Going without a car in Tempe, Arizona

Is it possible to not own a car in Tempe? A new apartment project hopes the answer is yes:

The 1,000-person rental community, which broke ground this month in Tempe, won’t allow residents to park cars on site or in the surrounding area as a term of their leases. The founders say it will be the first of its kind in the U.S.

The neighborhood’s scale will be modest, with mostly three-story buildings. In place of parking spaces, the development known as Culdesac Tempe will feature significantly more retail and open spaces than are typical for its size. It will include a market hall for food vendors, coffee shop, plazas, communal fire pits and a building that residents can rent to host events.

The site is next to a light rail that connects residents to a grocery store, Arizona State University, downtown Phoenix and the airport. There will also be designated spots for ride-sharing and an on-site car-sharing service for residents traveling to other neighborhoods…

The Phoenix area might seem an unlikely spot for such an experiment, but Tempe is something of an outlier among its neighbors. The 190,000-person college town has a median age of less than 30 years old, and younger people are less interested in driving than they were in the past.

A suburban community in a sprawling region might not be the location I would first think of in embarking on this new idea. At the same time, the last paragraph cited above suggests Tempe is a unique place.

I wonder if a residential development would attract only certain kinds of residents and whether that is desirable in the long-run either for the developers or the community. The hint in the article is that this might especially appeal to younger adults. It might also appeal to older adults who want a car-free lifestyle, perhaps those who for environmental reasons do not like car ownership or those who cannot drive. There could be a market for such housing. Additionally, what kind of community or culture in the building might arise if many people come primarily because of not knowing a car? This could be interesting to explore down the road.

Going further, it would be worth knowing whether this is a viable concept in different kinds of places and different kinds of housing. It probably makes the most sense with denser housing (multi-unit apartment buildings) but could it work with rowhouses or townhomes built near a mass transit stop or hub?

Building stadiums and arenas – but not for sports

Concerts are lucrative, lucrative enough to construct buildings with 10,000-18,000 seats primarily for shows:

Los Angeles-based Oak View Group, an entertainment and sports-facilities company backed by private-equity giant Silver Lake, is slated to develop eight new arenas over the next three years, six of which will forgo major-league teams, largely to keep their calendars clear for concerts.

An arena can generate twice as much net income from hosting a concert than a National Basketball Association or National Hockey League game, according to Oak View. Live music is expected to balloon to $38 billion industry by 2030, from about $28 billion currently, according to PricewaterhouseCoopers. Oak View said being able to schedule twice as many concerts as it would otherwise with a professional team in house is an attractive prospect in markets including Palm Springs, Calif., and Austin, Texas. And as streaming is helping artists develop larger international audiences, markets including Manchester, U.K., and Milan are ripe for more arena shows, too…

The company said the arenas are being designed with music as the primary focus, from acoustics to VIP amenities. They will include fewer suites – a pet peeve of musical performers, who typically aren’t able to sell tickets for those seats – and add more clubs within the venue to entice concertgoers to linger before or after a show.

Multiple thoughts in response:

1. The ability to tweak the venue for music in multiple ways seems like a big win for artists and audience members. Instead of being in cavernous arenas that need enough floor space for a playing surface, everything can focus on a stage. It will be interesting to see how sound quality in new arenas like this compares to multi-use facilities.

2. This is a reminder that the big money in sports is not necessarily in attendance to games but rather in television rights and other revenue sources. Could this lead to a future with smaller sports arenas that provide an upgraded experience (it is already difficult to compete with large HD televisions) and more emphasis on what is built around the stadium?

3. Sports teams often ask for public money for facilities. And many communities seem willing to provide it, even when the evidence suggests it is not a good investment. Will music arenas also be funded with public money?

4. Since many larger cities already have arenas or stadiums, it will be interesting to see what mid-sized markets get music-only facilities. Some of the locations mentioned above are places without major sports teams (like Austin). But, I could imagine some of these facilities within large metropolitan markets in order to cater to musicians (imagine such a facility in the southwest or northern suburbs of Chicago taking away business from the United Center, Allstate Arena, and the Sears Centre).

5. Just as sports stadiums and arenas have limited games, these facilities will have a limited number of concerts each year. What else could the arenas be used for?

