Tag Archives: zoning

Prediction is hard – so why do we make key decisions based on bad information?

Comparison of USDOT predictions for Vehicle Miles Traveled, compared to actual values. Chart from SSTI.

Comparison of USDOT predictions for Vehicle Miles Traveled, compared to actual values. Chart from SSTI.

Back in December, David Levinson put up a wonderful post with graphical representations looking to match predictions to reality. The results aren’t good for the predictors. Lots of official forecasts call for increased vehicle travel, while many places have seen stagnant or declining VMT. It’s not just a problem for traffic engineers, but for a variety of professions (I took note of similar challenges for airport traffic here previously).

Prediction is hard. What’s curious for cities is that despite the inherent challenges of developing an accurate forecast, we nonetheless bet the house on those numbers with expensive regulations (e.g. requiring off-street parking to meet demand) and projects (building more road capacity to relieve congestion) based on bad information and incorrect assumptions.

One of the books I’ve included in the reading list is Nate Silver’s The Signal and the Noise, Silver’s discussion of why most efforts at prediction fail. In Matt Yglesias’s review of the book, he summarizes Silver’s core argument: “For all that modern technology has enhanced our computational abilities, there are still an awful lot of ways for predictions to go wrong thanks to bad incentives and bad methods.”

Silver rose to prominence by successfully forecasting US elections based on available polling data. In the process, he argued the spin of pundits added nothing to the discussion; political analysts were seldom held accountable for their bad analysis. Yet, because of the incentives for punditry, these analysts with poor track records continued to get work and airtime.

Traffic forecasts have a lot in common with political punditry – many of the projects are woefully incorrect; the methods for predicting are based more on ideology than observation and analysis.

More troubling, for city planning, is the tendency to take these kinds of projections and enshrine them in our regulations, such as the way that the ITE (Institute of Transportation Engineers) projections for parking demand are translated into zoning code requirements for on-site parking. Levinson again:

But this requirement itself is odd, and leads to the construction of excess off-street parking, since at least some of that parking is vacant 300, 350, 360, or even 364 days per year depending on how tight you set the threshold and how flat the peak demand is seasonally. Is it really worth vacant paved impervious surface 364 days so that 1 day there is no spillover to nearby streets?

In other words, the ideology behind the requirement wants to maximize parking.

It’s not just the ideology behind these projections that is suspect; the methods are also questionable at best. In the fall 2014 issue of Access, Adam Millard-Ball discusses the methodological flaws of ITE’s parking generation estimates. (Streetsblog has a summary available) Millard-Ball notes that the “seemingly mundane” work of traffic analysis has enormous consequences for the shape of our built environment, due to the associated requirements for new development. Indeed, the trip generation estimates for any given project appear to massively overestimate the actual impact on traffic.

There are three big problems with the ITE estimates: first, they massively overestimate the actual traffic generated by a new development, due to non-representative samples and small sample sizes. Second, the estimates confuse marginal and average trip generation. Build a replacement court house, Millard-Bell notes, and you won’t generate new trips to the court – you’ll just move them. Third, the rates have a big issue with scale. Are we concerned about the trips generated to determine the impact on a local street, or on a neighborhood, or the city, or the region?

What is clear is that these estimates aren’t accurate. Why do we continue to use them as the basis of important policy decisions? Why continue to make decisions based on bad information? A few hypotheses:

  • Path dependence and sticky regulations: Once these kinds of regulations and procedures are in place, they are hard to change. Altering parking requirements in a zoning code can seem simple, but could take a long time. In DC, the 2006 Comprehensive Plan recommended a review and re-write of the zoning code. That process started in earnest in 2007. Final action didn’t come until late in 2014, with implementation still to come – and even then, only after some serious alterations of the initial proposals.
  • Leverage: Even if everyone knows these estimates are garbage, the forecasts of large traffic impacts provide useful leverage for cities and citizens to leverage improvements and other contributions from developers. As Let’s Go LA notes, “traffic forecasting works that way because politicians want it to work that way.”
  • Rent seeking: There’s money to be made from consultants and others in developing these inaccurate estimates and then proposing remedies to them.

Decreasing opportunities for incremental development in American neighborhoods

Several months ago, Charlie Gardner had an excellent, thought-provoking post asking why have American cities seen the demise of the duplex? In a time when growing cities are bursting at the seams and facing severe affordability challenges, an incremental kind of development might be welcome in many cities, offering new housing while allowing an evolutionary pace of change to a neighborhood’s physical fabric, instead of the abrupt transition of large-scale redevelopment. So why don’t we see more of it?

Consider international comparisons of small-scale incremental development: Charlie Gardner compares the built form on both sides of the US-Mexico border, noting how on the Mexican side houses grow incrementally over time, often adding new uses along the street. The net result is a slow transformation of the entire neighborhood, evolving towards denser development patterns. Gardner speculates on reasons for the difference with standard American development patterns (including finance and regulation), noting that the small-scale development open the door to homeownership at a much lower price threshold.

Conversely, there are examples of American neighborhoods adding units on a relatively small scale. Let’s Go LA has been tweeting highlights from Wallace Frances Smith’s “The Low-Rise Speculative Apartment,” published in 1964. The book documents the replacement of single-family homes with low-rise speculative apartments (often in the form of dingbats), concluding that this small-scale, relatively low-cost form of construction plays an important role in adding housing supply to the market. Without requiring challenging lot consolidation or more-expensive construction methods, this kind of incremental, small-scale development allowed neighborhoods of single-family homes to evolve into denser places – even without large incomes in the neighborhoods to afford expensive new construction.

Despite the small scale of each individual building, the net result was a substantial increase in housing production overall.

So, why don’t we see more of this today? While various New Urbanists might not like the specific dingbat product, the idea of small-scale urban density is still appealing. The so-called ‘missing middle’ forms, such as townhouses, flats, and small apartment buildings are all lauded as contextually-friendly ways to add housing and increase density in already developed areas. So, why are these housing types missing?

As Let’s Go LA points out, much of this kind of development has been regulated out of existence. In LA, large portions of the city have been downzoned; the newer zoning no longer allows for by-right development of dingbats and other small-scale apartment buildings. In aggregate, the result is a huge decrease in the potential development allowed in LA.

