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Market Urbanism MUsings July 22, 2016

1. This week at Market Urbanism Quantifying the effects of California zoning rules by Emily Hamilton Kip Jackson finds that California zoning rules and other land-use restrictions not only reduce the growth rate of new housing stock, but a new regulation can actually be expected to reduce the existing stock of housing by 0.2% per year. This correlation is greatest when looking only at multifamily buildings, where each new restriction results in 6% fewer apartments built annually. Tech for Housing: An Experiment in YIMBY Activism by Jeff Fong We want to make participation in land use reform a conspicuously consumable good within Bay Area tech. We want everyone within tech to identify as YIMBY by default and for that reflexive self-identification to tip the scales of everyone’s internal cost benefit analysis in favor of having an articulable opinion and taking minimal actions like sending a letter, signing a petition, or casting a vote. 2. At the Market Urbanism Facebook Group: Shanu Athiparambath wrote, Elevators are a Mass Transit System Adam Millsap wrote, Recessions Don’t Have The Same Impact On Every City Shanu Athiparambath wrote, Zoning Is Unjust, Anti-Poor & A Cause of Inequality via Tobias Cassandra Holbrook: Cash-Strapped Towns Are Un-Paving Roads They Can’t Afford to Fix via Vinay Natu, “Man behind charter cities – Paul Romer, named for Chief Economist, World Bank“ via Melanie Meharchand, “The Coastal Commission wrote a letter chiding the City of Laguna Beach for its overly-restrictive regulations on short-term rentals.” via Nolan Gray, “Hard to tell who’s more irritating here, the weirdo utopian schemers or the petty narrow-minded NIMBYs:” A Mormon Tycoon Wants to Build Joseph Smith’s Mega-Utopia in Vermont via Roger Valdez: Renting in Seattle? City could put a cap on your move-in fees via Matt Robare:  The Tyranny of Free Parking via Jake Thomas: Housing […]

Market Urbanism MUsings July 15, 2016

1. This week at Market Urbanism Nick Zaiac contributed his first Market Urbanism piece: The Cato Institute Goes After Arbitrary Historic Preservation Laws between municipalities they can vary, depending on the precedents set by different circuit courts. Now the Cato Institute, a libertarian Washington think tank, is filing a brief that aims to bring consistency to these laws nationwide. Your Town Is A Financial Timebomb by Johnny Sanphilippo: Do your best Ross Perot imitation and say the words, “sucking sound.” The primary difference between the older development pattern and the stuff that’s being built today has to do with the ratio of public investment vs. private value. Downtown and the adjacent residential areas are mostly small-scale, compact, multi-story buildings with a minimum amount of roads, pipes, and wires connecting them. The new stuff is overwhelmingly huge roads, attenuated water and sewer lines, endless cables and a tremendous amount of surface parking and grass. 2. Where’s Scott? Scott Beyer spent his first week in Austin, and this weekend will visit the city’s northern suburbs, including Cedar Park, Round Rock and Georgetown. His Forbes article this week was about how Miami’s Parking Deregulation Will Reduce Housing Costs While Frey was unsure yet about what kind of rents the building would command, he estimated that building structured parking–in this case 12 spaces, under the previous regulations–would have cost $300,000, or $25,000 per space. This, he said, would have added roughly $330 per month to average rents 3. At the Market Urbanism Facebook Group: Sandy Ikeda spoke about Jane Jacob’s legacy at the Museum of Eldridge Street alongside Mindy Fullilove and Ron Schiffman.  Sandy asked the MU group for some clarification on statements made at the event by Ron Schiffman, an urban affairs scholar at the Pratt Institute.  After some interesting dialogue, Sandy concludes Schiffman likely misused terms. David […]