The long-lasting consequences of the original conditions in Levittown

When subdivisions or communities are built, conditions at their starting point can have long-lasting effects. See Levittown.

Levittown was built on rules. No fences around the yards. Grass had to be maintained and trimmed. Clothes could only be hung to dry in the backyard on weekdays. Only white people could live there. Though these rules no longer apply, their mere existence has continued to shape and permeate the town’s culture today, particularly for Levittown’s teens, who speak about traditions and customs and the deep-rootedness of certain conservative mentalities…

Today, the museum features a model Levitt kitchen, bedroom, and living room from the 1950s and a sports memorabilia collection. Paul Manton, the president of the Levittown Historical Society and Museum, says the school kids learn about the farmland, Levitt’s mass-production techniques, and suburban expansion. When I ask about the whites-only restriction, he says, “We don’t talk too much about the deeds and restrictions because it’s a small part of Levittown, really.” His response parallels the one Kushner, the writer, heard at the museum. “Levitt was the largest real estate developer in the country, but each state you went to had those kinds of restrictions,” Manton continues. “Levitt himself was personally opposed to it. He was a progressive man. He would hire large numbers of black workers and he had a black sales manager.”…

The layouts were more or less uniform, which provides a familiar comfort still today. Things can get tricky if the design veers off course. “My front door opens to our living room in front of the stairs and I remember my friends getting lost and not knowing where anything was,” says Jacqueline Testamark, a senior at Division Avenue…

When Bill Griffith’s family moved to Levittown in 1952, it was “an old white world.” By the early ’60s, he started to feel suffocated and broke several Levittown molds. Most teens ride their bikes within the town limits. Griffith rode his to Walt Whitman’s birthplace an hour away. He didn’t learn one piece of Levittown history in school, he says. “I grew up in a time when we were being handed myths and legends. History was full of blank spaces or made-up stories.”

The character of a suburb can last for a long time, particularly if later decisions reinforce earlier conditions and choices. Some quick thoughts in reaction to the conditions in Levittown discussed above:

  1. The legacy of no blacks in the community is a long-lasting one. According to the Census, the Levittown CDP is less than 2% black (though the community is nearly 15% Latino).
  2. It would be hard to change either lot sizes or significantly increase the footprints of the original homes. And because Levittown was all roughly built at the same time, it does not offer the level of variation in housing stock that many suburbs might offer.
  3. In The Levittowners, sociologist Herbert Gans noted that teenagers are limited in Levittown and similar suburbs because so much driving is required and many of the social activities are geared around raising children in the home. This may still be the case in many suburbs as teenagers need rides and spaces friendly toward teenagers and young adults can be hard to find.

Going further, this article suggests continuity marks Levittown. Would it be possible to find signs of change or significant alterations from the original conditions? The Levittown of today could be more similar to the original Levittown but communities can follow significantly different paths given certain decisions and social forces.

Reminder: “Americans have no comparable safety net for housing”

Americans generally have limited options in obtaining with housing from the government:

With food and health care, we recognize that some number of people will have trouble paying for the basics, so our government provides a minimum standard of access through the Supplemental Nutrition Assistance Program (for food) and Medicaid (for health care). These programs are designed to expand and contract based on need (setting aside current politics).

Americans have no comparable safety net for housing. While the federal Section 8 program does provide rental assistance to low-income families, inadequate public funding means that fewer than half of eligible households actually receive a voucher. The inadequacy of our response has led to a variety of injustices: growing homelessness, overcrowding in small or substandard apartments, and housing costs that squeeze families’ ability to pay for child care, transportation, and other essential needs. Policymakers and housing advocates, especially some of the great ones we have in Massachusetts, have worked hard to cobble together different low-income housing programs and subsidies that help many of these needy families. But it’s a patchwork approach that leaves far too many behind.

And then those who compete in the “free market” may also have few options:

There’s also a second crisis, which affects middle-income families headed by people such as teachers, salespeople, nurses, and retirees living on fixed incomes. This crisis is more directly tied to housing cost. If our private market was functioning properly and producing diverse, family-friendly housing, these families would be able to afford decent housing options without needing public subsidy. But they increasingly struggle to do so. This problem is especially pronounced in Boston’s suburbs, many of which have a long history of banning the construction of townhomes, duplexes, triple-deckers, and modest apartment buildings that would serve these middle-class families. Thanks to these extreme prohibitions, many of our region’s suburbs have instead seen a trend towards larger, and pricier, McMansion-style homes.