Much of that LA zoning potential would’ve been in the hands of small-scale landowners rather than large real estate development firms. One consequence of removing that development potential is to erode the ‘franchise’ for incremental development. Let’s Go LA notes that “by zoning small developments out of existence, we’ve made land development a much less democratic process, in the sense that far fewer individuals in the community are able to participate economically.” Instead, 20% of LA’s recent growth has been absorbed in the relatively small confines of downtown. While this is good for downtown (thanks to regulatory changes such as LA’s adaptive re-use ordinance and relaxation of off-street parking requirements – discussed previously here), limiting growth to such a small area of the city has consequences: “when growth is restricted across so much of the rest of the city, there will still be pressure on regional housing prices, and gentrification will continue.”

The phenomenon isn’t limited to LA or to dingbats. Stephen Smith, writing at New York YIMBY, looks at the demise of small-scale development (buildings smaller than five units) in New York: “Put simply: New York City’s small builders have been nearly eradicated. The segment of the market that normally produces about half the city’s new building stock has all but vanished.”

New York City building permits, by number of units. Chart from New York YIMBY, data from the US Census Bureau.

New York City building permits, by number of units. Chart from New York YIMBY, data from the US Census Bureau.

Smith considers several hypotheses for this decline in small-scale development, including the end of some tax abatement programs and weak markets in some parts of the city. Smith also hypothesizes that New York’s recent ‘contextual rezonings’ removed development potential from areas ripe for small-scale development:

The result is that many neighborhoods that were once full of redevelopment opportunities are now closed off to anything but the smallest of one- or two-family projects on vacant lots. This sort of redevelopment was largely banned after the implementation of the 1961 zoning code, but throughout her tenure Amanda Burden closed off the last few areas where it was still allowed.

DC is seeing similar conversations. Demand for additional housing often leads to ‘pop-up’ development, often in the form of vertical additions to existing rowhouses. The term even gets used as a catch-all for any kind of smaller scale infill development. Many existing residents are concerned about the changes (though others are supportive).

Responding to political pressure and resident requests, the Office of Planning proposed their own version of a contextual rezoning.However, during a hearing on the measure, one of the zoning commissioners expressed deep concern about the overall impact of reducing this development potential in a city with a growing population and decreasing housing affordability. Greater Greater Washington’s summary of the exchange captures the concern: “I just don’t think we have a comprehensive housing policy in this city and I’m worried about all the unintended consequences of [this proposal].”

While Charlie Gardner contrasted American urbanism to Mexico, there are other options as well. This paper from Sonia Hirt looks at German land use regulations. German zoning is guided by federal standards, localities have some flexibility within those standards but cannot add restrictions to the basic zoning classifications. One end result is that there is no such thing as a residential zone devoted solely to single-family homes. Likewise, even residential zones must accommodate commerce to meet the “daily needs” of the neighborhood.

In outlining potential routes for zoning reform in the United States building off of lessons learned from Germany, Hirt suggests that instead of relatively small areas of mixed-use zoning, planners could focus on a wider area of limited flexibility for residential development – something that might not look that different from the small, speculative apartment developments of the 50s and 60s; or of duplex development.

Affordable housing and the law of supply and demand

CC image from Thomas Hawk.

CC image from Thomas Hawk.

Some great articles on the challenges to affordable housing in high-demand cities over the past few days, worthy of some reflection:

Kim-Mai Cutler’s epic Tech Crunch article addresses all sides of the affordability problems facing San Francisco: noting that the situation isn’t unique to the Bay Area nor is it caused solely by tech-industry demand; the regulatory and political constraints to growth not just in the city but in the entire region; rent control, Prop 13, evictions, etc. After thorough documentation of this complex and multifaceted issue, Cutler circles back to the core issue of supply and demand:

[W]ithout serious additions to the entire region’s housing supply, these crisis measures just make San Francisco’s existing middle- and working-class a highly-protected, but endangered population in the long-run. With such limited rental stock available on the market at any time, what kind of person can afford to move here today when the city’s median rent is $3,350?

For the more extreme groups, you cannot logically fight both development and displacement. The real estate speculation running through the city right now is just as much a bet on political paralysis in the face of a long-term housing shortage as it is on San Francisco’s desirability as a place to live.

Cutler’s article lists a whole host of other potential actions, but concludes that any path forward must work towards adding more housing units to the region’s overall supply.Unfortunately, even this broad conclusion isn’t shared by everyone. In section #5 of Cutler’s article, she notes “parts of the progressive community do not believe in supply and demand.”

Ryan Avent notes that this denial of the market dynamics, no matter the motive, is not only misguided but also counter-productive: “ However altruistic they perceive their mission to be, the result is similar to what you’d get if fat cat industrialists lobbied the government to drive their competition out of business.” This extraction of economic rent from those that own the land and embrace tight land use regulations only aids those with capital: 

The housing dynamic in San Francisco raises the capital intensity of consumption. That contributes to an increase in the capital share of income and to the stock of wealth in the economy. Zoning restrictions are a tool of the oligarchy, effectively. I’m only one-fourth kidding. But they are; they are a means by which owners of capital extract an outsized share of the surplus generated by job creation.

Emphasis added. Yet, not everyone is convinced.

This exact denial of economics confounds Let’s Go LA:

It’s important to recognize that the “supply and demand doesn’t apply” argument is wrong, because if we don’t identify the right problems, we can’t develop solutions that work. And in fact, the housing markets in places like LA and SF are operating pretty much how you’d expect them to work if you accept the basic principles of supply and demand as constrained by the regulatory environment.

For example, why are developers only building markets for the high end of the market? Well, the zoning and permitting requirements make it difficult, time-consuming, and costly to build. Therefore, only a little new supply is going to get built every year.

This point is particularly important, because without agreement on the nature of the problem, it’s hard to even talk about potential policy solutions. And there are a whole host of potential policy solutions once we get over that hump. Unfortunately, discussion about supply constraints in cities (via exclusionary zoning, high construction costs, neighborhood opposition to development, etc) means the conversation naturally focuses on the constraint. Advocating for loosening the constraints can easily be mistaken for (or misconstrued as) mere supply-side economics, a kind of trickle-down urbanism.

