Tag: london

• London’s clean air zone

  In 2019, London implemented something known as an Ultra-Low Emission Zone (or ULEZ). The intent was to reduce the number of older and higher-polluting vehicles entering and driving around the city.

  It works like this: If you have a vehicle that does not meet the ULEZ emission standards, you need to pay a daily charge of £12.50. This applies all day every day (except Christmas) and it is in addition to London’s congestion charge.

  It’s also done entirely through license plate cameras. If you enter the zone, don’t have an approved plate, and don’t pay the charge within a few days, you get sent a fine. The result is that London’s ULEZ is now the largest clean air zone in the world (at least according to London).

  It also achieved its intended purpose. In 2017, only 39% of cars entering London would have met the ULEZ emission standards. Today the number is over 95%. Meaning, most people don’t actually pay the charge.

  At the same time, nitrogen dioxide levels in the zone have more than halved, improving overall health outcomes. It’s a perfect example of taxing the things you want less of. What’s also interesting is that there were positive second-order consequences.

  Vehicle traffic as a whole declined by about 9% in the first year, with no evidence of displacement to other areas. And according to this research study, it actually encouraged more kids to walk and take other forms of “active transport” to and from school.

  Seems like a no brainer to me.

  2024.09.23

• Roncesvalles is a great, single-sided, street

  Roncesvalles Avenue is a successful north-south main street in the west end of Toronto. I say successful, because it is truly a great street. It has transit, bike lanes, a fine-grained built form, and lots of interesting retail:

  

  But it is somewhat unique in that a large section of it is a one-sided retail street. Meaning, it looks like this:

  

  This obviously isn’t a fatal flaw. It remains a wonderful street. And there are lots of examples of thriving one-sided retail streets. Ocean Drive in Miami Beach immediately comes to mind (notwithstanding the fact that locals tend not to go to it).

  But conventional retail wisdom does dictate that two sides are better than one. Consider this 2023 report by Cushman & Wakefield ranking the top global main streets across the world. All of the streets that I have been to before are two-sided:

  • 5th Avenue in New York between 49th and 60th (above 60th is, incidentally, when the street converts to single-sided because of Central Park)
  • Montenapoleone in Milan
  • The main street of Tsim Sha Tsui in Hong Kong
  • New Bond Street in London
  • Avenues des Champs-Élysées in Paris
  • Grafton Street in in Dublin
  • Passeig de Gracia in Barcelona
  • Bloor Street in Toronto

  These are all two-sided retail streets.

  None of this is to say that the west side of Roncesvalles has nothing going on. It has a diverse mixture of uses, including churches, libraries, apartments, and many other things. But I think there is still an argument to be made that it has been hamstrung by restrictive zoning.

  That said, Roncevalles is defined as a “major street” in Toronto’s Official Plan and so it does fall under the city’s new Major Street Study. Maybe that changes things.

  2024.08.14

• Condominiums — affordable or luxury?

  

  It is disappointing to me that we often vilify all condominiums as being “luxury condos.” I think the rhetoric is disingenuous and I think it distracts us from finding more productive solutions. As Mike Moffatt points out in this thread, if you look at virtually all major cities in Canada, the most affordable housing options are going to be condominiums and not low-rise freehold houses.

  In his case, he looked at current for sale listings in London, Ontario, and found that for homes under $400k, about 81% of them were condominiums, and for homes over $1,200,000, only 4% of them were condominiums. Again: the real “luxury homes” are the low-rise houses that not the condos.

  Now to be fair, John Pasalis is not wrong in responding to the thread and saying that on a per pound basis, or a per square foot basis, condominiums are actually more expensive. I’ve been saying this for years on the blog. When measured this way, mid-rise buildings are one of if not the most expensive housing typologies.

  So John’s argument is that, while condominiums may be the more affordable option for 1-2 person households, if you’re a family in need of more space, low-rise housing is likely going to be more affordable for you on a per square foot basis. And I would agree with this statement.

  The problem with this approach in the real world, though, is that people don’t buy and afford homes based on this metric. You can’t go to a bank and say, “I want to buy this house for $1.7 million dollars because it’s only $680 per square foot when I include the basement, and that’s better value than this 700 square foot condominium selling for $1,400 psf.”

  Sorry, the bank is going to tell you what total price you can afford based on your income. And that’s why condominiums in our market have tended to serve as a critical entry point for first-time buyers. They’re the most affordable option in terms of their total sale price.

  So in my view, labelling all condominiums as “luxury” is not exactly productive. It ignores their role in providing more affordable homes; it overlooks the supply constraint that low-rise houses represent in most of our cities; and it’s a distraction from the more systemic issue at hand: how do we make housing more affordable for everyone, including families?

