I disagree: Loop building boom a sign of “the re-urbanization of America”

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An insightful analysis of the high-rise construction boom in Chicago’s Loop includes this claim about what all this new development means:

“It’s the re-urbanization of America,” said John Lahey, chairman of Solomon Cordwell Buenz, a Chicago-based firm that specializes in residential high-rises.

It’s also a shift in the urban map: The once-frayed edges of downtown, home to the poor and working-class, are now the glittering home of the affluent. Rental rates, while less expensive than on the coasts, still leave many priced out. City officials last month proposed a pilot program to generate affordable housing in gentrifying areas of the Near North and Near West sides as well as along Milwaukee Avenue. But changing the trajectory of the marketplace won’t be easy.

This is an interesting claim to make in Chicago. The “Super Loop” is indeed growing in population and tall buildings. But, the city as a whole is not doing so well. See the population loss. See the persistent problems – meaning, decades-long concerns – in numerous poor neighborhoods. See the slow population growth in the suburbs within the metropolitan region and also the emerging presence of urban issues (affordable housing, poverty, exclusion) in suburban areas.

A better description might be this: what is happening is the concentration of wealth in urban cores while outlying areas of cities and suburbs are suffering. The same process is happening in New York City, Miami, Seattle, San Francisco, and other major cities.

Can a list of the most beautiful homes in Dallas include McMansions?

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An earlier article I published suggested McMansions are not viewed as negatively in Dallas compared to New York City. The list of “the hand-down 10 most beautiful homes in Dallas” from D Magazine includes two references to McMansions:

Each year of the last decade, the editors of D Home have canvassed the city to bring you a list of “10 Most Beautiful Homes” that hopefully appeal to every taste. While on the road, we’ve spilled endless Diet Cokes due to sudden stops, exposed ourselves to the occasional McMansion, and risked looking like embarrassingly low-tech private investigators snapping photos with our iPhones. We do it all for you!…

We once named Tokalon Drive the most beautiful street in Dallas, which we suppose makes this 4236-square-foot dwelling the most beautiful home on the most beautiful street in Dallas. Plus, it reminds us why turrets are actually totally cool and not just something that just gets thrown on a McMansion. All that’s missing is a moat.

Yet, the list of 10 homes includes no McMansions. While these are large and expensive homes, all were constructed prior to World War II and have an architectural coherence that many McMansions lack. However, homes on this list for previous years did include newer homes and I would guess some of these 2017 selections have had major work done to them which might also negate some of their old-image charm.

Even in Dallas, such lists may not be able to select or trumpet McMansions as beautiful homes. If you run in certain circles – particularly when your readers are educated and wealthy – McMansions are a dirty word. A magazine like this that considers itself “a member of the original generation of city magazines: New York Magazine, Washingtonian, Philadelphia, Boston and Chicago” could likely not support such as crass consumer item as the McMansion.

Fighting over affordable housing in Cedar Rapids

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Lest you think NIMBY responses to new housing are limited to expensive cities, here is a case of opposition to 45 affordable housing units in Cedar Rapids, Iowa:

Neighbors said they didn’t oppose affordable housing per se, but that they feared the burden of the construction on their area, citing issues such as an increase in traffic and car accidents, potential flooding, and a lack of walkability for incoming residents. The developer said it had selected the site because it would immerse residents in a middle-density community with access to family amenities, including a bus stop, parks, and an elementary school.

At first, it looked like NIMBYism had prevailed: The petition and complaints convinced the city planning commission to vote against the request to rezone the property at an April 2016 meeting. But a few months later, the proposal was revived, becoming a test of what it would take to defeat neighborhood concerns and develop affordable housing that was integrated into rather than segregated from low-poverty communities.

That’s when the real animosity started to emerge, according to Phoebe Trepp, the director of Willis Dady, the local homeless services organization that would provide assistance at the development…

City leaders are also interested in spreading affordable housing throughout the city, rather than clustering it in the poorer southeast quadrant. Susie Weinacht, a City Council member at large, says that city staff want “housing options available throughout the community.”

This sounds fairly typical. A decent-sized community has difficulty providing affordable housing as well as dealing with homelessness. The city wants to spread the affordable units throughout the city so that poorer residents are not concentrated in one area (and perhaps to limit political opposition if one area had to host more units). Residents are not happy about this. They raise all sorts of common concerns about new developments – traffic, too much density near single-family homes, water issues, negative effects on property values – while also hinting at issues of race, ethnicity, and class (not cited in the excerpt above but more details are in the full article). A public debate ensues, one side wins, and the other side is not happy.

Is there a better way to do this whole process? Toward the end of the article, an official says that affordable housing initiatives work best when the support is from the grassroots (rather than planned by local or larger governments). This is probably true. Yet, how does one convince working-class to upper-class residents that it is in their interests to live near affordable housing? This is an incredibly tough sell to make to many Americans.

