A conservative fighting sprawl argues it is a Ponzi scheme

Here is a summary of the arguments against sprawl made by conservative Chuck Marohn:

But, while my concern with sprawling growth patterns was rooted in their effect on the landscape, on the environment, and on severely compromised populations left behind, Chuck is all about the money. As Thoughts on Building Strong Towns makes quite clear, Chuck believes that sprawl is a Ponzi scheme and we the taxpayers are the ones left holding the empty bags.

In fact, the lead chapters of the book are devoted to the Ponzi thesis, whereby municipalities chase outward growth to find new tax revenue that proves insufficient when the infrastructure needs repair; so they chase even more new growth to pay for the previous round, over and over, until the pattern chokes the economic life out of the place. In Chuck’s words:

“The local unit of government benefits from the enhanced revenues associated with new growth. But it also typically assumes the long-term liability for maintaining the new infrastructure. This exchange – a near-term cash advantage for a long-term financial obligation – is one element of a Ponzi scheme.

The other is the realization that the revenue collected does not come near to covering the costs of maintaining the infrastructure.  In America, we have a ticking time bomb of unfunded liability for infrastructure maintenance . . .

We’ve done this because, as with any Ponzi scheme, new growth provides the illusion of prosperity. In the near term, revenue grows, while the corresponding maintenance obligations – which are not counted on the public balance sheet — are a generation away.”

A few thoughts about this:

1. I’ve seen this in action in suburbs and the problem becomes particularly acute when growth slows or stops or the economy runs into trouble. At these points, the revenue flow based on developer fees plus the new tax revenues from property and sales taxes slows and budgets have to be looked at more closely.

2. Infrastructure is a long-term investment, not a short-term building issue. Lots of communities face this issue: how to generate enough money to substantially fix or replace aging infrastructure? Money needs to be consistently budgeted for these issues because issuing bonds is not always a good answer.

3. I’ve wondered this before: how much of growth is driven by money versus the status that comes with being a growing community? The money from new development is clearly important but there is also prestige associated with moving forward, adding to the population, and continually adding to the tax base. Imagine this line: “a good community is a stagnant/plateaued community.” I don’t think so.

4. More broadly, this is a call for more comprehensive long-term planning in communities. This doesn’t just mean 5, 10, and 20 year projections – communities need to think how the world might change, whether they will have the resources to change course, and how open they will be to pursuing differences courses given the changing world.

A mass transit revolution in Los Angeles?

Matt Yglesias argues that Los Angeles has turned the corner in promoting mass transit and is poised to become “America’s next great mass-transit city”:

The process started in earnest with the construction of the often-scoffed-about Red and Purple subway lines in the 1990s. This began to create the bones of a major rapid transit system. But it’s kicked into overdrive in the 21st-century thanks to the confluence of three separate incidents. First, Rep. Henry Waxman, the powerful House Democrat who represents L.A.’s Westside, went from being a NIMBY opponent of transit construction to an environmentalist booster. Second, Antonio Villaraigosa  was elected mayor in 2004. Third, in 2008, L.A. County voters passed Measure R, a ballot proposition that raised sales taxes to create a dedicated funding stream for new transit. Thanks to Measure R and Waxman, a new Expo Line connecting downtown to some of the Westside is already open, and work will begin on a “subway to the sea” beneath Beverly Hills soon. The same pool of money also finances expansion of the light rail Gold Line and the rapid-bus Orange Line while helping hold bus fares down…

Perhaps most importantly of all, the city is acting to transform the built environment to match the new infrastructure. A controversial plan to rezone the Hollywood area for more density has passed. The city has also moved to reduce the number of parking spaces developers need to provide with new projects, following the lead of the smaller adjacent cities of Santa Monica and West Hollywood. A project to reconfigure Figueroa Boulevard running south from downtown toward Exposition Park as a bike-and-pedestrian friendly byway is in the works, and pending the outcome of a November ballot initiative, a streetcar may be added to the mix. At the northern end is the massive L.A. Live complex of movie theaters, restaurants, arenas, hotels, condos, and apartments—the biggest downtown investment the city had seen in decades, constructed between 2005 and 2010. At the southern end of the corridor is the University of Southern California, which is planning to redevelop its own backyard to look a bit more like a traditional urban university village.

Los Angeles continues, like almost all American cities, to be primarily automobile oriented. But the policy shift is having a real impact on the ground. The most recent American Community Survey showed a 10.7 percent increase in the share of the metro area’s population that relies on mass transit to get to work, matched with a 3.6 percent increase in driving. And that’s before several of the key Metro projects have been completed or the waning of the recession can drive new transit-oriented development.

