Daily insights for city builders, delivered every morning at 6 AM ET. I’m Brandon Donnelly — a Toronto-based real estate developer and founder of Globizen. I’ve been writing here since 2013.

Author: Brandon Donnelly

  • Mapping auto emissions in America

    This morning the New York Times published what they are calling the most detailed map of auto emissions in America. In it, they remind us that transportation is the largest source of greenhouse gases in the US today and that most of it comes from our driving habits within metro areas. See below charts.

    Not surprisingly, if you look at total on-road emissions, the biggest cities — New York and Los Angeles — are at the top of the list. But you also have car-dependant regions like Dallas-Fort Worth that punch above their (population) weight in terms of total emissions.

    Now, here’s where it gets interesting. The story flips as soon as you adjust for population.

    On a per capita basis, New York is pretty much at the bottom of the list. It is yet another reminder that one of the most sustainable ways to live is in a dense urban environment where it is possible to get around without the use of a car. New York is, of course, one of the best places in the US to do exactly that.

    Charts: New York Times

  • The Central Arizona Project

    Phoenix is the 5th largest city in the United States. It has a city proper population of about 1.6 million people and a metro area population of close to 5 million. It is also one of the fastest growing cities in the US.

    But being the desert city that it is, its population consumes more water than its natural aquifers can support. Which is why there is something called the Central Arizona Project (CAP).

    Approved in 1968, the CAP diverts water from the Colorado River into the state of Arizona. The system is 336 miles (or 541 km) and it runs from Lake Havasu to Tucson, via Phoenix.

    Here is an aerial image of the canal from Wikipedia Commons:

    And here is a system map from CAP:

    Today, it is the single largest water source (and consumer of power) in Arizona, serving about 80% of the state’s population. This obviously makes it invaluable. It delivers on average about 1.5 million acre-feet of water per year. (Acre-foot = Acre of area x one foot in depth.)

    I was reading about this project today and I found it fascinating. Maybe some of you will too.

  • The 14th Street busway

    On October 3, New York City did something very similar to what Toronto did on King Street. It restricted through traffic on 14th Street to only trucks and buses, and turned the street into the city’s first “busway.”

    Under the new rules, cars, vans, and taxis are restricted every day of the week from 6am to 10pm, unless they’re dropping off or picking someone up, or entering into a parking garage (i.e. local traffic only). But after this, they need to make the first available right and turn off the street. Again, it’s pretty similar to the way things work here on King.

    https://twitter.com/travis_robert/status/1179813054235721728?s=20

    On the first day of the 18-month pilot program, the buses actually had to slow down in order to keep to their schedule. They were moving too quickly. Previously one of the slowest routes in the city, the M14 bus is now expected to increase its average speed by about 25%.

    Not surprisingly, a number of people were concerned that this new busway would hurt businesses along the route. This same concern has been an issue in Toronto. But this is New York. We’re talking about the US city with the highest percentage of households without a vehicle.

    The reality is that we need to get better at moving people around our cities without a car. This is one way to do it and we know it works. My prediction is that the 14th Street pilot will prove to be a success. It will then get replicated in other parts of Manhattan. Probably on other crosstown streets.

  • TikTok’s revenue is apparently over $7 billion

    Last week, audio clips from an internal Q&A session at Facebook were leaked and published by the Verge. These meetings have historically always been private. In what I think was the right move, the company then decided to publicly livestream a subsequent Q&A session — you know, to show that they had nothing to hide.

    The media tended to focus on Mark Zuckerberg’s comments about the threat of Facebook being broken up by regulators. #BreakUpBigTech. Lots of people are also attempting to glean what this leak might signal about the company’s current corporate culture. But there are lots of other interesting soundbites.