It is also worth asking about how the neighborhood fares within five, ten, twenty years of the construction of affordable housing units. Are the fears of Cedar Rapids neighbors unfounded? Does a denser development significantly alter the character of the community and drive existing residents away? Having some of these facts may not matter to some residents but showing some data could help ground the discussions in reality rather than emphasizing possible negative effects.

Roll out the tax break bidding war for Amazon HQ#2

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Amazon want to build a second headquarters with some 50,000 workers. Expect the tax break war to begin:

Amazon is seeking proposals from local, state and provincial government leaders, and says it is focusing on metropolitan areas with more than 1 million people. It is also looking for areas that can attract and retain technical workers and “a stable and business-friendly environment.”

News of the search has unleashed a wave of speculation about where the world’s largest online retailer could set up shop. But experts say the company’s decision is likely to be as much about politics as it is about logistics and incentives. Bezos has been a vocal opponent of President Trump’s immigration bans, and earlier this week was among hundreds of tech leaders who urged him to reconsider his stance on the “dreamers” immigration program…

Among the criteria it will consider, Amazon says, are tax exemptions and other incentives, including relocation grants and fee reductions. “The initial cost and ongoing cost of doing business are critical decision drivers,” the company said in its request for proposals.

It added that the location does not need to be in an urban or downtown location, or a development-prepped site. The site should, however, be within two miles of a major highway and have access to mass transit. Amazon said it will give priority to existing buildings that are at least 500,000 square feet and undeveloped sites that measure about 100 acres.

Here is the actual language from page 6 of the RFP:

AmazonRFPp6

This may seem like a perfect scenario for locations (cities and states) to offer tax breaks: the company is growing, it is a major player, and it comes with a large number of jobs. Headquarters are a status symbol for areas but this one includes real jobs and a high-status company.

However, I would still argue a tax break war is a bad idea. Here are a few reasons why:

  1. There will be one winner and a lot of losers. Those who do not win may just offer even deeper breaks to the next possible company. When does this stop?
  2. A massive tax break will offset at least some of the benefits of the headquarters. While it is hard to pass up 50,000 jobs, significant tax breaks mean local governments and residents get less than they might otherwise.
  3. A bidding war puts Amazon in the driver’s seat and may have local governments begging for this. A victory would wipe out groveling but going all in on an offer and losing may reduce the status of a location. (Think of unsuccessful Olympics bids in the past.)

The locations involved could be many but this will not turn out well for many or maybe even all.

Crossing the line into NIMBYism

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Author Margaret Atwood is opposed to an eight story residential building that would back up to her home in pricey Toronto. In some exchanges on social media, Atwood was accused of a NIMBY attitude. This raises an interesting question: when does one’s actions move from normal concerns about a home or neighborhood and into NIMBYism? Here is a description of Atwood’s concerns:

As the debate escalated, Atwood threw shade at a prominent local urbanist, accusing him of being in the pocket of developers, and went toe-to-toe with the architecture critic of a major Canadian newspaper.

The exchanges were confusing because, historically, Atwood has championed urban issues. She fought cuts to the Toronto Public Library under Mayor Rob Ford and opposed a plan by the University of Toronto to cover one of its historic green spaces in artificial turf.

In actuality, the opposition Atwood officially registered with the city was muted compared to those of others, particularly her husband, author Graeme Gibson.

“[The condo] hover[s] close to a brutal and arrogant assault on a community that has been here since the 19th Century,” he wrote in an email to the local city councillor.

In her email, Atwood focused on potential damage to several trees with roots in the development area, and later insisted on Twitter she would prefer affordable housing and a community center in the building.

In really expensive markets, perhaps anyone opposed to new housing units could be accused of NIMBYism. In many cities, there is a shortage of affordable housing and, as the article notes, it seems like wealthier residents do not want to live near cheaper housing and they have the clout to contest development. Additionally, it is difficult to imagine how sufficient housing units could be provided without making major changes to neighborhoods and cities as a whole.

But, is there also a way that NIMBYism is particularly expressed? This particular article hints at three possible distinctions. First, her husband used particular language. Perhaps taking a haughty or dismissive tone does not help. Second, Atwood has fought for the people regarding other city issues so perhaps she is not the average, out-of-touch wealthy resident. Third, Atwood may be trying to make a more nuanced argument – not opposed to the building but opposed to its uses – but this is difficult to relay through social media and it may not matter in a city like Toronto where housing is a controversial issue.

For better or worse, NIMBY is in the eye of the beholder. When arguments about land use and personal property arise, they are often heated. Accusing an opponent of NIMBY and the related idea that they are trying to keep people away from what they already have is a common tactic. Whether this application of a label helps the process in the long run is another matter to consider.

