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How to Obscure Reality to Make Planners Seem Important

Regular reader, Bill forwarded this article from the New York Daily News calling it an “outstanding collection of anti-density and anti-market propaganda presented (as always) as objective journalism.” The article is riddled with misconceptions (aka Urbanism Legends) about zoning and development and is a perfect example of the quality of journalism that touches on city development issues referenced in today’s earlier post, Journalists and Cities. Let’s spot the more egregious statements from City and residents aim to keep Rockaway low-density: “The hope is to spur investment by maintaining low-scale development that fits into the area’s historic character. Similar zoning changes in Bay Ridge, Park Slope and the West Village along the Hudson River inspired great growth.” hmmm, restrictions inspire growth? Rockaway’s last zoning change came in 1961, allowing multifamily homes to be built where single-family homes once stood. The results were rapid development and streets butchered by an ungainly mix of large and small apartment buildings and homes. Wait, growth is bad? “We don’t have the space to be densely populated, and the owners of these big buildings don’t even live here” more space :: more density? not the equation I learned “Home prices should begin a steady increase if this zoning gets us better transportation.” This “zoning” that brings transportation sounds even nicer than the tooth fairy, and just as real. “I don’t know if the new upzoning of 116th St. will work, but I do know that the old, low-scale zoning on 116th St. did not bring in the amount of new businesses and investment required to improve the area.” Then again, density is good for retail… To ensure that parking does not become a problem, Gaska worked with Burden’s city planners to ensure that each new development has parking for at least 85 percent of the residents, […]

Urban[ism] Legend: Zoning Creates Density

This post will be the first of many of an ongoing feature at Market Urbanism entitled Urbanism Legends. (a play on the term: “Urban Legends” in case you didn’t catch that) In many public forums and in the blogosphere, I consistently encounter myths about land development and Urban Economics. These myths typically look at how policies may benefit or harm a specific person or groups of people. However, as with many popular economic misconceptions, these viewpoints fail to look at how a particular policy may affect other, less visible people. These less visible people are the ones who William Graham Sumner called “The Forgotten Man” in a famous 1883 lecture. These myths are plentiful, and I expect the feature to be stocked with myths to dispel well into the distant future. In many different contexts, I have heard people argue that liberalizing zoning restrictions will cause “over development” or high density development filled with low income people. Even in relatively low density areas, people make the sensationalist argument that if zoning restrictions were lifted, high rises would be built in their community, creating congestion and overburdening infrastructure. On the other end of the spectrum, I have even heard free-market advocates argue against Smart Growth and other urbanist concepts using several Urbanism Legends. They argue that Smart Growth goes against the market and causes density to increase in urban areas. They are correct when they refer to Urban Growth Boundaries that restrict development in outlying areas. Strangely, these market advocates rarely applaud Smart Growth proponents advocacy for loosening zoning restrictions in infill areas. They have argued that the upzoning discourages single family homes, which is the desired living arrangement for most people. And that the market should allow for more single family homes. The reality is that zoning can not create […]

Demographics + Transportation Costs + Lower Crime = More Urbanization

WSJ: Suburbs a Mile Too Far for Some Demographic Changes, High Gasoline Prices May Hasten Demand for Urban Living Messrs. Boseman and Wells embody trends that are dovetailing to potentially reshape a half-century-long pattern of how and where Americans live: The drivable suburb — that bedrock of post-World War II society — is for many a mile too far. In recent years, a generation of young people, called the millennials, born between the late 1970s and mid-1990s, has combined with baby boomers to rekindle demand for urban living. Today, the subprime-mortgage crisis and $4-a-gallon gasoline are delivering further gut punches by blighting remote subdivisions nationwide and rendering long commutes untenable for middle-class Americans. Peter Gordon contends that urbanism correlate less with gas prices than crime rates: Harry Richardson and Soojung Kim and I presented a conference paper earlier this year where we looked at the cycles of suburbanization-exurbanization since 1969. Our Figures 2a-2g and Tables 3-4 and 3-5 show the “rural renaissance” of the early 70s and how that reversed as the price of gasoline spiked in the early 1980s. But the following cycles of reversal of reversal and so forth did not track gasoline prices. The largest metros came back again in the late 1990s when gas prices were very low. The suburbanization-exurbanization-ruralization cycles that we found tracked the ebb and flow of crime rates better than gasoline prices. It makes sense to me. Those who prefer urban living had possibly been discouraged by higher urban crime rates of the past. Nonetheless, gas prices will have some long-term effect on where rational people choose to live. If crime continues to subside, could this be the perfect storm? Demographics + higher transportation costs + low crime –> high degrees of urbanization over the next decade. Let’s hope cities welcome the […]

