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February 26, 2022

Weekend link roundup -- Ukraine and gas supply to Warren Buffet and Canadian housing supply

I spent much of this morning reading about and listening to discussions about what's happening in Ukraine and so, instead of a typical post this morning, I'm just going to share a mélange of links.

  • Monocle 24 Foreign Desk episode talking about Russia's invasion of Ukraine. Speakers are Ukrainian MP Lesia Vasylenko, former NATO chief Richard Shirreff, Russian journalist Ekaterina Kotrikadze, and Russia expert Mark Galeotti. I found this helpful in better understanding some of the dynamics at play here and what might happen going forward -- though, of course, who knows. All of this is both deeply sad and frustrating. [Link]

  • Discussion in Bloomberg Green about the feasibility of the EU shutting off Russian gas right now, as opposed to through a protracted transition. Currently, the EU satisfies about 20% of its total energy needs through gas and about 40% of it comes from Russia. [Link] Also, a chart showing Russian natural gas exports, by destination. [Link]

  • Warren Buffet published his widely read annual letter to Berkshire Hathaway shareholders this weekend. He likes to deliver news like this on a Saturday so that people have time to digest it before the markets reopen on Monday. The overall message was one that we have heard before: BH has a lot of cash (~$144 billion to be exact) and they're not finding very many compelling opportunities in which to deploy it. [Link]

  • To add to the above, here is a longish Q&A session with Buffet's partner, Charlie Munger. He continues to be worried about excess money in the system and high inflation. [Link]

  • Construction has been recently completed on a Mies van der Rohe design from 1952 that had been forgotten and buried in some archives. Originally commissioned to be a fraternity house at Indiana University, the building is now the Eskenazi School of Art, Architecture + Design. This is a supremely cool story, particularly for an architecture school. [Link]

  • Yet another simple example by Bobby Fijan on how highly restrictive zoning codes and design guidelines don't always produce the end results that we might want. Different times and different contexts in this example. But it's interesting to think about how best to promote design excellence in our cites. Is more creative market freedom the answer? [Link]

  • My friend Randy Gladman, who is senior vice-president of development advisory at Colliers here in Toronto, published an opinion piece in the Financial Post last week about the hidden costs of inclusionary zoning. It is consistent with the ad nauseam discussions that we have been having on this blog for the past few years, but it of course remains an important read. [Link]

  • Steve Pomeroy of Focus Consulting makes an argument in the Globe and Mail that elevated home prices in Canada isn't primarily the result of a supply deficit. Using recent census data that allegedly shows that housing supply in Vancouver actually kept pace with demand (over how long of a period?), Pomeroy instead points to the other typical culprits: strong demand, low interest rates, unused homes owned by non-residents, and so on. This one likely deserves a dedicated post at some point. [Link]

Ironically, the post turned out to be wordier than my usual ones.

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February 25, 2022

Margolese National Design for Living Prize

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This landed in my inbox earlier in the week. And since I think it's important to support Canadian talent and I think it's important for us to continually nurture a Canadian cultural identity, I'm sharing this design prize with all of you today.

Hosted by the University of British Columbia's School of Architecture + Landscape Architecture (SALA), the Margolese Prize is intended to recognize early to mid-career Canadians who are doing outstanding work related to the built environment. This could be in fields like architecture and planning or it could be in adjacent fields.

Nominations are open until April 10, 2022 and you can both nominate yourself and nominate others. The winner will be announced this September and, in addition to a ceremony and presumably a trophy of sorts, the committee will be giving out $50,000. If you'd like to nominate yourself/someone, click here.

February 10, 2022

Architecture is a zero-sum game

Witold Rybczysnki recently had this to say about the American Institute of Architect's plans to ensure better equity across the profession:

But the architectural profession is not the post office. It depends on the availability and preferences of clients, it depends on the swings of the economy, and success relies on individual drive and talent. Architecture is a zero-sum game, of course: there are a limited number of building commissions at any one time and if one architect gets the job, another doesn’t. Some of the most prominent commissions—the ones that build a reputation—are the result of architectural competitions. In these blind auditions, only the most talented have a chance to shine. And talent is not evenly distributed; “cream rises” as Stewart Brand memorably wrote in the Whole Earth Catalog. Hard to put your thumb on that scale.

When I read this I couldn't help but think of Malcolm Gladwell's account of what happened when orchestras first started conducting blind auditions in the 1980s. I think he talks about this in his book Blink. As soon as selection committees could no longer see the sex of candidates -- and could only hear their musical output -- orchestras immediately started hiring more females.

This is a neat and tidy example that seems to demonstrate that women are perhaps better classical musicians than men, even though the opposite was believed to be true before large screens started obfuscating our inherent biases.

But the selections process for architects isn't always as simple. This makes it a bit more difficult to determine if we truly have a meritocracy or if there are in fact some deep rooted prejudices that we maybe aren't aware of.

Of course, there is also the possibility that we have more or less a meritocracy, but that we have structural issues which are precluding certain people from fully developing their merits in quite the same way.

Whatever the case may be, I agree with Witold that blind design competitions are probably a fairly reasonable way to level the playing field. The problem is that design competitions are not universally used. We have never done one when searching for an architect.

I would like to think that we simply look at their portfolio (in search of both cool and relevant projects), objectively assess their abilities, and then consider their fees. But I also know that us humans are riddled with biases.

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Brandon Donnelly

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Brandon Donnelly

Daily insights for city builders. Published since 2013 by Toronto-based real estate developer Brandon Donnelly.

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