Could a community be green and have a lot of McMansions?

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An Australian community is moving to become a garden city even as there is a demand for teardown McMansions:

The Monash Urban Landscape and Canopy Vegetation Draft Strategy suggests increasing canopy cover in Monash from 22 to 30 per cent by 2040.

Councillor Geoff Lake, who submitted amendments to the plan, said the people of Monash felt strongly about vegetation protection overlays…

“In particular, concerns related to overdevelopment on blocks where the site is razed to build a ‘McMansion’ and vegetation is not retained or replaced,” Cr Paterson said.

She said the council acknowledged that people valued the green character of Monash.

While it sounds like the vegetation plan is partly in response to teardowns, it could lead to an interesting scenario: a community that is both green and has a number of McMansions. The two are often assumed to not be compatible. McMansions are viewed as wasteful, whether because they are part of sprawling settings or provide unnecessary amounts of private space or use mass-produced materials. Garden cities, in contrast, feature plenty of green space alongside greener housing.

I have hinted at this in earlier posts: could we reach a point where McMansions are compatible with green settings? Imagine big homes with garish architecture that are built with eco-friendly materials and in settings that limit some of the worst features of sprawl. I suspect it may be difficult to convince McMansion critics that such homes could ever be green but given the public’s interest in such homes plus the ability to brand numerous products as green, the day where we have green McMansions may indeed come.

Historical irony: Naperville magazine suggests “discover Hinsdale”

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Naperville’s size, wealth, accolades, and amenities make it a suburban behemoth outside of Chicago. Yet, when Naperville Magazine features in its current issue the story titled “Discover Hinsdale” (see the cover image below), it is a reversal of history regarding which community was more desirable.

NapervilleMagazineSep17

Naperville was founded first in the early 1830s though Hinsdale was not far behind (and the community was originally known as Brush Hill and then Fullersburg). The two communities share a rail line in and out of Chicago, originally the Chicago, Burlington, & Quincy, which opened in the mid-1860s. While the two communities were similar in size until the postwar era, Hinsdale was the wealthier town. It had a hospital. It attracted executives as residents. It was at the eastern edge of DuPage County and just 15 miles from downtown Chicago. Naperville, in contrast, was seen more of a farm community, there wasn’t much development between it and Aurora (and little at all to the south or southwest), and it had lost some luster after losing the county seat to Wheaton in 1867.

Long-time Naperville resident and real estate agent described the relationship between the two suburbs in Is it Eden? Is it Camelot? It is Paradise? Better yet…It’s Naperville.

I discovered an overlooked “fact of life” one Saturday afternoon when a well-dressed, house-hunting couple entered our office. Both were quite disappointed to learn that our town had no tree-lined street full of gracious, period-type houses built in the 1920’s and 30’s, the likes of which they could find in some affluent suburbs east of us. They were also shocked to find we had so little “speculative” building and that our listings were generally of very old homes. The wife then made a biting comment that raised the hairs on my neck. She said, “Did you know that Naperville is rated a class ‘C’ town in some Hinsdale real estate offices?” “What in the world do you  mean!” I sputtered through clenched teeth. “Oh, don’t get made,” she replied, “Just in the area of ‘income per capita’.” “What in the world do you mean!” I sputtered through clenched teeth. “Oh, don’t get made,” she replied, “Just in the area of ‘income per capita’.” Well, Hal, I admit that I was truly deflated. Deflated because, even though it seemed such a minuscule area to me in light of all of Naperville’s ENDURING values, it was a fact of life, and there would be more people of this bent for us to deal with in the future. Hinsdale today is probably still the “class” community of the western suburbs. Time, effort and planning have earned it its reputation. Housing costs in Hinsdale are, on average, 30% higher than in Naperville. However, by now we must have about caught up in “income per capita”. I would (secretly) like to challenge Hinsdale to a rating battle based on “percent of residents with advanced college degrees.” Maybe then I might be able to walk into a realty office in their town and square a long-remembered rebuke by saying, “Did you know that in Naperville, some real estate offices rate Hinsdale a Class ‘B’ community?” I wonder if they’d squirm a little, as I did?” (“Dear Hal” column, Aug 28, 1981, The Naperville Sun)

A later story:

For as long as I can recall, having a Hinsdale (Ill.) residence address had the same effect on others as did the car, wristwatch, or college on attended – it “made a statement.” Aesthetic Hinsdale, with a population of only 17,000, has the highest income per capita of any community in DuPage County… ((“Dear Hal” column, May 17, 1981, The Naperville Sun)

The Naperville Magazine piece is similar to many you can find in suburban magazines. Here is the primary text that then leads to a list of attractions:

Just about halfway between Naperville and Chicago you’ll find the village of Hinsdale, known for its stop-and-stare-worthy homes along tree-shaded streets and a cute, compact downtown lined with shops and restaurants. Though the abundance of women’s clothing boutiques and pampering salons make it a popular destination for a ladies’ day out—no question—there’s a little bit of something for everyone in Hinsdale.

