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What Should YIMBYs Learn From 2018?

Believe it or not, the YIMBY movement won a lot in 2018. It kicked off with January’s high of California State Senator Scott Wiener’s introduction of SB 827, which would have permitted multifamily development near transit across the state, but fell to a low after its eventual defeat in committee, invariably followed by a flurry of think pieces about how the pro-development movement had “failed.” At the time, I made the case for optimism over on Citylab, but that didn’t stop the summer lull from becoming a period of soul searching within the movement. And then, a strange thing happened: YIMBYs started winning, and winning big. In August, presidential-hopeful Senator Cory Booker released a plan to preempt exclusionary zoning using Community Development Block Grant funds, quickly followed by a similar plan from Senator Elizabeth Warren in September. Also in August, Housing and Urban Development Secretary Ben Carson unexpectedly outed himself as a YIMBY. Then, in December, things really got crazy: two major North American cities, Minneapolis and Edmonton, completely eliminated single-family zoning. States like Oregon soon started talking about doing the same. In the same month, California kicked into overdrive: San Francisco—ground zero for the YIMBY movement—scrapped minimum parking requirements altogether. State Senator Wiener introduced a newer, sharper version of SB 827. And rolling into 2019, elected officials at every level of California government—from the state’s new Democratic governor to San Diego’s Republican mayor—are singing from the YIMBY hymn sheet. All in all, it wasn’t a bad year for a movement that’s only five years old. But what really made 2018 such an unexpected success for YIMBYs? Focus on Citywide Reform Over Individual Rezonings Showing up and saying “Yes!” to individual projects that are requesting a rezoning, variance, or special permit is bread-and-butter YIMBY activism. And while YIMBYs should still […]

New York State’s Property Tax Cap

One reason for California’s high housing costs might be Proposition 13.  This law, passed by referendum in the 1970s, may discourage housing production in two significant ways. First, under Proposition 13, all housing- even vacant land- is taxed at its original purchase price rather than its current value.  By artificially capping taxes on vacant land, this part of Proposition 13 ensures that a landowner does not suffer as much from keeping land vacant as it would under another tax system. Second, by reducing local property taxes, Proposition 13 forced municipalities to rely on other sources of revenue, such as sales taxes.  Because retail shops bring in more sales tax revenue than residential uses, this law gave California towns an incentive to favor the former. * New York’s Gov. Cuomo has recently proposed a tax cut that buys popularity for state lawmakers on the backs of municipalities.  In 2011, the state passed a law to limit local governments’ property tax increases to 2 percent or the rate of inflation, whichever is lower.  This cap was originally temporary, but Cuomo now proposes to make it permanent.   A bill implementing Cuomo’s proposal was recently passed by the State Senate, but has yet to be voted on by the State Assembly.   Historically, the cap has not included high-cost New York City, but that may change.  If the cap does include New York City, will it have the same results as Proposition 13? Probably not, for two reasons.  First, the tax cap, unlike Proposition 13, does not artificially favor property purchased long ago, and thus does not discourage people from selling their property.  Second, New York State has to consent to sales tax increases, so municipalities don’t have as much of an incentive as their California counterparts to favor land uses that bring in lots […]

Any Green New Deal Must Tackle Zoning Reform

With the Democrats scrambling to come up with a legislative agenda after their November takeover of the House of Representatives, an old idea is making a comeback: a “Green New Deal.” Once the flagship issue of the Green Party, an environmental stimulus package is now a cause de celebre among the Democratic Party’s progressive wing. While it looks like the party leadership isn’t too receptive to the idea, newly-elected Representative Alexandria Ocasio-Cortez has spearheaded legislation designed to create a “Select Committee for a Green New Deal.” The mandate of the proposed committee is ambitious, possibly to a fault. At times utopian in flavor, the committee would pursue everything from reducing greenhouse gas emissions to labor law enforcement and universal health care. A recent plan from the progressive think tank Data for Progress is more disciplined, remaining focused on environmental issues, with clearer numerical targets for transitioning to renewable energy and reducing greenhouse gas emissions. Yet in all the talk about a Green New Deal, there’s a conspicuous omission that could fatally undermine efforts to reduce greenhouse gas emissions: little to no focus is placed on the way we plan urban land use. This is especially strange considering the outsized role that the way we live and travel plays in raising or lowering greenhouse gas emissions. According to the Environmental Protection Agency (EPA), transportation and electricity account for more than half of the US’ greenhouse gas emissions. As David Owen points out in his book “Green Metropolis,” city dwellers drive less, consume less electricity, and throw out less trash than their rural and suburban peers. This means that if proponents of the Green New Deal are serious about reducing carbon emissions, they will have to help more people move to cities. One possible reason for this oversight is that urban planning […]