This doesn’t need to be the case. Let’s Go LA writes:

Admitting that supply matters doesn’t mean you have to favor unrestrained urban development…

Admitting that supply matters also doesn’t mean you have to favor eliminating existing rent-controlled or rent-stabilized units, and it doesn’t mean that no government intervention is necessary…

Finally, this doesn’t mean that we don’t understand and appreciate the efforts of affordable housing advocates and planners operating within the current zoning and regulatory environment, trying to make sure that low income folks have at least some access to the opportunity of the city…

Another definitional problem when talking about affordability is the very term itself: are we talking about affordable housing? Or are we talking about Affordable Housing? As Dan Keshet notes, affordable housing (lowercase) refers simply to housing that people can afford at market rates – it is both relative to a household’s income (and therefore represents something slightly different for everyone) and also the kind of affordability important to the middle class. Affordable Housing, however, refers to a broad set of subsidized housing programs, ranging from rapid rehousing for the homeless to inclusionary zoning to housing units available for families at 80% of the Area Median Income ($68,500 for a family of four in DC).

Perhaps it’s because of a desire to frame these various subsidy programs more favorably (“affordable housing” sells better than “public housing” or “housing subsidies” – who would be against housing that is affordable?), but the same language that frames subsidy policies favorably can confuse the issue analytically.

The same can be said for housing supply in cities – perhaps the analytic focus isn’t a great selling point or a way to frame the issue.

The zoning straightjacket

The more things change, the more they remain the same.

DC is nearing the end of a lengthy process to re-write the city’s zoning code. The re-write is mostly a reorganization, combining overlays and base zones in an effort to rationalize a text that’s been edited constantly over the better part of half a century. While there are a number of substantive policy changes (all good and worth supporting – reducing parking requirements, allowing accessory dwelling units, allowing corner stores, etc.), the intent of the re-write is to look at the structure and policy of the code, rather than look for areas of the city where the zoning classification should change.

Actual re-zoning will require an update to the city’s comprehensive plan (as all zoning changes must be consistent with the comprehensive plan). As promising as the policy changes in the zoning re-write may be, they do not represent any kind of change to the basic city layout – areas currently planned for high density will see more development, and areas zoned for single-family homes will not.

Last year, the District Government and the National Capital Planning Commission worked on dueling reports (see the documents from DC and NCPC) at the request of Congress on the potential for changing DC’s federally-imposed height limit. Leaving aside the specific merits and drawbacks of this law, the planning team needed first to identify areas that would likely see taller buildings if the height limit were to change.

I’ve borrowed the title of this post from Charlie Gardner, to try to show how little room we’ve planned in our cities for change. Even with the perception of runaway development in growing cities, the amount of space that’s set aside for a physical transformation is remarkably small. Zoning is a relatively new force shaping our cities – about a century old. We’re now seeing the effects of this constraint.

Consider the following examples of freezing city form in place via zoning codes:

Old Urbanist – The zoning straightjacket, part II, writing about Stamford, Connecticut:

In general, the zoning maps continue to reflect the land use patterns and planning dogma of the 1920s, with a small, constrained downtown business district hemmed in by single-use residential districts through which snake narrow commercial corridors.

This, if nothing else, seems like a fundamental, if not the only, purpose and challenge of city planning: accommodating population growth in a way that takes into account long-term development prospects and the political difficulty of upzoning low-density SFD areas. In light of this, can a zoning code like Stamford’s, with a stated purpose of preserving existing neighborhoods in their 1960s form, and resistant to all but changes in the downtown area, really be called a “planning” document at all? The challenges that Stamford faces are not unique, but typical, and progress on them, as zoning approaches its 100th birthday, remains the exception rather than the rule.

Better Institutions – Look at the Amount of Space in Seattle Dedicated to Single-Family Housing, writing about Seattle:

Putting aside the issue of micro-housing and apodments, [ed – I wrote about Seattle’s apodments here] what I’d actually like you to draw your attention to is everything that’s not colored or shaded — all the grey on that map. [ed – here is a link to the map] That’s Single-Family Seattle. That’s the part of the city where most people own their homes, and where residents could actually financially benefit from the property value-increasing development necessary to keep Seattle affordable. It’s also the part of the city that’s off-limits to essentially any new residential construction because preserving single-family “character” is so important. And it’s why residents in the remaining 20% of the city can barely afford their rents.

Dan Keshet – Zoning: the Central Problem, in Austin, Texas:

Zoning touches on most issues Austin faces. But with these maps in mind, I think we can get more specific: one of the major zoning problems Austin faces is the sea of low-density single-family housing surrounding Austin’s islands of high residential density.

Daniel Hertz – Zoning: It’s Just Insane, in Chicago, Illinois:

So one thing that happens when I bring up the fact that Chicago, like pretty much all American cities, criminalizes dense development to the detriment of all sorts of people (I’m great at parties!) is that whoever I’m talking to expresses their incredulity by referencing the incredible numbers of high-rises built in and around downtown over the last decade or so. Then I try to explain that, while impressive, the development downtown is really pretty exceptional, and that 96% of the city or so doesn’t allow that stuff, or anything over 4 floors or so, even in neighborhoods where people are lining up to live, waving their money and bidding up housing prices.

Chris D.P. – The High Cost of Strict Zoning, in Washington, DC:

Across town, the Wesley Heights overlay zone strictly regulates the bulk of the buildings within its boundaries for the sake of preserving the neighborhood character.  Is it ethical for the city government to mandate, essentially, that no home be built on less than $637,500 worth of land in certain residential neighborhoods?

The largest concentration of overly restrictive zoning (from an economic perspective) appears to be downtown, along Pennsylvania Ave and K Streets NW. If we value our designated open spaces, and won’t concede the exclusivity of certain neighborhoods, but understand the environmental and economic benefits of compact development, then isn’t downtown as good a place as any to accommodate the growth this city needs?