Addressing housing may the toughest issue to address in the United States. Still, ousing is a basic human need and not having adequate or consistent housing has detrimental effects on residents. Providing food, health care, and other necessities can help but may not mean as much without a good home.

As an earlier post noted, Americans have supported/subsidized mortgages for single-family homes but this has not benefited all. The system is not really a free market; it helps some people make money, some residents to benefit from long-term property value increases (and then pass on this wealth to future generations), and others to struggle to get into the system. The federal government – and the American people in general – have had little appetite for big government housing programs. Not even a burst housing bubble in the late 2000s truly altered the rules of the American housing game.

Given the number of people affected, perhaps this will eventually grow into an issue that cannot be ignored. But, given the lack of attention this gets during this election season, I am not hopeful with will be adequately addressed soon.

Designing your own Peytonville, Part 2

The Nationwide commercial featuring Peyton Manning and Peytonville also includes broad shots of his layout. Here it is again:

Peytonville1

While the close-up shows a small town (emphasis on single-family homes and a water tower), the big layout gives a different impression: Peytonville is actually part of a large metropolitan region with at least a few different areas. Here are a few of the things I can see:

1. At the top right, there is a typical urban downtown complete with skyscrapers and office buildings. What is the name of the central city – Peyton City?

2. At the top left, there appears to be a large domed football stadium. This seems appropriate given the star of the commercial.

3. The far left has wind turbines. These are usually located away from residential areas.

4. The bottom left is mostly single-family homes. This is likely where the Peytonville water tower is.

5. Located between the single-family homes and the urban center are mid-rise apartment and office buildings.

6. The bottom right has at least one farm. The food has to come from soemwhere.

Is the implication that when Peyton Manning has all the time and resources to create the landscape of his dreams, he recreates a typical looking sprawing American metropolitan region?

Designing your own Peytonville, Part 1

A recent Nationwide commercial has former NFL star Peyton Manning walking within Peytonville, a town set up on a large layout in a warehouse:

Peytonville2

What makes attending such layouts attractive to people? Three quick guesses:

  1. The ability to craft and build an entire community. In real life, no one person could do this on their own. Even a fabulously wealthy person would likely have to rely on a lot of help – think construction workers and others – to put a community together. This sort of layout is possible with a lot of time, materials, and skill (particularly given the size of it all).
  2. The birds-eye/God-like view (and control in #1) possible with such a layout. It is one thing to walk within an interesting place; it is another to consider it from above.
  3. The chance to attach one’s name to a community. This is an honor often given to a founder or a prominent early member of the community. If you control the construction and have a birds-eye view, you can add your own name to it all. The community in the commercial is Peytonville but it could be Peytonton, Peyton Corner, Peyton Park, and other variations.

Peytonville1

It would take a long time to put this together but it could be very fun to maintain, play with, and show off to others.

Looking for stories of millennials and young adults who want to and enjoy living in suburban homes

The suburbs are indeed changing – such is the premise of Curbed‘s “The Suburbs Issue.” And the lead story seems to fit into this argument: the suburbs are changing in that millennials are not so sure about buying a large suburban home. Here is the conclusion from that story:

Scocca concludes that the dream of having a big house built just for you was “never a very good dream anyway,” and that might be true, and maybe it’s not even a revelation. Houses have always been a location where we can project our hopes, dreams, and fears. No matter how much we try to rationalize the process of owning a house, the relationship is always a bit foggy, tinted by human emotion. It doesn’t seem possible to live somewhere for any meaningful length of time without imbuing it with your own nebulous ego. Over the past few months, I kept returning to this quote from novelist Helen Oyeyemi: “I think that houses, or at least the home part of them, are so much constructed that they’re simultaneously magical and haunted anyway.” Houses are not homes, and homes are not necessarily houses. Perhaps the real American dream is to find a sense of stability, safety, and acceptance. Maybe this is a downsized version of our parents’ American dream, or perhaps it’s just more honest, taking into account all the different stories we’re fed from the outside, and all the private stories we tell ourselves behind closed doors.

