Encourage more and more building in cities – and get more and more luxury apartments

Efforts to encourage more housing in big American cities can often lead to more units for the wealthy:

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Academics, developers and people in their 20s and 30s—particularly those most active on social media—have reached an unusual level of consensus. Their solution, supported by a wealth of scholarly research, is simple and elegant: Loosen regulations, such as zoning, and build more homes of any kind—cheap, modest and palatial…

Inconveniently for the Yimbys, Austin, like other cities, is still way more expensive than it was years ago, even though it’s built so many apartments. As a result, a small group of academics is starting to question the free-market path. These critics note that the market leads developers to build luxury housing on scarce and sought-after property to maximize the return on their investment. “Yimbys say, ‘We have to let the market build,’ ” says Benjamin Teresa, an urban planning scholar at Virginia Commonwealth University. “But what kind of housing are you building, and for whom?”…

But the very popularity of these places with the affluent drives up housing costs, making it harder for companies to find workers and pushing firms to relocate elsewhere. The Austin metro area, one of the fastest-growing in the US, with a population exceeding 2 million, has benefited from corporations fleeing the high cost of housing elsewhere, particularly on the east and west coasts of the US. Home of the University of Texas’ flagship campus, it’s lured Elon Musk’s Tesla, along with Oracle, from Silicon Valley. JPMorgan Chase and Charles Schwab are expanding there, too...

Frustration over rising rents has led cities to consider government interventions that were once deemed discredited. Boston, Orlando and Kingston, New York, have taken fresh looks at rent control, which had been blamed for distorting the market and raising the cost of other apartments.

If a builder or developer gets the green light to build housing, why would they choose to build cheaper units if they can build more expensive units and make more money?

As the article notes, perhaps this requires cities to see housing as not just a market good or something subject to market fluctuations. If housing is just another commodity that requires a big return on investment, why not go big in asking for expensive rates? Rent control or publicly subsidized housing may require more intervention, but they could also be necessary to provide any housing within the reach of residents with fewer resources.

Which cities are able to successfully buck these trends will be interesting to see. If policies become more explicit about affordable housing units, will developers push back publicly? Will an important city then see a downturn in building and investment?

Long Island resistance to a denser suburbia

Plans from New York’s governor to bring more housing to the suburbs is not being greeted with joy by some Long Island leaders and residents:

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In New York, one such proposal from Democratic Gov. Kathy Hochul has run into howls of opposition in one of the birthplaces of the American suburb. Critics on Long Island, a sprawling expanse of communities home to 2.9 million people, are denouncing provisions that would set growth targets, drive denser development near train stations and sometimes let state officials override local zoning decisions.

“Her plan would flood YOUR neighborhood with THOUSANDS of new apartments” reads one opposition mailing. Others warn Long Island would become New York City’s “sixth borough.” Critics, many of them Republican officials, claim it would strip away local control…

If municipalities don’t meet targets, developers could pursue a process in which the state could allow projects to go forward. Another provision would require localities to rezone areas within a half-mile of commuter rail stations unless the area already meets density requirements…

A counter proposal from the Senate’s Democratic conference included a more incentive-heavy housing plan that excludes mandatory requirements and overrides of local zoning.

Hochul and legislative Democrats were trying to resolve their differences in negotiations over the budget, which was due April 1. That deadline has been extended into at least next week. The governor has described housing costs as a “core issue” that needs to be addressed.

Affordable housing is badly needed in the New York City region, as well as many metropolitan regions throughout the United States. How to encourage or mandate housing construction is under consideration in multiple states. When suburbanites move to the suburbs in part because of local government and control, how much can a state override local zoning and land use decisions?

Even without state level mandates, there is at least some interest in denser suburbs. Some want “surban” places that combine suburban and city life. Thriving suburban downtowns can bring in money and boost a community’s status.

So what really is at threat here is the sanctity of the single-family home neighborhood and its housing values. This might be the most sacred of suburban settings.

Take Levittown as one example. If Levittown’s density significantly increases, it will mark another stage in the evolution of the paradigmatic suburb. It started with the mass construction of a limited number of floor plans, the community changed over time as residents added to and changed the residences, and the homes became more valuable. Could the Levittown of 50 years from now be marked by significant amounts of multifamily housing?

