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: housing

  • Airbnb and affordable housing

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    Fred Wilson published a good post last weekend on the proposed bill that went to New York City Council this week regarding new reporting requirements for Airbnb and their hosts in NYC. You can read more about his position on his blog, but he is in favor of a comprehensive bill that would properly legitimize short-term rentals. He is also not opposed to city and state taxes on the service.

    What I wanted to focus on today were his comments around housing. This is already sounding like a broken record, but Fred draws attention to the severe supply-demand imbalance that is occurring in the boroughs of Brooklyn, Queens, and the Bronx, precisely because many/most young people were priced out of Manhattan long ago and want to live in these places.

    But I particularly like his comments around what makes for good policy and what makes for good politics. I agree with his view that it is often a case of the latter over the former. I think a lot of the excitement around Airbnb is a red herring. For me, it’s akin to the fixation on foreign buyers and their impact on the local housing market in places like Toronto and Vancouver.

    Yes, they are factors. But the data suggests they are marginal ones. As Fred points out, they are almost certainly not the root cause of the problem. The reality is that we need a lot more housing – both market-rate housing and subsidized housing. The challenge is that nobody wants to pay for the latter and so we’ve instead decided to focus on things that sound like they’re going to help.

    Photo by Jon Tyson on Unsplash

  • Vancouver revisits laneway house program

    Vancouver is light years ahead of Toronto when it comes to laneway housing/suites. And by light years I mean that their Laneway House (LWH) Program is about a decade old now.

    Last month the City of Vancouver published this staff report which outlined recommendations for improving the program. It includes simplifying the regulations, reducing processing timelines, and improving livability in LWHs.

    This aligns with their Housing Vancouver Strategy (2018-2027), which has set a target of 4,000 new LWHs over the coming ten years. That may not seem like a lot and certainly it won’t solve everything, but I reckon that 4,000 is better than 0.

    The city also estimates that approximately 50% of these new LWHs will be two and three bedroom homes, which makes them a viable housing solution for families who want to remain in the city. (Related post: Where are all the kids?)

    There’s a lot of good stuff in the staff report if you’re so inclined, but I’ll leave you with a few facts about the current LWH program in Vancouver. 90% of LWHs are built along with a new house. And 45% of all new houses, so almost half, are now built with a LWH.

    Only 10% of LWHs are single storey, which certainly helps to support the above percentage of two and three bedroom homes. And in both 2016 and 2017 over 500 building permits for LWHs were issued each year.

    So 4,000 LWHs over the next decade may actually be a fairly conservative estimate. Thank you to Michael Geller for sending me this staff report.

    Photo by Spencer Watson on Unsplash

  • Where are all the kids?

    This evening, when I was reading the internet, I came across this New York Times article from 2017 talking about how San Francisco has the lowest percentage of children of any of the largest cities in the U.S. It’s around 13% of the population. (Supposedly it was the second lowest in 2015. Pittsburgh was first.)

    The article goes on to claim that the city has approximately the same number of dogs as it does children. That number is somewhere around 120,000. Not surprisingly, many blame the city’s prohibitive housing costs as the main culprit for the lack of kids. Families simply cannot afford to live in the city.

    This got me searching for more information. Richard Florida looked at similar data back in 2015, but it’s important to note that he looked at metro areas and not the city propers. So the data doesn’t speak to whether families were forced to move out from the urban core to the suburbs in search of more affordable housing or for more space.

    Nevertheless, he finds no statistical association between the share of children in a city and things like urban density, economic output per capita, or median home prices. He instead finds that the share of children is positively correlated with two main factors: immigration and with ethnicity – specifically people of Latin origin.

    Click here if you’d like to read the rest of Florida’s analysis. And if any of you have additional data on this topic, please do share it below. I think I’m going to continue digging into this question of kids and cities.

    Image: Photo by William Bout on Unsplash

  • An example of city building doublethink

    Earlier this month, Shane Dingman wrote a piece in the Globe and Mail talking about TAS’ proposed development for 2 Tecumseth Avenue here in Toronto – the former home of Quality Meat Packers, a slaughterhouse. In the article there’s a quote from Mazyar Mortazavi, which I posted to my Instagram (as a story), but that I have been meaning to also post to the blog. So here it is: 

    “It’s not a conversation about towers good, towers bad: Mid-rise is the most expensive construction typology and it delivers effectively luxury housing, so it doesn’t respond to the needs of affordability,” he said. “We didn’t buy Tecumseth to build a bunch of condos and move on. We bought it because we wanted to pursue a vision around city building. You need density … the question is how do we actually deliver density that’s relevant today and relevant 50 years from now?”

    He’s of course right about mid-rise construction costs. There are diseconomies of scale and other construction inefficiencies that we have talked about many times before on this blog. The result is one of the Catch-22s of city building. Mid-rise and small scale infill is often seen as desirable, but we also say that we need more affordable housing.

    It’s doublethink.

    Image: 2 Tecumseth by KPMB Architects for TAS

  • DANCHI DREAMS

    Below is an interesting Kickstarter project by photographer and art director Cody Ellingham. I think many of you will appreciate it. It is a photobook of Japanese public housing apartments, which are known as Danchi. All of the photos were taken by Cory at night, hence the dream part. The book is about the promise that these projects represented in the post-war years, but it is also about their decline in the subsequent decades.

    https://www.kickstarter.com/projects/cbje/danchi-dreams-a-photobook-of-japanese-public-housi/widget/video.html

  • Toronto Community Council voted unanimously in favor of laneway suites

    It happened.

