Tag Archives: apartments

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

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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?

Another suburban Chicago mall goes in on denser housing to revive its fortunes

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Yorktown Mall in Lombard is planning to replace a vacant anchor store with hundreds of apartments:

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The department store closings have turned other enclosed malls into retail ghost towns. But Yorktown has sought to reinvent itself by thinking outside the big box…

Pacific is now teaming up with Chicago-based Synergy Construction on a major overhaul of the west side of the 54-year-old mall. Plans call for replacing the cavernous, three-level Carson’s store and its vast parking lot with an apartment complex and a public park. The residential portion of the development will cost an estimated $201 million over two phases, Lombard officials say…

Pacific and Synergy have not finalized a unit count, but village memos indicate the latest project could bring approximately 700 apartments to Yorktown.

“You start having a critical mass of maybe 1,500 or 2,000 new residents,” Niehaus said. “And when you look at the rent rates that the apartments are generating, it typically lends itself to people that have disposable income that will want to shop or eat or participate in activities.”

Not all malls will survive the coming years. The idea behind replacing stores with apartments or housing is that it is a better use of the space rather than trying to chase a dwindling number of successful retail options and adding residents next to stores, restaurants, and entertainment options means they will spend some of their money in the remaining mall spaces.

Will this ultimately be the successful tactic that either saves some portion of the mall or revitalizes/transitions the space from retail to other uses? Housing is needed in many communities with shopping malls. Will communities recoup the revenue that used to come in through sales taxes? Will the footprint of the mall eventually disappear into the sprawling suburban landscape? As noted in the article, this is not the only Chicago mall pursuing this. See the example of the Fox Valley Mall in Aurora. Wait another thirty years or so and the legacy of the suburban shopping mall – roughly a century old at that point – might be very different.

Multifamily units construction highest since 1973 – but not for the part of the market that needs it most

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More multifamily units are under construction than in any year since 1973 but more units are for a particular segment of the market:

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Nearly 836,000 multifamily units are under construction, the most since 1973, according to Jay Parsons, chief economist at RealPage. But most new construction targets higher-income tenants and not the lower end, where supply shortages are most extreme, he said.

I have written about the dearth of starter homes and I would suspect a similar dynamic is at play here. Builders and developers can make more money on multifamily units with higher prices. If someone is going to go to all the effort for development and construction – and this can be quite a bit of effort in certain places – they would prefer to gain more financially in the end. The number of places that require the construction of affordable housing alongside market rate housing or seriously pursue cheaper housing are limited.

If these higher-income units come on line, it will add to a bifurcated housing market where those with enough resources have plenty of choices and those with fewer resources have limited and possibly unpleasant options.

Even Woodfield Mall could be enhanced by nearby high-density residential development

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As shopping malls struggle, an area near Woodfield Mall in Schaumburg may soon include taller apartment buildings:

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Schaumburg officials are considering drafting regulations for potential redevelopment near the Northwest Transportation Center of Pace Suburban Bus that would permit high-density residential buildings, as well as one or more parking structures.

Trustees are poised to vote Tuesday to direct the village staff to prepare such a transit-oriented district bordered by Woodfield Road to the north, Martingale Road to the east, Higgins Road to the south and the eastern edge of the Schaumburg Corporate Center to the west.

Transit-oriented developments — characterized by a mix of uses including homes near transportation hubs such as train or bus stations — are found in many areas of the suburbs. But this would be the first true example in Schaumburg, Community Development Director Julie Fitzgerald said.

The entire commercial area around Woodfield Mall so far has been free of residential development since the mall was built more than 50 years ago.

Such a plan would build on three trends:

  1. Including more residential units in and around shopping malls (recent examples from the Chicago suburbs here and here). This helps increase the number of people who might frequent the businesses nearby.
  2. Locating higher-density housing around transit hubs. The resulting transit-oriented developments could reduce the reliance on cars with mass transit options immediately accessible.
  3. Placing higher-density housing away from single-family homes and lower-density housing. Such a location is less likely to draw concerns from neighbors who express concerns about traffic, noise, and an impact on their property values.

If plans go forward, it will be interesting to see the price point of these residential units and whether this kicks off more residential development in what is already a busy area. Perhaps Schaumburg will become the home to more businesses and more apartments?

