I have vivid memories of being in a broker meeting many years ago talking about development land in Vancouver. Our team's comment was that it felt expensive. I mean, Toronto was expensive, and Vancouver was even more. Why? It has one-third the GDP of Toronto. The response we got was something like this: "Yeah, Vancouver may seem pricy, but you just need to get into the market. Then in 5 years you'll be happy you did."
Well it's been more than 5 years and now this is the market:
The market for development sites is being tested by a roughly 50-per-cent drop in value since 2022, according to Mark Goodman. The principal of Goodman Commercial Inc. said Broadway Plan sites, for example, were selling for about $200 per square foot buildable three years ago. Sellers can now expect closer to $100 per square foot buildable, he told BIV. Goodman currently has three Broadway Plan listings.
Of course, Toronto is in a similar situation today. If there's no market for new condominiums and apartment rents aren't growing, then high-density land values are going to feel the impact. But I do think it's interesting that, in some ways, our response was being anchored by our experience in Toronto. What we know, and have accepted, often becomes a baseline for assessing if something else feels expensive or cheap.
I sometimes see the same thing with long-time developers. They remember what they used to sell and/or rent apartments for, and have a harder time accepting today. But this is a positive thing if it compels greater deal scrutiny. Advice like "you just need to get into the market" is never sound. But if you were to take this approach, I would bet that today is a better time than 5 years ago.
Google is well aware that traditional search is going to die (or at least go away for the vast majority of use cases). I don't want to search for things if I can just be told the answer.
Here's an example. I was installing new light fixtures in our bedrooms this week and I wanted a refresher on wire colors.
Historically, I would have done a Google Search, which would have then led me to some website or to some lengthy YouTube video that I didn't actually want to watch and that I would have had to scan through to find the salient parts.
But today that feels old school. Instead what I did was take a picture of the ceiling box and ask ChatGPT to just tell me the answers.
Sprawl is how much of the US provides new housing, and so it's interesting to ask the opposite question: Which cities are actually building new housing in walkable neighborhoods? Here is a study published this week by the Terner Center for Housing Innovation at UC Berkeley that looked at exactly this. What they did was divide all US neighborhoods into five categories based on vehicle miles traveled (VMT) per resident in 2023.
The categories:
Very Low VMT - 12 miles per person per day
Low VMT - 17.3 miles per person per day
Mid VMT - 21 miles per person per day
High VMT - 25.5 miles per person per day
Very High VMT - 37.5 miles per person day
These seem like oddly specific distances, but it's what they used to sort new housing supply. Here's all of the US:
I have vivid memories of being in a broker meeting many years ago talking about development land in Vancouver. Our team's comment was that it felt expensive. I mean, Toronto was expensive, and Vancouver was even more. Why? It has one-third the GDP of Toronto. The response we got was something like this: "Yeah, Vancouver may seem pricy, but you just need to get into the market. Then in 5 years you'll be happy you did."
Well it's been more than 5 years and now this is the market:
The market for development sites is being tested by a roughly 50-per-cent drop in value since 2022, according to Mark Goodman. The principal of Goodman Commercial Inc. said Broadway Plan sites, for example, were selling for about $200 per square foot buildable three years ago. Sellers can now expect closer to $100 per square foot buildable, he told BIV. Goodman currently has three Broadway Plan listings.
Of course, Toronto is in a similar situation today. If there's no market for new condominiums and apartment rents aren't growing, then high-density land values are going to feel the impact. But I do think it's interesting that, in some ways, our response was being anchored by our experience in Toronto. What we know, and have accepted, often becomes a baseline for assessing if something else feels expensive or cheap.
I sometimes see the same thing with long-time developers. They remember what they used to sell and/or rent apartments for, and have a harder time accepting today. But this is a positive thing if it compels greater deal scrutiny. Advice like "you just need to get into the market" is never sound. But if you were to take this approach, I would bet that today is a better time than 5 years ago.
Google is well aware that traditional search is going to die (or at least go away for the vast majority of use cases). I don't want to search for things if I can just be told the answer.
Here's an example. I was installing new light fixtures in our bedrooms this week and I wanted a refresher on wire colors.
Historically, I would have done a Google Search, which would have then led me to some website or to some lengthy YouTube video that I didn't actually want to watch and that I would have had to scan through to find the salient parts.
But today that feels old school. Instead what I did was take a picture of the ceiling box and ask ChatGPT to just tell me the answers.
Sprawl is how much of the US provides new housing, and so it's interesting to ask the opposite question: Which cities are actually building new housing in walkable neighborhoods? Here is a study published this week by the Terner Center for Housing Innovation at UC Berkeley that looked at exactly this. What they did was divide all US neighborhoods into five categories based on vehicle miles traveled (VMT) per resident in 2023.
The categories:
Very Low VMT - 12 miles per person per day
Low VMT - 17.3 miles per person per day
Mid VMT - 21 miles per person per day
High VMT - 25.5 miles per person per day
Very High VMT - 37.5 miles per person day
These seem like oddly specific distances, but it's what they used to sort new housing supply. Here's all of the US:
Voilà:
It seems almost trite at this point to talk about the virtues of AI. But over the last few months, I have found that — just like that — it has become an integral part of my everyday workflow.
This is true whether I'm playing electrician, planning travel, writing a blog post (and I want an assistant to find me data), or I'm looking to brainstorm around something business related.
I'm sure the same is true for many of you as well.
Since the 1950s, new home production in very low VMT neighborhoods has generally been declining. Most of the lower VMT stuff was built before the 1940s, which is why New York City is so walkable and its chart looks like this:
Most newer cities do not build in this way. In fact, based on this study, there are only five large metro areas in the US that have (1) built at least 15% of their total housing since 2000 (meaning, they're a younger city) and (2) built at least 40% of their homes over the last decade in lower-VMT neighborhoods (very low and low).
These metro regions are:
This is not that many cities. At the same time, is it even the right benchmark to be aspiring to? "Lower VMT" just means you don't need to drive as much as you might in other neighborhoods. But it doesn't necessarily mean that you live in an amenity-rich and walkable community. What about the new homes being built in neighborhoods where people don't need a car at all? How many of these exist?
Very few, I'm sure.
Cover photo by Jo Heubeck & Domi Pfenninger on Unsplash
Voilà:
It seems almost trite at this point to talk about the virtues of AI. But over the last few months, I have found that — just like that — it has become an integral part of my everyday workflow.
This is true whether I'm playing electrician, planning travel, writing a blog post (and I want an assistant to find me data), or I'm looking to brainstorm around something business related.
I'm sure the same is true for many of you as well.
Since the 1950s, new home production in very low VMT neighborhoods has generally been declining. Most of the lower VMT stuff was built before the 1940s, which is why New York City is so walkable and its chart looks like this:
Most newer cities do not build in this way. In fact, based on this study, there are only five large metro areas in the US that have (1) built at least 15% of their total housing since 2000 (meaning, they're a younger city) and (2) built at least 40% of their homes over the last decade in lower-VMT neighborhoods (very low and low).
These metro regions are:
This is not that many cities. At the same time, is it even the right benchmark to be aspiring to? "Lower VMT" just means you don't need to drive as much as you might in other neighborhoods. But it doesn't necessarily mean that you live in an amenity-rich and walkable community. What about the new homes being built in neighborhoods where people don't need a car at all? How many of these exist?
Very few, I'm sure.
Cover photo by Jo Heubeck & Domi Pfenninger on Unsplash
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