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.

Tag: citylab

  • Red stripes, iceberg homes, and laneway houses

    This morning I was reading a CityLab article talking about a homeowner in London’s wealthy Kensington neighborhood who painted her house in red stripes after the city and her neighbors derailed her renovation plans. I’m thinking it is supposed to be symbolic of government “red tape.”

    She had hoped to add a two-floor “mega-basement” to her home, which is curiously enough a thing in London due to how restrictive traditional home expansions can be. Locally they are called “iceberg homes.”

    What’s interesting about this phenomenon is that it shows you how far people will go to find and/or create the space they want in the neighborhoods they want to live in. Kensington is an incredibly wealthy area and so one has to assume that she is not without other housing options.

    As another example, here’s how the article describes her house:

    The candy-striped home in question, for example, is actually a mews house, a kind of outbuilding running along an alley behind a great house, originally intended as a place to tidy horses, carriages and maids away from the main residence.

    So not only did she want to create an “iceberg home”, but she wanted to do so in what was previously a back alley. In Toronto, this home would be called a laneway house.

    What this tells me is that as real estate values rise, people will naturally start to seek out overlooked spaces to repurpose. They will look for some way to carve out a home. And it’s for that reason that I think laneway housing is an inevitable outcome here in Toronto.

  • How open are you to experiences?

    This morning Richard Florida published an interesting CityLab article that talks about how different personality types cluster within cities. The study he references was done by a team of psychologists that surveyed 56,000 people in the London metro area.

    Here is a summary of what they found (darker red indicates higher concentration of each personality trait):

    image

    Probably the most interesting personality trait is the “openness to experience” one, as there appears to be a clear divide between people who live in the center of London and people who live in the suburbs.

    Here’s how Florida describes it:

    The most clustered personality trait the researchers found was “openness to experience” (bottom left map), which is concentrated in the center of London. Openness to experience, according to a wide body of psychological studies, is associated with creativity, innovation and entrepreneurship. This type is concentrated in higher density neighborhoods, with higher housing prices, more ethnic and religious diversity and higher crime ratesMeanwhile, the blue concentrations at the periphery indicate that there are fewer people open to experience in metro London’s suburbs.

    It’s fascinating to think about the role of psychology in city building. It’s not something we often talk about, but it’s there.

    I live downtown and I would definitely classify myself as extraverted and open to experiences. How would you classify yourself?

    Maps via CityLab

  • 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.

  • Are startups causing inequality?

    Earlier this week Richard Florida published on article on CityLab talking about the relationship between tech innovation (in cities) and inequality. Specifically, the article deals with the correlation between venture capital investment and a variety of factors, such as monthly housing costs, wage and income inequality, and so on.

    The intent of the piece was to address the growing backlash against tech workers – in places like San Francisco – who have become the symbol for the growing gap between the rich and poor.

    The strongest correlation appears to exist between venture capital investment and housing costs. As the amount of venture capital goes up, so do housing costs – which probably shouldn’t surprise you. The rich start outbidding the poor for housing. Note: The two outlying dots at the top right, in the graph below, are Silicon Valley and San Francisco.

    image

    But when it comes to inequality, the relationship isn’t so clear. For wage inequality, there seems to be a relationship. But for the broader income inequality measure, the relationship is fairly weak. Here’s the graph:

    image

    So this is not as black and white as it might seem. Regardless, Florida ends the piece with the following statement (that I think is spot on):

    It’s time to stop pointing fingers and get on with the far more important task of harnessing the urban tech revolution to create a new urban middle class and a more inclusive urbanism—one in which many more workers and residents can participate, and one from which many more can benefit.

    The answer is not to stop innovating. That would be counterproductive. We should be be encouraging innovation, but at the same time figuring out how best to harness it for society as a whole.

    Tomorrow, I’ll touch a bit more on how we might go about doing that. I have a post planned that I think will tie in really nicely to this discussion. So stay tuned.

  • People in big cities walk faster

    One of the most interesting things about cities is that as they grow their “urban metabolism” also tends to increase. People become more productive. Economic output increases. It becomes easier to hail a cab (which is a test I like to use). And, according to this recent article by CityLab, people walk faster.