Trying to build more affordable housing, Hawaii edition

The housing situation in Hawaii has gotten worse:

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The median price of a single-family home topped $1 million in most areas of Hawaii during the coronavirus pandemic and has declined only modestly since. The state has the fourth-highest per capita rate of homelessness in the nation after California, Vermont and Oregon. On Thursday, new data showed the islands experienced net population loss five of the last six years. In 2022, U.S. census data showed more Native Hawaiians live outside Hawaii than within.

Some of the action taken thus far:

In one of his first moves after taking office in January, Democratic Gov. Josh Green created a new housing czar to oversee the effort. One thing Chief Housing Officer Nani Medeiros is focused on is identifying roadblocks and redundant permitting at local and state levels that can hold up construction. The administration also wants to pour $1 billion into housing programs, including $450 million to subsidize the construction of affordable dwellings.

Lawmakers have sponsored bills to trim bureaucracy, fund public housing renovations and encourage construction of dense housing on state land next to Honolulu’s planned rail line…

Some moves to shore up affordable housing by easing development regulations are being met with trepidation by conservationists, who warn that going too far in that direction could endanger the islands’ world-famous ecosystems and farmland…

Currently, housing construction is not keeping up with demand. Only 1,000 to 2,000 new housing units are being built in Hawaii each year. Those numbers are dwarfed by the 50,000 new units a 2019 state-commissioned study estimated would be needed by 2025.

This sounds similar to addressing affordable housing in numerous United States locations: high prices, limited land, long wait times to approve projects and carry out construction, and concerns about expanding development. It sounds like there are concerns particular to Hawaii as well.

In the bigger picture, the United States would benefit from states, metropolitan regions, and/or cities that can solve some of these affordable housing issues. What is the best path forward, particularly in balancing the interests of property owners, those who want to preserve green space and habitats, and the needs for more cheaper housing? A successful blueprint, or even several, could go a long way.

Midwest leads the way in homes selling for under $250k in February

In a larger story about home prices falling in February, this graphic shows the percent of homes in each region sold in different price categories:

Only in the Midwest region are close to 50% of the homes sold at $250,000 or under. The Northeast is roughly at 33%, the South is roughly at 26%, and the West is roughly at 6%.

So does this mean there are more starter homes in the Midwest? Not necessarily. Perhaps this is linked to incomes in the region and less household wealth for people to spend on homes. Perhaps the housing stock of the homes is older and the homes need more rehab. Perhaps there is less demand for the homes due to slower population growth.

Still, the differences are stark. Could Midwestern states and communities advertise that they have cheaper housing? (Of course, an influx of residents could push housing prices up as has happened in certain locations throughout the United States.)

Who wants to fight “a holy war on sprawl”?

Multiple states are proposing ways to circumvent local control regarding land, zoning, and housing:

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In New York, the governor wants the state to mandate housing production from local governments and to take over control of their land use if they fail to meet the targets. In California, a bill introduced to the state Assembly on Thursday would require approval of multifamily housing developments in walkable, transit-accessible and centrally located areas.

On Wednesday, the Oregon Legislature passed a package of bills that would require cities to set housing development goals and appropriate $200 million for affordable housing development. Earlier this month, the Washington state Legislature approved a bill legalizing accessory dwelling units, also known as “granny flats,” like an apartment made from a garage or basement. And the Washington state House of Representatives passed a bill last Tuesday that would allow multifamily housing units to be built anywhere in larger cities and near bus stops in smaller towns.

The trend is not just happening in blue states. Montana’s Republican Gov. Greg Gianforte has proposed legalizing duplexes and triplexes all across the state and legalizing apartment buildings in all commercial areas. And the Oregon and Washington measures have drawn broad bipartisan support.

What does this add up to?

“We’re basically declaring a holy war on sprawl,” Matthew Lewis, communications director of California YIMBY, a pro-housing advocacy group that is backing the bill, told Yahoo News.

Such a declaration is unlikely to ease the minds of conservatives who fear efforts to limit local and individual control or increase density.

Is it possible to discuss sprawl and its effects in a civil manner? I suspect this is hard to do. It invokes passion on multiple sides. Is sprawl about having a piece of private land and achieving the American Dream? Is it a waste of resources and destroyer of natural ecosystems? Is it a unique feature of American life to accommodate single-family homes and cars?

As the article hints, there are likely long fights over such efforts. Where exactly is the line between local control and the broader interest of the public? Particularly in communities with money and political voice, the fight may drag on.

