Showing posts with label Land use. Show all posts
Showing posts with label Land use. Show all posts

Saturday, July 27, 2019

California’s Green Bantustan



California’s Green Bantustans


One of the core barriers to economic prosperity in California is the price of housing. But it doesn’t have to be this way. Policies designed to stifle the ability to develop land are based on flawed premises. These policies prevail because they are backed by environmentalists, and, most importantly, because they have played into the agenda of crony capitalists, Wall Street financiers, and public sector unions. But while the elites have benefit, ordinary working families have been condemned to pay extreme prices in mortgages, property taxes, or rents, to live in confined, unhealthy, ultra high-density neighborhoods. It is reminiscent of apartheid South Africa, but instead of racial superiority as the supposed moral justification, environmentalism is the religion of the day. The result is identical.

Earlier this month an economist writing for the American Enterprise Institute, Mark J. Perry, published a chart proving that over the past four years, more new homes were built in one city, Houston Texas, than in the entire state of California. We republished Perry’s article earlier this week, “California vs. Texas in one chart.” The population of greater Houston is 6.3 million people. The population of California is 38.4 million people. California, with six times as many people as Houston, built fewer homes.

And when there’s a shortage, prices rise. The median home price in Houston is $184,000. The median price of a home in Los Angeles is $530,000, nearly three times as much as a home in Houston. The median price of a home in San Francisco is $843,000, nearly five times as much as home in Houston. What is the reason for this? There may be a shortage of homes, but there is no shortage of land in California, a state of 163,000 square miles containing vast expanses of open space. What happened?

You can argue that San Francisco and Los Angeles are hemmed in by ocean and mountains, respectively, but that really doesn’t answer the question. In most cases, these cities can expand along endless freeway corridors to the north, south, and east, if not west, and new urban centers can arise along these corridors to attract jobs. But they don’t, and the reason for this are the so-called “smart growth” policies. In an interesting report entitled “America’s Emerging Housing Crisis,” Joel Kotkin calls this policy “urban containment.” And along with urban containment, comes downsizing. From another critic of smart growth/urban containment, economist Thomas Sowell, here’s a description of what downsizing means in the San Francisco Bay Area suburb Palo Alto:
“The house is for sale at $1,498,000. It is a 1,010 square foot bungalow with two bedrooms, one bath and a garage. Although the announcement does not mention it, this bungalow is located near a commuter railroad line, with trains passing regularly throughout the day. The second house has 1,200 square feet and was listed for $1.3 million. Intense competition for the house drove the sale price to $1.7 million. The third, with 1,292 square feet (120 square meters) and built in 1895 is on the market for $2.3 million.”

And as Sowell points out, there are vast rolling foothills immediately west of Palo Alto that are completely empty – the beneficiaries of urban containment.

The reason for all of this ostensibly is to preserve open space. This is a worthy goal when kept in perspective. But in California, NO open space is considered immediately acceptable for development. There are hundreds of square miles of rolling foothills on the east slopes of the Mt. Hamilton range that are virtually empty. With reasonable freeway improvements, residents there could commute to points throughout the Silicon Valley in 30-60 minutes. But entrepreneurs have spent millions of dollars and decades of efforts to develop this land, and there is always a reason their projects are held up.

The misanthropic cruelty of these polices can be illustrated by the following two photographs. The first one is from Soweto, a notorious shantytown that was once one of the most chilling warehouses for human beings in the world, during the era of apartheid in South Africa. The second one is from a suburb in North Sacramento. The scale is identical. Needless to say, the quality of the homes in Sacramento is better, but isn’t it telling that the environmentally enlightened planners in this California city didn’t think a homeowner needed any more dirt to call their own than the Afrikaners deigned to allocate to the oppressed blacks of South Africa?

