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January 25, 2014

Housing tenure in Europe

Yesterday I came across an incredibly fascinating chart from Eurostat, analyzing housing tenure (in 2011) across Europe. Here it is:

And here’s what I found interesting.

Working from left to right, there seems to be a clear difference between Eastern and Western Europe in terms of the amount of leverage they use to buy homes. If you look at Romania, not only does over 90% of the population own a home, but they also don’t seem to have any outstanding mortgage or housing loan. That means they’re buying their homes in cash.

By the time you get to the United Kingdom, you start to see numbers that are comparable to Canada and the United States. The percentage of owner occupied homes is sitting at or below 70% and the majority of them have a mortgage or loan.

But as a whole, Western Europe seems much more likely to rent than Eastern Europe. And in the case of Switzerland, more people rent than own. Why is that? This seems odd given its economic strength. But the same could be said for Germany and Austria, which also show relatively low ownership rates. Here’s one possible explanation.

Finally, I found it interesting that in Denmark, the Netherlands, and Sweden, there’s virtually no such thing as subsidized rental housing. If you rent, you’re paying market rate (at least according to this chart). I wonder if this has something to do with there being less income inequality.

If anyone has any insights on some of these points, I’d love to hear from you in the comment section below.

October 6, 2013

Data centers and the arctic circle

I don’t think a lot of people consider the spatial implications of the online world. By this, I’m specifically referring to the massive data centers required to power the internet.

Earlier this year Facebook opened its first European data center in Sweden, less than 70 miles from the arctic circle. It’s 900,000 square feet. That’s about equivalent to a 102 storey condo tower.

Behind the virtual worlds we live in - Facebook, Twitter, Tumblr and others - lies nondescript buildings with repeating rows of machines inside them. They’re the complete antithesis of the vibrant lives we pretend to have on the consumer web, but they’re making it all possible. It feels just like the Matrix.

And there are some interesting shifts taking place in the data center space. Facebook - through its Open Compute Project - now designs its own centers and makes the work available to others, for free. It’s an “open hardware” play that could threaten incumbents in the space such as Dell and Cisco.

Facebook’s goal is “to build one of the most efficient computing infrastructures at the lowest possible cost.” Their Swedish outpost represents their first self-designed center. And it’s proven to be a highly efficient one.

While the average data center might use 3 watts to produce 1 watt of computing tower, Facebook’s Swedish center was able to get that ratio down to 1.04 : 1, largely because the colder climate allowed for a dramatic reduction in cooling loads. It makes a ton of a sense.

I’ve actually thought about this before. Why aren’t more data centers - which have massive cooling requirements - built in colder climates? I just so happen to know of a country with lots of prime arctic circle real estate.

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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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