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June 12, 2014

Why buy a car when you've got mobile apps

One of the things that many city planners, transportation experts, and municipalities are trying to figure out is how to successfully shift people away from driving towards alternative modes of transportation, such as biking and transit. Now, this is no easy task. There are a myriad of factors that influence a person’s decision to drive or not drive–or if they should even own a car in the first place. Though, land use and density are, in my opinion, probably the biggest.

But of all the solutions thrown around, mobile apps are typically not within the playbook. However a recent New York Times article is making the argument that it should be, because car-sharing services and apps like Uber seem to be indeed having an affect on people’s decision to own a car. And that’s because in some cities it’s actually cheaper to use Uber every day (than to own a car) and because taxi use has been shown to correlate with other (non-driving) forms of mobility.

Paradoxically, some experts say, the increased use of ride-sharing services could also spawn renewed interest in and funding for public transportation, because people generally use taxis in conjunction with many other forms of transportation.

In other words, if Uber and its ride-sharing competitors succeed, it wouldn’t be a stretch to see many small and midsize cities become transportation nirvanas on the order of Manhattan — places where forgoing car ownership isn’t just an outré lifestyle choice, but the preferred way to live.

And to be honest, I don’t think this is all that far stretched. More and more I find myself wondering why I even own a car. It’s not appreciating sitting downstairs in my garage and, given the frequency in which I use it, I would definitely be better off financially if I simply used an app like Uber or Hailo more often. About the only thing those apps aren’t great for are trips to Home Depot and snowboard trips to the mountain. 

May 27, 2014

Should you buy or rent?

The decision to buy or rent your home can be a big one–it’s both personal and financial. If you buy, you tie up capital that could be put to use elsewhere. But if you rent, you don’t get to participate in any of the upside should home prices appreciate.

To help with this decision, the New York Times recently put together an online calculator. It takes into account the opportunity cost of your capital, inflation rates, the expected home price growth rate, and a myriad of other factors. It’s the most detailed of these types of calculators I’ve ever seen.

If you’re thinking about this decision, you may want to take a look. Although, keep in mind that it’s a US model and in the US you can deduct the mortgage interest on your principal residence. You can’t do that in Canada.

I also wrote a post a few months ago called: What I see as the fundamentals of real estate investing. You’ll find it interesting if you are, in fact, thinking about buying or investing in real estate anytime soon.

May 8, 2014

Portland adopts the granny flat

I’ve talked a lot about laneway housing here on Architect This City. I’m a big supporter and I wish that Toronto would get on board and formally allow them. It’s been done and it is being done in cities around the world. Just this morning, a friend of mine sent me this NY Times article talking about how Portland has embraced the “granny flat”, which is one of the many names used for this type of housing.

Within the article, you’ll find a nice slideshow of “accessory dwelling units” ranging from 300 and something square feet to 700 square feet. (800 square feet is apparently the maximum in Portland.) But what I found really interesting from the article is how quickly these homes have caught on:

Eli Spevak, a local alternative-housing developer who is among those who lobbied for A.D.U.-friendly policies, said, “The city changed two rules, and all of a sudden it went from 30 a year being built to 200 last year” — an impressive figure, considering the total number of applications approved for single-family houses in 2013 was 800.

This is a hugely impressive figure that shows that these homes are not really a niche product. Laneway homes have become a meaningful chunk of the new home market in Portland. Given that they’re a relatively affordable and sustainable option, I’m not surprised. But I am surprised that more cities aren’t following suit.

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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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