The Racist Bantustan
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Soweto, South Africa  –  40′ x 80′ lots, single family dwellings

When you view these two studies in urban containment, consider what a person who wants to install a toilet, or add a window, or remodel their kitchen may have to go through, today in South Africa, vs. today in Sacramento. Rest assured the ability to improve one’s circumstances in Soweto would be a lot easier than in Sacramento. In Sacramento, just acquiring the permits would probably cost more time and money than doing the entire job in Soweto. And the price of these lovely, environmentally correct, smart-growth havens in Sacramento? According to Zillow, they are currently selling for right around $250,000, more than five times the median household income in that city
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The Environmentalist Bantustan
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Sacramento, California  –  40′ x 80′ lots, single family dwellings
When you increase supply you lower prices, and homes are no exception. The idea that there isn’t enough land in California to develop abundant and competitively priced housing is preposterous. According to the American Farmland Trust, of California’s 163,000 square miles, there are 25,000 square miles of grazing land and 42,000 square miles of agricultural land; of that, 14,000 square miles are prime agricultural land. Think about this. You could put 10 million new residents into homes, four per household, on half-acre lots, and you would only consume 1,953 square miles. If you built those homes on the best prime agricultural land California’s got, you would only use up 14% of it. If you scattered those homes among all of California’s farmland and grazing land – which is far more likely – you would only use up 3% of it. Three percent loss of agricultural land, to allow ten million people to live on half-acre lots!

And what of these lots in North Sacramento? What of these homes that cost a quarter-million each, five times the median household income? They sit thirteen per acre. Not even enough room in the yard for a trampoline.

There is a reason to belabor these points, this simple algebra. Because the notion that we have to engage in urban containment is a cruel, entirely unfounded, self-serving lie. You may examine this question of development in any context you wish, and the lie remains intact. If there is an energy shortage, then develop California’s shale reserves. If fracking shale is unacceptable, then drill for natural gas in the Santa Barbara channel. If all fossil fuel is unacceptable, then build nuclear power stations in the geologically stable areas in California’s interior. If there is a water shortage, than build high dams. If high dams are forbidden, then develop aquifer storage to collect runoff. Or desalinate seawater off the Southern California coast. Or recycle sewage. Or let rice farmers sell their allotments. There are answers to every question.

Environmentalists generate an avalanche of studies, however, that in effect demonize all development, everywhere. The values of environmentalism are important, but if it weren’t for the trillions to be made by trial lawyers, academic careerists, government bureaucrats and their union patrons, crony green capitalist oligarchs, and government pension fund managers and their partners in the hedge funds whose portfolio asset appreciation depends on artificially elevated prices, environmentalism would be reined in. If it weren’t for opportunists following this trillion dollar opportunity, environmentalist values would be kept in their proper perspective.

The Californians who are hurt by urban containment are not the wealthy elites who find it comforting to believe and lucrative to propagate the enabling big lie. The victims are the underprivileged, the immigrants, the minority communities, retirees who collect Social Security, low wage earners and the disappearing middle class. Anyone who aspires to improve their circumstances can move to Houston and buy a home with relative ease, but in California, they have to struggle for shelter, endlessly, needlessly – contained and allegedly environmentally correct.



Sunday, March 11, 2018

Where Are The Boomers Headed? Not Back To The City

Where Are The Boomers Headed? Not Back To The City

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Perhaps no urban legend has played as long and loudly as the notion that “empty nesters” are abandoning their dull lives in the suburbs for the excitement of inner city living. This meme has been most recently celebrated in the Washington Post and the Wall Street Journal.

Both stories, citing research by the real estate brokerage Redfin, maintained that over the last decade a net 1 million boomers (born born between 1945 and 1964) have moved into the city core from the surrounding area. “Aging boomers,” the Post gushed, now “opt for the city life.” It’s enough to warm the cockles of a downtown real-estate speculator’s heart, and perhaps nudge some subsidies from city officials anxious to secure their downtown dreams.

But there’s a problem here: a look at Census data shows the story is based on flawed analysis, something that the Journal subsequently acknowledged. Indeed, our number-crunching shows that rather than flocking into cities, there were roughly a million fewer boomers in 2010 within a five-mile radius of the centers of the nation’s 51 largest metro areas compared to a decade earlier.

