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Learning from Astor Street

One common argument against mixing housing types and densities is that if housing type A (for example, townhouses or single-family homes) is mixed with housing type B (for example, condos), the neighborhood will somehow be “ruined” for residents of the less dense housing types. Last week, my new wife and I visited Chicago for our honeymoon. The most interesting street we visited, on Chicago’s wealthy Gold Coast, was Astor Street, just a block from high-rise dominated Lake Shore Drive. What is unusual about Astor Street is its mix of housing types. Although this street is dominated by large attached houses, it also has a few tall-ish buildings next to the townhouses, such as the 25-floor condo building at 1300 North Astor, the 20-story Astor Villas at 1430 North Astor, and the 27-story Park Astor condos at 1515 North Astor. Despite the tall buildings, this street felt like a quiet, beautiful, tree-shaded urban street. And the real estate market seems to agree: recent Zillow ads show a single-family house on Astor Street selling for over $2 million, and another one selling for over $3 million. By contrast, the average house in Astor Street’s zip code (60610) is valued at less than half a million dollars, and only 14.6 percent are worth over $1 million. Clearly, multifamily housing has not “ruined” Astor Street.

The Low-Key Housing Politics of Spider-Man

With Spider-Man: Far From Home hitting theaters earlier this month, the Marvel Cinematic Universe has taken one of the series’ biggest risks yet: pulling Spider-Man out of New York City. The gravity of this decision is baked into the film’s title — with good reason. More than any other Marvel superhero, Spider-Man is a uniquely urban superhero. Of course, his iconic powers — web-slinging and wall-crawling — depend on a forest of skyscrapers. But on a deeper level, Parker’s problems are quintessentially urban. Repeatedly, Peter encounters the issue of housing affordability, a recurring challenge for him and Aunt May in the comics and a key issue in the Sam Rami films from 2002 to 2007. In the Rami trilogy, Uncle Ben’s death pushes the family’s already-precarious financial situation into a monetary melee. We witness Aunt May desperately attempt to refinance, though she ultimately faces foreclosure and eviction.  Rami’s Spider-Man (2002) stays true to the comics in putting Peter Parker’s family in Forest Hills — a well-heeled Queens neighborhood, depicted in the films as lower-middle class. Their home was assessed this year at approximately $850,000, which would entail a monthly mortgage payment of roughly $3,700 after a hefty downpayment. To make this affordable, Uncle Ben and Aunt May need to somehow make $135,000, a year before property taxes and upkeep. If that’s a stretch for a professional electrician, it’s impossible for a retired homemaker. The frustrations surrounding Aunt May’s eviction are an important part of Parker’s decision to give up being Spider-Man in the second film, and it’s easy to see why: May’s options post-eviction aren’t pretty. Assuming a standard Social Security check and a payout from Uncle Ben’s death, Aunt May really only has about $1,000 to spend on rent. Rising rents will make it tough to find a decent […]

The Truth About “Red Vienna”: Its a YIMBY Paradise!

One common leftist argument against new housing is the “Red Vienna” argument: the claim that housing can only be affordable in places where the government dominates the housing market. Supporters of this claim like to mention Vienna, where (according to progressive lore) Big Brother builds lots and lots of super-affordable public housing, while the Big Bad Market is not involved. But a recent article about Vienna states that “one-third of the 13,000 new apartments built in Vienna each year are funded by the government and commissioned by the housing associations.” This means that about 8700 apartments are built every year by the private sector. In a city with 1.8 million people, that’s a lot. By contrast, in Manhattan (which has a comparable population) about 3000 housing units were built between 2014 and 2017- far less than Vienna. Even in Houston (which has a slightly bigger population) only 14,653 housing units of all types, or about 3700 per year, were built between 2014 and 2017. In other words, even if not a single unit of public housing had not been built, Vienna would still have built more than twice as many units as high-growth Houston, and about ten times as many as Manhattan. Vienna’s affordability is thus an argument in favor of lots more housing, not an argument in favor of NIMBYism.

Interview with Onésimo Flores, Founder of Jetty

In this interview I talk to Onésimo Flores, Founder of Jetty, a (sort-of) microtransit company from Mexico City. Marcos Schlickmann: Thank you for participating in this interview. Please introduce yourself and talk a little bit about how Jetty came to life and what is your idea behind this project. Onésimo Flores: I’m Onésimo Flores, the founder of Jetty.  I have a PhD in urban planning from MIT and a master’s in public policy from Harvard. I graduated in Law from the Universidad Iberoamericana, Mexico. The idea of Jetty came about by contrasting a conflicting approach to regulation in public transportation in a place like Mexico. On one end of the spectrum, a you have a very tightly-regulated, low-quality, scarce public transport service, most of it operated by private, informal, artisanal, minibus operators, and on the other hand, ride-hailing apps, taxi apps, that had emerged not only Uber but several others, that enjoy a lot of regulatory leeway in terms of freedom to set their fares, to operate anywhere, to open the market to private individuals with spare time and spare vehicles. So, in that context, the hypothesis was that, in a way applications like Uber have made it possible to standardize a level of service: people can know what to expect, know that somebody will be held accountable if something goes wrong, know the basics of the trip, the fare and the rated quality of the driver. The level of information the passengers will get is standardized no matter who the supplier of the services is. So, the hypothesis in Jetty is that we can do something similar for collective transportation without relinquishing the economies of scale of using larger vehicles, but we do give the public access to the service improvements made possible by technology. MS: Talk a little […]

