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Category Development

Book review: Last Harvest

In the standard urban growth model, a circular city lies in a featureless agricultural plain. When the price of land at the edge of the city rises above the value of agricultural land, “land conversion” occurs. In the real world, we’re more likely to call it “development” and it is, of course, a lot more complicated. Simplification is valuable and gives us more general insights. But is greenfield development complicated in ways that are interesting and might change the results of urban economic models? Or that might change the ways we think or talk about development policy? Witold Rybczynski’s 2007 book Last Harvest helps answer these questions. It tracks a specific cornfield in Londonderry, Pennsylvania, from the retirement of the last farmer to the moving boxes of the first resident. With its zoomed-in lens, Last Harvest answers (or at least raises) lots of questions that are interesting but not especially important in the grand scheme: Why do expensive homes mix some top-line finishes with cheap, plasticky ones? Why do anti-development communities permit any subdivisions at all? What is ‘community sewerage,’ and how does it work? Exactly who thinks it’s attractive to have brick and vinyl cladding on the same house? What’s it like to buy a house from a national homebuilder? Does Chester County really produce forty percent of America’s mushrooms? The Stack Rybczynski does not use this term, but what he describes is part of what I call the “stack” of housing supply. One of the central facts of development is that it relies on a very long chain of industries and professions, each of which relies on every other part of the stack doing its job. If one part is left undone, nobody gets paid: ‘Without a water contract, we can’t get a permit for the water mains, […]

California Housing Reform: 2021 Edition

Current events being what they are, I’m happy to be writing about something positive. Once again, we’re getting an ambitious housing reform package in the California legislature. The various bills focus on removing obstacles to new housing and are a sign of the growing momentum Yimby activists have built up over the last few years.  The permitting process for new housing in California is the bureaucratic equivalent of American Ninja Warrior. Localities use restrictive zoning and discretionary approvals to block new construction. When faced with state level oversight, California cities have historically leaned on bad faith requirements to ensure theoretically permitted and approved housing remains commercially infeasible. And as if that weren’t enough, “concerned citizens” can use the ever popular CEQA lawsuit to kill projects themselves (independent of direct involvements from electeds).  This year’s housing package helps reduce the difficulty of getting a project through the gauntlet. Still an obstacle course, but with a few less water hazards and a slightly shorter warped wall.  Still suboptimal, but directionally correct in a very big way. There are several pro-supply bills in the package, but two are especially worth calling out.  SB 6 allows for residential development in areas currently zoned for commercial office or retail space. The bill would also create opportunities for streamlined approval if some portion of a proposed project site has been vacant. This last bit seems to be intended to encourage redevelopment of dead malls and similar retail heavy areas that could be better put to use as housing.  SB 9 allows for duplexes and lot splits in single family zones by right. This type of missing middle housing could – at least in certain parts of California – be new housing that’s less expensive then existing stock; that’s a great outcome from a policy perspective, but […]

Stuck in the (Missing) Middle

Everybody loves missing middle housing! What’s not to like? It consists of neighborly, often attractive homes that fit in equally well in Rumford, Maine, and Queens, New York. Missing middle housing types have character and personality. They’re often affordable and vintage. Daniel Parolek’s new book Missing Middle Housing expounds the concept (which he coined), collecting in one place the arguments for missing middle housing, many examples, and several emblematic case studies. The entire book is beautifully illustrated and enjoyable to read, despite its ample technical details. Missing Middle Housing is targeted to people who know how to read a pro forma and a zoning code. But there’s interest beyond the home-building industry. Several states and cities have rewritten codes to encourage middle housing. Portland’s RIP draws heavily on Parolek’s ideas. In Maryland, I testified warmly about the benefits of middle housing. I came to Missing Middle Housing with very favorable views of missing middle housing. Now I’m not so sure. Parolek’s case for middle housing relies so much on aesthetics and regulation that it makes me wonder whether middle housing deserves all the love it’s currently getting from the YIMBY movement. Can middle housing compete? Throughout the book, Parolek makes the case that missing middle construction cannot compete, financially, with either single-family or multifamily construction. That’s quite contrary to what I’ve read elsewhere. In a chapter called “The Missing Middle Housing Affordability Solution”, Daniel Parolek and chapter co-author Karen Parolek write: The economic benefits of Missing Middle Housing are only possible in areas where land is not already zoned for large, multiunit buildings, which will drive land prices up to the point that Missing Middle Housing will not be economically viable. (p. 56) On page 81, we learn, It’s a fact that building larger buildings, say a 125-150 unit apartment […]

Are Dollar Stores Wiping Out Grocery Stores?