As work continues, people will find that Los Angeles has some attributes that make it an ideal transit city. Consultant and planner Jarrett Walker notes that the city’s long straight boulevards make it perfect for high-quality express bus service. And then, of course, there’s the weather. Something like a nine-minute wait for a bus, a 15-minute walk to your destination, or an afternoon bike ride are all more pleasant in Southern California than in a Boston winter or a sweltering Washington August. As a quirk of fate, the East Coast of the United States was settled first, so cities with large pre-automobile urban cores are clustered there. But the fundamentals of climate and terrain are more favorable to walking and transit in Los Angeles than in New York. The city could have simply stuck with tradition and stayed as the first great metropolis of the automobile era. But it’s chosen instead to embrace the goal of growing even greater, which will necessarily mean denser and less auto-focused. While the Bay Area and many Northeastern cities stagnate under the weight of oppressive zoning codes, L.A. is changing—by design—into something even bigger and better than it already is.

Three other factors I think are in Los Angeles’ favor:

1. The metropolitan region is actually denser than all others in the United States:

The nation’s most densely populated urbanized area is Los Angeles-Long Beach-Anaheim, Calif., with nearly 7,000 people per square mile. The San Francisco-Oakland, Calif., area is the second most densely populated at 6,266 people per square mile, followed by San Jose, Calif. (5,820 people per square mile) and Delano, Calif. (5,483 people per square mile). The New York-Newark, N.J., area is fifth, with an overall density of 5,319 people per square mile

Mass transit works best in denser conditions when more people are within reach of mass transit stops/stations and it is more difficult to maintain and park a car. Los Angeles is rightfully known for sprawl but it is denser sprawl.

2. Los Angeles does have an earlier history of mass transit: streetcars were widely used in the early 1900s.

During the early and mid-1900?s the historic streetcar served as a popular mode of transportation along Broadway.  The Los Angeles Streetcar system was primarily operated by Pacific Electric (1901-1961) and developed into the largest trolley system in the world by the 1920?s. This breath of scale enabled residents and visitors alike to routinely traverse the Los Angeles region, and connected many of Southern California’s communities. The system operated for over half a century, and at its peak traversed over 1,100 miles of track with  900 electric trolley cars; this dense network produced a rate of public transit usage higher than San Francisco does today on a per capita basis.

For years the system was considered by many to be “the vital cog in the city’s transportation system,” and according to author Steven Ealson, provided transportation for millions who enjoyed the streetcar so much they would “ride for miles simply for fun or for transportation to places of amusement.” The demise of the streetcar began with the unprecedented development of single-family tract housing designed and built to accommodate automobiles. This pattern of development quickened during post-war housing construction, and accelerated the demise of the streetcar system as the region became dependent on private transportation.

Read more about how General Motors was involved in dismantling the streetcar system in many large cities, including LA.

3. I wonder if a larger proportions of Los Angeles residents and leaders are simply fed up with highway traffic and want to now look at different options. Remember “Carmageddon“?

h/t Instapundit

McMansions being built in the wildland urban interface

Here is an argument that more McMansions are being built in the wildland urban interface and this is leading to problems with forest fires:

But in go-go America, these scientific truisms were no match for McMansion fantasies. As coastal folk headed to the Rocky Mountain frontier with visions of big-but-inexpensive castles far away from the inner city, the term “zoning” became an even more despised epithet than it already had been in cowboy country.

Rangeland and foothill frontiers subsequently became expansive low-density subdivisions, and carbon-belching SUVs chugged onto new roads being built farther and farther away from the urban core. That is, farther and farther into what the federal government calls the Wildland Urban Interface (WUI) and what fire experts call the dangerous “red zone.”

The numbers are stark: According to The Denver Post, between 1990 and 2000, 40 percent of all homes built in the nation were built in the WUI — and “a Colorado State University analysis expects a 300 percent increase in WUI acreage in the next couple decades.”

In the last two decades in fire-scorched Colorado alone, I-News Network reports that “a quarter million people have moved into red zones,” meaning that today “one of every four Colorado homes is in a red zone.”

I had never heard of the wildland urban interface before. To put it in other terms, it sounds like many new homes are being built in exurban areas, the leading edges of metropolitan areas. There are advantages and disadvantages to this: the land is likely quite cheaper and people can have bigger pieces of property and newer homes. But, there are negative consequences such as having to drive further to get places and the environmental impact.