The Carnegie Library Apple Store is Fine

The Carnegie Library in Washington, D.C. is now home to the world’s newest Apple Store following an expensive rehabilitation funded by the retailer. Originally built as a public library in 1903, it reopened its doors to the public on May 11, 2019 following decades of disuse, neglect, and a slew of failed attempts to repurpose the building as a museum. While some are fretting that a historic building owned by the city has been turned over to commercial use, we can rest assured that the Historical Society of Washington, D.C., the current leaseholder to the building, made the right decision. More than fifteen years ago, Niskanen Center founder Jerry Taylor and his then-colleague at the Cato Institute, Peter Van Doren, had a novel proposal to solve an intractable political dispute about the Arctic National Wildlife Refuge (ANWR), a wilderness area in northeast Alaska that is home to large populations of wildlife and vast, untapped petroleum deposits. In the early 2000s, the Bush Administration proposed opening the refuge to oil drilling in the wake of rising crude oil prices. Naturally, the usual suspects came out in favor or against the proposal. Environmentalist detractors worried that a pristine wildlife area could be ruined by any drilling and the possibility of leaky pipelines. Advocates, on the other hand, claimed only a tiny sliver of land was needed to extract billions of dollars of oil and the refuge would remain largely untouched. The benefits of oil drilling, proponents argued, would be widely shared because oil is used in so many parts of economy. Taylor and Van Doren’s proposal was simple: the federal government should give ANWR, in its entirety, to the Sierra Club or some other environmentalist group, including full rights to use or transfer the land as they see fit. While the Sierra […]

Market Urbanism MUsings May 11, 2019

1. Recently at Market Urbanism A great new paper on how government fights walking by Michael Lewyn Many readers of this blog know that government subsidizes driving- not just through road spending, but also through land use regulations that make walking and transit use inconvenient and dangerous.  Gregory Shill, a professor at the University of Iowa College of Law, has written an excellent new paper that goes even further. Why Japanese Zoning More Liberal Than US Zoning by Nolan Gray Why did U.S. zoning end up so much more restrictive than Japanese zoning? To frame the puzzle a different way, why did U.S. and Japanese land-use regulation—which both started off quite liberal—diverge so dramatically in terms of restrictiveness? Democratic Candidates on Housing by Jeff Fong Anti poverty programs have been taking center stage as the 2020 Democratic primary heats up. Proposals from Kamala Harris and Corey Booker target high housing costs for renters and make for an interesting set of ideas. These plans, however, have major shortcomings and fail to address the fundamental problem of supply constraints in high cost housing markets. Against Spot Text Amendments by Nolan Gray As zoning has become more restrictive over time, the need for “safety valve” mechanisms—which give developers flexibility within standard zoning rules—has grown exponentially. What Should I Read to Understand Zoning? by Nolan Gray We are blessed and cursed to live in times in which most smart people are expected to have an opinion on zoning. Blessed, in that zoning is arguably the single most important institution shaping where we live, how we move around, and who we meet. Cursed, in that zoning is notoriously obtuse, with zoning ordinances often cloaked in jargon, hidden away in PDFs, and completely different city-to-city. Homeownership and the Warren Housing Bill by Emily Hamilton  Elizabeth Warren’s housing bill has received a lot of love from those who favor […]

The Storper paper: not exactly a bombshell

Some commentators are slightly agog over an academic paper by Andres Rodrieguz-Pose and Michael Storper; Richard Florida writes that they shows that ” the effect of [housing] supply has been blown far out of proportion. ” Most of this paper isn’t really about the effect of housing supply on prices at all. Instead, the first 80 percent of the paper seems to argue that it makes no sense for low-skilled domestic workers to live in cities, because “Several decades ago mid-skilled work was clustered in big cities, while low-skilled work was most prevalent in the countryside. No longer; the mid-skilled jobs that remain are more likely to be found in rural areas than in urban ones.” (p. 20). The authors’ attack on upzoning is in the last few pages, and is based on broad, sweeping generalizations rather than actual data. First, they say that upzoning “would very likely involve replacing older and lower-quality housing stock in areas highly favoured by the market, effectively decreasing housing supply for lower income households in desirable areas.” (p. 30). They cite no source or data for this assertion- just pure conjecture. What’s wrong with their claim? First, such gentrification happens without upzoning; for example, in Chicago’s Lincoln Park, gentrification occurred through renovation of existing structures, rather than new, taller buildings- and of course places where new construction is politically difficult (such as San Francisco and Manhattan) are notorious for gentrification. Second, it assumes that new housing inevitably replaces older housing, rather than, say, vacant lots- an obvious overgeneralization.. Second, they rely on the “but we’re already building new housing!” argument. They cite a paywalled newpaper article to support this statement: “rents are now declining for the highest earners while continuing to increase for the poorest in San Francisco, Atlanta, Nashville, Chicago, Philadelphia, Denver, Pittsburgh, […]

High-Rises and Street Life

One common argument against tall buildings is that they reduce street life, because the most expensive high-rises have gyms and other amenities that cause people to stay inside the buildings rather than using the street.  Because Manhattan has plenty of high-rises and plenty of street life, I have always thought this was a dumb argument. But until recently I’ve never thought of any way to prove or disprove the argument empirically- until now.  It seems to me that if high-rises were bad for street life, places with expensive high-rises would have lower Walkscores than other neighborhoods; I reason that if high-rise residents stayed inside rather than going outside, they would be surrounded by fewer businesses than low-rise neighborhoods. So do high-rises generally have lower Walkscores? Not in dense areas; for example, 432 Park Avenue, one of Manhattan’s most expensive buildings, has a Walkscore of 98.  Similarly, Boston’s Millenium Tower, a 60-story residential skyscraper, has a Walkscore of 96.  

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