Today is Christmas Eve. It’s the season of giving. So I thought it would be appropriate to talk about affordable housing.

Yesterday, Mitchell Cohen – who is a real estate developer and the president of The Daniels Corporation – wrote an opinion piece in the Toronto Star talking about just that. It was called: A perfect storm for action on affordable housing.

Here’s a snippet that summarizes the things he believes we should be doing:

Municipalities across Ontario also have significant tools at their disposal to make a difference. To date, these tools have not been co-ordinated to achieve maximum bang for the buck. Property taxes can and should be waived not only for affordable rental homes but for affordable ownership homes as well. Additionally, cities can and should waive all development levies and other municipal fees for affordable rental and ownership housing.

Combined, these two measures provide municipalities with powerful leverage to implement inclusionary zoning — the most important tool in the affordable housing tool box. Inclusionary zoning on a city-wide basis creates a level playing field, an opportunity for a constructive partnership between municipalities and private sector developers to create both affordable ownership and rental homes within every new building approved for construction.

For those of you who might be unfamiliar with inclusionary zoning, it’s essentially a zoning requirement to build a certain number of affordable units in any new construction project. It originated – as far as I know – in the US, but has been fairly controversial since the outset.

So today I thought we could have a discussion on the merits of inclusionary zoning. Do you think it’s a good or bad thing for cities? Is it really the most effective way to deliver affordable housing at scale? Leave your thoughts in the comment section below :)

I don’t have a strong view on inclusionary zoning, but I do believe that affordable housing and a mix of incomes is critical to cities and neighborhoods.

I do, however, wonder if it’s one of those things that seems to make a lot of sense, but actually has a bunch of negative externalities associated with it. Maybe the answer is to just prototype the idea and then iterate on it.

What do you think?

I recently wrote about a startup called Flux.io in a post titled: How technology could completely change the real estate development industry. Given that I received a lot of positive feedback on this post, I thought I would let you all know that, as of today, you can now test out the product yourself for free online.

Here are a few snippets from today’s announcement:

At Flux we believe that data, analytics, and visualization can help bridge understanding between stakeholders and result in smarter growth and faster development and faster building. The Austin Preview of Flux Metro is an important first step in this direction.

Flux Metro aggregates geographic data from public and private sources to build a three dimensional visualization, starting with downtown Austin. Alongside a rendering of the existing landscape, Metro shows what can be built on a lot or parcel under the zoning code. It considers more than 10,000 code sections for land use guidelines, height limits, floor area limits, setbacks, and view access rights as well as the locations of protected trees and daylight shadows to project what can be built and how it fits into the existing environment.

We believe that everybody should be able to understand what a zoning code means for their city and that visual representations are the best way to create a shared understanding.

Click here to signup and give it a try. It is based on Austin’s development code and on the same building site that was shown in the video I shared in my post.

Image: Flux

This may sound crazy, but I’ve never been to Chicago. It’s on my list, but I just haven’t gotten around to it and I’ve never had a specific reason to go. Hopefully I can make it this summer.

Lately though, I’ve found myself reading more and more about the city. Given that it’s also a Great Lakes city and it’s of comparable size, Chicago is an interesting case study for Toronto. But one thing that seems to keep coming up, is the need for zoning reform.

About a month ago I wrote a post called “The tale of 2 Chicagos”, which was inspired by the blogging of Aaron Renn (The Urbanophile) and Daniel Hertz (City Notes). The discussion was around the prevalence of single-family zoning in most parts of Chicago and how it’s creating a supply constrained market (driving up prices).

But there’s another outcome. Here’s what Daniel Hertz recently argued:

When places in and around downtown become more desirable, developers build more housing, and more people get to live there. But when non-downtown neighborhoods become more desirable, developers can’t build more housing: it’s against the law. So instead, they profit by tearing down old two-flats and building mansions in their place. And as a result, fewer people get to live in those neighborhoods, even as more and more people want to.

Effectively, his argument is that gentrification leads to a loss of housing units. Developers can’t build more housing, so they replace housing. And it all stems from a restrictive zoning code that aims to maintain the character and scale of established neighborhoods. I get that, but you could easily argue that it exacerbates the negatives of gentrification.

It strikes me that Toronto and Chicago are in somewhat similar places in terms of their growth. Without any real natural barriers, both cities had the luxury of being able to develop through horizontal sprawl when they were younger.

But with people now returning to city centers, we’re faced with a series of difficult decisions: How do we balance preservation and growth? How do we balance low-density with high-density? How do we maintain the character of what people love while still creating an inclusive city?

It absolutely can be done, but it’s going to mean embracing a certain amount of change. And that’s not always an easy sell.