There is much truth here: homeownership in the suburbs is not such an obvious path for many young Americans due to financial insecurity, watching what happened to older generations, and different priorities about what they want to get out of life. Just because Americans prioritized suburban homeownership in the last one hundred years (and propped it up through policies and cultural ideology) does not necessarily mean this will continue in the future.

At the same time, is an article like this in a long line of suburban critiques that now stretch back roughly a century? Some of the same concerns are present: what makes a home (the happy suburban facade or the difficulties many people still face even when it looks like they have the American Dream), whether the suburbs are financially possible (beyond just homes, driving is expensive and giving children all sorts of advantages is encouraged), environmental effects (using more land, driving, building individual homes), and a lack of excitement or vibrant community in the suburbs.

All of this leads me to wondering about the millennials who are still moving to suburbs by their choice. Surely they exist. Surveys suggest many millennials want to own a home in the suburbs at some point. The homeownership rate recently increased, driven by millennial’s purchases. The population of millennials in big cities recently declined. Empirical data could settle whether millennials are not settling in the suburbs at the same rate as previous generations or might be doing so at a delayed rate (which would fit with other findings regarding emerging adulthood).

Is finding these suburban millennials not a priority because it reinforces the suburban ideology? If millennials do largely settle in suburbs, would this be viewed as a failure of American society on multiple levels? Would settling in denser suburban areas be enough to make amends for decades of urban sprawl and “the ghastly tragedy of the suburbs“? Or, might slight changes among millennials be an acknowledgement that reversing long-standing narratives about the good life – the American Dream – could take decades (just as it took time to develop suburbia as the ideal on a mass scale)? What if, in the end, Americans like suburbs for multiple reasons?

Collectively addressing traffic rather than individual drivers looking for the best route for them

As Waze and other apps route drivers all over the place in order to find the shortest route, one writer argues we need to consider how traffic and congestion is a collective issue:

Road traffic is a great example: absent other incentives, I’m always going to choose the fastest route home that is available to me, even though taking a longer, more circuitous route would help spread out traffic and ease congestion for other drivers across my city. Traffic engineers have long assumed that the Nash equilibrium describes real-world rush hours pretty well.

In fact, mathematical studies and behavioral experiments dating back to the 1960s have shown that the collective delay is almost always worse in the Nash equilibrium, a.k.a. “user-optimized” driving scenario, compared to a world where drivers worked as a team for smoother traffic overall. Imagine a centralized transportation planner who assigned commuters their routes based on what was going to most benefit everybody. That god-like figure could impel some drivers to protract their journeys in order to improve the overall flow and decrease the cumulative time spent in traffic.

In this “system-optimized” equilibrium, our trips would be less harried on average: One widely cited 2001 paper by computer scientists at Cornell found that a network of “user-optimized” drivers can experience travel times equivalent to what a network of “system-optimized” drivers would experience with twice as many cars. Transport engineers call the difference between selfish and social equilibria the “price of anarchy.”

And the proposed solution:

Perhaps the best approach to the future of traffic starts with redefining the problem we’re trying to solve. For most of the 20th century, the principal concern of transportation economists was to reduce travel time across a given distance. But getting as many people as possible to and from work, school, and shopping—period—might be the more important task. If the goal is reframed as increasing access, rather than increasing speed, then the answer involves more than traffic apps and vehicle transponders. Land use patterns would have to be rethought so that people can live closer to the destinations they care about. People should be able to walk as much as they want to, and use bikes, scooters, buses, and trains. Autonomous vehicles, if they come, ought to be carefully folded into the mix with care so as not to double down on congestion and carbon emissions.

The solution hints that this is a much larger issue than apps and whether they should be held responsible by the public. The underlying issue may be this: are Americans generally willing to set aside their own personal priorities in favor of societal arrangements that can benefit more people on the whole?

Americans like to drive and it is baked into the American way of life. One of the reasons Americans like their own vehicles is that it offers independence and control. Rather than relying on a set schedule or having or riding with other people or supporting big systems, Americans like the idea that they can get into their vehicle at any time and go wherever they want. They may not actually do this much – hence, we get fairly predictable rush hours when everyone is trying to go places at the same time – but individual vehicles provide options in a way that mass transit does not.