I had always thought dollar stores were a nice thing to have in an urban neighborhood, but recently they have become controversial. Some cities have tried to limit their growth, based on the theory that “they impede opportunities for grocery stores and other businesses to take root and grow.” This is supposedly a terrible thing because real grocery stores sell fresh vegetables and dollar stores don’t. In other words, anti-dollar store groups believe that people won’t buy nutritious food without state coercion, and that government must therefore drive competing providers of food out of business. Recently, I was at the train stop for Central Islip, Long Island, a low-income, heavily Hispanic community 40 miles from Manhattan. There is a Family Dollar almost across the street from the train stop, and guess what is right next to it, in the very same strip mall? You guessed it- a grocery store! * It seems to me that dollar stores and traditional grocery stores might actually be complementary, rather than competing uses. You can get a lot of non-food items and a few quick snacks at a dollar store, and then get a more varied food selection at the grocery next door. So it seems to me that the widespread villification of dollar stores may not be completely fact-based. Having said that, I’m not ready to say that my theory is right 100 percent of the time. Perhaps in a very small, isolated town (or its urban equivalent), there might be just enough buying power to support a grocery store or a dollar store, but not both. But I suspect that this is a pretty rare scenario in urban neighborhoods. *If you want to see what I saw, go on Google Street View to 54 and 58 E. Suffolk Avenue in Central Islip.

Even NIMBYs should be YIMBYs

Jeremiah Moss, a New York blogger, just wrote a long article complaining about the bad habits of his new neighbors in the East Village. I suspect many, if not most readers, of his article would think: maybe we need to zone out new housing to keep out the yuppies! But it seems to me that this conclusion would be wrong. Here’s why: new buildings in the East Village are generally more expensive than old buildings.* So I suspect that if yuppies are moving into old buildings like Moss’s, it is probably because they cannot afford newer buildings, or more affluent neighborhoods like Tribeca. It logically follows that if more new buildings were allowed in Moss’s neighborhood, he would have less affluent neighbors, which presumably would make him happier. *I searched listings at streeteasy.com, and found that of about 170 pre-war one-bedrooms, 77 of them (or 45 percent) rented for less than $3000 per month. By contrast, of the 32 postwar one-bedrooms in the East Village, only 3 rent for under $3000.

“Order without Design: How Markets Shape Cities” Out Today

Alain Bertaud’s long awaited book, Order Without Design: How Markets Shape Cities, is out today. Bertaud is a senior research scholar at the NYU Marron Institute of Urban Management and former principle urban planner at the World Bank. Working through a pre-release copy over the past few weeks, I can confidently say that the book is an instant classic of the urban planning genre, and will be of significant special interest to market urbanists in particular. Rare among writers in this space, Bertaud brings an architect’s eye, an economist’s mind, and a planner’s experience to contemporary urban issues, producing a text that is theoretically enriching and practically useful. Alain and Marie-Agnes—his wife and research partner—have lived in worked in over a half-dozen cities all over the world, from Sana’a to Paris to San Salvador to Bangkok. For the reader, this means that Bertaud can speak from experience, supplementing data and theory with entertaining, real world examples and war stories. Order your copy today!

Three Lessons from Nashville’s Building Boom

Nashville has enjoyed some of the country’s fastest job growth for several years as healthcare and tech startups have made the city home. Unsurprisingly, this economic boom has coincided with a large increase in population, greater demand for real estate, and rising house prices. But Nashville’s policy environment has moderated price increases relative to what many in-demand cities have experienced. Nashville policy has made it possible for housing developers to build both up and out in response to this new demand. However, an expansion of historic preservation efforts that have so far failed to prevent demographic change could stall the new housing supply that has maintained the city’s relative affordability. Nashville’s experience offers three lessons for other cities: 1. Legalize Housing and It Will Be Built  Since 2010 the Nashville Metropolitan Statistical Area has grown by more than 400,000 residents, or 20 percent. Davidson County, home to Nashville at the center of the region, has grown by nearly 65,000 people, or 10 percent. Like other Southern cities, its easy to build new suburban housing in the Nashville region, and most of this population growth has been accommodated by building out. What’s unusual is that Nashville is also accommodating significant infill. In 2010 the city enacted a downtown rezoning. It eliminated parking requirements and increased by-right height limits. The new code is essentially a form-based code. Nearly all uses except for industrial are allowed in the center city. Dozens of new office, hotel, and residential towers have delivered since the new code was implemented, and many more are under construction. Since the new code has been in place, population in the two census tracts affected by upzoning has grown from about 7,500 to about 10,000. Forthcoming research from my colleague Salim Furth shows that Nashville’s recent low-density growth has been comparable to what we’d expect […]

High Rents: Are Construction Costs the Culprit?

