Tag: housing

• First 3D printed home in America

  The video below is a good follow-up to my recent post about the 100 million city and the rapid population growth that we are seeing in some parts of the developing world.

  If you can’t see the embedded video below, click here.

  [youtube https://www.youtube.com/watch?v=SvM7jFZGAec?rel=0&w=560&h=315]

  It’s a video about what is allegedly the “first permitted, 3D-printed home in America” – an 800 square foot home that was built/printed in Austin during SXSW in about 24 hours.

  The project is a partnership between New Story (a non-profit) and ICON (a construction technologies company), and the goal is to pioneer a fast and cheap housing model for the developing world.

  The cost for the above home is said to be about $4,000.

  2018.03.29

• Vancouver’s Empty Homes Tax

  In an effort to curb the much talked-about and much debated empty home situation in Vancouver (supposedly the number is ~20k vacant homes), the city, as many of you know, implemented an Empty Homes Tax.

  To enforce this, the City of Vancouver now requires that every year, every owner of residential property must file a status declaration. If you don’t file this by the deadline, the property is automatically deemed vacant and the tax (1% of assessed taxable value) and a penalty ($250) are applied.

  Last month, 11 days before the 2017 deadline, the city published the below heat map showing the concentration of Vancouver property owners who hadn’t yet made their declaration. There were just under 4,000 undeclared properties.

  

  But as Jens von Bergmann points out on his blog, Mountain Doodles (great data-driven blog), this was really just a map of where people live. Because if you also create a map of residential properties subject to the tax, which he did, it looks pretty similar to above.

  2018.03.25

• New high-rise home prices up 39.5% year-over-year

  February data (2018) for the new home market in the Greater Toronto Area was released this past week by BILD and Altus. I seem to have gotten into the habit of writing about this every month.

  The benchmark price for new low-rise single-family housing was down slightly from January to $1,219,874, but still up 12.8% from a year prior.

  The benchmark price for new high-rise housing was up a whopping 39.5% year-over-year to $729,735. But part of this is being driven by an equally dramatic increase in average unit sizes.

  Here is the relevant graph:

  

  The story continues to be about tight supply, historically low developer inventories, and a lack of affordable low-rise product. 

  As I have argued many times before on this blog, I believe these factors — and in particular the last one — are, at least partly, driving this recent pop in high-rise pricing. People are priced out and now searching for substitutes.

  So my prediction continues to be that we will see a convergence (i.e. diminishing spread) between new low-rise and high-rise pricing.

  That will also bring about design and product changes on the high-rise side.

  2018.03.24

• Neighborhood depopulation

  

  Recently we’ve been talking about California’s Proposition 13 and how it may be creating a disincentive for longtime homeowners to move. They’re enjoying below market property taxes, and so they stay put, even if they may have too much house.

  But this concept of “overhousing” isn’t unique to California. The Globe and Mail just ran a piece talking about how Toronto’s designated “Neighborhoods” are losing people as the nests empty out, seniors remain put, and the broader city booms.

  The rate of depopulation that created the spare bedrooms in Toronto’s low-rise neighbourhoods is stark: “Since 2001, about 52 per cent of the land mass of Toronto has reduced in density of population by about 201,000 people,” Mr. Smetanin says. “Other parts of Toronto have grown by 492,000.”

  The irony of this phenomenon is that the city’s Official Plan considers these Neighborhoods to be “physically stable”, as well as “one of the keys to Toronto’s success.” However, things are clearly changing behind that physical stability.

  Photo by Verne Ho on Unsplash

  2018.03.18

• UNStudio announces new tech architecture company (and thoughts on the smart home)

  

  Dutch architecture firm UNStudio has just launched a new company called UNSense, whose purpose is to explore and develop “new sensor-based technologies that are specifically designed to positively impact people’s physical, mental and social health.” They are calling the new business an “arch tech company” and it is their belief that, at some point, all architecture firms will become arch tech companies. You can learn more about UNSense, here.

  This announcement got me thinking about the state of smart home technologies, which, of course, is this massive buzzword that everyone is throwing around these days. Many of us have smart thermostats, voice assistants (that may be listening to our every word), wifi lights, and so on. And you can do some pretty neat things with software like IFTT, such as program your lights to come on at sunset or when you walk in the door.

  But as cool as they may be, these smart home devices have always felt like patchwork add-ons to me. I understand that this is partially driven by what customers can easily adopt and I don’t mean to discredit the value that they bring, but today’s post is about reminding us to also think more fundamentally, as opposed to just incrementally.

  Smart thermostats, for instance, give us the functionality to adjust our heating/cooling from our phone. But at the end of the day, they still control the same underlying system, which, by the way, is a fairly simple one. When it gets cold (because of our R-3 windows), the heat turns on. When it gets warm enough, the heat turns off. Zoned systems certainly add another layer of sophistication, but are we optimizing for the right variables?

  UNSense works at three scales: Cities, Buildings, and Interiors. And if you look at what they are trying to do at the building scale, it is around the interface between inside and out. Designing transformable facade systems and buildings that can respond to their environment and our changing needs. These are not new ideas, but in today’s tech-driven world, the timing may just be right.

