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Category Economics

DC Approved 4,000 New Housing Units This Year, But Is It Enough?

Twitter tells me that earlier tonight, “not-ruling-it-out” possible future mayoral contender (and local smart growth demigod) Tommy Wells held his inaugural book club meeting; the book discussed was Ed Glaeser’s Triumph of the City. DC’s chief planner Harriet Tregoning was also there, and while she’s been relatively good to the cause of density in DC, the kinds of people who would show up to a Tommy Wells Triumph of the City book club probably want a bit more out of her, so I presume (again, I wasn’t there) that she ended up being one of the least radical people there. One person tweeted regarding the book club: “Building permit data says DC on track for 4,000 new housing units this year,” which I presume was a statement made by someone defending DC’s supply expansion efforts….

NYC Officials Take Notice of Astronomical Subway Construction Costs

New York City’s subway lines – the engines that keep the city’s real estate market moving – are notoriously expensive to build. Tunneling projects in New York routinely clock in at five to ten times the cost of their Asian and European counterparts, putting the city’s measly 20-30% aboveground union construction premiums to shame. New York has finally restarted work on the century-in-the-making Second Avenue Subway, but MTA capital construction president Michael Horodniceanu says that anything beyond the initial Upper East Side segment “will be for our children or grandchildren.” And Bloomberg’s 7 train to Secaucus, or those fabled Utica and Nostrand extensions?…

Cities and the Market Process: Part 3

This series looks at some of the ways that people organize themselves to live alongside each other in cities. Part 1 looks at inherent problems with top-down planning, and Part 2 looks at the costs of local governments sanctioning collective choice. From this negative start, I’d like to turn to some of the advantages that make humans well-adapted to living in the urban environment, starting with some of Adam Smith’s insight in The Theory of Moral Sentiments. Economists are often criticized, sometimes rightly so, for viewing people as perfectly rational and narrowly self-interested. Of course we are not. We all have unique motivators and preferences, which is what allows for the division of labor that we see in cities. One of the most important motivations, or “moral sentiments,” that we have comes in our desire for others to fare well and be happy. As Smith puts it: Upon these two different efforts, upon that of the spectator to enter into the sentiments of the person principally concerned, and upon that of the person principally concerned, to bring down his emotions to what the spectator can go along with, are founded two different sets of virtues. The soft, the gentle, the amiable virtues, the virtues of candid condescension and indulgent humanity, are founded upon the one: the great, the awful and respectable, the virtues of self-denial, of self-government, of that command of the passions which subjects all the movements of our nature to what our own dignity and honour, and the propriety of our own conduct require, take their origin from the other. This innate desire that most people have to relate to and be respected by those in their community makes people well-suited to city living. As Smith describes it, we generally seek approval from the “man within the breast,” […]

The Progressive Reaction Against NYC’s First Subway

nycsubway.org has an amazing trove of transit history, and I just got done reading “The Impact of the IRT on New York City” by Clifton Hood, on the effects of New York‘s first subway rapid transit line, first opened in 1904. There’s so much in it to recommend, but one of the interesting themes is the Progressive reaction to the real estate development that the line (he mostly deals with the IRT Broadway Line) sparked. Progressives were originally big supporters of the subway, on the grounds that it would encourage suburbanization and decentralization, putting people in their own homes, which they believed imbued better moral character than rented accommodations in tenements and large “apartment houses….

Meet Me At The Corner Of Mises & Jane Jacobs!

I'On Village, South Carolina About three years ago Adam wrote about the the story of I’On Village, a New Urbanist development build about a decade ago five miles outside of Charleston, and the difficulties that Vince Graham faced trying to build it. For one, the project had to be scaled down in some pretty significant ways: [The developers] worked to decipher what kind of plan would be supported by those council members who voted against the application….

New York City Planners: Pack ‘Em In!

Do New Yorkers need to cram into cubbyholes to bring prices down? At a recent conference organized by the Citizens Housing and Planning Council (covered by the New York Times, Crain’s, and City Limits), we heard a familiar refrain about New York City’s building stock: regulations have not kept up with the times, and there is a shortage of affordable units available for single adults, in particular. The result is widespread illegal conversions and dwellings – anywhere from 100,000 to 500,000, depending on who you ask – which, while mostly tolerated, are obviously not ideal, especially with regards to fire safety….

Why DC’s Architecture Is So Boring

An Eric Colbert special, everywhere and anywhere in DC I’m a little behind on posting this, but Lydia DePillis at Washington City Paper did a great profile a week or so ago of DC architect Eric Colbert, whose buildings’ unifying features seems to be blandness. There are a lot of people out there who dismiss all modern architecture as boring out of hand, and in my opinion undeservedly, but in this case Lydia has a point. He gets a lot of work in DC, and answering the question of why his boring style is so pervasive in Washington, she discusses some of familiar themes, DC’s restrictive height limit and the usual developer conservativeness among them….

The Day the Engineers Turned Against California HSR

No, but really – fly California. On Tuesday, the California High-Speed Rail Authority laid down their cards in the form of a new “business plan” for the proposed line, and its cards are not good – the system is now projected to cost $98 billion in year-of-expenditure dollars, which, taking into account inflation, is about twice the $33 billion figure given in 2008.* But despite the price hike, not many people’s opinions on the project seem to have changed – those who were for it are still for it, while those opposed are even more set against it….

Cities and the Market Process: Part 1

In a post about the tendency for emergent urbanists to promote the idea of cities having a single equilibrium, Alon Levy recently wrote that collective choice is the best manner for determining urban form. Many urbanists accept that some of the top-down regulations that limit density or use are detrimental to cities, but they often stop short of suggesting that land use regulation should be abolished and transportation privatized, which I will support here with arguments based in Austrian economics. This post does not get to a critique of the collective choice that Alon supports; later entries in this market process series will address both the problems of creating urban policy through collective choice, and some of the institutions that have emerged within civil society that are essential to cities and their residents. The cohort of economists and urbanists who support the elimination of land use regulation is small because cities present all of the problems that neoclassical and Keynesian economists describe as market failures, including externalities, high transaction costs involved in Coasean bargaining, non-excludable goods, etc. However, I believe that emergent solutions solve these problems more effectively than either central planning or collective decision making that becomes law, and the failed and inefficient government projects that urbanist bloggers write about everyday suggest that government failure is no trivial concern. The first reason that regulation is a poor tool to for determining urban form comes from Friedrich Hayek. He clearly identified the calculation problem inherent in central planning: the information necessary to coordinate markets (including land use markets) is held by individuals with “particular knowledge of time and place.” Even assuming that urban planners are benevolent and seek to provide the best outcomes for their communities, they could never compile the knowledge necessary to determine what those outcomes are. Jane […]

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