5 houses per acre contributes less to regional housing supply than one with 10 houses per acre. Much ink has been spilled over the evils of zoning places for nothing but single-family housing. But perhaps the density of housing is just as important as its form.

Is Tokyo comparable to U.S. cities?

In his new book Arbitrary Lines, Nolan Gray points out that Tokyo is more affordable than many U.S. cities because its zoning policies are less restrictive. One common counterargument is that because Tokyo is a population-losing city in a population-losing city, it simply lacks the demand to have high housing prices, and is thus more comparable to the low-cost Rust Belt than to high-cost cities like New York. But a short look at my World Almanac suggests otherwise. On page 730, it lists the world’s largest urban areas. It shows that between 2000 and 2021 , Tokyo actually grew by 8.4 percent. By contrast, metropolitan New York-Newark grew by 5.7 percent, and Los Angeles by 5.6 percent. In other words, Tokyo’s population actually grew more rapidly than high-cost U.S. cities.