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

  • What is the premium for a home in a walkable community?

    According to this RedFin data from 2019 — which looked at normalized sale prices and Walk Scores above 50 — it is about 23.5% or $77,668 for 16 major US metro areas. Again, this is 2019 data and so things may have changed a bit, especially with the whole COVID thing.

    It also varies by metro area in this data set. The premium in Boston, for example, is almost 30%. Whereas the premium in Oakland is actually a slight discount (-1.3%). There are going to be local conditions that play a role.

    But as a whole there is an economic trend here that makes intuitive sense to me. Though it’s not just a question of how pricey your home is. You also need to consider your transportation costs, the value of your time, and the health benefits of living in an environment that promotes consistent and moderate activity.

    When you factor all of these things, maybe “premium” isn’t the right way to look at this.

  • How clustering makes us all more productive and innovative

    Earlier this year, Enrico Moretti, who is a professor at UC Berkeley, published this research paper looking at the effect of high-tech clusters on productivity and innovation. (I am unclear if there is any relationship to the Italian brewing company Birra Moretti.)

    One of the things he looks at in the paper is the decline of Kodak. Headquartered in Rochester, New York, Kodak famously missed the transition to digital photography. And so by the late 1990s, they were forced to start letting people go. The result was an almost 50% decline in the size of the entire “high-tech cluster” in Rochester.

    But what Moretti goes on to test in his paper is the impact that this employment decline had on productivity and innovation outside of Kodak and outside of the photography sector (but within Rochester). And what he found was that between 1996 and 2007, the productivity of non-Kodak inventors dropped by about 20%!

    This, of course, is one of the great features of cities. Even if you’re not working at some big company with lots of smart people, just being in the same city, on the same block, or within the same office building, can make you more productive. It turns out that business ecosystems are pretty interconnected. Spillovers are important.

    For more on this topic, check out this recent Wired article by Viviane Callier. In it she makes the case that remote work is going to negatively impact productivity and innovation over the long run.

    Photo by Yassine Khalfalli on Unsplash

  • Legendary literary hangouts in New York City

    The New York Times’ recent celebration of the city’s “legendary literary hangouts” is an important reminder of one of the great features of city life. Cities have a way of mixing different people together and inspiring the creation of great things. And sometimes that happens rather informally. (That’s one of the reasons why there’s tremendous value in the nighttime economy.) Tina Jordan writes: “You might think of them as solitary creatures, furiously scribbling or typing alone, but as long as there have been writers in New York City, they have socialized together in an assortment of bars, restaurants, apartments and clubs.”

    For the full thing, click here.

  • Should Market Street be pedestrianized?

    Next to the St. Lawrence Market (here in Toronto) is an appropriately named street called Market Street. It is a lovely street — perhaps one of the nicest in the city. It’s old and historic and it was completely redone several years ago (evidence here) with nice unit pavers, bollards, a curbless design, and seasonal restaurant patios.

    In the winter months, the restaurant patios are packed up and additional parking is added to that side of the street. It was designed to be adaptable and in my experience it seems to be working quite well.

    Right now the local Business Improvement Area is running a pilot project to see what this street might be like if it were to be pedestrianized. It was closed to vehicles this past weekend and the same will happen this upcoming weekend. Here’s a photo of what that looked like on Saturday:

    It’s not perfect. A number of people commented on Twitter that the seating needs some shade. But hey, it’s a pilot project. It is about giving people a taste of what the future could be.

    I am a fan of pedestrianized streets in the right locations and when executed well. And I think this stretch of Market Street is a perfect candidate. It’s already pedestrian-only to the north of Front Street and it has the right kind of “edges” to ensure that it can be properly animated.

    If you feel the same way, I would encourage you to fill out this short survey that the St. Lawrence BIA has put out. I would also be curious to hear your thoughts on pedestrianized streets in general. Leave a comment below.

  • What intersection in Toronto would you say is the epicenter of the nighttime economy?

    When I was a lot younger and growing up in Toronto, the place to go out at night was in the Entertainment District, centered around Richmond St West and Adelaide St West. This is where all of the bars and clubs were. Thinking back, the concentration of nighttime activities in this area was pretty incredible.

    Those of you who are familiar with Toronto will know that this area isn’t the same nighttime epicenter that it once was and that it’s been this way for many years. The scene shifted westward and down to King St. It also went from larger clubs and venues to smaller bars, restaurants, and lounges. Tastes change, I guess.