DC’s height study shows a similar pattern. The very nature of the thought exercise, the hypothetical scenarios for building taller and denser buildings in DC requires first identifying areas that might be appropriate for taller buildings. As a part of this exercise, the DC Office of Planning identified areas not appropriate for additional height based on existing plans, historic districts, etc.

These excluded areas included: all federal properties, all historic landmarks and sites; low density areas in historic districts; all remaining low density areas, including residential neighborhoods; institutional sites and public facilities. Those areas are illustrated in the Figure 4 map below. The project team determined that sites already designated as high and medium density (both commercial and residential) were most appropriate for the purposes of this study to model increased building heights because those areas had already been identified for targeting growth in the future through the District’s prior Comprehensive Plan processes.

Put this on a map, and the exlcuded areas cover 95% of the city: 

DC height act study no go

Now, this isn’t analogous to the comparsions to areas zoned for single-family homes in other cities, nor are all of the areas in red innoculated from substantial physical change. However, it does illustrate just how limited the opportunities for growth are. It broadly parallel’s the city’s future land use map from the Comprehensive Plan, where large portions of the city are planned for low/medium density residential uses (click to open PDF):

DC Comp Plan Future Land Use

The plan’s generalized policy map also illustrates the extent of the planned and regulatory conservation of the existing city form (click to open PDF):

DC Comp Plan General Policy

The areas without any shading are neighborhood conservation areas.

All of this should be reassuring to those concerned about the proposed zoning changes, since all changes must be consistent with the comprehensive plan.

Updating the reading list – January 2014

CC image from carnagenyc.

CC image from carnagenyc.

Reading and writing about Vishaan Chakrabarti’s A Country of Cities reminded me that I need to add a few titles to the reading list. I’ve read several of these in the past year but since I haven’t been the most diligent in updating the list, there are also several that I’ve read (and written about) a while ago – such as John Kasarda and Greg Lindsay’s Aerotropolis.

It’s a rather wide range, including a whole string of economics-influenced books. Daniel Kahneman’s Thinking Fast and Slow specifically mentioned Nassim Taleb’s The Black Swan, which lead to reading his other books, which lead to reading Thaler and Sunstein’s Nudge, and so on.

Here are the additions, presented in no particular order. As always, I’m open to suggestions for books to add and/or books to read.

Zoned Out: Regulation, Markets, and Choices in Transportation and Metropolitan Land-Use – Jonathan Levine (2006)

A concise re-framing of the debate about market outcomes in planning and development. Levine disputes the idea that sprawl is a free market outcome, but rather a product of regulation. Arguments in favor of more traditional urban growth often needs to prove that it won’t increase traffic (as one example) to justify alterations to the rules that demand auto-centric development. Levine argues because of myth of free-market sprawl is just that, reforms to allow more urban development should be framed as market-friendly and as improving consumer choice. Doing so shifts the default option for urban development.

Levine was one of my graduate school professors at the University of Michigan.

Fooled by Randomness: The Hidden Role of Chance in Life and in Markets – Nassim Nicholas Taleb (2001)

The first installment of Taleb’s trilogy starts with the premise that humans are oblivious (thanks to our cognitive biases) to the role of randomness in our lives and that we make mistakes about the causality of events all the time. Given the assumptions about causality baked into numerous decision-making points as a part of the city planning process, as well as role of randomness in any sort of complex system (like a city), this is an excellent read to better understand the limits of our own understanding.

The Black Swan: The Impact of the Highly Improbable – Nassim Nicholas Taleb (2007)

The second book in Taleb’s series discusses the impacts of improbable events. A Black Swan is a surprise event with a large impact, and one that can be rationalized after the fact. Taleb posits that these unexpected changes (events, by definition, that we cannot predict) are tremendously consequential. One of the more interesting arguments for cities is the narrative fallacy, where we use stories to explain things, even if the explanation is wrong.

Taleb’s tone is often openly antagonistic towards establishment figures (more so than in his first book, Fooled by Randomness). You can find an excerpt from the book introducing the concept here.

Antifragile: Things That Gain from Disorder – Nassim Nicholas Taleb (2012)

Taleb’s third and most recent book builds off of the previous two, not just to find random events of large significance, but things that gain from that chaos. The mythical version would be the Hydra; cut off one head, and it grows two more. It is a different concept from resiliency, because the disorder must actually make the subject stronger. The idea can apply to some cities and urban economies, where creative destruction makes the end result stronger.

Nudge: Improving Decisions About Health, Wealth, and Happiness – Richard Thaler and Cass Sunstein (2008)

Lays out the way we make decisions and the powerful implications of default options on the eventual outcomes. Thaler and Sunstein call this a ‘choice architecture.’ Implications about choice architecture for cities are numerous, both in terms of individual behavior (such as travel mode choice) as well as the firm level such as zoning codes and development decisions (and the unintended consequences therein).

Sunstein also wrote about his government service in the Obama administration, applying these principles of choice architecture and libertarian paternalism to government, but Nudge is by far the more interesting book. Wikipedia’s summary provides a good synopsis of book’s argument.

The Signal and the Noise – Nate Silver (2012)

This book from the popular election-prediction, baseball statistician, poker player and quant analysis guru talks about all different kinds of prediction across all sorts of fields (macroeconomics, meteorology, elections, baseball, global warming, and geology) and the relative successes and failures of each. Some fare better than others, some express more confidence in their predictions than others (and that doesn’t necessarily correlate with their accuracy), and some are complete failures.

Given the outsized role of prediction in planning for the future, understanding the limits of those predictions is key in shaping policies and plans. Don Shoup’s takedown of the pseudo-science of parking minimum requires in The High Cost of Free Parking hits on the same themes of the lack of accuracy and precision; some blog discussion on those topics here and here.

The Warmth of Other Suns – Isabel Wilkerson (2010)

A history of the Great Migration of African Americans from the South to northern industrial cities and California. Told through the eyes of three individuals who left the South to establish new lives outside of the direct influence of Jim Crow, it tells the story of a key part of urban history in the US. For more, read Ta-Nehisi Coates’s initial reactions to the book.