  Photo by Marcos Paulo Prado on Unsplash

  2024.01.21

• Solar power as art

  

  The past week has felt more like a London winter, than a Toronto one. It has been mild, rainy, and gray. So right now feels like an opportune time to write about this solar-powered light/art piece called Sunne. Created by Marjan van Aubel, the light has been designed to hang right in front of a window using two simple cables. There’s no need for an external power source, because it has an integrated battery that harvests sun during the day. The light then automatically turns on at sunset, and has the ability to simulate some pretty stunning sun experiences.

  Now, if you happen to live in a place with a roof that gets good sun exposure, I suppose you could just install a bunch of solar panels and use them to generate power for cool-looking things in your home. But if you don’t have the ability to do that — for instance, maybe you live in a multi-family building — then this feels like a clever and extremely beautiful way to harvest some amount of sun. I’m sure that, eventually, we’ll have building facades that can generate a meaningful amount of solar power, but until then, you’ve got devices like Sunne.

  P.S. For what it’s worth, I’ll take cold, snowy and sunny, over mild, rainy and gray, any day of the week.

  Image: Sunne

  2023.12.28

• Introducing the Meta City

  During the pandemic, there was a lot of erroneous talk about the death of cities. Much like when the consumer internet first came around, the thinking was that technology would make geography irrelevant. I was and am vehemently against this idea, but it’s hard to not feel like technology is doing something. But what exactly? According to Richard Florida, Vladislav Boutenko, Antoine Vetrano, and Sara Saloo, it is creating something called the Meta City:

  The various communities that make up the Meta City may be in different time zones and noncontiguous locations, but they function together as a coherent network with a distinct structure and logic. The Meta City combines physical and virtual agglomeration, in seeming defiance of the laws of physics, making it possible to occupy more than one space at the same time. As a result, urban areas within the Meta City network can share economic and social functions.

  The narrative is compelling. Cities have always responded to and been a product of new mobility technologies. Streetcars, subways, and the car have all reshaped the geography of our cities. Some would argue for the worse. What the Meta City proposes is that technology today is not a disruptor of cities, it is simply another mobility shift. Rather than make cities irrelevant, it actually makes them more important by expanding their reach:

  The pandemic-era shift to remote work is yet another technology stretching the boundaries of the city into a new and larger geographic unit. But instead of doing so physically, it does so by enabling virtual expansion. The share of American workers engaged in remote work tripled from roughly 6% in 2019 to almost 18% in 2021. Remote workers can access significant quality of life at far more affordable prices in smaller cities, suburbs, and rural areas.

  Some specific examples:

  Many of these rising places are critically connected to established cities. As we will see, Austin’s rise is best understood as a satellite of San Francisco’s long-established tech hub. Miami is enmeshed in New York City’s finance and real estate complex. The rise of the Meta City informs a counterintuitive logic: Leading superstar cities are seeing their role as economic hub expand, even as some talent and some industry disperse to satellite centers.

  Finally, here’s their ranking:

  

  If you believe this to be true, then it should be good news for the real estate located in the cities listed above. But it also means that we are now facing a new kind of hub-and-spoke model of urbanism. London and New York remain at the center, but tech is only strengthening their reach and influence. This is a new way of thinking about the flow of human capital around the world, and I’m sure it will have impacts on how we plan and build our cities.

  Image: Harvard Business Review

  2023.11.29

• Sub-divided mansions

  

  In the second half of the 19th century, the way Londoners had historically lived, started to change:

  In the 1870s, a striking change was occurring in the residential habits of London’s elite. After centuries of living close to the ground in houses, Charles Dickens Jr. (son of the famous writer) observed that wealthy residents were starting “to avail themselves of the continental experience … and to adopt the foreign fashion of living in flats.”

  The resulting housing typology was something known as the mansion block. And as the name suggests, one of the principal design ideas was that these blocks should, ideally, look like a single giant mansion. In other words, the individual homes were to be obfuscated:

  The mansion block was a grand building that borrowed elements of the English terraced house (as a row house is known in British English), particularly the elite “palace fronted” terraced houses designed by Scottish architect Robert Adam and his brothers a century earlier, which concealed individual houses behind a grand facade to resemble a single palatial structure.

  It is a design approach that makes sense. I mean, I can see wealthy people wanting to appear as if they’re living in a palatial mansion. That said, it is an approach to multi-family housing that feels somewhat foreign today. Most people don’t look up at tall buildings and wonder if it’s one person’s home.

