Tag: toronto

• How impactful will the new First-Time Home Buyer Incentive be?

  This week’s federal budget announced two measures that are intended to improve housing affordability.

  The first is a modification to the Home Buyers’ Plan. This is a plan that gives first-time home buyers the ability to do a tax-free withdrawal from their RRSP (it does, however, have to be repaid within 15 years). The withdrawal limit was increased from $25,000 to $35,000.

  The second measure, which is the one that got everyone’s attention, is the new First-Time Home Buyer Incentive. Through this program, CMHC will offer first-time home buyers (who have the minimum down payment required for an insured mortgage) the option of a “CMHC shared equity mortgage.”

  What this effectively means is that CMHC will give first-time buyers an interest-free contribution for 10% of the purchase price of a new home (5% in the case of a resale). There’s no interest, but it does need to be paid back at the time of a sale. The higher percentage for new build homes is intended to stimulate housing supply.

  It is still not clear whether CMHC will be expecting to participate in any increase (or decrease) in the value of the properties. But presumably, yes, since it’s called a “shared equity mortgage.” All of this is expected to come into force by the fall.

  Here’s an example of how this program is intended to work.

  If a first-time buyer purchases a new home for $400,000 with a 5% down payment, the insured mortgage amount would normally be $380,000. This is the highest loan-to-value you can get with CMHC mortgage loan insurance. With this new measure, the mortgage size would reduce to $340,000 and so the purchaser’s monthly debt service would drop accordingly, thereby helping with overall affordability.

  The caveat to all of this is that this incentive will only be available to first-time home buyers with a household income under $120,000, and the insured mortgage and incentive amount cannot be greater than 4x the participants’ annual household income.

  What this means is that this program really only touches the sub $500,000 market. And in highly desirable cities like Toronto and Vancouver, that market isn’t all that big.

  2019.03.20

• Marketing to Hong Kong

  A reader of this blog, who is based in Hong Kong, recently emailed me these photos:

  

  

  They are of a direct mailer that he received in his mailbox for a project here in Toronto.

  He sent them to me because he thought it was an interesting example of how projects are marketed to residents of Hong Kong.

  I don’t know what most of the text means, but it is clear that Canada is a brand and that the Toronto Reference Library is an important landmark.

  2019.03.19

• European-style height, but not density

  As I wrote about last month in this pithy post, the relationship between building height and density are often misunderstood. They mean different things and so the implications for our cities can also be vastly different.

  I woke up this morning to a couple of tweets by John Michael McGrath that I think hit the nail on the end with respect to this duality. If you can’t see them below, click here.

  https://twitter.com/jm_mcgrath/status/1105500872979742720

  Paris is known, and largely celebrated, for its “European-scaled” mid-rise buildings. But as John points out, these buildings often line narrow streets (see above). They are typically also built across large blocks with compact internal courtyards and with few setbacks and/or stepbacks. The combined result is that Paris is one of the densest cities in Europe. It has mid-rise at scale.

  The North American context is quite different. The large majority of our land is usually reserved for low density housing. (Here in Toronto this land has been nicknamed the “Yellowbelt.”) We have a policy context that only allows intensification in select places, and that can create pressures to build up. It’s a bit like squeezing a closed tube of toothpaste.

  In 2012, Eurostat ranked Paris as the densest city in Europe with an average population density of approximately 21,516 people per square kilometer. Whereas, according to Wikipedia, the population density of metro Toronto was around 5,905 people per square kilometer in 2016.

  What is it, again, that we love so much about Paris?

  2019.03.13

• A building with a name

  

  The minutes from One Delisle’s Design Review Panel meeting were just published. They are public and available on the City of Toronto’s website, here. The project was on the December 13, 2018 agenda.

  No project is ever perfect, but here are two paragraphs from the minutes that I think do it justice:

  The Panel thought the proposal had an “iconographic landmark quality to it”. Numerous members pointed out that it’s (sic) siting at a transitional “hinge point” on Yonge St would also lend itself to iconic placemaking as well as a striking addition to the view down the Yonge corridor.

  The Panel was excited to have this type of sophisticated design come to Toronto. Many members felt that the massing and design solution would be a powerful and beautiful addition to the skyline. Several members commented that the proposal could become “a building with a name” similar to landmark towers in London, England. One member suggested that Toronto could use more buildings with personality.

  Lots of buildings, of course, have names. What is really being discussed is a building with an identity that resonates with people in a meaningful way and that becomes associated with a particular place.

  But let’s not forget that being “iconic” is only one part of this equation. The goal here is ambitious architecture with genuine civic value. And if you’re at all familiar with the project and broader ideas for the block, I would hope that mission is clear.

  2019.03.12

• Should we be banning cashless businesses?