Market Urbanism MUsings December 7th 2018

1. Recently at Market Urbanism: Two Cheers for PHIMBY by Michael Lewyn One alternative to market urbanism that has received a decent amount of press coverage is the PHIMBY (Public Housing In My Back Yard) movement.  PHIMBYs (or at least the most extreme PHIMBYs) believe that market-rate housing fails to reduce housing costs and may even lead to gentrification and displacement.  Their alternative is to build massive amounts of public housing. New and Noteworthy: Randy Shaw’s Generation Priced Out by Michael Lewyn In Generation Priced Out, housing activist Randy Shaw writes a book about the rent crisis for non-experts.  Shaw’s point of view is that of a left-wing YIMBY: that is, he favors allowing lots of new market-rate housing, but also favors a variety of less market-oriented policies to prevent displacement of low-income renters (such as rent control, and more generally policies that make it difficult to evict tenants) “Order without Design: How Markets Shape Cities” Out Today by Nolan Gray 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. “Order Without Design”, a new guide to urban planning by Anthony Ling This book is an attack on current city planning and rebuilding. This is how Jane Jacobs opened her 1961 classic “The Death and Life of Great American Cities”. It wouldn’t be an inappropriate opener for Alain Bertaud’s upcoming “Order Without Design”. 2. Also by Market Urbanists: Nolan Gray‘s viral tweet critiquing local control of land use: Local control is America’s weirdest fetish. Every single one of these photos shows a room full of people—in no way representative of their respective communities—agitating against affordable, multifamily, and/or mixed-use housing. Every single one was taken in 2018. pic.twitter.com/4bW2aDwPDI — Nolan Gray (@mnolangray) December 2, […]

“Order Without Design”, a new guide to urban planning

This book is an attack on current city planning and rebuilding. This is how Jane Jacobs opened her 1961 classic “The Death and Life of Great American Cities”. It wouldn’t be an inappropriate opener for Alain Bertaud’s upcoming “Order Without Design”. While Jacobs was an observer of how cities work and a contributor to new concepts in urban economics, Bertaud goes a step further. His book brings economic logic and quantitative analysis to guide urban planning decision-making, colored by a hands-on, 55-year career as a global urban planner. His conclusion? The urban planning practice is oblivious to the economic effects of their decisions, and eventually creates unintended consequences to urban development. His goal with this book is to bring economics as an important tool to the urban planning profession, and to bring economists closer to the practical challenge of working with cities. Maybe you have not heard about Alain Bertaud before: at the time I am writing this article, he has only a few articles published online, no Wikipedia page or Twitter account, and some lectures on YouTube – and nothing close to a TED talk. The reason is that instead of working on becoming a public figure, Bertaud was actually doing work on the ground, helping cities in all continents tackle their urban development problems. His tremendous experience makes this book that delves into urban economics surprisingly exhilarating. As an example, Bertaud shows a 1970 photo from when he was tracing new streets in Yemen using a Land Rover and the help of two local assistants who look 12 years old at most, a depiction of a real-life Indiana Jones of urban planning. In this book, mainstream urban planning “buzzwords” such as Transit-Oriented Development, Inclusionary Zoning, Smart Growth and Urban Growth Boundaries are challenged with economic analysis, grounded on […]

“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!

New and Noteworthy: Randy Shaw’s Generation Priced Out

In Generation Priced Out, housing activist Randy Shaw writes a book about the rent crisis for non-experts.  Shaw’s point of view is that of a left-wing YIMBY: that is, he favors allowing lots of new market-rate housing, but also favors a variety of less market-oriented policies to prevent displacement of low-income renters (such as rent control, and more generally policies that make it difficult to evict tenants). What I liked most about this breezy, easy-to-read book is that it rebuts a wide variety of anti-housing arguments. For example, NIMBYs sometimes argue that new housing displaces affordable older housing. But Shaw shows that NIMBY homeowners oppose apartment buildings even when this is not the case; apartments built on parking lots and vacant lots are often controversial. For example, in Venice, California, NIMBYs opposed “building 136 supportive housing units for low-income people on an unsightly city-owned parking lot.” NIMBYs may argue that new housing will always be for the rich. But Shaw cites numerous examples of NIMBYs opposing public housing for the poor as well as market-rate housing for the middle and upper classes. NIMBYs also claim that they seek to protect their communities should be protected against skyscrapers or other unusually large buildings. But Shaw shows that NIMBYs have fought even the smallest apartment buildings. For example, in Berkeley, NIMBYs persuaded the city to reject a developer’s plan to add only three houses to a lot. On the other hand, market urbanists may disagree with Shaw’s advocacy of a wide variety of policies that he refers to as “tenant protections” such as rent control, inclusionary zoning, increased code enforcement, and generally making it difficult to evict tenants.   All of these policies make it more difficult and/or expensive to be a landlord, thus creating costs that may either be passed on to tenants […]