Your Town Is A Financial Timebomb

I keep up with the reports and journalists proclaiming that America’s suburbs are thriving and will continue to do so forever. Yet I keep scratching my head since these depictions are in conflict with what I keep seeing on the ground as I travel around the country. The folks who declare the permanent triumph of suburbia must live in the prosperous enclaves near the lake and golf course, not the poorly aging subdivisions that are rapidly losing value and becoming reservoirs for the downwardly mobile former middle class. There’s absolutely nothing wrong with any of these homes, but here they are boarded up as the entire neighborhood slowly slides into decline. If the 1950’s subdivisions are looking dogeared you should check out the older neighborhoods from the early twentieth century. They’ve been neglected even longer and the collective deferred maintenance shows. I checked the real estate listings in this Georgia town and many of these homes can be bought for as little as $20,000. The average price seems to be closer to $40,000 or $50,000. Here’s one of the problems. This town has enjoyed a suburban building boom for the last few decades. These new homes are part of one of the better new communities being built on the far edge of town. These are desirable places to live and people who can afford to move here do so. Homes here are offered for between $350,000 and $500,000. But this region has a steady population. The number of people in the area has been increasing very slowly even as the number of new homes and commercial buildings continues to ramp up at a heady pace. There’s a direct connection between the impoverishment of the empty homes in the older parts of town and these new developments way out on the […]

Market Urbanism MUsings July 1, 2016

1. This week at Market Urbanism Do The Rich Cause High Rents? by Michael Lewyn One common argument against building new housing is that new construction will never reduce housing costs, because the influx of ultra-rich people into high-cost cities creates an insatiable level of demand. ReasonTV on SF’s YIMBY Movement (a video by ReasonTV) Have you ever had the experience of trying to stuff a lot of stuff in the suitcase? Have you ever gone to a party and seen that the pizza is gone, but you still wanted some? It’s just running out. And they know that we have run out [of housing in San Francisco]. How Realistic Are The Cities Of Fallout? by Nolan Gray Sacred sites—whether in the form of a shrine or a megaton bomb—play an essential role in early human urbanization, both in Fallout 3 and the real world. As the historian Lewis Mumford points out in The City in History, the dead are the first humans to take up stationary residence. Y-Combinator, Tech, and “New Cities” by Adam Hengels A society where housing and the components of vibrant cities are abundant and affordable is a vision worth striving towards. As is a society where disputes are resolved speedily in a bottom-up fashion. In many ways, the technology sector is already on a path to make that happen – they just may not yet realize it yet. 2. Where’s Scott? Scott Beyer is in Dallas, and will spend this weekend visiting small west Texas cities like Wichita Falls, Lubbock and Abilene. This week he wrote 5 articles–one for Governing Magazine making the Case for Cities to Outsource Economic Development; and 4 for Forbes–The Explosive Northern Growth Of Metro Dallas…Boulder, CO: Another Desirable But Over-Regulated U.S. City…On Urban Housing Issue, Liberals And Conservatives Talk Past Each Other…and What Is A […]

Market Urbanism MUsings June 24, 2016

  1. This week at Market Urbanism Brent Gaisford contributed Lack of New Housing On The Westside Is Causing Gentrification Of East And South LA There are a lot of reasons for gentrification, but the lack of new housing on the Westside deserves a lot of the blame in recent years. As we’ve discussed, social and economic changes are pulling new people into LA, many of them young and affluent. A lot of those new people would probably like to live on the Westside, but we aren’t building any places for them to go. 2. Where’s Scott? Scott Beyer flew back Monday from Boulder to Dallas. The most surprising thing he found about the YIMBY conference was how dramatically the fight for land-use deregulation has become a progressive cause. Almost everyone there identified as liberal, and was representing cities like New York, San Francisco, Portland, Los Angeles and Seattle. This growing bipartisan consensus around zoning reform is a subject Scott will soon cover for Forbes. 3. At the Market Urbanism Facebook Group: Jeff Andrade-Fong introduces a new YIMBY org: Tech for Housing Roger Valdez at Forbes: Seattle Mayor’s Affordability Scheme Is More Politics, Less Helpful Change Roger Valdez at Smart Growth Seattle: Lot Suit: City’s Motion to Dismiss Fails, Compares Housing to Porn, Drugs Adam Milsap‘s latest at Forbes: Los Angeles’ New Manufacturing Hub Won’t Generate Innovation Krishan Madan is curious how to respond to arguments that new housing burdens local schools via Nolan Gray: Why the elevator could be the next great disruptive technology by Matthew Yglesias via John Morris: Are artists abandoning NYC? (audio) Jedediah Mackenzie Weeks wants to know what Market Urbanists think of Baltimore‘s Port Covington redevelopment proposal via John Morris: Local Businesses Clash with the City of Portland Over Major Thoroughfare’s Road Diet Bob McGrew wants to hear […]