  Three years ago I wrote about how I was one step closer to not only going cashless — I had pretty much already done that — but also going walletless. (That’s one of the things about writing a daily blog — there’s a public record.) I still carry a wallet in most cases, but I couldn’t tell you the last time I paid for something using cash here in Toronto. It was probably at a Vietnamese restaurant.

  I did, however, notice on my trip last month that Germany and Austria are still quite reliant on cash. Many places only accepted cash and many places wouldn’t accept credit cards under a certain minimum spend. Fewer opportunities to just tap as well. I had forgotten how annoying it was to carry around lots of coins. You really need a change purse.

  Still, a paradigm shift has taken place. And because of this shift, there’s a growing movement in cities toward banning cash-free businesses. Philadelphia, Chicago, San Francisco, New York City, and Washington, DC are all working on policy. The concern is that not accepting cash discriminates against lower-income patrons.

  According to the Federal Deposit Insurance Corporation (FIDC), approximately 8.4 million US households (6.5% of all households) were “unbanked” in 2017. This means that no one in the household had either a checking or savings account.

  An additional 24.2 million US households (additional 18.7% of all households) are estimated to be “underbanked”, meaning they have at least one account at an insured institution, but they also rely on outside financial products — such as payday loans.

  

  When surveyed, somewhere around half tend to cite “not having enough money” as one of the reasons for being “unbanked.” But the good news is that the percentage of people without a bank account seems to be declining (see above chart).

  This is important because we all know where things are headed. And banning cashless businesses isn’t going to stop that march. There are deeper issues that need to be addressed. Here is an excerpt from a recent CityLab article on the topic:

  “I certainly don’t think [this bill] is the right long-term solution,” said Rogoff. “The future does not lie in this direction. The future lies in giving people free debit cards and financial inclusion.” He cited the case of India. The country launched a program to decrease the number of unbanked and saw the percentage decrease from 47 percent of adults in 2014 to 20 percent unbanked in 2017 according to the World Bank Global Findex Report. “If India can manage to give people free debit cards, so can the U.S.” Rogoff said.

  Kenneth Rogoff is a professor of public policy at Harvard University, the former chief economist of the IMF, and author of The Curse of Cash. If you’re interested in this topic, his book may be a good one to check out.

  2019.03.10

• Home and Away: DesignAgency and Bestor Architecture

  This past week I attended the “Home and Away” Lecture series at the Daniels Faculty of Architecture, Landscape, and Design. Matt Davis (of DesignAgency here in Toronto) was the home. And Barbara Bestor (of Bestor Architecture in Los Angeles) was the away.

  Both have completed some spectacular work. DesignAgency has really carved out a name for itself in the hospitality space with projects like the Broadview Hotel (Toronto) and the Generator hostel chain (global). And Bestor has completed a number of high profile corporate offices (Snapchat, Beats by Dre, Nasty Gal), as well as a home for Mike D (Beastie Boys) and some infill residential projects.

  The project I’d like to talk about today is her residential project known as Blackbirds. It is a cluster of 18 homes in Echo Park, Los Angeles, which are built into the site’s hilly topography and centered around a shared parking/open space.

  

  A few things are immediately interesting about this project. For one, I have been told that parking in Los Angeles is typically required to be covered. Here they managed not to do that and it allowed the center of the complex to become a more flexible communal space. The residents sometimes use it for dinners.

  Secondly, the overall masterplanning of the site was done in a way that makes it feel like an organic collection of 18 homes, as opposed to a linear stacking of row homes. Apparently, Bestor managed to still get the same number of homes on the site and it greatly improved their marketability.

  

  Lastly, I like how she plays with scale. Below is a section through three of the homes. But if you look at the roofline, you can see how it would appear as two homes from the street. These sorts of design techniques can be useful in striking the right balance between maximum density and a contextual design response.

  

  For more events by the Daniels Faculty, click here.

  Images: Bestor Architecture

  2019.03.09

• Cumulative electric vehicle sales around the world

  When I was shopping for a new car last year I gave serious thought to buying an electric vehicle. In fact, it is what I initially set out to do. But I couldn’t find a model that I liked and I didn’t feel like the charging infrastructure was in place for me to go on snowboarding trips to places like Quebec or Vermont. So I went with an ICE vehicle. But we all know it is only a matter of time before we hit that tipping point, which is why 100% of the parking spots at our Junction House project will be ready for an electric vehicle charging station.

  According to a recent briefing from the International Council on Clean Transportation (ICCT), there were 3.1 million electric passenger vehicles in use around the world at the end of 2017. Almost all of them (98%) were located in China, Europe, Japan, and the United States, and nearly half of them (44%) were located in just 25 cities. Shanghai leads the world (or at least it did at the end of 2017) with 162,000 cumulative sales since 2011. This represents 5% of all global electric vehicle sales during this time period.