Why Nations Fail: The Origins of Power, Prosperity, and Poverty – Daron Acemoglu and James A. Robinson (2012)

This isn’t a book about cities per se, but it does speak to economies and governance and with lessons for cities, not just nations. The authors posit that the main difference between prosperous societies and impoverished ones is the development of inclusive political and economic institutions, spreading power across the society instead of extractive institutions controlled by a few. The critique is that the book short changes other environmental factors such as geography.

Aerotropolis: The Way We’ll Live Next – John D. Kasarda and Greg Lindsay (2011)

A story about globalization and the power of agglomeration economies in urban development, told through the lens of a boom in air travel around the world. The description about the value of air travel is persuasive, but Kasarda’s prescription for additional aerotropoli is a tad formulaic. Nevertheless, Lindsay’s description of how air travel enables agglomeration and helps concentrate economic activity is an important story.

Discussed in the blog here and here; also see the aerotropolis tag.

A country of hyperdense cities

"How to build good cities," from Vishaan Chakrabarti's 'A Country of Cities.'

“How to build good cities,” from Vishaan Chakrabarti’s ‘A Country of Cities.’

Well, that was fast.

Based on the heft of my gift, I expected to take more time to read through Vishaan Chakrabarti’s A Country of Cities. The book, however, is wonderfully illustrated and laid out, thanks to Chakrabarti’s firm, SHoP (for a sampling of the illustrations and an essay adapted from the book, see Chakrabarti’s piece in Design Observer). All those illustrations make a hefty book into a rather quick read.

Chakrabarti paints a wonderful picture of the virtues of dense, urban places. Hyperdensity isn’t so hyper anything, merely the kind of density sufficient to support subway transit. While his vision of and advocacy for dense cities is persuasive, Chakrabarti’s specific policy recommendations are not new: massive investments in urban-focused infrastructure (subways, transit, high speed rail) as well as a more broadly defined “infrastructure of opportunity” of schools and parks. This would be financed by eliminating subsidies for oil, utilizing revenue from cap and trade of carbon emissions, and eliminating the mortgage interest deduction. He proposes to allow the market to provide additional housing and density that can support expensive transit infrastructure via the implementation of  “cap and trade zoning.”

After reading the book, however, the original criticism remains: feasibility. I find Chakrabarti’s call for density persuasive, but I wouldn’t shape the message with terms like ‘hyperdensity.’ His ideas on reforming the zoning process are interesting, yet the basic mechanisms for reform are difficult to execute. DC is closing in on year seven of a zoning regulations review – and the proposed revisions focus mostly on structural changes and do not take on the task of upzoning. In the meantime, the unintended consequences of existing planning and zoning procedure are adding up.

Any conversations about re-shaping the city (and removing certain legal constraints such as DC’s federal law against tall buildings) aren’t focused on the benefits of hyperdensity, but on the required procedural changes and need to amend DC’s comprehensive plan for future upzoning  to take effect. At the same time, WMATA is pushing a concept for additional subway capacity at the core of the system. Their efforts are constrained by regulations that link land use plans to transportation investments, thus Metro can only plan new subway lines in the limited areas already designated for what Chakrabarti would call hyperdensity.

Linking land use intensity and transportation investment is a good idea, but codifying the concept into regulations opens the door for unintended consequences. The chicken can’t happen without the egg, the transit agency can’t plan subways without supportive land use, the planners need infrastructure before they can add density. The idea of connecting transit to land use isn’t the problem. The challenge is in implementing the concept, adjusting the regulations, and amending the procedures that shape how we build cities.

More federal funding for infrastructure isn’t a novel idea, either – but the prospect for action from Congress seems unlikely at best. Similarly, phasing out the mortgage interest deduction isn’t a new idea, either – but it seems to hold sacred status on Capitol Hill.

This isn’t to discount Chakrabarti’s ideas. His argument for urbanism is persuasive, the broad brushstrokes of his policy agenda are fine. However, the procedural, legal, and political changes required to implement the agenda are missing. Consider the comparison of affordable housing and rental apartments in suburban New Jersey to suburban Long Island: it’s hardly an embrace of hyperdensity, nor is it an unvarnished success, but the limited improvements in adding density and fighting against exclusionairy zoning in New Jersey are the product of legal battles, not a comprehensive plan or master design. The same argument can apply to city building in general, where the future may lie in selling people on the need for more permissive rules/regulations and letting cities evolve, rather than simply selling them on the benefits of hyperdensity.

The real question, however, is if we’d ever see such legal and regulatory battles without this kind of manifesto to rally around.

(note: the book has been added to the reading list)

Fearing ‘hyperdensity’ in urban areas

Aerial view of Toronto. CC image from rene_beignet.

Aerial view of Toronto. CC image from rene_beignet.

One of the books I picked up through the rounds of exchanging holiday gifts is Vishaan Chakrabarti’s A Country of Cities: A Manifesto for an Urban America. I’ve read an excerpt of the book published in Design Observer and watched Chakrabarti’s accompanying lecture; I’m looking forward to reading the full book.

In my initial reaction to the book’s excerpt embraced the praise for dense, urban, transit-supportive cities, but expressed concern about the political and regulatory hurdles to achieving such a vision. In particular, the ‘hyperdensity’ terminology Chakrabarti used to describe levels of density that can support subway transit seemed like it could directly antagonize citizens skeptical of change – citizens that currently hold the upper hand in many of the procedural and regulatory battles over new development.

Consider some of the reactions in Toronto. This op-ed from Marcus Gee in the Globe and Mail echoes Chakrabarti’s praise for urban density, but also shows the risk of the ‘hyperdensity’ terminology:

A spectre is haunting Toronto – the spectre of hyperdensity. Jennifer Keesmaat, the city’s dynamic chief planner, worries about it. So does one of Toronto’s smartest local politicians, city councillor Adam Vaughan…

[T]he city’s Official Plan seeks to direct new development – office buildings, condo towers and so on – to key areas of the city, fostering the process known in planners’ jargon as intensification. The aim is to put new buildings on about a quarter of the city’s geographical area, keeping the three-quarters that is left – residential neighbourhoods, quiet, smaller streets – free from runaway growth.