Three Lessons Public Transit Can Learn From Uber

Every form of transportation has some unique considerations. Car drivers worry a great deal about parking near their destination–a consideration bus riders don’t need to think about. But, as transit consultant Jarrett Walker has written about, some considerations are universal. As Uber and Lyft have added carpool services, some people have noted that they can learn from traditional transit: https://twitter.com/jacksmithiv/status/635925087640793088 But what lessons go in the opposite direction? What can transit learn from Uber?  LESSON 1: PAYMENT CONVENIENCE MATTERS When you get in an Uber, you don’t pay fare like you do on a bus. You just start moving. When you reach your destination, you don’t fumble for cash and wait for change like you do in a taxi. You just get out. This may seem like a small detail, but Uber riders frequently cite this convenience as giving the service a magical feeling. For the driver, the less time she spends accepting payment, the more time she can spend getting people around. Buses too can use off-board payment systems to relieve passengers of the headache of fumbling for their fare and waiting on 50 other passengers to each find and pay exact change. Typically, passengers get a proof of payment and fare inspectors will check a fraction of rides, much like meter inspectors check a fraction of parking meters. LESSON 2:  THERE’S NO SUCH THING AS ENOUGH CUTTING WAIT TIMES With much fanfare, Austin introduced bus services that come every 15 minutes at peak times and every 20 minutes off-peak. For Uber, by contrast, a passenger waiting 15 minutes for service is considered a failure. Downtown pickup frequency was often under 3 minutes and even then, Uber still worked hard to cut wait times down. The company endures a huge amount of negative media and customer sentiment for “surge pricing,” all to make sure that whenever and wherever a passenger requests a car, one will show up in a couple minutes. At $1.25 to $2.50 per ride and […]

Market Urbanism MUsings June 11, 2016

  1. This week at Market Urbanism Shane Phillips points the finger to a major culprit in LA‘s affordability problems: Keep Los Angeles Affordable By Repealing Proposition U Of the 29,000 acres zoned for commercial and industrial uses throughout LA, 70 percent saw their development capacity sliced in half, from a floor-area ratio (FAR) of 3.0 to 1.5. Since the city allows housing to be built in many of these zones, it didn’t just mean less office, retail, and manufacturing space, but fewer homes as well. Emily Washington contributed to New Urbs at The American Conservative: Family-Friendly Cities Start With Schools But where I depart from Schwarz is that public policy, not economic forces or renter preferences, is largely responsible for the lack of children in American cities. Specifically, education policy. 2. Where’s Scott? Scott Beyer took a writing break this week to wander around Texas, visiting the towns of Cuero, Victoria, Corpus Christi, Kingsville, Brownsville, McAllen, and the Mexican border city of Reynosa. He has since returned to Dallas, and will be flying this week to Boulder, CO, for the first annual YIMBY conference. Tickets for the event are still available. 3. At the Market Urbanism Facebook Group Alden Wilner creates a Wikipedia stub for Market Urbanism, Russ Nelson adds to it.  We’d love to see the hive mind expand the page! Adam Millsap‘s latest: What The Boom And Bust Of Williston, ND Teaches Us About The Future Of Cities via Jonathan Coppage at New Urbs: Rescue Cities for Families Shanu Athiparambath wrote,  Indian Cities Need Private Fire Stations Matt Robare sums up the Massachusetts zoning reform, which passed the Senate Alex Bernstein wants to know the best objective and unbiases books to start reading Asher Meyers suggest the benefit of Universal Basic Income extends to urban issues based on Charles Murray‘s editorial […]

