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January 13, 2015

Is Toronto's urban growth boundary really making the city less affordable?

This morning the Globe and Mail published an article by Toronto’s chief planner, Jennifer Keesmaat, called Greenbelts make cities more livable, affordable and transit-friendly.

The headline immediately caught my attention because conventional economic wisdom would suggest that supply constraints – whether natural or artificially created – generally have a negative effect on housing affordability.

To be clear though, I support Ontario’s greenbelt. I think an urban growth boundary is the right thing to have if we want to build sustainable, walkable, and transit-oriented communities. But I’m also not blind to some of the potential (negative) externalities.

However, Keesmaat’s article got me wondering just how prevalent those externalities might be and to what extent our greenbelt is actually impacting housing affordability in Toronto. In her article she cites a recent report by the Pembina Institute that very clearly argues the following:

“There is no shortage of land throughout the GTA [Greater Toronto Area] to build single-family homes for decades to come, but this land is predominantly located far from the City of Toronto and other established centres of employment in the GTA.”

More specifically, the report found that of all the land available for development in the region (within our growth boundary), 81% of it is projected to still be unused by 2031. This got me thinking: it’s not that there isn’t land still available in the region; it’s that there isn’t land in the areas where demand is the greatest.

Put differently, young families aren’t clamoring for single family homes in High Park and Leslieville because the greenbelt has restricted their ability to find new housing. They’re doing so because they want to live in neighborhoods like High Park and Leslieville.

If you dive into the data, the report shows that in 2004 the average price of a detached home in Toronto was about $117,000 more than the rest of the Greater Toronto Area. As of 2013, that spread had grown to about $200,000. And indeed the data shows that it’s the core of the city where home prices seem to be appreciating the fastest.

So when it comes to housing affordability and supply, the greenbelt may actually be a red herring. Releasing it would not increase the supply of housing in areas where demand is already high, which is probably why this same report also found that – with or without an urban growth boundary – most Canadian cities are seeing similar increases in home prices.

So what should we be doing?

I think we should do two things: (1) focus on accommodating more growth in the areas that people already want to live in, and (2) figure out ways to transform the less desirable areas into more desirable ones. This second one will be the hardest, because it’s likely going to mean changing car dependent areas into transit-oriented ones, which is no easy task.

The good news though is that we are already doing these things. There’s more that I would like to see happen, but we’re headed in the right direction.

If your city has a greenbelt or you have experience with greenfield development in the Toronto region, I’d love to hear your thoughts in the comments. This is an area of development that I’ve never really been involved with.

Image: Flickr

January 11, 2015

Hidden gems in the Tenderloin

I’ve written about the Tenderloin neighborhood in San Francisco before. It’s an infamous neighborhood in the center of the city that has for decades resisted gentrification (which was the topic of my post).

But as the technology sector continues to urbanize, many fear that it’s only a matter of time before it does eventually gentrify. A new nickname has even emerged for the neighborhood: the Twitterloin.

However, a local nonprofit called the Wildflowers Institute is trying to ensure that gentrification doesn’t erase the cultural assets currently housed in the neighborhood. Through a project called “Hidden Gems”, the group is literally knocking on doors to find active artists within the community (many of whom live in single rooms) and then supporting them through fellowship programs and other investments.

What’s fascinating about their approach is that they are actively seeking out the informal activities taking place within the community – activities that would otherwise be hidden and then potentially lost. Once discovered, they then do a number of mapping exercises to keep track of this data.

As somebody who believes city building will become a lot more data driven in the future, I think this is a really interesting initiative. And as gentrification pressures continue to increase in San Francisco, I’m sure this information will help guide the discussions. You can’t account for something you don’t know exists.

If you’d like to learn more about this initiative, check out this short 4 minute video from the New York Times. I would then love to hear from you in the comment section below.

January 10, 2015

A look at One Spadina Crescent

One of the projects that I’m most excited about here in Toronto is the renovation and addition to One Spadina Crescent. The building sits in the middle of a roundabout along Spadina Avenue and occupies what is easily one of the most ceremonial positions in the city.

But for as long as I can remember, the building hasn’t been living up to its full potential. So much so that in the 1960s it was going to be demolished in order to make way for the proposed Spadina Expressway. That would have been an absolute tragedy. Thankfully, our friend Jane Jacobs stopped that one.

Today, exciting things are happening at One Spadina Crescent. The Daniels Faculty of Architecture, Landscape, and Design at the University of Toronto is in the midst of renovating and expanding the building, and will eventually relocate there from its current location on College Street.

When it’s all said and done, One Spadina Crescent will look something like this (via Daniels).

From the south:

From the west:

From the north:

What’s most exciting to me about this project are the following 3 things:

First, it’s an opportunity to connect One Spadina Crescent to the surrounding urban fabric. Today, it feels very much like an island in the middle of the street. 

Second, it’s a wonderful example of the new layering on top of the old, which is something that I believe we should aspire to do in our cities. The University of Toronto has become quite good at doing that on campus.

And finally, the intent is for this building and site to include a number of research centers and public facing functions devoted to architecture, design, and city building. And so One Spadina could become quite the hub in the city. That’s exciting.

If you’d like to take a look inside the building (pre-renovation), check out these great photos by Peter MacCallum. The picture at the top of this post is his.

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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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