As anyone can see from the thickets of development around nodes like Union Station or Yonge and Eglinton, it has been remarkably successful – too successful for some. “We have reached this exciting and terrifying tipping point where we are starting to question whether it could be there is something called too much density,” Ms. Keesmaat said. “There are some areas of the city where we are seeing too much density – hyperdensity – and there are other areas of the city where we are seeing no growth at all.”

Here, the warnings about hyperdensity echo San Francisco’s concerns about “Manhattanization” – long-standing skepticism about growth and urban development with serious impacts on the city and region’s affordability over the past decade plus.

It would seem that Toronto’s plan is working exactly as intended: growth is channeled to some areas while it isn’t allowed to happen in others. Seeing little to no growth in areas of the city planned for little or no growth would all be according to plan.

This isn’t to say that the plan is wise. Trying to focus all growth in a city with high demand into downtown and a handful of mid-rise corridors might be too much of a constraint. It’s a strategy tailor-made to minimize conflict with the single-family neighborhoods, not dissimilar from Arlington County’s focus on Metro station areas while preserving single family homes nearby. It’s also one that bears a great deal of similarity to DC’s current discussions about how, how high, and where to grow. As Payton Chung notes, even this modest bargain is no guarantee to avoid conflict:

Among large North American cities, only Toronto has joined DC in making a concerted effort to redirect growth into mid-rise buildings along streetcar lines — and only as an adjunct strategy in addition to hundreds of high-rises under construction. (The two metro regions are of surprisingly similar population today.) Yet there, just like around here, neighborhoods are up in arms at the very notion.

Nor does it guarantee the city can actually match supply to demand:

DC cannot put a lid on development everywhere — downtown, in the rowhouse neighborhoods, in the single-family neighborhoods, on the few infill sites we have left — and yet somehow also accommodate enough new jobs and residents to make our city reliably solvent, much less sustainable. The sum of remaining developable land in the city amounts to 4.9% of the city, which as OP demonstrates through its analysis, cannot accommodate projected growth under existing mandates.

Something will have to give.

Toronto’s plan took the lid off in downtown, yet now the resulting development is derided as ‘hyperdensity.’ Marcus Gee notes that hyperdensity’s impact on infrastructure also provides the means to upgrade those facilities; build more transit; expand parks and urban amenities:

If the hyperdensity tag catches on, it could become a useful tool for downtown councillors who want to appease their constituents by blocking new development or for suburban councillors who want to steer more development to their wards even if there is no call for it there. It could also help kill exciting projects like the Frank Gehry-designed proposal by David Mirvish for King Street West. Ms. Keesmaat’s planning staff oppose the plan for three towers of more than 80 storeys each – too tall, too dense – and city council backed her up in a vote on Dec. 18.

It is reasonable to worry that new development will cause overcrowding on transit or overtax other city infrastructure. But if that is the concern, let’s build better transit to keep up with the growth, not halt the growth for fear of the future. Central Toronto is still far less dense than it could or should be. Hyperdensity should be a goal, not a thing to fear.

Emphasis added. This is the crux of my concern. How we frame the issue matters, even if the eventual solution won’t be about convincing the public of the virtues of hyperdensity and embracing it as a goal. Rather, achieving that goal will require reforming the processes and procedures for making decisions about land use and development.

I hope Chakrabarti’s book will touch on this; I look forward to reading it.

646,449 – DC’s population continues to grow

Cranes. CC image from Daniel Foster.

Cranes. CC image from Daniel Foster.

The latest state-level population estimates show another year of 2%+ growth for DC, bringing the city’s estimated population to 646,449. Former Mayor Tony Williams set a goal in 2003 of adding 100,000 new residents to the city back when the city’s population growth was essentially nil, following decades of population decline.

Even in the relatively short history of this blog, nearing the symbolic 600k threshold prior to the 2010 Census was a big deal.

Of the growth in the most recent estimates, about 1/3 of the gains are from natural increases in the population (births minus deaths), while 2/3rds are from net migration (more people moving into the city from elsewhere than moving out).

Explanations for DC’s recent growth spurt that focus on Federal government spending are tempting, but misleading. The region’s overall growth rate since World War II is fairly consistent; what’s changing now is how that regional growth is allocating itself within the region. Chris at R.U. Seriousing Me shows how DC’s share of the regional population decreased from 1950 to 2010. The region’s growth trajectory has been upward, while the District’s population declined. However, if you assumed that DC maintained the same regional share of that growth throughout the last half-century, you’d find a DC today with 2.6 million people inside the city limits.

The counterfactual scenario is intriguing: assume a DC population of 2.6 million still governed by the federal height limit, and suddenly the comparisons of DC to Paris (low-rise with high population density) aren’t so absurd. Chris notes that for those opposed to even modest changes to the height limit or the construction of by-right buildings, the kind of development needed to accommodate 2.6 million people “must sound apocalyptic.”

Leaving the apocalypse aside for the moment, the 2.6 million resident scenario illustrates that you must not only have demand for growth, but allow that growth to happen – that is, allow the city’s housing supply to increase. Again, a comparison to Paris is illustrative: the Paris region has continued to grow, while the city’s population has somewhat declined and flattened out. It’s not hard to see why; the city’s legal and regulatory constraints on development do not provide room to grow within the city.

Mayor Gray, like Mayor Williams, set an ambitious goal for growth the District’s population: adding 250,000 new residents by 2032. Unlike in 2003, it’s not hard to see the demand for city living – in fact, we’re on pace to meet that goal right now. If the city were to continue to grow by 13,000 per year (as it has over the past three) over twenty years, DC will hit that mark.

Demand is only half of the equation, however. Michael Niebauer notes that the population gains justify the increased development seen around DC, and more will be needed to accommodate increased demand for living in the city. If city does not add supply, the demand will continue  to put pressure on housing prices.

Challenges to affordable housing in growing cities and regions

Suburban Apartments and Estates - Now Renting. CC image from moominsean.

Suburban Apartments and Estates – Now Renting. CC image from moominsean.

Call it gentrification, call it renewal, call it anything you like. Intense demand for city living is putting tremendous pressure on urban housing markets. Meeting that demand with new development reshapes the physical fabric of the city, but preserving the physical status quo in the face of that demand leads to rising prices in the existing housing stock.