    Here’s an excerpt from Zuckerberg about the Chinese social media app, TikTok:

    So yeah. I mean, TikTok is doing well. One of the things that’s especially notable about TikTok is, for a while, the internet landscape was kind of a bunch of internet companies that were primarily American companies. And then there was this parallel universe of Chinese companies that pretty much only were offering their services in China. And we had Tencent who was trying to spread some of their services into Southeast Asia. Alibaba has spread a bunch of their payment services to Southeast Asia. Broadly, in terms of global expansion, that had been pretty limited, and TikTok, which is built by this company Beijing ByteDance, is really the first consumer internet product built by one of the Chinese tech giants that is doing quite well around the world. It’s starting to do well in the US, especially with young folks. It’s growing really quickly in India. I think it’s past Instagram now in India in terms of scale. So yeah, it’s a very interesting phenomenon.

    TikTok now has over 1.4 billion installs outside of China according to TechCrunch. And in the first half of this year, it supposedly booked more than $7 billion in revenue (though most of it came from China). The company is also saying that it posted its first profit in June of this year.

    All of this is, indeed, “a very interesting phenomenon.”

    But it’s even more interesting because this is probably the first consumer-facing Chinese internet product with massive global adoption. And it has Facebook paying attention. They’re now the ones who have to play copycat — their version of TikTok is called Lasso. Of course, it’s not nearly as popular.

  • Global distribution of wealth

    Bloomberg recently came up with a new index to define the distribution of wealth across adults in the world. They’re calling it your “net worth number” and the scale ranges from -2 to 11. Sadly, because the gap is so significant between the rich and the poor, it is based on a logarithmic or non-linear scale. Here’s how they break it down:

    Logarithms of negative numbers aren’t a thing, and so, technically, if your liabilities exceed your assets (i.e. you have a negative net worth) you shouldn’t appear on this index. But Bloomberg has added those people — which could be students with debt, after all — into the -2 category of their scale. These are people with a penny to their name.

    Now, the number of adults in each bracket is purely an estimate. If you look at different sources, you will end up with different numbers. Bloomberg believes that there are 2,800 adult billionaires in the world (numbers 9 to 11); whereas Credit Suisse’s estimate is about 1,600. (I wonder if it’s easier to estimate the number of billionaires or the number of -2’s.)

    Still, it is eye-opening to see where most adults sit (at number 3) and how bottom heavy this index is.

  • How Medellín fixed its slums

    I have written about Medellín, Colombia before on the blog. But the content has mostly come from my urbanist friends. About five years ago, my good friend Alex Feldman — who is a Managing Director at U3 Advisors — wrote this guest post about what other cities could learn from Medellín. He wrote it following a trip to the city for the World Urban Forum.

    I haven’t been to Colombia, but it’s high up on my list. So I enjoyed watching the story of Medellín’s turnaround in this Future of Cities Retro Report. It is the same story that Alex told over five years ago, but that doesn’t make the lessons any less valuable. (If you can’t see the embedded video at the bottom of this post, click here.)

    Eugenie Birch — who is interviewed in the video and who is a professor at my alma mater — hits the nail on the head when she says that a lot of this stuff isn’t rocket science. Look, we know how to lay pipes. We know how to build transportation systems. It comes down to this: Is there the political will?

  • Average household size in the US is now increasing

    Newly released data from the US Census Bureau has just revealed that the average household size is increasing for the first time in over 160 years. Put differently, the formation of new households has started to trail overall population growth. And that is causing the average number of people per household to increase.

    In 1790, there were about 5.79 people per household in the United States. That number has been in decline pretty much since then, though there was a slight increase in the decade that began in 1850. Last year (2018), the number grew to 2.63 people per household (2.71 for owner occupied households and 2.48 for renter occupied households).

    Here are two charts from Chris Fry’s recent piece at the Pew Research Center:

    So what is causing this?

    Well, we know that US fertility rates aren’t on the rise. In fact, they’re generally viewed as hitting record lows. I say “generally” because there are a number of different ways to measure fertility. There’s the general fertility rate, completed fertility, the total fertility rate, and others. But we are seeing some alignment here: fertility rates are down.

    One probable explanation is the fact that more Americans are living multi-generationally. According to the Pew Research Center, 1 out of every 5 Americans lived in such a household as of 2016. Part of this may be a result of immigration. Asian and hispanic populations are more likely to live in a multi-generational household compared to white people.