Residents, local leaders oppose a plan to redevelop a struggling suburban mall with 560 apartments and several businesses

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Charlestowne Mall in St. Charles, Illinois has struggled in recent years (earlier posts here and here). Yet, when a developer proposed adding 500 apartments to the property, residents and local leaders did not like the idea:

Google Street View

Plans were to raze the majority of the largely vacant mall to make way for 560 apartments and townhouses, a hotel, new restaurants and retail spaces along East Main Street…

“It’s a good plan but the question is, is this the best use of space?” 2nd Ward Alderman Ryan Bongard said at the meeting. “In speaking with constituents, they don’t want to see 500 apartments.”

On Friday, St. Charles Mayor Lora Vitek confirmed the developers have pulled out of the project. The partnership of S.R. Jacobson Development Corporation and Lormax Stern Development Company LLC had previously entered into a purchase agreement for the former Charlestowne Mall property with current owners The Krausz Companies LLC.

In December 2017, Krausz closed Charlestowne’s interior shops and enclosed mall space at the center. Anchors Von Maur and Classic Cinemas Charlestowne 18 remains…

“That’s the overwhelming comment that I have heard through the city council,” Vitek said. “And I do believe that we can try to accomplish that. We shouldn’t settle. We’ve got a lot going for us. We know there needs to be more people here and we’re going to bring residential, but there needs to be a balance over there, too. The east side is very important to our town, but we do want to see the right fit.”

On one hand, I can understand this common suburban concern: if you eliminate commercial property and rezone it for other uses, will you ever get the same amount of money in tax revenues from the property? A successful shopping mall or entertainment area brings in sales tax revenue in addition to paying property taxes.

On the other hand, this particular shopping mall has languished for years. Shopping malls in general face big issues and many will not survive. There are only so many suburban entertainment districts that will work. A willing developer wants to build a mix of residences and businesses and it is not enough?

Here is my guess about what scuttled this project: suburbanites do not often like the idea of hundreds of apartments, particularly when they are located in a community that sees itself as full of nice single-family homes. Apartment dwellers are looked at with suspicion. Apartments threaten the single-family home nature of the community as they can increase traffic, bring more kids to local schools, and threaten local property values. Even expensive apartments are not desirable in large numbers.

As St. Charles does not “settle” for this kind of proposal, what better option will come along?

When two suburban residential developments border each other and have clear differences

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A typical suburban single-family home, the symbol of the American Dream, is often in the middle of a subdivision surrounded by similar homes. Yet, some of these homes are on the edges of developments. This boundaries can be interesting: what do the homes back up to? What is nearby? Three local examples that I see regularly highlight how adjacent suburban residential developments can lead to some sharp contrasts.

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First, I know of a 1970s neighborhood of primarily raised ranches and split-levels of roughly 1,500-2,000 square feet. One side of this neighborhood borders a late 1980s development of larger homes built more in the style of 3,000 square foot McMansions with brick or Tudor facades. These two sets of homes back up to each other and the line of homes that do this are quite different: there is a significant size difference, the style of the homes – siding versus different materials – varies, and the newer development is slightly uphill so the larger, newer homes loom over the older, smaller homes.

Second, there are numerous single-family home neighborhoods where houses are across a residential street or next to a small apartment building. Or, next to a townhouse development. The scale of the buildings is not that different but the density and size are clearly contrasting.

Third, I know of one location where there are two neighborhoods that could have been constructed separately as they both have outlets to the neighboring arterial roads. But, there is a connecting road between the neighborhoods and there are houses of each neighborhood type, again different size and style side by side, on this connector.

Single-use zoning in the United States is intended to protect single-family homes from other less desirable land uses. But, this zoning system does not necessarily buffer certain residential neighborhoods from each other. Many suburbanites would object to significant changes in their nearby surroundings if the new residences were quite different. I ran into this in my suburban research where new small homes nearby or apartments were not welcomed, particularly if they were replacing open space. Yet, today many suburbs have different developments side by side, sometimes with a buffer – nature, a berm, a walkway, etc. – but sometimes not.

These neighboring dwellings could signal some significant differences. A larger home suggests a different social class. Residents of apartments are not always regarded fondly by homeowners. Densities and lot sizes can be different. The exteriors imply different status.

These boundaries are symbolic and clearly marked in physical space. What are the consequences: are the residences on these boundaries less desirable or go for a reduced price? How many people care about the clear boundaries? Do the people from the two or more sides interact within these boundary zones?

The boundaries between suburbia and other types of communities is often clear to see and experience but the internal boundaries are also fascinating.