EcoDensity: Scary Name, but Not-so-Bad

Vancouver’s City Council has approved an “EcoDensity” policy. How is EcoDensity different from regular density, which already comes pre-equipped with environmental benefits? Well, its just an environmental-sounding catch-prefix and comes with less bureaucracy for green developments. Planetizen – EcoDensity Approved in Vancouver Amongst the additional actions, Council has approved in principle the development of bylaws that could allow lane-oriented housing (coach houses and apartments above garages) potentially throughout the city (what we’ve called “hidden” density); new secondary suite options in every housing type (what we’ve called “invisible” density – Vancouver currently allows one secondary suite in single-detached housing, but not in other housing forms such as rowhouses and apartments); exploration of new mid-rise building typologies and associated zoning; a new “Green means Go” priority approval system for exemplary sustainable projects; the removal of numerous existing regulatory disincentives to green design approaches; EcoDensity demonstration projects on city-owned land; the development of new amenity and services funding tools to support quality density; and so on. One action in particular will represent the culmination of much of our thinking – the development over time of a new EcoCityPlan, respecting and building on the highly successful and influential CityPlan developed in the mid-90’s with incredible public engagement. It’s interesting how they are able to make an environmental case to make the bureaucratic approval process not seem so bad. “Hey, if you make it green, we’ll actually try not to slow you down as much as we usually do.” Why can’t all projects be given a speedy approval process? All-in-all, this seems like a good example of how market liberalization (while only incremental here) can be made to appeal to typically anti-market progressives. I guess all you have to is add the “Eco” prefix. How about “EcoProfits”, “EcoTrade”, “EcoPrivatization” or “EcoTaxCut”?

Carroll Gardens, Choose Only One: Setback or Height Restriction?

NY Times – Carroll Gardens: The Big Front Yards That Rob the Streets Although the yards serve as leafy margins to the streets, creating ample open space between the rows of brownstones arrayed on either side, they also put those streets into the “wide” category for zoning purposes. This means developers can build structures on those streets that are taller than would otherwise be allowed. In recent months, some local residents, with one eye on all the construction, have been objecting to this rule. Carroll Gardens, Brooklyn NIMBYs will do anything to stop development in their neighborhood. The buildings are set back so far from the street with gardens, yet they don’t want to allow taller buildings in their neighborhood, claiming the streets cant handle it. In my opinion, either allow taller buildings or end the setback requirements. Otherwise, your NIMBY selfishness is just too much.

Over 200 Illegal Hotel Buildings in NYC

From AMNY: Report: 200 illegal hotels exist in the city There are more than 200 apartment buildings in the city that have been illegally converted to hotels, according to a report released Sunday, significantly reducing the number of rent-stabilized units available. … Illegal hotel operators frequently take advantage of tax loopholes designed to encourage the construction of residential units, according to Raskin. … Advocates are calling for increased penalties and changes in the zoning laws to clarify where hotels can and cannot operate. And today’s Sun: Crackdown Sought on Illegal Hotels in the City What does this tell us about the housing/hotel markets? It seems to me that tax structures (and probably zoning) favor housing, while there is significant unmet demand for hotel rooms. Nonetheless, there is definitely a shortage of built space in NYC, which could be better accommodated by loosening zoning restrictions on new development. Any other thoughts?

Rent Control Part 4: Conclusion and Solutions

Welcome to the final post in the series discussing the consequences of rent control. Thank you to the subscribers who have patiently awaited each new post. I hope everyone found it enlightening. If you haven’t read the entire series, you can catch up with these links: Rent Control Part One: Microeconomics Lesson and Hording Rent Control Part Two: Black Market, Deterioration, and Discrimination Rent Control Part Three: Mobility, Regional Growth, Development, and Class Conflict Conclusion Rent control is not just a simple price control setting the price at which willing renters and landlords are permitted to do business, it is much worse.  It is a coercive act that gives landlords no legal option, but to rent to a tenant against his will, often at a financial loss.  Rent control adds a non-voluntary burden to landlords which deepens over time because landlords do not have the option to rent to a tenant at below market rates.  Not only does rent control cause huge distortions in the housing market, but the burdens fall disproportionately on the poor and underprivileged people it was intended to benefit. Although particular people are able to live with the comfort of low rent payments, even those renters will see their living conditions deteriorate as landlords neglect repairs and maintenance. As the situation gets worse, middle class residents are able to move away, leaving behind the poorest residents who have become reliant on the reduced rent. In effect, rent control grants property rights to renters, that originally belonged to the original property owners. Rent control becomes a redistribution of wealth to rent control tenants away from apartment owners, market apartment renters, and newcomers to the area. Nonetheless, over time the quality of life decreases for all residents of a city where rent control is imposed. Solutions So, it […]

