Daily insights for city builders, delivered every morning at 6 AM ET. I’m Brandon Donnelly — a Toronto-based real estate developer and founder of Globizen. I’ve been writing here since 2013.

Category: Urbanism

  • Ownership and participation — what cities share with Web3

    Here’s a cogent argument by Dror Poleg about how urban economics can be used to explain the evolution of Web3, and also why it’s all a bit of a ponzi scheme, but that when it works, it works.

    His argument revolves around ownership and participation. If you own real estate in a city, you could say that you are both a part owner of said city and a participant. You participate by virtue of living and/or doing other things there, but beyond that you also have a vested interest in the city doing well. Because if the city continues to do well and grow, there should be more demand for real estate, including yours, and that likely means your wealth will increase over time.

    This same force could be said to apply when existing property owners oppose new development. It restricts supply and increases the value of people’s existing “ownership” in a city. It’s kind of like being a company and not issuing new shares so as to not dilute your existing shareholders.

    This connection between ownership and participation is similarly a hallmark of Web3. In the world of crypto, users buy tokens (some fungible and some non-fungible) and those tokens provide access and rights to various things.

    For example, owning tokens might allow you to vote on key decisions affecting the overall organization. And if the organization does well and continues to grow, all token holders should, in theory at least, see their wealth increase. More people will want those same tokens. Ownership and participation.

    Web2 companies, on the other hand, do not typically offer this automatic connection between ownership and participation. That is, of course, unless you’re a shareholder. If you’re just a regular user of a platform like Instagram (which I am), but you don’t own any shares in Meta (I do not), then you’re only a participant.

    If you happen to be a widely followed influencer then you can certainly benefit indirectly from the platform, but you do not benefit from any sort of direct ownership in the organization. Pretty much everything accrues to the house.

    In fact, you also don’t own your followers, from which you derive your indirect benefit. Not to pick on Meta, but if Meta decided that your content was suddenly inappropriate for the platform, perhaps too salacious, then it could choose to close you down and your indirect benefits.

    This, of course, is one of the great promises of crypto and Web3. If you’re a part owner and you have some say in the way things are being run, you can maybe avoid this kind of outcome. And if things really aren’t working out, one should have the flexibility to take their followers and be extra salacious somewhere else.

    We shall see if this is ultimately how Web3 plays out, but the connection between ownership and participation is an interesting one and, if things do end up working out as planned, maybe it can be harnessed to improve our cities. Because we know the problems: inequality, housing supply and affordability, and many others. The system is clearly far from perfect.

    Photo by Adrian Schwarz on Unsplash

  • Berlin is considering going car free

    Berlin is considering something pretty radical. A grass roots movement called Volksentscheid Berlin Autofrei, or the People’s Decision for Auto-Free Berlin, is trying to turn the entire core of the city into a car-free zone. (There would be some exceptions and so we should maybe call it primarily car free.)

    The area in question is everything inside of the city’s circular S-Bahn train line (pictured above), which would make it the largest car-free zone or mostly car-free zone in the world. It’s larger than Manhattan and it’s about the size of London’s zones 1 and 2, to help give you a sense of the scale.

    So far the group has collected about 50,000 supportive signatures and, according to Fast Company, the Senate of Berlin is set to make a decision on the proposal next month. I have no idea how much community and/or political momentum this actually has, but I love how bold of an idea this is.

    Is it too bold?

    Again, it is perhaps useful to flip the question and use Seth Godin’s status-quo-bias-checker model when thinking about this. If the center of Berlin was already car free and a community group had just come forward with a plan to now allow vehicles, how do you think you’d feel? I could see that being contentious.

    Do you think Berlin should do it?

    Image: City of Berlin via Fast Company

  • Slime mold may be better than us at transportation planning

    So slime mold, which is a fungus-like single-celled organism, has a tendency to build highly optimized networks across its food sources. In other words, if you scattered a bunch of food on a surface and then dropped in some slime mold, it would naturally create an interconnected web of linked veins across this surface. And this web would be based on the shortest and most efficient paths of travel between the various food sources.

    I am mentioning this odd factoid because ten years ago researchers in Tokyo used this naturally occurring phenomenon for the purposes of trying to improve transportation planning. What they did was map out greater Tokyo. They then placed oat flakes (i.e. food) in spots that correspond to the various cities and urban centers that surround the city. Alongside this, they blocked off the areas where transportation networks do not typically run, such as through mountains and into the water. They then dropped in some slime mold, wet the surface, and watched it grow.