The improbably straight hallway outside Seinfeld’s apartment door

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Residences on famous television shows can become very familiar. Yet, these places do not always match reality. On Seinfeld, Jerry’s apartment appears to have some discrepancies with how his apartment building is depicted:

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Reddit user PixelMagic has revealed (in a post we first came across at Indy100) the dark lie of Seinfeld. Jerry’s home can’t exist in the real world. Not if you believe in basic rules of time and space. You can see why in an overhead rendering of the apartment. If you actually built it to these specifications, the outside hall would need to run through Jerry’s kitchen.

Your instinct might be to say the hallway must have been curved. That was my first reaction. Lots of other Reddit users said the same thing too. If you look at screenshots of certain episodes, that does seem plausible. In certain moments the area between Jerry and Kramer’s apartments seems small enough that it could form a little cove. As you walk away from Jerry’s door, the hall could bend away from the kitchen.

But once again, “The Strongbox” is here to ruin Jerry’s life. That was the episode when Jerry kept inadvertently torturing his building mate Phil. Poor Phil owned a parrot that choked to death on the strongbox key Kramer hid in his food dish.

As PixelMagic showed, that episode provides indisputable evidence that Jerry’s hall did not curve away from his door.

This is a common issue on television shows. For example, see earlier posts about the Brady Bunch house or the apartment on Friends and other shows depicting young people living it up in the city. The primary focus on shows is to provide a home environment that works for the characters and filming, not necessarily one that fits reality or spaces common seen in these locations.

At the same time, consistent hiccups between what is depicted and what is actually possible can create issues down the road for viewers. Even if those watching to not consciously spend time dwelling on the physical spaces of a show or start drawing up floor plans to explore the particulars, spending all of those hours watching Seinfeld could shape how one views apartments and cities. Is this how people live in apartments? Is this what New York City is really like?

Demolish a vacant mall anchor store, build new apartments

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The construction of Fox Valley Mall in Aurora, Illinois was important for the suburb, particularly since it was in Aurora and not in Naperville. But, as shopping malls and suburbs change, the former site of Sears at the mall may soon be apartments:

Google Street View, November 2018

The vacant Sears store at the Fox Valley Mall could be razed early next year to make way for a three-building apartment development and kick off a new phase of life for the 45-year-old mall.

Aurora aldermen will vote next week on a request to rezone roughly 11 acres of the property along Route 59 side of the property to allow the buildings.

The buildings, each three stories tall, would have a total of 304 studio, one- and two-bedroom apartments…

A 2020 report for the city said that, including the closed Sears and Carson Pirie Scott department stores, 40% of the mall’s store space was vacant.

Adding residential units to shopping malls is a fairly common suggestion. With retailers in trouble, apartments fill the space more permanently, can address housing issues in communities, and could provide a ready population of potential customers for the nearby mall and other proprietors.

With the proposal working its way through local government, three things are worth watching regarding these apartments:

  1. How, if at all, will the apartments be connected to the mall? If they are completely separate buildings and are not marketed as being right next to the mall, then they could be like any new apartments. But, perhaps the mall is a draw for those who might want to be close to shopping, an indoor walking site, and food options.
  2. What kind of apartments will these be? Given their location, these will probably not be cheap apartments. In addition to being close to the mall, the apartments are near lots of other shopping and dining as well as potential employers, the location is just west of Naperville, and a busy Metra station is just to the north.
  3. How much of the mall will survive within five or ten years? The apartments could help revive the mall area or help hasten its demise.

How are suburban apartments designed with COVID-19 in mind different?

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A proposed apartment building in downtown Glen Ellyn, Illinois includes several features in response to COVID-19:

The latest iteration creates dedicated, work-from-home spaces inside apartments. South Bend, Indiana-based Holladay Properties is looking at installing voice-activated elevators to limit touch points. The project also would incorporate small conference rooms and phone booths where residents could take a call or prepare for a presentation.

“It’s hard to ignore the global pandemic,” Holladay Vice President T. Drew Mitchell said. “It’s in front of us everywhere, so some of the things that we’re doing inside of the units is sort of a reaction to that.”…

“What we’ve encountered in our product in suburban Chicago is overwhelming demand,” said Mitchell, who’s based in the firm’s LaGrange office. “We have a waitlist right now at Burlington Station in downtown Downers Grove, and what we’re seeing unfortunately for Chicago is people are returning to the suburbs.”