If boomers change residences, they tend to move further from the core, and particularly to less dense places outside metropolitan areas. Looking at the 51 metropolitan areas with more than a million residents, areas within five miles of the center lost 17% of their boomers over the past decade, while the balance of the metropolitan areas, predominately suburbs, only lost 2%. In contrast places outside the 51 metro areas actually gained boomers.




Only one city, Miami, recorded a net gain in the boomer population within five miles of the center, roughly 1%. Much ballyhooed back to city markets including Chicago, New York, Washington, D.C., and San Francisco suffered double-digit percentage losses within the five-mile zone.

Where the boomers move is critical to the real estate industry, as well as other businesses. This is a large and relatively wealthy generation. Boomers account for some 70% of the country’s disposable income, and their spending decisions will shake markets around the country.

Given the importance of this market, why has the analysis of it proved so wrong? One factor may well be that most boomers generally do not really want to move if they can help it. Three out of four boomers want to “age in place,” according to a recent AARP  study.

Part of the problem is one found commonly in press reporting on demographic trends; reporters only tend to know what they see, and mostly they work almost exclusively in urban cores. They encounter empty nester who moves to Manhattan or even downtown St. Louis, but not the ones who moves to the desert, lake, the mountains, the woods or into an adult-oriented community on the urban fringe. Out of the core, these people often fade into media oblivion.

However, as people age, they turn out to be not, as one developer suggests, “more hip hop and happening” than more likely to seek remaining not only close to home, but attached to the workforce and the neighborhood. A recent series in the Dallas Morning News tracked where local empty nesters were moving — largely to low-crime, well-maintained suburbs and exurbs. What were they looking for? The paper found the biggest concern by far to be safety, followed by affordability and quiet.

So if boomers aren’t flocking to inner cities, which of the 51 biggest metro areas are gaining the largest share of them? The top gainers are all relatively low-cost, low-density Sun Belt metropolises, led by Las Vegas. Its boomer population expanded 20.2% from 2000 to 2010, with a 12.2% decline in the five-mile inner ring and 36.3% growth outside it. In second place, Tampa-St. Petersburg, Fla., up 11.5% (-8.3% in the five-mile zone, +13.5% outside); followed by Phoenix, whose boomer population rose 11.3% (-22.8%, +15.0%). In contrast, more expensive, denser cities like New York, San Francisco, Los Angeles and San Jose, Calif., saw the worst boomer flight, suffering double-digit percentage losses.



What are the implications of these findings? For cities, time to forget the long-anticipated

Saturday, November 18, 2017

Battle for the California Desert: Why is the Government Driving Folks off Their Land?



The Antelope Valley is a vast patch of desert on the outskirts of Los Angeles County, and a segment of the few rugged individualists who live out there increasingly are finding themselves the targets of armed raids from local code enforcement agents, who've assembled into task forces called Nuisance Abatement Teams (NATs).

The plight of the Valley's desert dwellers made regional headlines when county officials ordered the destruction of Phonehenge: a towering, colorful castle constructed out of telephone poles by retired phone technician Kim Fahey. Fahey was imprisoned and charged with several misdemeanors.

But Fahey is just one of many who've been targeted by the NATs, which were assembled at the request of County Supervisor Mike Antonovich in 2006. LA Weekly reporter Mars Melnicoff wrote an in-depth article in which she exposed the county's tactic of badgering residents with minor, but costly, code violations until they face little choice but to vacate the land altogether.

"They're picking on the the people who are the most defenseless and have the least resources," says Melnicoff.

Reason.tv collaborated with Melnicoff to talk with some of the NAT's targets, such as retired veteran Joey Gallo, who might face homelessness if he's forced to leave his house, and local pastor Oscar Castaneda, who says he's already given up the fight and is in the process of moving off the land he and his wife have lived on for 22 years. And, while Antonovich declined an interview, we did catch up with him at a public meeting in order to ask the big question at the center of all this: Why the sudden enforcement of these codes against people living in the middle of the desert, who seemingly are affecting no one?