David Byrne issued an ultimatum to New York: if gentrification from the 1% stifles the city’s creativity, he’s “out of here.” At the same time, Ed Glaeser remarks that New York should celebrate it’s ability to attract the rich – this kind of agglomeration of skills and talent is what makes cities special places. It’s not the fact that the rich are coming back to the city that’s problematic, but that the city isn’t still able to provide opportunities at all price points. David Madden notes that gentrification’s current pace is not trickling down to the middle and lower classes.

All the demand for urban living presents the ‘good problem to have.’ But good problems still represent problems.

Gabriel Metcalf, executive director of San Francisco based non-profit SPUR, stepped into the fray with an essay for Atlantic Cities on the failure to relieve the demand-side pressure and the resulting consequences: his friends keep moving to Oakland because they can no longer afford San Francisco:

A great quality of life and a lot of high-paying professional jobs meant that a lot of people wanted to live here. And they still do.

But the city did not allow its housing supply to keep up with demand. San Francisco was down-zoned (that is, the density of housing or permitted expansion of construction was reduced) to protect the “character” that people loved…

Whatever the merits of this strategy might be in terms of preserving the historic fabric of the city, it very clearly accelerated the rise in housing prices. As more people move to the Bay Area, the demand for housing continues to increase far faster than supply.

Metcalf expanded on the idea in an interview with SFGate.com:

Now, should there be places for middle-income folks to live? Absolutely. But it can’t be done with the existing housing stock. Smart new places will have to be built.

That includes high-density buildings, micro-units and new construction. It also means getting a grip on the incredibly complex and restricting planning process that stalls every development. The whoa-on-growth movement began in the early ’70s, and there’s a direct corelation between that and higher prices.

“Up until the mid-’70s,” Metcalf says, “our housing prices tracked right at the national average.”

Over the past 20 years, Metcalf says San Francisco has produced an average of 1,500 new housing units a year. Compare that with Seattle, which is averaging 3,000 units a year with a smaller population. And even that wouldn’t be enough.

Increasing density and allowing the market to meet the demand for new space is part of the solution. In a high-demand place like San Francisco, it’s probably best characterized as a necessary-but-not-sufficient condition. Part of the challenge is that center cities can liberalize their zoning regulations a great deal and still not seem to make much headway in affordability. The regional nature of housing markets, spanning across multiple jurisdictions with multiple regulatory structures, makes it difficult for any one jurisdiction alone to make a dent in the supply.

Consider the case of Long Island: a September New York Times article on Long Island’s lack of available apartments looks to a recent report from the Regional Plan Association to underscore the challenge:

According to a new report from the Regional Plan Association, an urban research and policy group, 55 percent of all 20- to 34-year-olds on Long Island still live with their parents, which is up 11 percent in a decade and appears to be one of the highest rates in the country.

But while some may actively choose to sleep in full view of their teenage posters and trophies, most are there because there are few other places they can go.

The article closes with an anecdote that illustrates the assymetry of demand in the housing market and the regional impacts it can have:

Peter Ottaviano, 24, who graduated from college two years ago, has been living at his parents’ home in Cold Spring Harbor and working for a public relations firm in Great Neck. He looked at some Long Island apartments, but said he wasn’t impressed by the offerings. He signed a lease this month on a two-bedroom in Bedford-Stuyvesant, Brooklyn, where he and a friend will live for about $2,000 a month, and reverse-commute.

For Mr. Ottaviano, it came down to a paradox: young people aren’t likely to put down roots on Long Island until there are more young people on Long Island. “I want to be where my friends are, where there’s a lot going on, in the middle of everything,” he said. “That’s why I’m moving to New York.”

Long Island – home to the kind of mass produced suburban housing that provided the market-rate affordability for American cities in their suburban booms is now facing the same kinds of challenges that older places encounter.

As the 24-year-old Ottaviano’s housing decision shows, part of the question is if the suburbs can develop the kind of quality places that will attract a broader demographic, rather than just a release valve for housing demand. Outside of DC, Montogmery County is explicity looking to attract younger residents – and while reform of the county’s liquor laws alone won’t likely do it (or help the County chase the nebulous “hip” demographics), it can’t hurt.

But still need to build the additional density. Proposals for efficiency apartments in Fairfax County face strong opposition (including an elected official insinuating that affordable housing will bring gang violence and sexual predators); a transit-oriented, mixed-use apartment project was recommended for rejection by staff due to (among other things) having too little parking (a still-generous 161 spaces for 141 units) for the County’s taste – despite sitting a stone’s throw away from the Huntington station.

At the same time, we have substantial evidence of the benefits that affordable suburban apartments can bring. David Kirp in the New York Times celebrates the ten year anniversary of suburban New Jersey apartments built under the Mount Laurel doctrine:

“I wish other places could learn from our example,” says Mr. McCaffrey, the former mayor, but that hasn’t happened. Affordable housing is still too rare in suburbia, as zoning laws continue to segregate poor and working-class families. Despite the track record in Mount Laurel and the promise it holds for neighborhoods around the country, it’s hard to imagine that the suburban drawbridge will be lowered anytime soon.

Link dump – all things ‘affordable housing’

DC Construction that comes up on a Flickr search for Inclusionary Zoning - CC image from Adam Fagen.

DC Construction that comes up on a Flickr search for Inclusionary Zoning – CC image from Adam Fagen.

I’ve got far too many tabs sitting open in my browser, awaiting some form of linkage in the blog (the dates of publication might show how long they’ve been sitting). But, I want to put some of these out there rather than hog my browser’s memory.

I’ve attempted to cluster them together topically – a whole host on affordable housing policies and market-rate development.

“Winning upzoning in the bay” – from PriceRoads.com. The paralysis of urban development is part of a procedural tragedy of the commons, a side-effect of the decision-making architecture that we’ve adopted over time.

I now believe that California is not especially resistant to change, but rather that we’re seeing the tragedy of the commons that results when unified housing market is divided into dozens of cities. In short: when each city constitutes a tiny fraction of the habitable part of the metro area, no city can individually change housing prices much by allowing more development, but it can control the crowding within its borders.