Watch as “Expediters” Become Scapegoats of Corruption and Incompetence

It’s easier to look at the symptom: corruption, than treat the disease: government over-regulation: Chicago Tribune: Role of expediters under scrutiny as federal probe targets City Hall corruption The unsung and highly specialized role these private individuals play in the workings of city government gained notoriety last week when investigators revealed that for the last year, an expediter had been secretly recording conversations to help build an ongoing bribery case that so far has led to federal charges against 15 people. Expediters have multiplied and become fixtures at City Hall in recent years. During the height of the building boom a few years ago, the permit process stretched for many months, creating a cottage industry of people offering their expertise in the byzantine ways of the city’s zoning and building codes. These expediters will be made out as the bad guys, though most serve a valuable roll: wait in line, deal with city staff and other menial things professionals don’t want to waste valuable time doing. These guys are not squeaky clean – many expediters are people you wouldn’t want your daughter dating, but dig deeper to find the real bad guys: the bureaucrats who thrive on bad bureaucracy. The harder it is to do your business, the more it’s worth to hire someone to “expedite” the approval process. They get their kickbacks, campaign contributions, and SkyBox tickets just because they are not competent enough to get the job done quickly, and/or aren’t properly funded to do the job properly. Meanwhile, important projects are delayed, investment capital sits idle, materials wait in a warehouse, and people wait for their homes, offices, or stores to be built. Dig deeper below the surface, and you’ll see the whole crooked system of patronage, political contributions, payoffs, and deal-making fueled by government regulation, lobbying, […]

Bribery for Property Rights: Federal Charges in Chicago

NBC5 has an update listing the people involved and video here: New Corruption Charges Hit Building, Zoning Departments Chicago Tribune: U.S. to announce charges against 15 in city bribe-taking probe (thanks to Dan M. for the tip) Federal authorities are set to announce charges Thursday against 15 people, including seven City of Chicago employees, after an investigation into bribe-taking at the city’s Zoning and Building Departments. City Hall’s zoning process is the subject of the Tribune’s ongoing “Neighborhood for Sale” series. The stories detail how millions of dollars in campaign donations greased zoning changes that transformed the city during the real estate boom of the past decade. What’s scary is that land use is so regulated and the stakes are so high, that developers have to bribe government employees in order to exercise their own property rights. But, that’s how it works: politicians downzone areas, knowing that developers will have to scratch the politicians’ backs to build what the market tells them. There’s often the added political bonus of downzoning to pander to NIMBY factions. The downzoning creates a barrier to entry so that only the developers who are politically savvy can get things done. (see Tony Rezko) It makes the whole planning/development system corrupt. Should we be a bit surprised bribery is happening?

Lower East Side Now “Endangered”?

photo by flickr user paytonc The National Trust for Historic Preservation announced that New York City’s Lower East Side, famous for it’s history of tenements and slums, is one of 11 architectural, cultural, and natural heritage sites that are most at risk “for destruction or irreparable damage.” By “damage”, they mean new luxury towers filled with wealthy people, replacing aged tenements filled with yuppies and hipsters. From the NY Sun: ‘Endangered’ Is Designation as Lower East Side Waxes Professor of Urban Policy and Planning at New York University, Mitchell Moss: “The overall neighborhood is witnessing a transformation. And just as young people move into that area, I certainly hope they are not planning to bring back historically dangerous conditions like cholera, typhoid, and open sewers,” Of course, this comes with downzoning, which will limit supply, drive up rent and land prices, and increase the incentive to tear down more buildings. Thus, quickening demolitions and gentrification. I can understand protecting a few particular locations or buildings, but to downzone the entire area will put a huge burden on the City’s housing supply. Also, Curbed: The Lower East Side is an Endangered Species

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