    Yes, research has shown that there’s a correlation between population size and the speed in which people walk. And some of the studies go as far back as the 1970s – like this one from psychologists Marc and Helen Bernstein:

    image

    In many ways, this makes intuitive sense. Life in the big city is a fast paced one. But why exactly do people start literally walking faster? The most probable answer seems to be, quite simply, that time is money. Subsequent research from the 1980s and 1990s has revealed that the best predictor of fast walking is economic output.

    When a city grows larger, they wrote, wage rate and cost of living increase, and with that the value of a resident’s time. As a result, “economizing on time becomes more urgent and life becomes more hurried and harried,” Walmsley and Lewis suggest. (Source: CityLab)

    The first thing that crossed my mind when reading all of this is that there must be some sort of upper limit. Humans don’t just keep walking faster and faster as the city in which they live in grows bigger. If that were the case, the mega cities of the world – such as Tokyo – would have people sprinting around all the time. But that’s obviously not the case.

    So this is a topic that could probably use some more data. And I would imagine it would be a lot easier to collect today given that we all now walk around with mobile sensors in our pockets (our smartphones). And pretty soon we may have mobile sensors on our wrists (smart watches).

    I would certainly like to see more data on this. The idea of an “urban metabolism” has always interested me.

    Image: Dundas Square, Toronto via Flickr

  • Assembled realities of the New York landscape

    New York photographer Jeff Chien-Hsing Liao has an upcoming solo exhibition at the Museum of the City of New York next month called Assembled Realities. I just heard about it through CityLab.

    Here’s a bit of background on his work:

    Pushing the boundaries of traditional documentary photography, Liao (b. 1977) creates large-scale panoramas by combining multiple exposures of the same location taken over the course of several hours. The resulting composite photographs are often fantastical; complex, hyper-real views that no single shot—or the eye—could capture.

    And here’s two more of his photos:

    For higher resolution versions, click here.

    I love how his photos begin to distort reality and how they focus your attention – in many cases – on New York’s vibrant street life. I thought you might all enjoy them as well.

  • What are Boomers going to do with their suburban homes?

    The following chart represents births in the United States per 1,000 people. The segment in red demarcates the birth years between 1946 and 1964, which is generally considered to represent the Post-World War II population spike known as the Baby Boom. Besides this jump, we have for the most part been seeing declining birth rates.

    US Birth Rates.svgUS Birth Rates” by Saiarcot895. Licensed under CC0 via Wikimedia Commons.

    Given the magnitude of this population segment, demographers and others love to talk about the impact that this generation has had and will continue to have on society, particularly as many Baby Boomers now start to enter retirement.

    But arguably one of the most significant areas of impact could be the housing market. Today, I stumbled upon an interesting CityLab article from last year talking about “The Great Senior Sell-Off.” And it raises an important question: As Baby Boomers begin to sell off their large single-family homes in the suburbs, will there be enough people to buy them?

    For the most part, the next generation seems to still want a nice detached house in order to raise a family. But that doesn’t necessarily mean that the numbers will match up. Because if you factor in generation size, buying power, and even small shifts in consumer preference (towards, say, urban centers), the equation may not balance.

    If this ends up being the case, I don’t think it’ll impact large, growing cities as much. I mean, most are operating today with severe supply deficits. Instead it’ll probably be the smaller, perhaps already declining cities, that feel it the most. And this will ultimately serve to reinforce the “spiky” world that we’re already seeing today.

    At least that’s my hunch.

  • Is it time to get rid of parking minimums?

    The cost of a parking spot in downtown Toronto has reached as high as $60,000 (per stall) in some new construction projects. If you convert that to a per square foot price (which is typically how people measure condo prices), you’re looking at over $350 per square foot for that parking stall. Is it worth it?

    Most cities around the world have what is called a parking minimum. This means that to build, say a new residential condo, developers need to provide a certain number of parking stalls. In Toronto, those minimums will depend on your unit mix. Bigger units have more stringent parking requirements. 

    In some cities, though it’s much rarer, they actually have parking maximums. Portland, for instance, has a maximum number of parking stalls that you’re allowed to build, which fluctuates based on the development’s proximity to transit.

    And finally, there are some cities, such as Berlin, with no parking minimums or maximums at all. In those cases, the market dictates the number of parking stalls that should be built. If people want a parking spot with their apartment and won’t buy or rent it without one, then the developer builds it.