Hinsdale is now the quaint and wealthy suburb to visit. There are upscale restaurants and shops to explore as well as a few historical sites. The community is still wealthy and on average has higher incomes and housing values than Naperville. The teardown phenomenon seems to have begun earlier in Hinsdale in the 1980s before spreading to Naperville (according to several late-1980s columns by Herb Matter). Local celebrities seem to live more in Hinsdale than Naperville.

Yet, Naperville is the more vibrant place. It is clearly bigger. The downtown is more lively. Hinsdale is older money, Naperville more emblematic of the late-twentieth boom among the white-collar and educated.

More (pricey) senior housing units in the (expensive) city

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Several developers are constructing luxury senior housing in Manhattan and trying to tap a new market:

Senior housing has traditionally been suburban-focused because land is so much cheaper outside cities, and developers hadn’t seen a big enough market to justify paying more, and charging more, for urban locations near transportation and nightlife, Knott said. The aging members of the massive baby-boom generation helped change their minds. Now, he said, many living in cities have the means to pay a premium to remain in familiar environments.

And many will need special care. In New York state alone, about 460,000 residents aged 65 and older are expected to be living with Alzheimer’s-related dementia in 2025, some 18 percent more than there are today, according to the Alzheimer’s Association.

To serve the wealthiest of them, senior-housing developers are taking cues from their tony-apartment building counterparts and putting extra emphasis on finishes and flourishes, to make their facilities look like the places residents left behind…

It is, of course, a rather small group of any age or mental ability that can handle the monthly rents these kinds of places will command. They’ll start at $12,000 at the complex that Maplewood Senior Living and Omega Healthcare Investors Inc. are putting up on Second Avenue and 93rd Street. Some will top more than $20,000 at the building Welltower Inc. and Hines are about to break ground for on the corner of 56th Street and Lexington Avenue.

The top 10% ages as well.

If this catches on, will it make it even harder to construct senior housing for average Americans (those who lived as adults around the median household income)?

I had a somewhat radical thought: many community leaders suggest that their residents should be able to age in their community, if they so desire. Would it be possible to set aside plots of land to be used for senior housing? The community would not necessarily have to designate what kind of housing is placed there but setting aside or zoning certain land might take away some of the market-rate pressure for land. Communities and developers regularly do this for other important uses such as parks or schools. Why not get out ahead of the aging population and make a tangible contribution to allowing senior residents to stay?

Could you build a hurricane, tornado, flooding, blizzard resistant McMansion?

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With the number of single-family homes damaged by Hurricane Harvey in Texas, could you design a McMansion that could stand up to natural disasters? Here are a few factors that might affect whether this is possible:

  1. One of the advantages of McMansions for builders is that they are often constructed on a mass scale. Any changes to construction could slow down the process.
  2. Related to #1, an increase in the materials needed or a slow down in the process would likely lead to an increased price. Compared to true mansions, McMansions are aimed at a broader segment of the housing market.
  3. Different disasters likely require different approaches. If the problem is tornados, say in Tornado Alley, you are trying to protect against winds whereas if the home is constructed in a flood plain or on a coast, the home could be built on stilts or piers to allow floodwaters to pass underneath.
  4. Many McMansions are constructed in suburban areas. No matter what you do to each house, it could be very difficult to protect against everything. For example, flooding is less an issue of each home being poorly constructed but rather a problem connected to land development on a broader scale.

Many McMansion builders or owners would not have to worry too much about major disasters. But imagine that someone develops “the Resilient McMansion.” Could this be worth pursuing in certain areas?

It is hard to find the “perfect home”

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A list of homebuying myths ends with this one:

Myth #6: You bought “the perfect home”

According to a survey by Nerdwallet, 49% of homebuyers had regrets about their home-buying process.

“There are regrets that you can live with and there are regrets that you really want to avoid,” Manni says. “It’s completely normal to regret not having enough space, but you don’t want to regret things like your mortgage or interest rate.”

Manni encourages homebuyers to do their research on home location and take the time to know your mortgage options to avoid feeling stuck down the line.

“Your dream home is not going to be ready and waiting for you — you’re going to have to look,” Manni says.

Regrets can be big or small and making such a large commitment – financially as well as in many other areas – can amplify such concerns. At the same time, what leads people to expect a perfect home in the first place?

A better way to approach this may be to uncover at which point homeowners turn from a twinge of regret to something that pushes them toward a new place to live. What is the tipping point?