    What they found was that the resulting network was remarkably similar to Tokyo’s actual rail network. The slime mold had found the most efficient routes, eliminated redundancies, and generally discovered the optimal way in which to connect its food sources. And if you think about it, this is basically what transit networks are supposed to do. They should connect clusters of people in the most efficient way possible.

    It has been a decade since this slime mold transportation discovery was first publicized, and it would seem that it hasn’t really caught on as an invaluable planning tool. So I’m going to go out on a limb and suggest that we should take out a map of every major city in the world, plot its population centers, drop down some oat flakes, and then let slime mold tell us all the ways in which we are screwing up and over-politicizing our transportation planning efforts.

    Thank you to Angus Knowles for making me aware of this study. Angus writes an occasional newsletter about cities and housing, over here.

    Image: LiveScience

  • A new 15-minute city is being developed near Salt Lake City

    In 2018, the Utah State Legislature passed a bill creating a new land authority to guide the future development of 600 acres of state-owned land in Draper, Utah (just south of Salt Lake City). It’s near an area called The Point of the Mountain and so that’s what’s this project is now being called — The Point. Here’s a map to help you get situated:

    In addition to this being a big and meaningful development opportunity with an estimated 7,400 new households being contemplated, the land authority also wants this to become an innovation hub and a model “15-minute city.”

    There has been a lot of talk about 15-minute cities over the course of this pandemic, but the idea is simply to have all/most of your daily needs within walking distance of where you live and to not have to always rely on a car. This is a difficult thing to achieve in many cities, but I think it’s one the greatest urban amenities out there.

    A big part of this is creating the right street network and planning for enough density, which is why this can be so challenging to do after the fact. Street grids, in particular, tend to be extremely sticky and mostly immutable. In this case, the plan is to create car free zones (or limited vehicle zones) across the various centers of the development.

    Developing walkable communities from scratch is a lot harder than slotting into existing urban fabrics, particularly when you have a contrasting context all around it. You have to get a bunch of different things right for it to be successful. But we continue to see lot more of these urban-focused masterplanning efforts and I think the trend will only continue.

    If you’re a developer who would like to participate in The Point, the RFP door is currently open.

  • What is a beautiful place?

    The UK has something called the National Model Design Code. The purpose of this national code is to provide guidance to local authorities and communities on the production of policies that promote successful design. More specifically, it is intended to help people determine what “good quality design looks like in their area.”

    So as part of this, the code wades into subjective things like beauty, attractiveness, and distinctiveness (see above chart). This is an interesting discussion — and a topic in this recent Monocle radio episode — because, at the end of the day, is there really such a thing as universal beauty? Can we all agree on what the most beautifully designed places in the world are?

    At the same time, and architect Félicie Krikler points this out in the Monocle episode, there are countless examples of ugly places that are still wildly successful by all other urban measures. Is that okay or should they also be beautiful? And if budgets are tight (they always are), is it better to be a beautiful building or to be a more affordable one? Uh oh.

    There is also a temporal consideration. Sometimes the things that were once thought to be ugly are now actually thought to be quite beautiful. Beauty can take time, and places sometimes take time to settle in and find their best uses. This is something that I have written about a few times before on the blog.

    All of this being said, I believe wholeheartedly in the importance of beautiful places. And I don’t think we talk enough about it. Too often we get hung up on esoteric planning stuff, even though so many of the places that we love would never meet these same tests. However subjective as it may be, more beauty is rarely a bad thing.

    Image: National Model Design Code

  • Informal settlements are the desire lines of housing

    Toronto’s new garden suite (accessory dwelling unit) policies are headed to Planning and Housing Committee this week for approval. If you’d like to leave a supportive comment, you can do that over here by clicking “submit comments” at the top of the page. I just finished doing exactly that.

    Given that this is happening, I figured I would share this related article from the New York Times talking about ADUs and informal housing in Los Angeles. I discovered it through this Strong Towns article by Jay Strange. And I love how he refers to informal structures as the “desire paths” of housing.

    Desire paths, for those of you who may be unfamiliar, are the naturally formed paths and lines that get created when people just walk where they want to walk. Usually these are the shortest and/or most logical routes and, by definition, they don’t align with any designed paths or walkways.

    Jay’s point with informal housing is that it is similarly what people actually want to do, but maybe can’t, usually because of restrictive zoning and/or building codes.

    The New York Times gives the example of a family that illegally built an accessory dwelling unit at the back of their house in the 1990s. It was rented to friends and family, and it helped them get through some difficult financial times. But again, it wasn’t lawful.

    According to some researchers at UCLA, Los Angeles County is estimated to have some 200,000 informal units. Many are forced into demolition, but many, like the above example, manage to sneak under the radar because lots of other people are building them and nobody in the community wants to disrupt things.