Writer-Producers: Zach Weissmueller and Tim Cavanaugh. Associate Producer: Mars Melnicoff. Camera: Alex Manning and Weissmueller; edited by Weissmueller.

Approximately 9:48.

Music by Audionautix.com.

Thursday, November 9, 2017

A Different Vision for Marinwood Plaza- A Vibrant Retail Location



Marinwood Village is an excellent location for an Artisan Market like the Barlow or the Oxbow Market in Napa.  Located just off the 101 highway, it is perfectly situated for both local business and tourism.  The Barlow and the Oxbow Market are just two examples of the concept




Affordable housing can be located in a more family friendly, environmentally safe location at a density that makes sense for Marin.

Wednesday, October 18, 2017

Stalinist Urbanism

One Bay Area Plan is coming to Marinwood-Lucas Valley 


[Editor's Note: The ideas of Smart Growth and the One Bay Area Plan are similiar to the autocratic land use planning under the Soviet power. The author of this article reaches many of the same conclusions that we have concerning Smart Growth.  Freedom and responsibility under democratic self rule are preferable bureaucratic oppression and tyranny.]

Excerpt from Urbanism under Stalin

Postwar development brought historicism to new extremes in the form of monumental plazas, dramatic statues, and seven famous "wedding cake" high-rises built throughout the city between 1947 and 1953. The largest and perhaps most extravagant is Lomonosov Moscow State University (MSU), which includes a botanical garden and extensive landscaping connected to the park along the river at Lenin (currently Sparrow) Hills.


MSU today.


Fearful symmetry, 1949.


An earlier design, 1947.


Open land around the new building, 1954.


New development, 1957.


An older house prepared for demolition to accommodate the Universitet neighborhood along Leninsky Prospect, 1957.

Housing for everyday citizens remained terribly insufficient, as elites were given beautiful apartments in the city and cottages in the country. New residential development tended to follow a kvartal model, in which buildings of roughly 5-10 stories were bounded by a city block with shops at street level and shared interior courtyards. Today, at least in the more affluent neighborhoods of Moscow, these structures have aged well. They combine density with pleasant landscaping and easy access to amenities. This model influenced the development of larger apartment blocks in "microdistricts" after Stalin's rule. These places are generally not considered beautiful. Still, there is much to be said for the kvartal idea.


Kvartal-like courtyard at lower-right corner, beside the residential tower at Kudrinskaya Square, 1954.

Stalinist urbanism draws upon a number of ideas raised in the 1920s for the socialist city, including the modernization of infrastructure, communal housing, employment and amenities close to home, ubiquitous public transportation, and the integration of green space. However, basic human needs were neglected in favor of industrial development and an image of grandeur. Human rights were given even less concern. This abuse of power in the name of socialism is an enduring tragedy. Stalin's massive urban modernization projects made it possible for Moscow to accommodate a great influx of people. But I'm not sure if they improved living conditions on the whole, or if the ecological consequences can be justified.

Stalin surveying a construction site, followed by Voroshilov, a removed person, and an unidentified person, mid-1930s.

In some ways Moscow's high-density living, extensive public transportation system, and accessible parks sound like a contemporary planner's dream. However, after reading about Stalin I've become more sympathetic to the flip side of this equation, the suburban house with a small park (ie, yard) of one's own, where we can adapt the environment on a smaller scale without imposing our will on others. Can urban condos and parks meet those kinds of needs?
"Increased public spending on health and physical education," a section from the Second Five Year Plan, 1934.

This might seem like a loss of faith in cities, but the real problem is abusive power. Stalin accomplished many things in Moscow that have proven of enduring value. But process is at least as important as results in this case. Great places can come about through autocratic, democratic, capitalist, and socialist means. But for the good of daily life in cities, a democratic socialism sounds preferable to autocratic socialism or democratic capitalism. Oppression and exploitation must give way to freedom and responsibility.

