The question isn’t whether to rebuild, but where. Pacific Palisades is a wonderful place to live, but those amazing views of beautiful topography of foothills, mountains, canyons, and ridgelines are located in fire zones. Early estimates put the total cost of the wildfires at $250 to $275 billion. The property insurance bill is expected to easily top
The question isn’t whether to rebuild, but where. Pacific Palisades is a wonderful place to live, but those amazing views of beautiful topography of foothills, mountains, canyons, and ridgelines are located in fire zones. Early estimates put the total cost of the wildfires at $250 to $275 billion. The property insurance bill is expected to easily top
$20 billion
. California’s insurance market was already in crisis, as leading insurers had done the math and decided to leave the state or not renew policies in fire-prone areas. California’s state-backed FAIR Plan is the insurer of last resort in these areas. Statewide, the number of FAIR Plan policies in 2024 increased 40% from 2023, and
) and mansions along PCH is a wealth transfer from California’s taxpayers to some of its wealthiest people.
This isn’t unique to California; 10 states across the political spectrum, including Florida and Texas, sued a federal flood insurance program after it adjusted premiums to better reflect climate realities. As one meme put it: You may not believe in climate change, but your insurance company does.
He's not wrong, though I'm sure that the impacts of the deadliest and most destructive wildfires in California's history were felt by a broad cross section of people. And, no matter how much money you have, losing your home is going to be traumatizing. My mom's house in New Brunswick burnt down when she was a young girl and she remembers it vividly. You lose things that are priceless. Still, the questions of where and how to rebuild are important ones. Living in a high-risk area has costs associated with it. I do think it's only fair to ask who will be underwriting these costs.
On this blog, we often talk about city building in the context of doing things to help improve a city -- whether that be a development project, a new public art mural, or an interesting local business. These interventions help to build a city. But even more specifically, the term has, for many, come to mean building up a city in a positive way.
But there is another way to think about city building. You can think of it in terms of building actual new cities. We've spoken about some of these before, namely this one in California and this odd one in Saudi Arabia. But apparently it is becoming more common. According to The Economist, the world is now building more new cities than it has in the last 80 or so years:
Egypt’s “New Administrative Capital” is part of a rush of city-building. Firms and governments are planning more settlements than at any time in the post-war period, with many already under construction. Ninety-one cities have been announced in the past decade, with 15 in the past year alone. In addition to its new capital in the north, Egypt is building five other cities, with plans for dozens more. India is considering eight urban hubs. Outside Baghdad, Iraq, workers have just broken ground on the first of five settlements.
In some cases, it is being done as a solution to urban congestion. If this city is too expensive and unaffordable, just create a new one. This appears to be part of the idea with the above city outside of San Francisco. Of course, new cities can also be created for ideological reasons, or for political purposes, which was the case with Brazil's capital city, Brasilia.
Here, the idea was to move the federal capital away from the country's populated southeast region to a more geographically neutral location in the middle of the country. It also turns out that seeding a new city with government institutions is a good way to get one of these started. Existing cities do, after all, benefit from network effects.
History points to characteristics shared by successful projects. State institutions can help anchor cities, as Brasília (in Brazil) and Chandigarh (in India) showed in the 20th century. Although both have had problems, people in Brazil and India are voting with their feet. Brasília’s population is growing at 1.2% a year, more than double the national average. Chandigarh, a state capital, is now India’s fourth-richest region on a per-person basis.
But putting money, ego, and ideology aside, when does it actually make sense to start a new city in lieu of just expanding (or addressing the problems in) the one(s) you've already got? Population size can't be the only factor in determining whether a city is "full", because Tokyo seems to do just fine as the largest metropolitan area in the world.
If it hasn't already been done, I think this would make for an interesting research project. Until then, there's this (paywalled) Economist article.
If you're looking to block new development, drive up the cost of housing, and appear "progressive" all at the same time, one generally effective technique is to do it under the guise of historic preservation. San Francisco is really good at this, as are many other cities. And it works because, who
$20 billion
. California’s insurance market was already in crisis, as leading insurers had done the math and decided to leave the state or not renew policies in fire-prone areas. California’s state-backed FAIR Plan is the insurer of last resort in these areas. Statewide, the number of FAIR Plan policies in 2024 increased 40% from 2023, and
) and mansions along PCH is a wealth transfer from California’s taxpayers to some of its wealthiest people.
This isn’t unique to California; 10 states across the political spectrum, including Florida and Texas, sued a federal flood insurance program after it adjusted premiums to better reflect climate realities. As one meme put it: You may not believe in climate change, but your insurance company does.
He's not wrong, though I'm sure that the impacts of the deadliest and most destructive wildfires in California's history were felt by a broad cross section of people. And, no matter how much money you have, losing your home is going to be traumatizing. My mom's house in New Brunswick burnt down when she was a young girl and she remembers it vividly. You lose things that are priceless. Still, the questions of where and how to rebuild are important ones. Living in a high-risk area has costs associated with it. I do think it's only fair to ask who will be underwriting these costs.