    Though parking variances do happen in Toronto (for reasons such as proximity to transit), the city is generally skeptical of a market led approach to parking requirements. And there are a couple of reasons for that. They worry that investors might be buying the units (with no parking) and so the sales data may not be indicative of the end-user market.

    The city also worries that developers might actively discourage purchasers from buying parking spots, as it’s usually more profitable not to build them. Underground parking is costly and often subsidized by the sale of the condo units themselves. In fact, I’ve heard of instances where underground parking has cost upwards of $100,000 per stall because of buoyancy forces and other technical details.

    But I’m generally a free market guy. So I question if the market really isn’t capable of figuring out how much parking there truly needs to be. Undoubtedly, there will be families who demand 2 parking spots. I also bought a parking spot with my condo. But there may also be a number of people who would rather pay less for their home than subsidize a parking garage that they’ll rarely use.

    And as I wrote in a recent post called, Is traffic the right question?, we could be losing sight of the greater goal. If we truly want to build a sustainable and livable city, then we should be considering how our development activity encourages transit usage over driving, and how we can promote a more balanced modal split across the city.

    What are your thoughts? Would you buy a home without parking? Should we get rid of parking minimums, just as cities like Berlin have?

  • Pop-up housing (it’s not what you think it is)

    image

    You were probably expecting some kind of temporary housing solution. Because that’s certainly what I was thinking when Big Ben Myers tweeted me this article yesterday. But it turns out that in D.C., “pop-up housing” has come to mean what you see in the above photo – a pencil thin house rising amongst a bunch of low-rise rowhouses.

    Local bloggers are calling it a “middle finger to taste and scale”, but it’s happening because of what appears to be a real housing supply shortgage in the District. And it’s been said to be hurting not only housing affordability, but also exacerbating income inequality. 

    However, it’s become a threeway debate. You have people worried about aesthetics, local homeowners and residents worried about their own interests, and you have people worried about the overall health of the housing market. As I’ve argued before here on ATC, too much protectionism is often a bad thing for housing markets.

    But policy makers in the District appear to be responding in exactly that way, by clamping down on pop-up housing, as well as on accessory dwellings such as nanny flats (which I’m assuming are similar to what we would call laneway houses here in Toronto).

    I can certainly understand the concerns, but I think that cities need to find that fine line between preservation and growth. Because banning pop-up housing is only addressing the symptom. It doesn’t address the underlying cause, which, in this case, seems to be a housing market in search of more housing options.

    Update: This post was updated to give credit to Big Ben Myers for the article.

    Image: Washington Fine Properties via Citylab

  • New startup wants to solve urban congestion through data and lotteries

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    If you’re a regular reader of Architect This City, you’ll know that I’m a supporter of congestion and road pricing. Any valuable good or service, such as a road, that’s offered for all intents and purposes as free, will never be able to keep up with demand. You need to price it.

    However, the political risk associated with implementing something like this has made it such that few cities around the world have done it. London and Singapore are the two most common examples.

    The more populist solution is to simply build more roads and highways, even though study after study shows that this doesn’t work. If it did, we would have already solved the problem of traffic congestion. And we most certainly haven’t.

    Which is why I’m excited about a new startup that recently launched called Urban Engines. Their solution is twofold. It’s based on incentives and on treating people and cars in cities as sensors that feed back data into their network. Here’s a brief video. If you can’t see it below, click here.

    [youtube https://www.youtube.com/watch?v=oaCp5Tl-uAc]

    The data piece is almost a no-brainer (provided they can get the data). The more data we can collect about the way people and cars move in a city, the more they’ll be able to optimize and manage the flows. The possibilities are endless.

    But what I found really interesting is their incentives based approach. Typical road pricing methods are, one could argue, a punitive approach. As traffic increases so does the price of the road. (I like to look at it as efficient pricing.)

    With Urban Engines, their approach is the opposite: it’s to reward people–through money and lotteries–for driving during off peak times. It’s smart because selling a reward program to cities will be a lot easier than selling a new charge.

    Overall, this a great example of how startups are stepping up to solve some of our most important societal problems. For more information on Urban Engines, check out their website and this writeup on CityLab.