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July 25, 2022

The definitive but crazy guide to creating more affordable housing

https://twitter.com/donnelly_b/status/1544871672154669057?s=20&t=nErQ_YOLtL_lCqzYMxwNSw

Okay, so maybe this isn't an entirely definitive guide. But the intent is to make this post a kind of working post. As new ideas emerge (from my end or from your ends), I will endeavor to update it, so that maybe one day it will become a bit more definitive. I also think it's important to keep it a little crazy. Because housing affordability is clearly a tough problem to solve, so unless we start thinking differently and acting boldly, we may not get there.

Here goes.

  • Encourage new housing at all scales (low, mid, high)

  • "Upzone" all major streets and transit station areas

  • Allow multi-unit dwellings in low-rise neighborhoods and ensure that any applicable codes and/or policies are not creating unnecessary obstacles to building at this scale

  • Work to make the largest possible housing scale permissible on an as-of-right basis -- that is, remove the rezoning process wherever possible and allow builders to go right to a building permit (a lengthy rezoning process can cost millions)

  • Avoid the use of inclusionary zoning policies that do not provide an equal offset or subsidy (such as a density bonus)

  • Ensure that any development charges and levies are commensurate with the burdens created by new housing and that existing property owners are funding their fair share through property taxes

  • Identify the areas that are NOT seeing new housing and then create incentives to make development feasible

  • Search for underutilized land and other opportunities to add new housing -- no land parcel should be considered too small

  • Incentivize small-scale prototypes as a way to test out new ideas and foster innovation -- specifically with respect to climate change and construction productivity

  • Eliminate all parking minimums - no ifs, ands, or buts

  • Depoliticize the planning process as much as possible -- local politicians are not generally incentivized to encourage new housing

  • Eliminate the ability for individuals to block or significantly delay new housing

  • Ensure that there are enough staff to expeditiously review and process development and building permit applications -- if builders are hiring "expediters" in the hopes of moving these things along, it means something is broken

  • Put in place strict response and issuance timelines for building permits

  • Bonus city staff (and anyone else who touches housing supply) based on the number of housing units approved and permitted each year

  • Design smaller and more urban-friendly garbage trucks so that less space is lost in every new housing development

  • Reduce/eliminate complex urban design guidelines, such as Toronto's widely used 45-degree angular plane guideline

What is missing from this list? And/or what did I get wrong?

Last updated: July 25, 2022

June 12, 2022

Multiple paths to a quick yes

I have heard a number of people describe this blog as covering all that is new. That wasn't my explicit goal when I started writing it. My goal was simply to focus on cities and all the wonderful things that shape them. But it turns that new ideas form a big part of that and that I am very interested in new ideas. Change is what moves the world forward.

Of course, there is no shortage of new ideas. We all have brilliant ideas. Maybe you're looking at Toronto's public garbage bins right now and thinking to yourself, "You know what, I have some terrific ideas for how these could be greatly improved." And chances are, your ideas are good ones. The problem, however, is that ideas are fleeting. The real challenge is bringing them to fruition before they die.

So here are a few thoughts that came to mind this morning:

  • There is a difference between incremental improvements and directional/fundamental change. Generally speaking, we tend to be naturally better at ideas related to the former than the latter. When we look at a Toronto garbage bin on the street and see it overflowing with rubbish and see all its side panels swung open, we intuitively see the problems. But it is less common to think about, oh I don't know, subterranean garbage networks for moving refuse around or networked robots that come out at night and tidy our streets with purple brooms. This is also why when we come up with something new like a horseless carriage or an iPhone, we often name them after the thing we already know and are familiar with, even though it probably undersells how meaningful the change is. It helps our minds make the leap.

  • Many organizations have separate decision making processes that depend on the above. Amazon, for example, likes to ensure that incremental improvements have "multiple paths to yes" within the company. Again, these are the more intuitive kind of changes and so you don't want some brilliant, yet fragile, idea to get killed by some naysayer along the way. You want as many of them being implemented as possible. On the other hand, ideas that might change the direction of the company are typically slowed down and carefully deliberated. This is a common split. "Major decisions" go up to some greater governance body; whereas all other day-to-day decisions just get made on the fly by those "in the field". This is one way to keep things moving quickly.

  • On a related note, venture capitalist Fred Wilson wrote today about the virtues of small and flat partnerships when it comes to early-stage investing (but I don't think the lesson only applies to this sector). In his view, the biggest venture winners -- at least when it comes to early-stage companies -- often come from the most "controversial and out there" ideas. And to make these sorts of bets it is helpful to have a small and flat team with a lot of trust. I found this particular insight really interesting because it implies that when you have the opposite -- big and hierarchical organizations -- you naturally start to lose your ability to experiment with non-consensus ideas. And so what you're likely left with is just the intuitive and incremental stuff.

  • Recently, we also spoke about the argument that generations view change differently. Young people are often more open to new ideas, at least partially because they view it as a way for them to make their mark on the world. Older generations, on the other hand, often view change as a threat to their current position in the world. None of this is universally true, but think about how this often plays out with new housing. Young people view housing supply as a way for them to buy or rent something new and form their own household. Whereas already established households can view it as a threat to their community and their existing way of life.

These are a broad set of thoughts. But if there are any lessons to extract from these bullet points it is perhaps these: One, consider the kind of decision that needs to be made. Is it something incremental and intuitive? Is it an obviously sound infill housing project? Because if so, you want multiple paths to a quick yes. And two, consider who gets a say and who controls the decision. Because the wrong group dynamic can kill even the best new ideas.

May 25, 2022

Our cities are full

One of the most common objections to new housing is that the place is already too crowded and potentially even full. But Jerusalem Demsas' recently article in The Atlantic about how much people seem to hate other people is a good reminder that the topic of overpopulation can be a complicated one.

Because what are we really saying when we say a place is too crowded or full? Is it just that this particular neighborhood is full, or are we talking about entire cities being full?

Moreover, who determines when a place is full? Berkeley, California is, for example, a hell of a lot less dense than a city like Paris. So if a place like Berkeley can be considered full by some people, what does that mean for Paris? Presumably it's entirely unliveable.

Or could it be that the entire world is simply full and we should be looking at more drastic measures to curb population growth (in the places that are actually reaching replacement-level fertility rates)?

It's all very complicated. Thankfully Demsas offers up some possible solutions in her article:

We have, of course, discovered an elusive technology to allow more people to live on less land: It’s called an apartment building. And if people would like fewer neighbors competing for parking spaces, then they should rest assured that buses, trains, protected bike lanes, and maintained sidewalks are effective, cutting-edge inventions available to all.

The rest of the article is just as good.

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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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