DuPage County Board to consider affordable housing

The DuPage County Board has plans to address affordable housing needs:

The creation of an ad hoc affordable housing committee was announced during Tuesday’s county board meeting and comes two weeks after the county board set aside $2.5 million to start an affordable housing solutions program.

“If you work in DuPage County, you should be able to live in DuPage County,” said Deborah Conroy, county board chairwoman, after announcing the committee…

The cost of land, officials said, often hinders affordable housing developments…

From 2018 to 2022, some 862 affordable rental units were built in DuPage County, Illinois Housing Development Authority Executive Director Kristin Faust told board members Tuesday. During that same time, 996 homebuyers purchased a home with a mortgage assisted by the housing authority, Faust said.

DuPage County is a relatively wealthy county. According to the Census Bureau, the median household income is $100,292, the poverty rate is 6.9%, and the median value of owner-occupied housing is $324,900.

Additionally, the County and the municipalities within it do not have a great history of pursuing affordable housing. In the postwar era, DuPage County did not build much public housing when it had funds to do so. Municipalities largely pursued housing aimed at white, middle-class and above residents. Affordable housing has been raised as an issue in the county since at least the 1970s. Newer efforts still aim their efforts at relatively well-off residents.

By not having sufficient affordable housing in DuPage County (or in the Chicago region as a whole), the County may struggle to grow, attract workers, and continue the quality of life that residents expect.

ADU construction up in Seattle – to nearly 1,000 in a year

Recent changes to regulations in Seattle made the construction of accessory dwelling units (ADUs) more attractive and local property owners are responding:

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The addition of accessory dwelling units in Seattle has surged since 2019, when the city revamped its regulations to encourage their creation, pitching the units as a way to add density gently and provide a wider menu of living opportunities in neighborhoods dominated by single houses.

Almost 1,000 ADUs were permitted last year, up from 280 in 2019. That’s a 250% increase.

How does this compare to the amount of housing needed?

The state must add 55,000 homes per year over the next 20 years to meet demand, according to Department of Commerce projections published last week. More than half must be affordable to low-income residents, and new homes are needed at all income levels, the projections said…

ADUs remain a relatively minor component of Seattle’s housing production, given that more than 11,000 homes were built last year in multifamily structures like apartment buildings and town houses…

Will these new units prove to be the answer to affordable housing? In terms of sheer numbers, the quick answer seems to be: not yet. This pace would need to pick up and/or continue for a while.

Additionally, as the article discusses, who is building these units and who is living in them? If they are primarily built and rented by wealthier property owners, does this further housing inequality?

It will also be interesting to see how the increasing density in neighborhoods affects everyday life. Will residents find additional units on properties preferable to multifamily dwellings?

“Anybody can be suburban. It just takes money…” misses the intersection of class, race, and local control

As some states pursue affordable housing guidelines for communities, one critic argues it just requires money to live in the suburbs:

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Racial discrimination is abhorrent and should be prosecuted. But as a Brookings Institution analysis of the 2020 census shows, race isn’t a barrier to suburban living. Blacks are moving to the suburbs at a faster pace than whites. Anybody can be suburban. It just takes money — especially in Connecticut. In 2017, developer Arnold Karp purchased a colonial house on tree-lined Weed St. in small, ultra-wealthy New Canaan. There are no commercial or multifamily buildings on the street. He now wants to build a five-story, 102-unit apartment complex with 30% set aside for affordable housing.

The data does suggest people in all racial and ethnic groups are moving to suburbs. Here is what William Frey concluded from 2020 Census data:

This analysis of suburban and primary city portions of the nation’s major metropolitan areas shows that these big suburbs are more racially diverse than the country as a whole. Moreover, in contrast to how white flight fueled growth there in the past, most big suburbs have shown declines in their white populations over the 2010-20 decade. Their greatest growth came from Latino or Hispanic Americans, Asian Americans, persons identifying as two or more races, as well as Black Americans—continuing the “Black flight” to the suburbs that was already evident the 2000-10 decade. 

Today, a majority of major metro area residents in each race and ethnic group now lives in the suburbs. And for the first time, a majority of youth (under age 18) in these combined suburban areas is comprised of people of color.