    So if you had to choose one intersection to be the epicenter of nightlife in Toronto right now, I think you could easily argue that it’s King St West and Portland St. (Disagree with this take? Leave a comment below.)

    But why this intersection? Why did the nighttime economy land right here?

    Part of it was surely development pressures in the Entertainment District, which forced a broader move. I also think that these areas tend to become victims of their own success. Clubs and bars generate a lot of noise and that makes some people grouchy.

    But I think you could also argue that the intersection of King and Portland has some very specific urban qualities that lend itself to becoming a kind of heart for nightlife.

    It helps that it is the only north-south street that intersects King between Bathurst and Spadina. However, I think the more important point is that both Bathurst and Spadina are fairly broad arterial avenues (certainly that is the case for Spadina). These intersections aren’t as hospitable to pedestrians and so they create a natural break in “the strip.”

    The result is that Portland, which is a much smaller street, became the heart. The intersection feels much more like an urban room. Leave one bar and another one is right in front of you. That’s one of the things about cities. Intimate spaces, rather than big ones, are often what attract people.

  • Meatspace vs. metaverse — what is the best way to flex?

    With every passing year, the Matrix feels less and less like science fiction. With the continued rise of the metaverse — Zuckerberg is betting all of Facebook on it — we are increasingly living our lives between two worlds: one is offline and one is online. What this will ultimately mean (for us and for our cities) is of course up for debate. But what is clear is that the traditional trappings of real life have quickly made their way online into the metaverse. Arthur Hayes recently penned this fantastic article about the future of the world (it’s the metaverse) and the role of art (including NFT art). In it, he makes the argument that to “flex” is integral to the human experience. Here’s what he means by that:

    As social beings, the sole purpose of many activities and purchases is to publicly display how much energy you can waste. The nightclub economy is extremely a propos to this concept. Individuals walk into a dark room, listen to loud music (art), dance (a waste of energy akin to a mating call), and pay exorbitant amounts of money to drink liquid. Everyone gets dressed up real nice in articles of clothing that serve no useful purpose other than to demonstrate that the wearer spent a lot of money to display their social status to the rest of the clubbers present.

    People go to clubs to flex. In the words of the late Clayton Christensen, that is the “job” to be done.

    Why this matters is that many of us are now doing the same kind of things online. Buying a CryptoPunk (an OG NFT) for a large sum of money and posting it as your social media profile pic is a flex. Is this rational or irrational behaviour? Whatever your answer, it is akin to paying several hundred dollars for a t-shirt from some cool streetwear brand. The real job to be done is not that you desperately need a t-shirt to cover your upper torso. It is the signalling that goes along with owning something scarce and valuable. One of the things that is so special about NFT-permissioned stuff is that there’s now a simple way to prove and enforce all of these things: ownership, scarcity, and so on.

    What’s equally fascinating to me is how offline and online will end up interacting with each other. (Arthur refers to our offline world as the meatspace. I don’t know if he coined the term, but I’m going to rolling with it for the purposes of this post.) If people end up preferring to flex online instead of offline (and I’m sure many already do), what does that do to our meatspace(s)? And what does it do to our cities and how we build? I have no doubt that these questions are coming.

    Photo by Richard Horvath on Unsplash

  • To stepback or not to stepback

    I was riding my bike on Bloor Street along the north edge of High Park over the weekend. And in between cyclists in spandex yelling at me for seemingly riding the wrong way in the bike lanes, I managed to safely snap this picture:

    It was a reminder of that thing we like to do in Toronto where we want lower-rise along our main streets and then we tuck the taller parts somewhere in the back so that we can pretend they are maybe not there. Here’s an aerial shot of the situation from Google Maps:

    It’s a very different condition from what you will find in New York along virtually all edges of Central Park:

    Now, New York and Toronto are not the same city. This much is obvious.

    But there is a grandeur and degree of urbanity that is present along Central Park that is not present along High Park. And I would argue that this feature isn’t exclusive to New York. It can be found in many other cities, including places like Montreal.

    I am sure that part of the rationale here on Bloor Street had to do with matching the lower-rise existing context. But we shouldn’t forget that the edges of public spaces are oftentimes just as important as the spaces themselves. Sometimes they can be even more important.

    So I thought I would put it out to all of you. To stepback or not to stepback. What do you think would be the most appropriate built form along this north edge of High Park? Leave a comment below.