  If you think about the climate we have here in Toronto, it is actually an incredibly difficult design problem. We have cold winters and hot humid summers, which means we have to solve for two different extremes. Mechanical systems have made that a lot easier to do, but if we’re going to meet the energy and greenhouse gas emission targets that we’re all talking about, we’re going to need a hell of a lot more than just smart thermostats.

  Image: UNSense

  2018.03.17

• Thoughts on housing in the Bay Area

  I was out for drinks recently with a friend of mine who is a developer in California and she mentioned a few things to me that I thought were really interesting. 

  First, she talked about how virtually nothing gets built in the Bay Area “as of right.” And so the market is hugely supply constrained. She said, you’re lucky if you can get your entitlements in 2 years. It’s starting to take longer. I immediately said: “That’s Toronto.”

  Second, we talked about Proposition 13, which was timely given this recent post. One of the consequences of Prop 13, beyond helping golf clubs survive, is that longtime homeowners seem to be highly incentivized not to move. 

  Their property taxes are so below market that it can be more cost effective for them to stay put as opposed to downsize – even if they have too much house. This means far less turnover in the housing market.

  Third, there really does seem to be a feeling in the Bay Area that it’s at a breaking point in terms of affordability. When a successful software engineer making $200,000 a year can’t afford housing, people naturally start to look to other cities.

  We hear this refrain all the time in the media, but because I’m not active in that market, it was far more impactful hearing it from a friend.

  2018.03.16

• The density delusion

  Joel Kotkin and Wendell Cox recently published a piece in the Orange County Register called, “California’s housing crisis and the density delusion.” I’m sure you can guess where this is going, even if you don’t follow the work of Joel Kotkin. But if you do, you will know that he is an ardent supporter of suburbia and the single-family home.

  Here is an excerpt from the article:

  In reality, the YIMBY’s suggestion that new, dense housing will improve affordability for all is patently absurd. Decades of densification in Los Angeles has seen ever higher rents, displacing low-income, especially minority households. Many former transit customers have been driven to lower-rent areas with less transit service, precipitating a massive decline in ridership, even as billions continue to be spent building new rail lines. The Wiener Bill [my link, not theirs] could exacerbate this trend, and likely increase the need for low-income housing, already well beyond the capability of public coffers.

  I fully appreciate the argument that high-density housing isn’t for everyone and that we shouldn’t be “forcing everyone back to the ‘glory’ days of the city of tenements.” But I disagree with many of their points, including the argument that density doesn’t encourage transit ridership. Density isn’t everything, but it’s an important something.

  The article is definitely worth a read, particularly if you disagree with their positions. That’s how you avoid confirmation bias. I was trying to keep that in mind as I read it. Maybe it worked.

  2018.03.14

• Manhattan apartment rents post biggest decline since 2011

  A friend of mine sent me this article earlier today with a sarcastic comment about the relationship between housing supply and rents.

  The article talks about how rents in almost every Manhattan neighborhood have fallen compared to a year ago because of a flood of new apartment supply coming online. The median rent dropped 3.6% (year-over-year) which is the biggest decline since October 2011.

  

  There has also been a spike in the number of leases with some sort of incentive attached to it (see above). As a landlord you typically want to use incentives, such as free rent, before resorting to lower face rents. Because lower rents mean a lower overall net operating income, which in turns depresses the value of your property.

  But sometimes you have no choice:

  “Landlords have finally realized, ‘OK, we have to adjust these prices because the concessions aren’t doing as much,’” said Hal Gavzie, who oversees leasing for Douglas Elliman. “Customers are looking past the concessions being offered and just looking for the best deals they can find.”

  A few weeks ago I wrote about a similar story playing out in Seattle. It’s almost as if excess housing supply is driving down rents.

  2018.02.14

• One year of Inclusionary Housing in Portland

  

  About a year ago, Portland enacted “Inclusionary Housing” policy requiring new apartment buildings of 20 units or more to offer up a portion of the units at below market rents.

  Developers are able to select from a few different options and the rents are calculated according to a percentage of the city’s median family income (30-80%). I’m not sure how this policy would apply to new condo buildings.

  This is an interesting account by The Portland Mercury of what this policy may be doing to the housing market. I say may because it’s only been a year and there could be other factors at play.

  Between 2013 and 2017, Portland typically built between 3,000 and 6,000 new units per year. Since the IH policy went into effect on February 1, 2017, 682 new units have applied for permit. 

  About half are coming from one developer who appears to be building the requisite affordable units in exchange for no parking minimums. They are now proposing buildings with zero parking.

  Again, in all fairness, it’s only been a year. But already Mayor Ted Wheeler is looking at other incentives to encourage more new construction in the central city. The biggest levers: height and density.

  All of this begins to speak to the very real impact of inclusionary zoning on development feasibility.

  Photo by Zach Savinar on Unsplash

  2018.02.08

• Skater’s Paradise: On/Off

  This skateboarding video is incredibly well done. I particularly like the 42 second mark. If you can’t see it below, click here.

  [vimeo 227394921 w=640 h=280]

  It’s incredible from a filmmaking standpoint, but – as I have said many times before on this blog – it also showcases the deep relationship between skateboarding and the urban environment.

  I can’t think of many other sports with that kind of relationship.

  2018.02.05