Here is more information on the wildland urban interface in Colorado from Colorado State University. And here is an interesting opinion piece in the Denver Post about how to improve the narratives about WUI fires.

Battle in Redlands, California over teardown McMansion

There is an involved public battle taking place in Redlands, California between one homeowner and his neighbors as the neighbors try to stop his proposed teardown:

Monte Vista Estates residents lost another round in their fight against a neighbor who plans to tear down his house and build a larger one that will block their views of the San Bernardino Valley and mountains…

Hunt and the neighbors referred to McMansions — a derogatory term for oversized luxury homes — while discussing Canada’s project. They said the house, though it meets city zoning requirements, would begin a major change in the ranch-style neighborhood as houses are remodeled to reclaim their views.

Hunt told Canada that she values the rights of property owners but said she did not understand why he would want a house so much taller. His existing house has one of the best views in the neighborhood, she said…

Biggs said allowing such a large home — neighbors estimate it at 3,800 square feet — in an older, established neighborhood goes against Redlands’ pattern of preserving historic homes and older neighborhoods.

“The impetus for the Historic and Scenic Resource ordinance was to prevent that kind of shift from what we have, which is so different from the rest of the world … to the McMansion approach where you build to the absolute limits of the zoning ordinance,” Biggs said.

Two interesting points here:

1. As I’ve noted before, when neighbors or opponents of a particular home want to drive home their point, using the term “McMansion” is quite effective. I can’t think of any other term for such a house that would be so effective as it ties the homeowner to all sorts of negative ideas such as bad taste and excess.

2. Biggs’ comment about “the McMansion approach” is revealing. Indeed, my study of the use of the word McMansion found of times when references to McMansions was really about something bigger and not just one way: a way of life involving sprawl or excessive consumption. Living a McMansion life might include (and these are examples of how the term McMansion was applied to other objects) having a large RV, building a large mausoleum or headstone in a cemetery, and eating ice cream at Cold Stone Creamery. In this point of view, McMansions may simply be emblematic of a negative American lifestyle.

Hyperbole: we are a country of McMansions and sprawl everywhere

In a real estate blog at Boston.com, I ran into a reader’s comment who made some common claims about how much space we have used in the United States:

America is a country of excess. We have such suburban and exurban sprawl that we’ve covered almost every square inch of land with some ugly McMansion. Part of the “American Dream” was born out of the pioneer, self-sufficiency school of thought – so that everyone’s goal is to have at least, a 2,500 sq foot house on 2 acres with no neighbors close by. It’s wasteful. It’s also why we have bears and moose in the suburbs – the animals have no place left to live! How much to we pay to keep all of that up? How much do we spend on gas (and time!) driving the huge distance between work and the exurb where we can afford that big beast? How much water do we waste on watering those massive lawns? We’ve become so isolated and insular in this country.

I think Europeans have it right. Density and living in smaller spaces is more conducive to a higher quality of life. To watch a footy game, most Europeans go to the neighborhood pub, where everybody knows your name and neighbors actually speak to and know one another. Here, we barricade ourselves in our McMansions and watch the game in our great room and miss out on the social interaction.

I’ve always been a champion of living below my means. I seem to be the exception, not the rule.

In Europe, when the toaster breaks, they get it fixed. Here, we throw it out and buy a new one. Over here, I doubt you could find anyone who still fixes toasters.

Opponents of sprawl could make their case more effectively without resorting to unnecessary hyperbole. “Almost every square inch of land” has been used? Only about 3% of land in the United States is in urban areas. And then all of that land is covered with McMansions? The average new house has been around 2,500 square feet in recent years and this is probably not big enough to qualify as a McMansion. Homes larger than 3,000 square feet are a small percentage of new and existing homes. Everyone wants 2 acres of land? Most suburban plots are much smaller than this, often less than .25 acres. One growing housing segment in recent decades, townhouses and condos, take up much less land. The desires and actually buying patterns of Americans are not exactly the same thing, owning 2+ acres in many communities would be prohibitively expensive, and some communities wouldn’t even allow this zoning.

The comparison to densities in Europe is more effective. Americans do promote sprawl, driving, and private property more than some other countries. This has been tied to some declines in civic life such as outlined in Bowling Alone or Suburban Nation. Excessive consumption is an issue larger than houses and sprawl though they could be indicative of American habits of spending larger amounts of discretionary income.

My takeaway: limit the hyperbole and stick to more defensible comparisons to other ways of living.