Keep Los Angeles Affordable By Repealing Proposition U

  In 1986, a foreshadowing of today’s fight over “neighborhood integrity” was taking place, culminating in November as Los Angeles residents voted 2-to-1 to cut the development potential of thousands of parcels across the city. Of the 29,000 acres zoned for commercial and industrial uses throughout LA, 70 percent saw their development capacity sliced in half, from a floor-area ratio (FAR) of 3.0 to 1.5. Since the city allows housing to be built in many of these zones, it didn’t just mean less office, retail, and manufacturing space, but fewer homes as well. The ballot initiative responsible for these changes was called Proposition U, and it’s the reason that so many commercial corridors in LA are still characterized by 1960s and ’70s-era, single-story, dilapidated strip malls. All those arterial corridors were the ones permanently frozen in time by Prop U. THE PROPOSAL To my knowledge no one has ever assessed exactly how much this instance of “planning by the ballot” actually reduced the residential capacity of Los Angeles. By my very, very rough estimate, I would put the number somewhere on the order of 1 million homes.* But whether the actual number is 1 million, 500K, or over 2 million, the conclusion is the same: If we want to keep Los Angeles affordable for residents at all income levels, we should repeal Proposition U. Repealing Proposition U would achieve several important aims. Since we’re talking about arterial, commercial corridors, the repeal would dramatically increase the supply of transit-oriented housing over the next several decades—something we desperately need at a time of record-low residential vacancy rates if we’re to have any hope of limiting continued rent increases. It would reduce development pressures on existing communities, directing development to underutilized corridors with little to no housing on them, rather than funneling developers into single-family neighborhoods […]

Market Urbanism MUsings June 3, 2016

1. This week at Market Urbanism Michael Lewyn dispels some common misconceptions about Jane Jacobs And High-Rises So I’m not sure she would have favored the common modern idea that high-rise and low-rise buildings should be segregated from each other, or that buildings of different density are “out of scale.” Despite auto-centric regulation and subsidies, Houston‘s “zoning lite” approach seems to be working, according to Nolan Gray in Houston’s Beautiful (yet Partial) Embrace of Market Urbanism This fourth city has managed to balance a booming economy, explosive population growth, and affordable housing. This city has—as cities have for thousands of years—steadily grown denser, more walkable, and more attractive to low-income migrants seeking opportunity. This city is Houston, and it’s well past time for her to come out of the shadows. 2. At the Market Urbanism Facebook Group via Adam Hengels: a clip of a speech by Will Arnett’s character in Netfllix’s series “Flaked” who drops the Venice Beach NIMBYs and comes out as a YIMBY via Krishan Madan:  “At a time of such high demand, higher density construction should be legalized” via Adam Hengels: Rethinking a Century of Zoning Andy Walker wants to know who’s going to be at CNU in Detroit this weekend via Krishan Madan: Van Bramer To Block Phipps’ 210-Unit [Affordable Housing] Development Plan, Essentially Kills Proposal (in Queens) Nick Zaiac shared an interesting table from NAHB, who found regulations to account for nearly 1/4 of the cost of new home prices Andrew Atkin shared his predictions of a “Utopian” sprawl, Urbanists cringe via Adam Millsap: Clean money, dirty system: Connected landowners capture beneficial land rezoning Nick Zaiac found some “Good stuff from the Richmond Fed on infrastructure, parking, and reform options” via Roger Valdez: HALA’S Most Confusing Recommendation: The Pushes and Pulls of MIZ (Seattle) via Roger Valdez: Seattle may slap new rules on Airbnb […]

Houston’s Beautiful (Yet Partial) Embrace of Market Urbanism

Houston skyline

A metropolitan economy, if it is working well, is constantly transforming many poor people into middle-class people, many illiterates into skilled people, many greenhorns into competent citizens. … Cities don’t lure the middle class. They create it. – Jane Jacobs, The Death and Life of Great American Cities If you follow urban issues in the press, you might be forgiven for thinking that there are only three cities in America: San Francisco, New York, and Portland. All three are victims of their own success, as rising demand for housing has increased rents to unsustainable levels. Despite their best efforts, from rent control to inclusionary zoning mandates, middle- and lower-class households are increasingly forced to leave these cities as each progressively transforms into a playground of the rich. Yet there is a fourth city, a city which must not be named except to be derided as a sprawling, suburban hellscape. This fourth city has managed to balance a booming economy, explosive population growth, and affordable housing. This city has—as cities have for thousands of years—steadily grown denser, more walkable, and more attractive to low-income migrants seeking opportunity. This city is Houston, and it’s well past time for her to come out of the shadows. Explosive Economic Growth, Booming Population, Functioning Housing Market Before jumping into the nitty-gritty of how Houston has handled explosive growth in the demand for housing, it is worth first getting a handle on the magnitude of the challenge facing the city. When many people think of the Houston economy, they understandably think of large energy companies. Indeed, energy companies dominated Houston’s economy for much of the last century and continue to play a major role today. But in the years following the 1980s oil glut, Houston’s economy has been diversified in large part by startups and emerging small […]

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