But, as a sociologist of suburbs, here is what is missing from the critics’ analysis: people of different racial and ethnic groups are not evenly distributed across suburbs and not all racial and ethnic groups have the same wealth, income, and resources to obtain suburban homeownership.

In other words, because social race and race and ethnicity in the United States are connected, it is not just about money in reaching the suburbs.

What is really at stake? From the critic:

Local control will be obliterated. Albany will call the shots on what your town looks like, how much traffic there is and ultimately what your home is worth…

Ensuring a supply of affordable housing within a region is more reasonable than demanding every town alter its character.

Suburbanites like local control and local government. These arrangements allow leaders and residents means by which to decide who can live in their community. This is often done through housing values and prices; ensure the land and homes or rental units expensive enough and the community can be exclusive.

Additionally, one of the problems of affordable housing – and other land uses less desired by suburban homeowners (including drug treatment centers and waste transfer facilities) – is that few suburban communities want it. Communities with means and political voices will keep affordable housing out. This means affordable housing is not plentiful often and is often clustered in particular locations. One reason states are pursuing this at a metropolitan level is that there is not enough affordable housing in the current system that prioritizes local decision making over what is good for the region.

Suburban residents may not like the idea of affordable housing arriving in their community. However, the legacy of housing in the United States is often one of exclusion and restriction, not about communities and residents coming together to provide housing for all.

Are there wealthy American residents in favor of denser housing near their home?

If basketball stars and billionaires are opposed to denser housing near them in Atherton, California, where are there wealthy residents of the United States willing to have denser housing near them?

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Atherton is a small suburb – under 7,000 residents – with a median household income of over $250,000. In question is a California effort to increase affordable housing.

Are there any or many communities in the United States where the wealthy do not pursue NIMBY policies?

Could it be different in places where wealthier residents can escape by living high up in the air? I am thinking of residences like the pencil skyscrapers just south of Central Park or the new condos south of downtown LA.

Or, could it be different in places that are more rural? According to Wikipedia, Atherton “has very restrictive zoning, only permitting one single-family home per acre and no sidewalks. This policy that prohibits homes from being on less than an acre.” But, imagine a place with even bigger lots and more room. Would denser housing in part of the community be perceived as less problematic by neighbors?

I am open to hearing about wealthy communities where affordable housing is desired and pursued.

The advantages of a 3D-printed house

Why build or purchase a 3D-printed house? Here are several advantages:

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3D printing offers potential solutions to major challenges for the U.S. housing market: reducing the greenhouse gas emissions causing climate change and rising housing prices contributing to surging homelessness. Some experts expect the American industry to boom in the next two to three years…

But 3D-printed houses are already 5%-10% cheaper than a regular build in the United States, according to Zach Mannheimer, CEO of Alquist 3D, which aims to build affordable 3D-printed homes to serve lower-income communities, and experts predict costs will go down as the industry expands. A 2018 study in the academic research publication IOP Science: Materials Science and Engineerings, based in the U.K., argues that 3D printing can cut costs by at least 35%

If scaled up, 3D-printed buildings are significantly better for the environment than those that are built from scratch on-site. The building process cuts waste by 60%because it only manufactures the materials required. There’s no need to trim or subtract excess materials so they aren’t sending unused wood, concrete or glass for window panes to the landfill, according to academic research. And 3D printers work better with nontraditional cement alternatives such as “hempcrete” — a mixture of hemp, sand and other materials — than they do with regular concrete. That could encourage the concrete industry to pursue more sustainable alternatives to concrete, which creates significant greenhouse gas emissions in its production…

HUD seems optimistic about 3D-printed houses as a climate change solution. “3D printing is one of the promising advances in construction which the HUD team sees as having the potential to lower housing costs and increase energy efficiency and resilience,” a HUD spokesperson told Yahoo News in an email.

While there are still multiple barriers to overcome, the advantages listed above sound intriguing. If costs are consistently lower, building speed is quicker, and there are sizable environmental payoffs, this could interest many in the housing industry ranging from those looking to make money to people searching for cheaper housing.

All those advantages noted above lead me to wonder about barriers to entry in this field. Can conventional builders pivot or would they rather continue with their approaches? Are there companies more in the tech or manufacturing fields who would get into housing? Can we envision a point where individual property owners could use 3D-printing to do their own thing?

With one person in the article estimating only 10 such homes were built in the United States last year, even a small increase in numbers next year could lead to a sizable percentage increase.