Tuesday, September 5, 2017

"Property Owners, hand over the profits"

At Habitat III, a Rethinking of the Urban Development Paradigm

The concept of “value capture” surfaces as a possible path to more equitable growth.


Ecuador's President Rafael Correa is pictured on a screen as he speaks during the opening ceremony of the UN Habitat III conference in Quito. (Guillermo Granja/Reuters)

QUITO—The United Nations global cities summit, Habitat III, began with long security lines under a bright Andes sun, and ended in song. The musical group Nick Horner Family performed “City of Dreams” on the final day of the conference that drew some 40,000 participants. A little more than an hour before, the New Urban Agenda—a manifesto intended to guide the future growth of cities worldwide—was officially adopted.
But as attendees flock to the airport to go home, what actually was accomplished? What happens now?
Among the many takeaways, Habitat III may very well have given birth to a land use revolution. Many participants, as well as the president of Ecuador, are calling into question the historic financial model of city-building, where government provides the streets and other infrastructure, and private landowners and developers take it from there. In the process, one of the hottest topics at the summit has emerged with unlikely celebrity: value capture, where the private sector must acknowledge that an array of government actions—from a zoning change to putting in a light rail line—prompt huge increases in property value.
Ecuador President Rafael Vicente Correa Delgado, an economist by training, started the bidding early on at the conference by proposing legislation to curb real estate speculation. If a landowner purchases a plot of land for $100, and sells it five years later for $500, he or she would only be able to realize a 7.5 percent price appreciation under Correa’s proposal; the rest would essentially be confiscated by the government. You can think of it as a more extreme version of President Obama’s admonition that “you didn’t build that”—that the bulk of increases in value, plusvalía in Spanish, are the result of public investments framing the land, and thus should be recaptured.
Correa’s concept is not actually a pure version of value capture. Elsewhere in Latin America, land-based financing mechanisms takes other forms, such as “betterment contributions” or developer exactions providing funds for urban development at the front end. In São Paulo, Brazil, landowners begin with a floor-area-ratio of 1. If they want to build anything more, they must purchase certificates traded on the stock market.
In yet another form of value capture, government may increase the building envelope in growth areas in return for more affordable housing provided by developers—a version of the “density bonus” that has been deployed in the United States. But otherwise the concept is the same: when government sets zoning that will ultimately benefit the private sector, the private sector must give something back.
Value capture has a long history, going back to Roman times in the construction of infrastructure such as aqueducts. The framework was in place in the Philippines in the colonial era as far back as the 16th century, and was inherent in redevelopment plans for Paris in the 19th century. The 19th century political economist Henry George, who advocated a single tax on land or land value tax, spelled out how real estate owners were enjoying a windfall by being smart or lucky enough to purchase land near a train station, for example.