(cross-posted from planetizen.com) I have argued numerous times on Planetizen that increased housing supply would reduce rents. I recently read one counterargument that I had not fully addressed before: the claim that no amount of new housing will ever bring down urban rents because housing in high-cost, high-wage cities is expensive to build.* This argument rests on two assumptions: (1) that construction costs are the primary reason some cities are more expensive than others, and (2) if new housing is expensive, the median citywide rent will be equally expensive. I find neither assumption to be persuasive. Admittedly, expensive cities do tend to have higher construction costs than more affordable costs—but this gap is far more modest than the gap in housing costs between high-cost and low-cost cities. For example, a study by the design firm EVStudio showed that the construction costs for a small apartment building in New York City were only about 30 percent higher than the costs of a similar building in Kansas City ($232 per square feet in New York, $181 in Kansas City). But rents in New York are far more than 30 percent higher; I pay about $5 per square foot for my Manhattan apartment, but paid just over $1 per square foot for a roughly comparable apartment in Kansas City (i.e., a doorman building in a fashionable intown neighborhood). Similarly, the Lincoln Institute’s land price database reveals that regional differences in construction costs lag behind differences in land costs: for example, construction costs in San Francisco are only about 60 percent higher than construction costs in Kansas City, but the median San Francisco-area house costs seven times as much due to differences in land costs. Thus, construction costs are not the main reason some cities are more expensive than others.** Moreover, the suggestion that high construction costs for new buildings mean high […]

A Guide to Urban Development [Guia de Gestão Urbana]

Caos Planejado, in conjunction with Editora BEI/ArqFuturo, recently published A Guide to Urban Development (Guia de Gestão Urbana) by Anthony Ling. The book offers best practices for urban design and although it was written for a Brazilian audience, many of its recommendations have universal applicability. For the time being, the book is only available in Portuguese, but after giving it a read through, I decided it deserved an english language review all the same. The following are some of the key ideas and recommendations. I hope you enjoy. GGU sets the stage with a broad overview of the challenges facing Brazilian cities. Rapid urbanization has put pressure on housing prices in the highest productivity areas of the fastest growing cities and car centric transportation systems are unable to scale along with the pace of urban growth. After setting the stage, GGU splits into two sections. The first makes recommendations for the regulation of private spaces, the second for the development and administration of public areas. Reforming Regulation Section one will be familiar territory for any regular MU reader. GGU advocates for letting uses intermingle wherever individuals think is best. Criticism of minimum parking requirements gets its own chapter. And there’s a section a piece dedicated to streamlining permitting processes and abolishing height limits. One interesting idea is a proposal to let developers pay municipalities for the right to reduce FAR restrictions. This would allow a wider range of uses to be priced into property values and create the institutional incentives to gradually allow more intensive use of land over time. Meeting People Where They Are Particular to the Brazilian experience is a section dedicated to formalizing informal settlements, or favelas. These communities are found in every major urban center in the country and often face persistent, intergenerational poverty along with […]

You’re an Urbanist? Excellent. Why Aren’t You a Developer Yet?

  I continue to ask urbanists “why aren’t you a developer yet?” That’s a sincere and serious question. I want to recruit architects, planners, engineers and activists who consider themselves urbanists (new or otherwise) into the ranks of the small developer cohort, because I think it is the best way for urbanists to have an impact on places they care about. If you have devoted thousand of hours of study and practice to what makes a good place, why leave the construction and renovation of buildings to developers? This question becomes a bit more pointed when you recognize that many conventional developers are doing work in urban settings under duress or without much of a clue about how to make their efforts fit an urban context.  I think the typical generalist/urbanist will do a better job than whatever big development outfits are working in their city. While urbanists are working to heal the city or build better places, they should hang onto some of the buildings that get built/rebuilt along the way.  Having a modest portfolio of buildings that pay rent will help them weather the next recession. (It is really hard to make a living doing fee for service or consulting work when nothing is getting built). With those reasons in mind, we still need to have a sober and realistic grasp of what is involved for someone to become a developer, given the arena they will likely operate in.  This stuff ain’t easy. People tend to think that all real estate developers make tons of money, because some developers have.  For every major league star in the real estate game there are scores of people hustling to make a living by making their neighborhood better. I don’t know how people arrive at the amount of money they assume is made on […]

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