  And we don’t aim for that.

  Presumably this is, at least partially, because scales grew, builders were looking for economies of scale, and because modernism told us that mansion-looking structures were outdated. Whatever the reasons, multi-family buildings today are not generally conceived of as sub-divided mansions.

  What’s maybe ironic about this shift, though, is that we went from elaborate and varied facade designs intended to communicate single structures, to modern and repetitive facade designs that, somehow, better communicate the individual homes.

  I suppose we got used to the “foreign fashion of living in flats”.

  Image: Josh Kramer for Bloomberg CityLab

  2023.11.26

• Multiple expression and our bias toward old architecture

  You may not have ever used this exact term before, but I’m sure that most of you know what it is. On his blog over the weekend, Witold Rybczynski wrote about a new architectural term he just learned called: “multiple expression.” What it refers to is the use of different architectural styles on a long facade in order for the building to appear as if it’s multiple smaller ones.

  And today, I would say that this is largely viewed as a positive thing. Typically it is done to “break up a massing” or create a “fine-grained retail experience.” In fact, you’ll find things like this in some design guidelines. Here’s one from Toronto’s mid-rise performance standards:

  

  This doesn’t explicitly stipulate that architects should use “multiple expressions”, but it does suggest that long repetitive facades are suboptimal, and that they should be broken up. But Witold’s view is the opposite. He argues that this “bespeaks a lack of confidence, a poverty of the imagination.” And he gives the example of Park Crescent in London, designed by architect John Nash.

  It’s long (well over 60m) and it’s repetitive:

  

  Perhaps a good counter example to this would be Mirvish Village in Toronto, which was designed by Henriquez Partners and which has been largely celebrated as a way of creating the feeling of fine-grained urbanism in a larger master-planned development. Here it is on Google, still under construction:

  

  So what is it that makes Mirvish Village a generally desirable outcome in today’s planning environment, even though I suspect that most people would still appreciate what John Nash did on Park Crescent back in the early 1800s? Are we saying — with our guidelines — that we like Park Crescent, but that we shouldn’t do that ever again today?

  And to what extent do age and architectural style play into these opinions? Are long repetitive facades over 60m acceptable as long as the architectural style is “Regency” and the buildings aren’t too tall? Is modernism the problem? Because here’s another example from London: The Alexandra and Ainsworth Estate.

  Built in the 1970s, it is a Brutalist housing estate with a largely repetitive design, and even a slight curve reminiscent of Park Crescent:

  

  Does this have confidence and imagination? Witold would probably say no.

  In the end, I guess the answer is that it all depends. Guidelines are just that — guides. They are not set in stone rules that must never be broken under any circumstances. That would be to reduce architecture to a strict science, and there’s clearly also an art component to building great cities.

  “Multiple expression” is usually done to create the feeling of finer-grained urbanism. But sometimes — if you’re old and regal-looking enough — the opposite can be okay too.

  2023.11.05

• The global cities attracting talent, visitors, and investment

  Earlier this month, Resonance Consultancy published its 2024 World’s Best Cities ranking. Or, in their words: its definitive power ranking of the 100 global cities that it believes are shaping tomorrow.

  These are always fun to flip through, which is I guess why people do them and why people look at them; but I do think it’s important to look at the underlying methodologies. Otherwise, what does “world’s best” even really mean?

  In this case, they’re looking at global cities through the lens of three key categories: livability, lovability, and prosperity. More specifically though, the report looks at factors that are demonstrated to have moderate to strong correlations with attracting talent, visitors, and/or businesses.

  This makes it distinct from rankings that are more focused on things like livability. Because according to Resonance, factors such as commute times, crime, and housing affordability don’t tend to correlate strongly (at least in the short-term) with a city’s ability to attract talent, tourism, and investment.

  While this may seem a bit counterintuitive, it does also make sense. People don’t move to London because they’re looking for affordable housing and a reasonable commute. They move to London because they want to be in the center of the world.

  And yes, London tops their power ranking:

  

  The top of this ranking isn’t all that surprising. It’s the usual suspects. But I continue to be impressed by how quickly Dubai has transformed itself into a top global city. Also impressive is how Dublin punches above its weight of just over 500,000 people.

  I am medium surprised to see Hong Kong nowhere on this first page (there are another 65 cities not shown here). It usually features as a top global city. But presumably this is the result of Beijing meddling. People are looking elsewhere — like Singapore.

  For the full list of cities and to download a copy of the report, click here.

  2023.10.21

• Slamming the breaks on anti-motorist measures

  Last week the Prime Minister of the UK, Rishi Sunak, announced a number of initiatives designed to support drivers. The slogan is “slamming the brakes on anti-motorist measures” and you can find more information about it, over here.

