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July 29, 2022

Why housing is so expensive

https://open.spotify.com/episode/0PSuXZ0TqScZZE1AfbbEeT?si=N19JwisSS4O-_2ckyodNkw

A friend of mine sent me the above podcast episode this morning (click here if you can't see it embedded above). I've only listened to a bit of it, but I plan to finish it up over the long weekend. Here are the topics it covers:

We discuss why the states with the highest homelessness rates are all governed by Democrats, the roots of America’s homelessness crisis, why economists believe the U.S. gross domestic product could be over a third — a third! — higher today if American cities had built more housing, why it’s so hard to build housing where it’s needed most, the actual (and often misunderstood) causes of gentrification, why public housing has such a bad reputation in the U.S.; how progressives’ commitment to local democracy and community voice surprisingly lies at the heart of America’s housing crises, why homeownership is still the primary vehicle of wealth accumulation in America (and the toxic impact that has on our politics), what the U.S. can learn from the housing policies of countries like Germany and France, what it would take to build a better politics of housing and much more.

June 24, 2022

Zoning controls, sprawl, and housing affordability

Maybe it's confirmation bias, but I continue to feel like there is a groundswell of interest in trying to improve housing supply and overall affordability. The YIMBY movement continues to gain steam. Here are are few excerpts from a recent M. Nolan Gray article where he calls for an end to zoning as we know it today:

In nearly every major U.S. city, apartments are banned in at least 70 percent of residential areas. San Jose prohibits apartments in 94 percent of its residential areas. The most a developer can build in these zones is a detached single-family home.

The results speak for themselves. Houston builds housing at 14 times the rate of peers like San Jose. And it isn’t just sprawl: In 2019, Houston built roughly the same number of apartments as Los Angeles, despite being half its size. Since reforms to minimum-lot-size rules were put in place in 1998, more than 25,000 townhouses have been built, overwhelmingly in existing urban areas.

To be clear, Houston has made its share of planning mistakes. But, free of zoning, the city can constantly remake itself. That Houston is now one of the most affordable and diverse cities in the country is no accident.

The relationship between housing affordability and constraints on development is a well-documented one. If you want more affordable housing, you generally want fewer, rather than more, constraints on delivering new housing.

But as I was reading through the article, I couldn't help but think more specifically about the relationship between sprawl and affordability. Because it is also true that, for a variety of reasons, the former has tended to help the latter (or at least coincide with it), which is why Gray felt it was important to say "and it isn't just sprawl" when talking about Houston.

Part of this relationship has to do with the fact that expansionist development tends to be of the low-rise stick-built varietal, which is a relatively cost effective way to build. Whereas the higher density infill stuff tends to be built using more expensive materials like reinforced concrete. But of course there are many other factors at play, including lower land costs.

So I think one really interesting question is this one here: To what extent could we break this relationship between sprawl and affordability with what Gray is advocating for? In other words, how cheap could we make new infill housing in our older cities if we were to greatly loosen zoning controls or possibly even remove them all together?

I don't know the exact answer, but I know that directionally it would be better.

June 14, 2022

Small-scale retail is set to return to Toronto

Progress is happening slowly but surely.

Over the years we have spoken a few times about this nice little coffee shop on Shaw Street here in Toronto. It is a good looking and widely visited coffee shop that has made many guest appearances on urbanist Twitter.

The problem, though, is that it was a real battle to get it approved, thanks to the opposition of a single neighbor. That's all it takes to hold up a new project. In this case it was a coffee shop. But it could also be thousands of new homes.

But that was then. Today if you look on the City of Toronto's website you'll actually see this exact coffee shop on a page that speaks to the benefits and the historic role of small-scale retail, service, and office uses.

Right now these uses are only permitted in low-rise neighborhoods on major streets and through an amendment to the Zoning By-Law (unless the nonconforming use already exists). This is a lot of unnecessary work (see above) and it has translated into a steady decline in these sorts of uses across the city.

Thankfully, the city is now looking to change this and permit these uses on an as-of-right basis. So it looks like the good fight was worth it.

For more info, head over here. And if you'd like to attend the public meeting to talk about how brilliant this is, you can do that on July 5 over at City Hall.

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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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