    Today, Toronto and East York Community Council voted unanimously in favor of adopting a planning framework that would allow laneway suites on lands within the Toronto and East York District that are designated as “Neighbourhoods.” 

    If you’d like to see the actual vote (and the clapping that ensued), check out this YouTube video at the 41 minute mark. There are also some great speeches prior to the vote by Councillor Bailão, Councillor Perks, and others.

    Now, it still needs to go through City Council, but today remains an important milestone and a positive step forward. So kudos to everyone who has been working tirelessly to push this initiative forward.

    I would also like to take this opportunity to address some of the comments that I recently received about this blog, one of which is that I continue to offer a one-sided perspective on this issue of laneway housing in Toronto.

    Think of this blog – and I’m stealing this analogy from another blogger – as a bar. I am the bartender and I show up here pretty much every day. I’ve been doing that consistently for almost 5 years now.

    At this bar I sip on negronis – okay, it’s probably beer – and I talk about topics and issues that excite me and that are usually related to city building. If it doesn’t excite me, I don’t talk/write about it. And I get lots of emails every day asking me to write about things that do not excite me.

    If you would like to take a seat at the bar, have a drink, and join the conversation, you are more than welcome to do that in the comment section at the bottom of every post. In fact, it’s encouraged. I make a mean vodka soda.

    So maybe I’ll see you at the bar. The bartender is a fairly open-minded guy who enjoys good conversation.

  • Birth rates in the United States last year

    The National Center of Health Statistics just released this update on births and birth rates for the United States in 2017. The provisional number of births last year was 3,853,472, which represents a 2% reduction from 2016 and the lowest number in 30 years. The general fertility rate was 60.2 births per 1,000 women aged 15-44, which represents a 3% reduction from 2016. Also a record low.

    Here is a chart from the report showing birth rates for selected age ranges from 1990 to 2016 (the 2017 numbers are provisional):

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    Many of the age ranges have remained stable. Notable are the decline in the teenage (15-19) birth rate and the increase in births to women aged 40-44. The teenage birth rate declined 7% from 2016 and has averaged a decline of nearly 8% a year since 2007. And the birth rate for women aged 40-44 has generally been rising since 1982.

    I am sure that you can all think of many explanations for the above phenomena without even diving into the report. I find all of this relevant because demographics obviously impact the real estate business and how we build cities.

  • Percentage of residential properties dedicated to single-family housing in US cities

    The Seattle Times has an article up about “widespread single-family zoning” that will feel familiar to many here in Toronto who, I know, are having similar conversations about the amount of land dedicated to low-density housing.

    The article, by Mike Rosenberg, estimates that 49% of all developable land in Seattle is dedicated to single-family housing; that 8% is dedicated to multi-family housing; and that another 8% is dedicated to commercial and mixed-use buildings. The rest of the land is institutional, open space, vacant, and so on.

    Of all the residential lots in the city, the estimate is that 69% of them are occupied by single-family houses. This is compared to 1% in Manhattan. 

    I tried to reverse engineer the 69% based on the land use areas in the article, but the math didn’t quite add up. In any event, the argument here is, of course, that single-family homes are too expensive in Seattle and that the city needs more land available for multi-family housing.

    Housing supply is no doubt important, but looking at the above chart, having a low, or lower, percentage of residential land dedicated to single-family housing doesn’t seem to necessarily guarantee affordable housing.

  • Less, rather than more, housing

    Earlier this year I wrote about the California housing bill (827) intended to dramatically increase housing supply around transit stations all across the state. Well that bill was rejected last month and the Los Angeles Times wrote this post post-mortem explaining why and how it went wrong. Their argument is that it came down to opposition from low-income residents who feared that an increase in housing supply would lead to greater displacement.

    On a related note, the Official Plan Amendment and Zoning By-law Amendment that would permit laneway suites in Toronto went to Community Council this week. They voted to defer the decision for a month. Only 3 of 13 councillors voted to pass the proposal, despite there being 185 letters of support and only 4 letters of opposition. For more information on what the hell happened, check out this Lanescape post.

  • Toronto is finally ready to permit laneway suites

    Some of you might remember that last summer the city refused my laneway house/suite here in Toronto.

    Well that was last summer and this is this summer.

    On May 2, 2018 – which just so happens to be my birthday – Toronto and East York Community Council will consider a staff report for a City-initiated Official Plan Amendment and Zoning By-law Amendment that would permit laneway suites in the Toronto & East York District.

    Here are a couple of excerpts from the summary section (full report, here):

    This report recommends establishing a planning framework to permit laneway suites on lands within the Toronto and East York District that are designated as Neighbourhoods by amending both the Official Plan and City-wide Zoning By-law.

    A second unit can take many forms but is generally considered to be subordinate to the primary dwelling unit on a lot. Second units are an important part of the City’s rental housing stock. Laneway suites are one form of second unit.

    This report contains a detailed planning rationale for the introduction and regulation of laneway suites within the Toronto and East York area and discusses the policy implications and intent of proposed performance standards and criteria. 

    These performance standards and criteria intend that laneway suites will provide a new form of ground-related, rental and extended family housing that will fit appropriately within the scale of established Neighbourhoods, and limit their impact on the existing physical character, while contributing to the growth of the City’s rental housing stock.

    What a thoughtful birthday gift. Thank you.