  Naturally this is sparking the usual debate about driving vs. all the other forms of mobility. But it also seems to be part of some sort of broader political strategy intended to distance his party from things like environmental sustainability, net zero targets, and 15-minute city design.

  If you’re looking for a way to process the above announcement, this recent FT article by John Burn-Murdoch is an excellent place to start. Firstly, the UK (outside of London) is generally poorly served by public transport. This is an important thing to know. By the below measure — percentage of large cities that have trams, a metro, or urban light rail — it is even worse than the US:

  

  In fact, one way to think about and measure mobility in the UK is to think in terms of the following geographic categories: there’s US cities, European cities (including London), and then there’s the rest of the UK. In the case of US cities, they have very clearly optimized around road infrastructure. Meaning, the vast majority of people don’t take transit to work, but the area (km2) you can cover by car (in 30 mins) is high.

  Look at Houston and Dallas on the left side of this graph:

  

  On the other hand, European cities (again, including London) have optimized in the opposite direction. A lot more people walk, cycle, and take transit to work. In the case of cities like London, Paris, Barcelona, Bilbao, Prague, and others, the number is greater than 60%! However, they’re sucky places to drive, as I learned this past summer. The area you can cover by car within 30 mins, is relatively low (bottom right of the above graph).

  The challenge for British cities (excluding London), is that they seem to be right in the middle (burgundy dots above). Poor public transport (low percentage of trips to work). And poor road infrastructure (limited area accessible by car within 30 mins). So it is perhaps no surprise that Sunak is honing in on this issue. London is not representative of Britain. And based on the above data, the majority of people living in British cities are almost certainly mobility frustrated.

  Of course, to correct this issue you have two options. You can move toward the left (in the above chart) and optimize for road infrastructure. Or you can move to the right and optimize for public transport and other forms of mobility. Based on last week’s announcement, Sunak has chosen the left.

  Charts: FT

  2023.10.01

• 1/21st of a second home

  I don’t know for exactly how long, but for a very long time people have been trying to solve this real estate problem: “I have a desire to own a home, or multiple homes, around the world. However, I don’t know how often I’d actually use it/them, and this desire is both expensive and a pain in the ass.”

  And so unless you have a lot of money and can make the pain in the ass part go away, there seems to exist an ongoing need to make fulfilling this desire both cheaper and easier. Perhaps the most common ways are through a timeshare property or through some kind of fractional ownership structure, where you own a share of a property.

  Some companies are even “tokenizing” this second structure on blockchains. I have read about one company that is buying vacation homes and then issuing 365 corresponding tokens. Each token represents 1 day of occupancy (and actual title ownership apparently). In theory this sounds kind of neat, but you’re also buying a second home with potentially 364 other strangers.

  So here’s another approach that I just learned about. The UK-based company, August, has devised a model that works like this:

  • August starts with “homeowner curation.” Meaning, they start by vetting homeowners to make sure that they’re not weird or something.
  • Once they have a suitable collection of homeowners, August sets up a new real estate entity that all of the homeowners must then fund equally.
  • This entity, by way of August, goes out and buys 5 properties, and each homeowner receives an equal share of the ownership. (Typically, they target 16-21 groups per entity.)
  • August renovates the 5 properties, gets them ready for occupancy, and then manages them on ongoing basis. This includes bookings.
  • Finally, each homeowner gets an average of 8-10 weeks per year across all of their homes.

  In terms of the homes themselves, their pied-à-terre collection includes homes in Paris, Rome, Cannes, Barcelona, and London. They are typically between 70-100 square meters with 2 bedrooms and 1-2 bathrooms. And the average price/value is supposedly around €1,250,000 (post-renovation?), with the entry price of a share starting at €340,000.

  I’m not sure if this share figure is based on 21 homeowners, but if it is, then that’s €7,140,000 of equity being raised in order to buy somewhere around €6,250,000 of real estate. Is the spread their margin for setting this all up? There’s also an annual fee per owner (€8,600), which presumably covers operating costs and the ongoing management of the properties.

  A model like this naturally provokes a lot of questions. What happens if somebody wants to sell? Does the next buyer need to be similarly vetted for overall weirdness? And how liquid is 1/21st of a 5-property apartment portfolio? I don’t know these answers, but intuitively these shares have got to be less liquid than a 100% sale.

  However, as a solution to the problem of “I have a desire to own homes across Europe but I’m not quite rich enough to make it truly carefree”, this seems like a pretty clever solution.

  2023.09.21