Two Cheers for PHIMBY

One alternative to market urbanism that has received a decent amount of press coverage is the PHIMBY (Public Housing In My Back Yard) movement.  PHIMBYs (or at least the most extreme PHIMBYs) believe that market-rate housing fails to reduce housing costs and may even lead to gentrification and displacement.  Their alternative is to build massive amounts of public housing. On the positive side, PHIMBYism, if implemented, would increase the housing supply and lower housing costs, especially for the poor who would be served by new public housing.   And because there is certainly ample consumer demand for new housing, PHIMBYism would be more responsive to consumer preferences than the zoning status quo (which privileges the interests of owners of existing homes over those of renters and would-be future homeowners). But PHIMBYism is even more politically impossible than market urbanism. Market urbanists just want to eliminate zoning codes that prevent new housing from being built- a heavy lift in the political environment of recent decades.  But PHIMBYs want to override the same zoning codes, AND find the land for new public housing (which often will require liberal use of eminent domain by local governments), AND find the taxpayer money to build that new public housing, AND find the taxpayer money to maintain that housing forever.  And to make matters worse, the old leftist remedy of raising taxes on the rich might be inadequate to fund enough housing, because the same progressives who are willing to spend more money on housing also want to spend more public money on a wide variety of other priorities, thus making it difficult to find the money for housing.

Market Urbanism MUsings November 16, 2018

1. Recently at Market Urbanism: Three Policies for Making Driverless Cars Work for Cities by Emily Hamilton To avoid repeating mistakes of the past, policymakers should create rules that neither subsidize AVs nor give them carte blanche over government-owned rights-of-way. Multiple writers have pointed out that city policymakers should actively be designing policy for the driverless future, but few have spelled out concrete plans for successful driverless policy in cities. Here are three policies that urban policymakers should begin experimenting with right away in anticipation of AVs. Rent Control Makes It Harder to Vote with Your Feet by Gary Galles devolving political power to lower level governments does not serve citizens’ rights when it comes to rent control, because rent control paralyzes owners’ ability to escape imposed burdens by voting with their feet. 2. Also by Market Urbanism writers: Nolan Gray at Citylab: Voters Said No in California, but Other States Have Rent Control Battles Looming Michael Lewyn at Planetizen: The Lincoln Park Story (On Daniel Hertz new book on the gentrification of the Chicago neighborhood) Michael Lewyn at Planetizen:  New Urbanists and New Housing (about the friendly-but-troubled Market Urbanist/New Urbanist relationship) 3. At the Market Urbanism Facebook Group: Roger Valdez for Forbes: How To End The ‘Housing Crisis’ Roger Valdez for Forbes: HQ2 Frontlash Begins: The Answer Is More Housing, Some Built By Amazon Isabella Chu asks: Are people equally concerned about how to bring jobs to the once flourishing and housing rich older cities of the northeast? Anthony Ling asks: What are your thoughts on Richard Florida’s petition against Amazon HQ2’s “auction”? Via Joe Wolf: Seattle’s Most Influential People 2018: The YIMBYs Via Mirza Ahmed: Paid parking could be coming to Tacoma Dome Station Via Elizabeth Connor: Why we should pay more for parking Via Robert Wilson: At “Eleventh Hour,” City Rejects Tiny Home Village Plan to Relocate to TAXI Campus Via […]

Rent Control Makes It Harder to Vote with Your Feet

One advantage of a federal system is enabling people ill-treated by one government body to “vote with their feet” toward less abusive jurisdictions. That escape valve is one rationale for reserving some political policy determination for state rather than national government, or to local rather than state government. However, devolving political power to lower level governments does not serve citizens’ rights when it comes to rent control, because rent control paralyzes owners’ ability to escape imposed burdens by voting with their feet. Virtually every rent control story focuses on local government policies. Less well known, however, is that a majority of states actually ban or restrict local governments’ power to impose rent control. And currently, in at least four states (California, Oregon, Washington, and Illinois), those restrictions are under attack. Municipalities want power they are currently denied so they can impose rent control, supposedly to give local citizens “what they want.” That raises the question of whether rent control policy should be vested at the state level or the local level. The Good, the Bad, and the Ugly of Local Governance In many circumstances, the option to vote with your feet favors local governance. It is generally less costly to leave a small local government jurisdiction whose benefits are not worth the cost, than it is to leave a similarly bad state government jurisdiction. By the same token, it is less costly to leave a state than it is to leave the country. The enhanced exit options provided at a more local level may better protect citizens’ rights. Citizens’ ability to cheaply leave smaller jurisdictions more tightly limits government’s ability to use them as cash cows rather than serve them better. This is true of sales and income taxes, for example. Dissatisfied residents can avoid those burdens by going somewhere […]

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