  • A city split in half

    Here is a short video by Dave Amos (of the YouTube channel City Beautiful) about the splitting of Berlin into two. What a fascinating urban case study. I just recently discovered his channel, but he seems to cover some interesting topics, all of which are related to cities and city planning. When Dave is not making YouTube videos, he is a professor of city and regional planning at Cal Poly. He also graduated with a Master of Architecture at some point before getting his Ph.D., so presumably he knows a few things about buildings and cities. I guess that also makes him an imposter architect, like me.

  • How new technologies spread (and what that means for superstar cities)

    We know that innovation and economic growth tends to be unevenly distributed. This is the bull case for living in cities and, more particularly, for living in certain cities. But of course, the big question these days is whether or not our little work from home experiment has proven that, for the first time ever, work can now decentralize.

    Well here is a unique study that looked at 29 disruptive technologies over the last two decades in the United States. Using three main sources — patents, job postings, and hundreds of thousands of earnings calls — the team traced where new innovations/technologies have tended to emerge and then how they spread (or didn’t spread) across the rest of the US.

    Their initial findings won’t surprise regular readers of this blog. There are indeed a certain number of pioneering superstar cities. Within their list of new disruptive innovations, the team found that about 40.2% of them came from California. The next “super-cluster” was along the Boston-Washington corridor in the northeast with ~21.2%. By narrowing down their list to “disruptive patents”, as opposed to all patents, innovation looks even spikier.

    Next the team looked at how these disruptive technologies tend to diffuse across the country. This is where job postings and earnings calls come into play. New technology gets created in California garage. Cool. But at what point do CEOs across the country start talking about it and hiring people who are capable of doing things with it? This next figure shows that diffusion at various time intervals.

    Now here are the important takeaways. New disruptive technologies clearly take time to spread. However, high-skilled hiring tends to spread much more slowly than low-skilled hiring. This kind of makes sense as you’ve got a built up and entrenched knowledge base in these pioneering locations.

    But what this also means is that pioneering locations tend to maintain their hegemony for quite some time — decades. The high-paying jobs stick closer to home for much longer, presumably because geography makes it harder to transfer knowledge. This is, of course, based on historical data. But I remain highly suspect that Zoom calls can really disrupt the importance of our superstar cities.

    Maps: Vox

  • What happens when you eliminate parking minimums? Lessons from Buffalo.

    Back in 2017, the City of Buffalo introduced something known as the “Green Code.” It was the first overhaul of its zoning code in over 60 years. I wrote about it here. One of most notable changes as part of the Green Code was the complete elimination of parking minimums. Which is another topic that has gotten a lot of air time on this blog.

    Now that it has been a few years, Buffalo provides an interesting case study: What do developers do once you eliminate parking minimums in a mid-sized city? I mention mid-sized because I think the size of the city is relevant here. There is a common argument that you can’t eliminate parking minimums unless you’re in a big and transit-rich city. “This isn’t [insert big city]. People drive here.” I am sure that many of you have heard this before.

    But is that really the case? Here is what Daniel Baldwin Hess & Jeffrey Rehler found when they studied the development response to removing parking minimums in Buffalo:

    • The study looked at 36 major developments in the first two years after parking minimums were eliminated
    • In aggregate, the 36 developments built 21% less parking spaces than what was previously mandated, likely demonstrating that the old zoning code was resulting in an excess supply of new parking
    • Mixed-used developments (of which there were 14, generally consisting of residential + retail) built 53% less parking than what was previously required
    • One exception to this trend is that single-use projects (both residential and commercial) built either the same or more parking (most of these projects were in the suburbs outside of the downtown core)

    What this suggests to me is that the previous zoning code was maybe appropriate for what the market was demanding (for parking) in suburban locations. Maybe. But it was certainly overshooting what the market was and is willing to accept in more urban locations in Buffalo. Mixed-used (i.e. being able to support retail at grade) is likely a good measure of the project’s urbanity.

    Perhaps more importantly, I think this study shows that developers are incentivized to build what the market wants — no more and no less. Building parking that nobody wants is bad business. As is building too little parking such that you can’t rent or sell your space(s). A Goldilocks parking ratio is what you’re after, but it is constantly changing and finding it can be a bit of an art. Eliminating parking minimums is a good way to let the market try and figure it out.

    Photo by Seth Yeanoplos on Unsplash