So, what’s a potential solution to this impasse? Just buy people off.

Maybe the best dollar-for-dollar policy initiative of our time was Race to the Top. For $5 billion, the Obama administration bribed hundreds of thousands of charter-school students into existence. Race to the Top gave a lot of firepower to charter school proponents, allowing them to accuse teachers of turning down money for students…reversing the normal debate in which charter schools are accused of sapping money from traditional public schools.

The best way to deregulate cities would be to bribe key constituencies in a way that gives easy fodder for debate. I propose the following: California should triple the solar tax credit for seniors in communities that substantially ease zoning regulations. Any deregulation policy has to neutralize the most ardent opponents of development: seniors and environmentalists. This one would not funnel money through bureaucrats and would show up in anyone’s pocketbook as soon as they asked for the solar panels.

“NIMBYism will lead to economic stagnation” – an Op-Ed in the SF Examiner

Instead of fostering policies that discourage job formation, real estate development and economic growth, policymakers should be encouraging greater densities, and greater heights for new housing, especially along BART and Muni lines. If we are to get more people to live and work in San Francisco, then we must reject NIMBYism as a selfish luxury we cannot afford. The City badly needs an expanding tax base to fund financial promises it has made to public employees and to pay for its essential municipal services. New developments add mightily to the public’s well-being through contributions to The City’s funds for affordable housing, parks, transportation and the like. All of this comes from economic growth and a sensible balance between what we are now and what we need to be moving forward.

“Report finds a city incentive is not producing enough affordable housing” – New York Times

The report… found that the optional program known as inclusionary zoning had generated about 2,700 permanently affordable units since 2005, or less than 2 percent of all apartments developed in the city during the same period.

Under the program, the city allows developers of market-rate housing to build more units than would normally be allowed when neighborhoods are rezoned for new development, as long as they make 20 percent of the new homes affordable.

But Bill de Blasio, the city’s public advocate, argues in his housing platform for “converting incentives to hard-and-fast rules,” saying that 50,000 additional affordable units could be built over 10 years with a mandatory program.

Mandatory IZ might not be the fix New York is looking for. DC has it, yet we’re still looking elsewhere for inspiration.

“In New York, the rent doesn’t have to be ‘too damn high’ “ – Reihan Salam in Reuters

A century later, neighborhoods like the one I grew up in seem frozen in amber. The faces are different, to be sure, and so are the languages spoken by the locals. Crime has gone down and property values have gone up, and New York City is as desirable as it’s ever been. Yet we’ve had nothing like the building boom of the 1910s and 1920s that transformed the face of the city. Millions of low- and middle-income New Yorkers thus find themselves squeezed by skyrocketing rents, and hundreds of thousands of others who want to make their home in New York can’t afford to do so.

…

The first and most obvious thing to do is to broaden area in which housing can be built. For example, Schleicher and Roderick Hills Jr. of New York University Law School observe that cities like New York use “non-cumulative zoning” to dedicate desirable locations to low-value industrial uses. They propose allowing developers to replace empty warehouses, barely-used shipping facilities, and heavily subsidized factories with housing. Historical preservation districts severely restrict new housing development in many of New York City’s most desirable residential neighborhoods, which has contributed to rising housing prices. Though hardly anyone proposes getting rid of historical preservation districts entirely, the Harvard economist Edward Glaeser has made a strong case for limiting their growth.

Is NYC “Landmarking Away” Its Future? – ArchDaily

A recent study by the Real Estate Board of New York (REBNY) concluded that by preserving 27.7% of buildings in Manhattan, “the city is landmarking away its economic future.” REBNY is challenging the Landmarks Preservation Commission, arguing it has too much power when it comes to planning decisions, and that by making business so difficult for developers it is stifling the growth of the city.

…

Preservation, on the other hand, limits new supply and also creates a ‘cultural commodity’ of preserved buildings, both of which would increase the cost of living. How is it, then, that Francis Morrone cites new development as part of the problem, rather than the solution to rising costs?

Quite simply, the members of REBNY are building the wrong type of development: where developers do get the opportunity to build without restriction, they are too often building luxury apartments that are only an option for the super-rich. This may be good for their short-term profit margins, but it is bad for the long-term vitality of the city, as those who are not astoundingly wealthy are forced to leave – and the city becomes less diverse and less productive as a result.

Both sides overplay their hand a bit here. Landmarking alone isn’t what constrains New York real estate development (nor is it the case in other cities), and other constraints are also what push market-clearing prices so high (hence why all new apartments seem to be luxury ones). Affordability over time also involves filtering – yesterday’s luxury apartments have filtered down to more affordable price points. If you don’t build enough housing, you’ll see those older buildings filter up.

“In Defense Of The ‘Poor Door’: Why It’s Fine For A Luxury Condo Developer To Keep Its Low-Income Units Separate” – from Josh Barro at Business Insider, where he goes through a thought experiment about applying the same logic of IZ to that of SNAP benefits.

We require and incent developers who build market-rate housing to also sell or rent some units in the same developments at cut-rate prices. The idea is that affordable housing shouldn’t just be affordable and livable; it should be substantially similar in location and character to new luxury housing. If rich people are getting brand new apartments overlooking the Hudson River, so should some lucky winners of affordable housing lotteries.

Hence the outrage over the “poor door” at a planned luxury condo project that Extell will build on Manhattan’s Upper West Side: market-rate buyers will use one entrance, while tenants in the project’s affordable housing component will use another. Affordable apartments will also be on low floors and, unlike many of the market-rate units, they won’t face the Hudson River.

Getting mad about the “poor door” is absurd. The only real outrage is that Extell had to build affordable units at all.

New York’s housing advocates are right about one very important thing: upzonings are a windfall for landowners and the city should be asking for something in exchange for allowing more development. But what it should be asking for isn’t luxury apartments with river views to give out by lottery. It should be asking for cash.

Now, the reason for IZ isn’t solely about affordable housing, but about preserving and providing for mixed-income communities and for permanently affordable housing. All worthy goals, but the can come with a great deal of procedural headaches.