Thousands of pedestrians gather downtown for a lighting and chromalithe exhibition on a catholic church, as part of the UN Habitat III conference in Quito, Ecuador. (Guillermo Granja/Reuters)
Today, value capture is in relatively wide use in Latin America, Asia, and Europe, and is beginning to gain traction in the United States. Transportation officials in Massachusetts, confronting cost overruns in the extension of the Green Line through Somerville, have floated the idea of having the private sector pay for new stations along the new corridor, recognizing that transit-oriented development will be enormously profitable. Land is already more valuable along the route of the line, in many cases in industrial areas that have been rezoned for mixed-use development.
In Dallas-Fort Worth, the proposed rail line known as the Cotton Belt is predicated on a similar framework: that private development benefitting from the infrastructure should contribute to the public works in the first place. Australia is also wading into these waters, with the prime minister calling for a gear change in how major urban infrastructure is financed.
A backlash to all of this has already begun, starting with a critique that value capture is a new kind of tax on private landowners and developers. Complex questions about property rights are also being raised—what it means to own land, a commodity in fixed supply.
But it was striking how often value capture came up in the sessions of Habitat III. In a way it’s no surprise. The basic premise of the conference was how global cities can accommodate huge increases in population in the coming decades. In the current paradigm, downtowns are densifying, while unplanned and irregular growth sprawls out at the periphery. There’s a clear need for infrastructure, housing, and amenities such as parks and open spaces in these growth areas, but the question is how to pay for all of those things. Local governments are charged with the responsibility, but don’t have many options. In most cases, cities are severely constrained by national governments on how they can raise revenues.
The concept of value capture is embedded in the New Urban Agenda, and UN-Habitat executive director Joan Clos sprinkled in references to it in his many official remarks, including at a press conference on how the media covers Habitat III issues. He called on journalists to explain how urban planning and urban design increases property values in the process of urbanization. “Who is explaining that?” he said.
Does it sound a bit radical, to change the paradigm of urban development going forward? It’s not revolutionary enough for some, who led protests outside Habitat III and organized parallel alternative gatherings urging more action to improve conditions for the urban poor. Amid the camouflage fatigues and cocked berets of the soldiers around this city, and the progressive impulses of the Latin America region, the concept of value capture may be the most conservative revolution in city-building at hand.
Editor's Note: Honestly, socialist schemes like this could ignite civil unrest. It is counter to the traditions of western democracy and property rights enshrined in the Constitution.