    Another demographic trend is the increase in people living in shared quarters, whether that might be with a roommate or someone else. This is interesting because it suggests that there’s an affordability constraint. Are people being forced to “double up?” The current co-living trend is at least partially because of this.

    These are all noteworthy trends because household formation is viewed as “the underlying driver of long-term demand for new housing.” I am assuming that more people per household also means less square footage per person.

    Graphs: Pew Research Center

  • Lincoln Road’s $67 million makeover (and Business Improvement Areas)

    Lincoln Road is one of my favorite parts of Miami Beach. Supposedly the pedestrian-only street attracts some 11 million visitors a year. But I have noticed that the street has lost some of its mainstays to areas such as Wynwood. This is probably why the city and local property/business owners struck a deal this past summer to makeover the street based on a design by Field Operations.

    The deal works like this: The City of Miami Beach is going to pay for the entire US$67 million makeover. This money will come from city and county taxes, as well from bonds. In return, property owners in the Lincoln Road Business Improvement District (BID) have agreed to tax themselves an additional 25% in order to pay for promoting and programming the street.

    Obviously everyone believes that they will come out ahead as a result of this makeover. An improved Lincoln Road means more foot traffic, more sales, and more tax revenue. There’s also talk of expanding the boundaries of the BID, which would generate additional funds. Right now the district is bounded by Alton Road on the west and by Washington Avenue on the east.

    For those of you who aren’t familiar with Business Improvement Districts, they are essentially defined areas where additional taxes are levied in order to fund projects and improvements that help overall economic development within the district. It is a structure that is used all around the world and it is one that was actually pioneered here in Toronto.

    Here we call them Business Improvement Areas, and the first ever was the Bloor West Village BIA, which was established in 1970. There are now 83 BIAs in the City of Toronto. The first BID in the United States was the Downtown Development District in New Orleans. It was established in 1974. There are now over 1,200 across the U.S.

    If you’d like to learn more about the improvements planned for Lincoln Road, here’s a copy of the master plan that was submitted to the City of Miami Beach’s Historic Preservation Board. The link is from The Next Miami.

    Rendering: Field Operations

  • A merit-based system

    I went to graduate school in the United States. After I graduated I was given, if I remember correctly, 90 days to leave the country. The US wasn’t a good place for professionals in architecture and/or real estate at that particular time, and so I did exactly that. I left the country.

    Lately, I’ve been having a number of informational coffee meetings here in Toronto where I have been connecting with highly intelligent and educated people who have moved to this city in search of success. They couldn’t get a visa in the US and so they decided to, instead, move to the greatest city in the world.

    These are people from Brazil to Bangladesh. These are people who are young (late 20’s), who have multiple masters degrees, who are hungry to get ahead, and who have a strong, if not perfect, command of English (or French).

    I have been finding this fascinating. As I sit and drink my coffee, I can’t help but think to myself, “This is what a merit-based immigration system looks like.”

  • The construction hard hat turns 100

    I learned today that the hard hat will celebrate its 100th anniversary this year.

    Patented in 1919, the hard hat was invented by a man named Edward W. Bullard (though his father had already been making protective leather caps for the mining industry). Edward had just returned to the United States after World War I and he began to wonder why construction workers weren’t wearing helmets like the one he had been wearing overseas. So he decided to make one.

    Edward’s first product was called the Hard Boiled Hat, and it was made out of steamed canvas and leather. Similar to today, an early version of the hat featured a “suspension system,” which created an air cavity between head and helmet and cushioned any blows to the head. This overarching design approach hasn’t really changed all that much over the years, but Bullard’s hats did go from canvas to aluminum (1938) and then to plastic (1950). Plastic is, of course, cheaper to produce.

    Supposedly, the first designated “Hard Hat Area” in the US was the Golden Gate Bridge site, which started construction in 1933. This should give you a sense of the hard hat’s adoption curve. It seemingly took well over a decade for construction sites to start mandating their usage, and even then it doesn’t appear to have been ubiquitous.

    The company — which was founded in 1898 in San Francisco — is now in its fifth generation of family ownership, according to the New York Times.

    Photo by Guilherme Cunha on Unsplash