    Of course, Los Angeles now allows backyard cottages. And so what was once illegal is now not only permitted, but encouraged. Funny, isn’t it? I don’t know if it was the “desire housing” that ultimately made it happen. But it is clear that many people wanted it and they were voting with their actions.

  • Toward more multi-family housing

    This recent article by Brookings is a good reminder of the all too important link between land use policies/patterns and GHG emissions. Because electric vehicles are cool and all, but they’re still not as efficient as just walking around and/or taking transit.

    As has been argued before on this blog, we need to not only electrify our transport network, but we also need to change how we get around. And probably the best way to encourage a modal shift, is to plan and build our cities differently. Something that is simple, but not easy.

    It also turns out that people who live in multi-family buildings tend to consume less energy (on a per capita basis) than those in single-family houses. So there are numerous benefits to encouraging denser housing on top of transit and within mixed-used communities.

    With all of this in mind, here are some interesting charts from the above Brookings article.

    This first one shows new housing permits in the metro areas of Atlanta, Chicago, and Washington DC, according to their urban, suburban, or exurban status. Here, Chicago is an outlier, with the “urban core” (defined as Cook County) now making up about half of all new housing.

    If you look at the entire study period, the number is less. The urban core accounted for about one-third of new housing permits in Chicago, and only 15% of permits in Atlanta and DC. But in all cases, housing permits in the urban core have been increasing since the 2008 financial crisis.

    But here’s the other thing. Looking at these next two charts, there appears to be a clear trendline toward more urban housing typologies. The first of these next two is showing single-family housing permits as a percentage of all new housing. And the second is structure type over time.

    Atlanta is still building mostly single-family housing, but less of it. And based on these charts, Chicago has already passed its inflection point. DC is not far off. Every city region is of course going to be different, but it does look like there is some kind of broader housing shift underway.

  • Neighborhood retail in residential Calgary

    I have written, many times over the years, about small-scale commercial uses in residential neighborhoods. Here in Toronto, they are generally not permitted. The small convenience stores and bodegas that remain are often legal non-conforming uses.

    Today I came across a great example from Calgary. I don’t know if it was done on an as-of-right basis or if variances were needed, but it is an example of small-scale commercial on a site that used to be low-rise residential.

    Here is the before (from street view):

    Here is the after:

    And here are a few more photos from the developer:

    Developed by RNDSQR and designed by FAAS Architecture, the project houses three street front commercial units that are now leased — according to their website — to an ice cream shop, a coffee shop, and a pizza + wine bar. The second flour houses office space.

    Congratulations to the team behind this development. It looks like a terrific project. And in my view, being able to leave your home and walk to things is one of the greatest urban amenities out there.

  • New York City releases climate resilience plan

    New York City is projecting that Lower Manhattan is likely to see more frequent flooding by as early as the 2040s. This could move to monthly flooding by the 2050s and daily by the 2080s. These time horizons may seem like a ways away, but I’m personally going to try my damnedest to see the 2080s.

    In light of these projections, New York City released a new Financial District and Seaport Climate Resilience Master Plan at the end of last year. The plan is projected to cost somewhere between $5 to $7 billion and entails building out a new multilevel waterfront that extends the current shoreline into the East River by up to 200 feet.

    Here are a couple of renderings:

    The upper level will be elevated by about 15-18 feet (designed to protect against storms like Sandy) and the lowest level will be a continuous waterfront esplanade (designed to connect humans to the water). Overall, the plan encompasses about one mile of waterfront, running from The Battery to the Brooklyn Bridge.

    City building take times. In the case of this plan, it is building for the next century.

    For a copy of the full press release, click here.

    Images: NYC Economic Development Corporation

  • Adam Neumann has quietly acquired some 4,000 apartment units

    So it was announced today that Adam Neumann — the cofounder and former CEO of WeWork — has been quietly buying apartment buildings across the United States. According to the Wall Street Journal, he is involved in entities that have acquired more than 4,000 apartment suites valued at least $1 billion.

    The buildings, which seem to be fairly typical and have at least a few hundred doors, are located in cities like Miami, Ft. Lauderdale, Atlanta, Nashville, as well as in many other US cities. It’s not clear what the exact plan is for this real estate but people who claim to know things are saying that it will involve “redefining the future of living”, or something along these lines.

    Presumably this means catering to young professionals with cool design, fun amenities, and beer taps. Whatever ends up happening, it is interesting to see some of the cities that he/they are targeting. They are the cities that we’ve all been talking about for many years. You know, the ones that are growing quickly and have greater housing supply elasticities.