Saturday, June 3, 2017

WHY SUBURBIA IRKS SOME CONSERVATIVES

WHY SUBURBIA IRKS SOME CONSERVATIVES


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For generations, politicians of both parties – dating back at least to Republican Herbert Hoover and Democrat Franklin Roosevelt – generally supported the notion of suburban growth and the expansion of homeownership. “A nation of homeowners,” Franklin Roosevelt believed, “of people who own a real share in their land, is unconquerable.”
Support for suburban growth, however, has ebbed dramatically, particularly among those self-styled progressives who claim FDR’s mantle. In California, greens, planners and their allies in the development community have supported legislation that tends to price single-family homes, the preference of some 70 percent of adults, well beyond the capacity of the vast majority of residents.
Less well-noticed is that opposition to suburbs – usually characterized as “sprawl” – has been spreading to the conservative movement. Old-style Tories like author-philosopher Roger Scruton do not conceal their detestation of suburbia and favor, instead, European-style planning laws that force people to live “side by side.” Densely packed Paris and London, he points out, are clearly better places to visit for well-heeled tourists than Atlanta, Houston or Dallas.
There may be more than a bit of class prejudice at work here. British Tories long havedisliked suburbs and their denizens. In a 1905 book, “The Suburbans,” the poet T.W.H. Crossland launched a vitriolic attack on the “low and inferior species,” the “soulless” class of “clerks” who were spreading into the new, comfortable houses in the suburbs, mucking up the aesthetics of the British countryside.
Not surprisingly, many British conservatives, like Scruton, and his American counterparts frequently live in bucolic settings, and understandably want these crass suburbanites and their homes as far away as possible. Yet, there is precious little concern that – in their zeal to protect their property – they have also embraced policies that have engendered huge housing inflation, in places like greater London or the San Francisco Bay Area, that is among the most extreme in the high-income world.
Of course, the conservative critique of suburbia does not rest only on aesthetic disdain for suburbs, but is usually linked to stated social and environmental concerns. “There’s no telling how many marriages were broken up over the stress of suburb-to-city commutes,” opines conservative author Matt Lewis in a recent article in The Week. In his mind, suburbs are not only aesthetically displeasing but also anti-family.
What seems clear is that Lewis, and other new retro-urbanist conservatives, are simply parroting the basic urban legends of the smart-growth crowd and planners. If he actually researched the issue, he would learn that the average commutes of suburbanites tend to be shorter, according to an analysis of census data by demographer Wendell Cox, than those in denser, transit-oriented cities. The worst commuting times in America, it turns out, to be in places such as Queens and Staten Island, both located in New York City.
Other conservatives also point to the alleged antisocial aspect of conservatism, a favored theme of new urbanists everywhere. A report co-written by the late conservative activist Paul Weyrich supported forcing “traditional designs for the places we live, work and shop,” which “will encourage traditional culture and morals,” such as community and family.
Once again, however, a serious examination of research – as opposed to recitation of planners’ cant – shows that suburbanites, as University of California researchers found, tend to be more engaged with their neighbors than are people closer to the urban core. Similarly, a 2009 Pew study recently found that, among the various geographies in America, residents in suburbia were more “satisfied” than were either rural or urban residents.
In working against suburbia, these conservatives are waging a war on middle-class America, not necessarily a smart political gambit. Overall, conventional suburban locations are home to three-quarters of the metropolitan population. And even this number is low, given that large parts of most large American cities – such as Los Angeles, Phoenix, Dallas, Kansas City and Houston – are themselves suburban in character, with low transit use and a housing stock primarily made up of single-family residences built during the auto-dominated postwar period. Only approximately 15 percent of residents in major metropolitan areas actually live in dense, transit-oriented communities.
Given these numbers, one might think conservatives would take issue with progressive plans to circumvent preferences and market forces by constraining suburban and single-family home growth. They might spot a strategic opening to secure the urban periphery, the one area still up for grabs in American politics. In contrast, the blue core cities and red countryside have, for the most part, chosen sides, and both return huge consistent majorities to their preferred party.
Lured by their own class prejudice, some conservatives nevertheless seem willing to abandon market forces, a supposed conservative virtue. In reality, imposing Draconian planning is not even necessary for the growth of density. In places that are have both liberal planning regimes and economic growth, such as Houston and Dallas, there has been a more rapid increase in multifamily housing than in such cities such as Boston, Los Angeles, San Francisco or New York. The cost is just much lower.
Unfortunately, few mainstream conservatives apparently bother to study such things, and, as prisoners of the conventional wisdom, embrace the notion that, on economic grounds, suburbs are becoming irrelevant. Some, such as the libertarian economist Tyler Cowen, suggest that a stagnating post-recession America has to adjust to what has been described as a “new normal” of declining expectations.
With middle-class opportunity seen as largely moribund, many financial interests see America becoming a “rentership” society; for these rent-seeking capitalists, the death of suburbs would be not only morally correct, but also economically advantageous.
It’s hard for me, even as a nonconservative, to see how this trajectory works for the Right.
Renters, childless households, highly educated professionals, as well as poor service workers, clustering in dense cities are not exactly prime Republican voters. Without property, and with no reasons to be overly concerned with dysfunctional schools, the new urban population tilts increasingly, if anything, further to the left.
Meanwhile, the middle-class homeowner, and those who aspire to this status, increasingly find themselves without a party or ideology that champions their interests. In exchange for the approval of the cognitive elites in the media, in academia and among planners, conservatives will have, once again, missed a chance to build a broad popular coalition that can overcome the “upstairs, downstairs” configuration that increasingly dominates the Democratic Party.
Yet, there remains a great opportunity for either party that will appeal to, and appreciate, the suburban base. Conservative figures such as Ronald Reagan and Margaret Thatcher understood the connection between democracy and property ownership and upward mobility. Much the same could be said for traditional Democrats, from Roosevelt and Harry Truman, all the way to Bill Clinton.
For all their faults, suburbs represent the epitome of the American Dream and the promise of upward mobility. That they can be improved, both socially and environmentally, is clear. This is already happening in new, mostly privately built, developments where the “ills” of suburbia – long commute distances, overuse of water and energy – are addressed by building new town centers, bringing employment closer to home, the use of more drought-resistant landscaping, promoting home-based business and developing expansive park systems. This seems more promising than following a negative agenda that seeks simply to force ever-denser housing and create heat-generating concrete jungles.
The abandonment of the suburban ideal represents a lethal affront to the interests and preferences of the majority, as well as their basic aspirations. The forced march towards densification and ever more constricted planning augurs not a return to old republican values, as some conservatives hope, but the transformation of America from a broadly based property-owning democracy into something that more clearly resembles feudalism.
This piece originally appeared at The Orange County Register.
Joel Kotkin is executive editor of NewGeography.com and Distinguished Presidential Fellow in Urban Futures at Chapman University, and a member of the editorial board of the Orange County Register. His newest book, The New Class Conflict is now available at Amazon and Telos Press. He is author of The City: A Global History and The Next Hundred Million: America in 2050. His most recent study, The Rise of Postfamilialism, has been widely discussed and distributed internationally. He lives in Los Angeles, CA.