Making the switch over to systems rather than individual options – including mass transit – requires submitting parts of life to a collective that cares less about individuals and more about the whole. This same debate is playing out in other arenas such as how healthcare should be organized or whether wealth inequality should be addressed. If the favored outcome is individual choice, it is hard to move people toward collective approaches. Even if thinking of traffic and transportation as a larger system means that more people might be stuck less in traffic, the individual participant may not gain that much or may lose the feel of control. Access for all is a hard sell when many like their individual choices (even as they bemoan congestion).

It might take decades or generations before a significant shift away from individual drivers might occur. Indeed, more than just apps can continue to promote individual approaches to driving: ride-sharing still is largely an individual act and the private nature of self-driving cars might just make the choice to drive even easier for some.

Move to the big city to live in a capsule

Difficulty in finding cheaper housing means Americans moving to a big city might consider living in a capsule:

Each room contains up to six capsules, which Wilson describes as “cozy.” They contain a single bed, a bar for hanging clothes, a few compartments for storing shoes and other items and an air vent.

By most standards, the accommodation is still not cheap — $750 per month plus taxes. That works out at around $800, which is slightly more than the 26-year-old was paying in Bethlehem, around 70 miles outside Philadelphia…

Cheaper options exist, but UP(st)ART offers a good, central location and modern buildings equipped with a gym, dance classes, recording studio, art workshop and free cleaning and laundry services…

Still, the capsule-living concept is also catching on in other expensive US cities including New York.

The key redeeming feature to these capsule in Los Angeles appears to be that it is located within an artistic community. Capsule inhabitants may not get much in terms of space but they are plugged into a set of like-minded people and have attached facilities they can use.

On the other side, imagine capsules with no community. Would people be willing to rent/occupy those and at what price point? Would it be worth it to have a roughly 31 square foot area for $800 a month in Manhattan? Would the price drop significantly if the capsule was in one of the other boroughs of New York? Or, imagine capsule for people who are not so free to simply pick up and move. Where would you go if you had a spouse? A child?

Both of these could be true:

  1. There is a needed for cheaper housing in many American cities so that young people can get their feet on the ground and start down a path toward adult success.
  2. There might be relatively cheap housing available in many locations, either in smaller cities or neighborhoods beyond the most attractive ones in cities. But, a good number of young adults want to go to the most exciting places such as New York, Los Angeles, Seattle, neighborhoods with lots of millennials such as in Chicago, etc..

Altering mortgages to account for climate change threats

A new Federal Reserve report considers how the consequences of climate change might affect mortgages:

The housing market doesn’t yet factor in the risk of climate change, which is already affecting many areas of the U.S., including flood-prone coastal communities, agricultural regions and parts of the country vulnerable to wildfires. In California, for instance, 50,000 homeowners can’t get property or casualty insurance because of the increased risk to their homes.

Yet for now, no mortgage lender, portfolio manager or buyer of mortgages takes into account climate-induced floods, except to determine if a house sits in a 100-year floodplain at the time the mortgage is issued, said Michael Berman, a former official with the U.S. Department of Housing and Urban Development and former chairman of the Mortgage Bankers Association.

Once lenders and housing investors do start pricing in such risks, “There may be a threat to the availability of the 30-year mortgage in various vulnerable and highly exposed areas,” Berman wrote in a recent San Francisco Fed report. He predicts lenders could “blue-line” entire regions where flood risks are high — a reference to redlining, the practice of refusing mortgages to minorities…

Said Cleetus: “My biggest fear, honestly, is that the markets will get out ahead of our policies, and we see a situation where property values do start to decline, and small communities that rely on a lot of property tax revenue won’t be able to deal with it.”

It will be interesting to see who (1) pursues this as a competitive advantage and (2) how federal policy plays into this. In a quest to get ahead of the rest of the market, could someone come up with a unique mortgage for areas with more climate change risk? Discussions about whether federal money should be used in places prone to natural disasters has been going for decades (see Hurricane Sandy or discussions about resilient cities).

Much of the article focuses on how the lack of mortgages in certain areas would lead to decreased property values and then a downward spirals as communities would not be able to generate as much tax revenue. This could also work the other way: imagine communities where only the really wealthy can live because they do not need traditional mortgages. They could come in and gobble up real estate with lowered values. Either way, the result could be increased inequality in affected areas.