On this blog, we often talk about city building in the context of doing things to help improve a city -- whether that be a development project, a new public art mural, or an interesting local business. These interventions help to build a city. But even more specifically, the term has, for many, come to mean building up a city in a positive way.
But there is another way to think about city building. You can think of it in terms of building actual new cities. We've spoken about some of these before, namely this one in California and this odd one in Saudi Arabia. But apparently it is becoming more common. According to The Economist, the world is now building more new cities than it has in the last 80 or so years:
Egypt’s “New Administrative Capital” is part of a rush of city-building. Firms and governments are planning more settlements than at any time in the post-war period, with many already under construction. Ninety-one cities have been announced in the past decade, with 15 in the past year alone. In addition to its new capital in the north, Egypt is building five other cities, with plans for dozens more. India is considering eight urban hubs. Outside Baghdad, Iraq, workers have just broken ground on the first of five settlements.
In some cases, it is being done as a solution to urban congestion. If this city is too expensive and unaffordable, just create a new one. This appears to be part of the idea with the above city outside of San Francisco. Of course, new cities can also be created for ideological reasons, or for political purposes, which was the case with Brazil's capital city, Brasilia.
Here, the idea was to move the federal capital away from the country's populated southeast region to a more geographically neutral location in the middle of the country. It also turns out that seeding a new city with government institutions is a good way to get one of these started. Existing cities do, after all, benefit from network effects.
History points to characteristics shared by successful projects. State institutions can help anchor cities, as Brasília (in Brazil) and Chandigarh (in India) showed in the 20th century. Although both have had problems, people in Brazil and India are voting with their feet. Brasília’s population is growing at 1.2% a year, more than double the national average. Chandigarh, a state capital, is now India’s fourth-richest region on a per-person basis.
But putting money, ego, and ideology aside, when does it actually make sense to start a new city in lieu of just expanding (or addressing the problems in) the one(s) you've already got? Population size can't be the only factor in determining whether a city is "full", because Tokyo seems to do just fine as the largest metropolitan area in the world.
If it hasn't already been done, I think this would make for an interesting research project. Until then, there's this (paywalled) Economist article.
If you're looking to block new development, drive up the cost of housing, and appear "progressive" all at the same time, one generally effective technique is to do it under the guise of historic preservation. San Francisco is really good at this, as are many other cities. And it works because, who
doesn't
think that history is important?
This exact thing just transpired in San Francisco, where earlier this year Supervisor Aaron Peskin passed an ordinance enacting new density controls for most development in the Northeast Waterfront Historic District, the Jackson Square Historic District, and the Jackson Square Historic District Extension (solid neighborhood names).
Of course, sometimes you can run into resistance when you're trying to push through new anti-housing policies. And in this case, San Francisco Mayor London Breed actually vetoed Peskin's bill. In a letter dated March 14, 2024, she wrote:
Restricting new housing runs counter to the goals of our Housing Element, which the Board of Supervisors unanimously approved just over a year ago. It also runs counter to what we need to do to make this City a place that creates opportunities for new homes for the people who need them today and for future generations growing up in San Francisco.
This ordinance passes off anti-housing policy in the guise of historic protections. Existing rules already protect against impacts to historic resources. I believe we can add new homes while also supporting and improving the vibrancy of our unique neighborhoods. Many areas of San Francisco, including eastern neighborhoods like the South of Market, Potrero Hill, and the Mission, have also already removed density limits to encourage new housing.
However, her veto was ultimately overridden by the Board of Supervisors and so, as far as I understand it, the above density controls stand.
Here is also a street view image from the area, along The Embarcadero:
But like I said, San Francisco seems to be really adept at this sort of maneuvering.
doesn't
think that history is important?
This exact thing just transpired in San Francisco, where earlier this year Supervisor Aaron Peskin passed an ordinance enacting new density controls for most development in the Northeast Waterfront Historic District, the Jackson Square Historic District, and the Jackson Square Historic District Extension (solid neighborhood names).
Of course, sometimes you can run into resistance when you're trying to push through new anti-housing policies. And in this case, San Francisco Mayor London Breed actually vetoed Peskin's bill. In a letter dated March 14, 2024, she wrote:
Restricting new housing runs counter to the goals of our Housing Element, which the Board of Supervisors unanimously approved just over a year ago. It also runs counter to what we need to do to make this City a place that creates opportunities for new homes for the people who need them today and for future generations growing up in San Francisco.
This ordinance passes off anti-housing policy in the guise of historic protections. Existing rules already protect against impacts to historic resources. I believe we can add new homes while also supporting and improving the vibrancy of our unique neighborhoods. Many areas of San Francisco, including eastern neighborhoods like the South of Market, Potrero Hill, and the Mission, have also already removed density limits to encourage new housing.
However, her veto was ultimately overridden by the Board of Supervisors and so, as far as I understand it, the above density controls stand.