Tuesday, September 29, 2015

The 'Affordable Housing' Fraud

Thomas Sowell
Nowhere has there been so much hand wringing over a lack of "affordable housing," as among politicians and others in coastal California. And nobody has done more to make housing unaffordable than those same politicians and their supporters.
A recent survey showed that the average monthly rent for a one-bedroom apartment in San Francisco was just over $3,500. Some people are paying $1,800 a month just to rent a bunk bed in a San Francisco apartment.

It is not just in San Francisco that putting a roof over your head can take a big chunk out of your pay check. The whole Bay Area is like that. Thirty miles away, Palo Alto home prices are similarly unbelievable.

One house in Palo Alto, built more than 70 years ago, and just over one thousand square feet in size, was offered for sale at $1.5 million. And most asking prices are bid up further in such places.

Another city in the Bay Area with astronomical housing prices, San Mateo, recently held a public meeting and appointed a task force to look into the issue of "affordable housing."

Public meetings, task forces and political hand-wringing about a need for "affordable housing" occur all up and down the San Francisco peninsula, because this is supposed to be such a "complex" issue.

Someone once told President Ronald Reagan that a solution to some controversial issue was "complex." President Reagan replied that the issue was in fact simple, "but it is not easy."

Is the solution to unaffordable housing prices in parts of California simple? Yes. It is as simple as supply and demand. What gets complicated is evading the obvious, because it is politically painful.

One of the first things taught in an introductory economics course is supply and demand. When a growing population creates a growing demand for housing, and the government blocks housing from being built, the price of existing housing goes up.

This is not a breakthrough on the frontiers of knowledge. Economists have understood supply and demand for centuries -- and so have many other people who never studied economics.

Housing prices in San Francisco, and in many other communities for miles around, were once no higher than in the rest of the United States. But, beginning in the 1970s, housing prices in these communities skyrocketed to three or four times the national average.

Why? Because local government laws and policies severely restricted, or banned outright, the building of anything on vast areas of land. This is called preserving "open space," and "open space" has become almost a cult obsession among self-righteous environmental activists, many of whom are sufficiently affluent that they don't have to worry about housing prices.

Some others have bought the argument that there is just very little land left in coastal California, on which to build homes. But anyone who drives down Highway 280 for thirty miles or so from San Francisco to Palo Alto, will see mile after mile of vast areas of land with not a building or a house in sight.

How "complex" is it to figure out that letting people build homes in some of that vast expanse of "open space" would keep housing from becoming "unaffordable"?

Was it just a big coincidence that housing prices in coastal California began skyrocketing in the 1970s, when building bans spread like wildfire under the banner of "open space," "saving farmland," or whatever other slogans would impress the gullible?

When more than half the land in San Mateo County is legally off-limits to building, how surprised should we be that housing prices in the city of San Mateo are now so high that politically appointed task forces have to be formed to solve the "complex" question of how things got to be the way they are and what to do about it?

However simple the answer, it will not be easy to go against the organized, self-righteous activists for whom "open space" is a sacred cause, automatically overriding the interests of everybody else.

Was it just a coincidence that some other parts of the country saw skyrocketing housing prices when similar severe restrictions on building went into effect? Or that similar policies in other countries have had the same effect? How "complex" is that?

Thomas Sowell is a senior fellow at the Hoover Institution, Stanford University, Stanford, CA 94305. His website is www.tsowell.com.