In Glen Ellyn, rents would range from about $1,400 to nearly $3,000. Glenwood Station amenities would target young professionals working in the city, empty nesters seeking a lower-maintenance lifestyle and other demographic groups.

From the picture provided, this looks like a fairly typical apartment building for a wealthy suburban downtown. The building is not too tall; height is a problem in many suburbs as residents do not want structures to dwarf other buildings, particularly houses). There is room on the sidewalk for pedestrians with streetlights and plantings. While there is some variation to the exterior, the design is not too crazy for a bedroom suburb. The building is not too large; there are just 86 units. There are American flags flying at the street corner.

The changes, according to the article, seem to focus on interior spaces. If you live in an apartment, how do you find space to separate home and work? This may be easier in large homes. What additional spaces could an apartment building or complex contain that gives residents some variety without having to leave? The suggestion above is to provide private spaces elsewhere in the building. It will be interesting to see how apartment developers and owners will in the future modify public spaces – gyms, pools, gardens, dog areas, party rooms, etc. – when restrictions may not allow apartment dwellers to use them in the same way.

What is missing from the COVID-19 apartment approach? Given the economic insecurity and the housing pressures many feel, will apartments be cheaper? These are not cheap apartments according to the story. Will this bring different kinds of people to Glen Ellyn than who might have typically moved there? The amenities are said to be geared toward the types of people suburbs often want to attract as opposed to affordable housing that would better serve those who truly need decent housing.

In other words, suburban development continues in fairly normal ways: the developer gets TIF financing, the city gets a building that fits its character and aesthetic, and suburban downtowns become a little denser.

Bipartisan white suburban support for fewer apartments, more homes

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A political scientist shares research findings on how political views affect suburban support or opposition to different kinds of development:

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As a political scientist who has studied local land-use regulations, I’m surprised to see a national political campaign in 2020 place such an emphasis on the issue—which hasn’t figured much in presidential races in half a century. The Trump campaign isn’t wrong to think that white suburban voters—the obvious target of the McCloskeys’ speech—would oppose apartment construction in their neighborhoods. In a nationally representative survey of metropolitan areas that I conducted last year, a substantial majority of homeowners revealed a strong preference for single-family development and opposition to apartments. They also overwhelmingly agreed that residents of a community should get a vote on what is built there…

And yet the history of exclusionary zoning reveals that it has long been a bipartisan activity. Obama’s Affirmatively Furthering Fair Housing rule was the first major action taken by any presidential administration to enforce the 1968 Fair Housing Act, which despite its lofty promises has not resulted in an integrated America. During the 1976 presidential campaign, Jimmy Carter assured voters that he was not “going to use the federal government’s authority deliberately to circumvent the natural inclination of people to live in ethnically homogenous neighborhoods.”

My survey data revealed no significant difference between white Republican and white Democratic homeowners in their opposition to high-density housing. I also found overwhelming agreement that apartment complexes would increase crime rates, decrease school quality, lower property values, and degrade the desirability of a neighborhood…

What this means is that Trump’s approach could conceivably appeal to white suburbanites more broadly, not just Republicans. And yet the evidence suggests that this is unlikely. Most white Democrats support the development of affordable and subsidized housing in the abstract and will feel comfortable rejecting Trump’s similarly abstract opposition to it. Where white Democrats oppose such development is when it arrives in their own backyards. But they do not need Trump to block it.

The Americans suburbs are based around single-family homes, exclusion, and local control (in addition to other factors). Opposition to apartments can be about both changes in aesthetics and character of a suburb and the kinds of people who are assumed to live in apartments.

But, as is hinted above, the real battleground over apartments and affordable housing and residential segregation really is about the local level. Federal or state guidelines could require certain things for municipalities. This is the first line of defense for those opposed to housing or any other development they do not desire. And these are abstract levels of government until local development pressure starts up. Even if such regulations passed, where exactly apartments might be located, in what scale and with what design, and how local residents and officials respond is the real pressure point.

If I am interpreting the last paragraph cited above correctly, white suburbanites in general will mobilize to oppose local development they do not want. This can have multiple effects: (1) it stops apartments and affordable housing from being built; (2) it can push such development into communities that are less able to mobilize or where there is already cheaper housing; and (3) it can create long-standing tensions between community members and prospective residents. In the long run, it means that some of the same patterns that suburbanites might criticize in big cities – uneven development, residential segregation – are replicated in suburbs.