  The footnote to this is that most of Shanghai’s electric vehicles are actually plug-in hybrid electric vehicles, whereas in the case of Beijing — which is second only to Shanghai in terms of cumulative sales — it is virtually all battery electric vehicles. Digging even deeper, if you look at the share of electric vehicles sales in each city, it becomes clear that, on a per capita basis, the real leader is actually Norway. Between 40-50% of all cars sold in Oslo and Bergen were electric in 2017.

  Here is a chart from the ICCT:

  

  What is clear from these leading cities is that there are supportive policies and incentives in place to accelerate the adoption of electric vehicles. The chicken-and-egg dilemma, which is what I ran into, is that you really need the installed charging capacity. The ICCT estimates that the top 25 electric vehicle markets have about 24x the available charging per capita compared to other cities. That certainly helps.

  2019.03.08

• The holy grail of street paving

  Last weekend I went by Sidewalk Toronto’s “experimental workspace” at 307 Lake Shore Blvd East. It is open to the public every Sunday from 11am to 5pm if you’d like to drop in.

  This week they had their #BuildingRaincoat on display, which is an adjustable awning system designed to protect public sidewalks, mitigate the impacts of adverse weather, and improve outdoor comfort.

  Also installed were a number of the paving systems that they are currently piloting. They’re working with over 20 different vendors to try and create the “holy grail” of street paving.

  They define that as a system capable of the following four key features: modularity, heating, lighting, and permeability. Here’s an example of what one of them looked like (it was snowing at the time and, yes, Doc Martens):

  

  With modularity, the goal is to make it possible for a single person to be able to pull up and replace one of the hexagonal slabs. This would dramatically change how we repair and patch our roads. Supposedly, they’re also more resistant to cracks, which means fewer potholes.

  The key benefit of a heated paving system is an obvious one. When needed, their test system automatically heats the slabs to 2-4 degrees celsius in order to melt any snow and/or ice. That’s as warm as you need apparently.

  They have two heating systems running at 307. The first is hydronic (fluid in pipes just below the pavement) and the second is conductive heating (thin conductive film in or under the pavement).

  I’m sure many of you will be questioning the environmental and carbon impact of a heated public realm. And that is certainly a good question. But the status quo in this city involves about 131,000 tons of road salts per year. That’s a problem.

  The lighting feature is pretty neat because there are a variety of different use cases beyond just demarcating space. One example that Sidewalk gives is that it could be used in a bike lane to tell you how fast you need to ride in order to hit all green lights.

  Finally, permeability matters because it minimizes runoff and allows water to be absorbed in situ. The tradeoff is that it makes the slabs structurally weaker. So that is still being worked on.

  I am thrilled to see this sort of urban innovation taking place right here in the city. If you haven’t already, I recommend checking out 307.

  2019.03.04

• [Video] Yearning for turning

  It is a beautiful snow day in Toronto today and so I thought we would switch gears a little.

  If you don’t care about snowboarding (or skiing), you may want to ignore today’s post and check back tomorrow. But if you do care, then you are going to absolutely love this video by KORUA Shapes. There’s something so magical about pairing the right song with the right video. If you can’t see it below, click here.

  I’ve been following KORUA for a number of years now. They make unique snowboard shapes with virtually zero graphics or ornamentation. The tops are white and the bottoms are red. Clean and simple. It’s all about the geometry of the boards and their performance. Their mission: “Simply for the sake of beauty and joy.”

  I think I’m going to try one out next season.

  2019.03.02

• Electric scooter startup Lime raises $310 million series D round

  Earlier this month it was announced that the on-demand electric scooter and bike startup, Lime, had closed a $310 million series D round. This values the 18-month old company at around $2.4 billion and brings its total raise to $867.1 million. For comparison, Bird — its main competitor — has raised around $400 million.

  These numbers should tell you about the kind of growth that the “micromobility” startup is seeing. They are now in 15 countries and its riders have taken over 34 million trips. In the last 7 months alone, the company reports that it has seen a 5.5x increase in ridership. They are seen as an affordable last-mile solution. Supposedly 1/3 of its users report an income of less than $50,000 per year.

  Lime entered the Canadian market last fall via Waterloo. They have yet to expand anywhere else, though I suspect we’ll see them in Toronto this spring/summer. One of the barriers is that their scooters (with airless tires) aren’t equipped to deal with snow, so they currently pack them up during the winter months.

  This is in addition to the regulatory challenges they are facing in cities all around the world. But like Uber, I am sure there is a compromise to be had.

  2019.02.25