Bringing the McMansion float to the July 4th parade

The July 4th parade in Sudbury, Massachusetts was like many Independence Day parades in that it featured floats. However, this parade included one float about McMansions:

Spectators lined the parade route starting at the corner of Rte. 20 and Union Avenue, with adults waving flags as children scrambled for candy thrown from antique cars, fire engines and military vehicles.

About a dozen groups competed for ribbons awarded for the best floats.

Russell’s Garden Center re-purposed its Santa Claus mannequin into a Father Time display. The Sudbury Savoyards, the local Gilbert and Sullivan group, stuck a mock gondola for its upcoming production of “The Gondoliers” atop a VW bus. And the owners of the old Cutler Farm offered a visual commentary on how town open land has been developed first into “McMansions” and now condos.

For its float, the town chapter of the non-partisan League of Women Voters decorated a trailer with discarded water bottles, taking on a proposed but long-stalled expansion of the state’s bottle bill.

I’d really love to see this float. If I had to guess, I would think this was an anti-McMansion float decrying sprawl and promoting nostalgia for farm land and open land.

Argument in defense of sprawl: only 3% of US land is urban areas

In discussing sprawl, a “free-market think tank” posts some figures about land use in the United States:

When speaking to audiences on the subject of the environment, I’m often confronted with people who express concerns about “urban sprawl,” and “over-development.” And polls suggest such concerns are widespread: In a March 2011, Gallup poll, 57% of people worried a great deal/fair amount about “urban sprawl and loss of open space;” and 42% of people said they worried “not much/not at all” about the same issue.

With so many people worried, the pie chart, below, offers some interesting context. Note that only about 3 percent of the US is urbanized. 56 percent is forest and pasture.

Driving outside urban areas makes this quite clear: most land in the United States is not urbanized. But here are some potential flaws with this argument:

1. Just because 3% of the land is urban doesn’t necessarily mean that this 3% is used well.

2. Misusing this 3% could have an overly large effect (compared to its proportion) on the rest of the land.

3. Most people live in these urban areas so while 3% is indeed small compared to all of the land available in the United States, people are much more concerned with the open field near them than they are with the more abstract idea that there is plenty of open land halfway around the country. And since they spend most of their time in denser areas, they think all other areas are like that.

4. Not all of that remaining 97% is “usable land” where it would be easy to build.

The page doesn’t say this but I’m amused that this could essentially be labeled a “pro-sprawl” page. Perhaps they would rather suggest it is a “pro-liberty” argument as there are not too many people who will outright endorse sprawl these days.

Several reasons Americans may be moving toward rejecting sprawl

An architecture writer sums up some of the arguments of why Americans might be starting to turn against sprawl:

In short, builders are recognizing that buyers (and renters, too!) value the neighborhood as much as — if not more than — the house. And what they want from that neighborhood might not be McMansions and four-car garages after all. Resale value may not in fact trump all else. Young and old, whether they’re in the city or the suburbs, want to walk to places like restaurants and shops. (And let’s stop talking about the integration of things like cafes, public transit and bike racks as “urbanizing” an area, which only reinforces the divide between two entities that are divided enough already.)

People have begun to wake up to the fact that the more time spent in the car means poorer health and less time with their families — and they’re seeking shorter commutes. They’re interested in smaller homes that are easier to maintain (and less expensive to heat and cool). Young millennials and older baby boomers are also showing less and less interest in car ownership and a corresponding greater interest in public transit, walking and biking. And again, it’s likely that we’re all less interested in continuing to discuss “urban” and “suburban” as dueling polar opposites — and more interested in recognizing there’s mutual benefit to some overlap.

The aforementioned changes point to the fact that a paradigmatic shift in our concept of the American dream is underway. And this shift is not just because of the recession, says Gregory Vilkin, managing principal and president of MacFarlane Partners, quoted in that USA Today piece, “It’s no longer the American dream to own a plot of land with a house on it and two cars in the driveway.”

And here is her summary of the people still defending sprawl:

And yet … there are still those who are having none of it. And they are a vocal and often breathtakingly well-funded minority. For them, the sprawl that characterized the years leading up to the financial crisis remains a dream to strive for. Any threat to the McMansion of yore is equated to “feudal socialism” (I kid you not). And these opponents not only excel at mobilizing the troops but at mastering the message. Take a look at the rhetoric of, say, the Texas Republican party, which recently passed “Resist 21” in opposition to Agenda 21, the United Nations’ sustainable communities strategy adopted in 1992. Taken together, proclaims Resist 21, those strategies aspire to “the comprehensive control of all our population and its reduction to sustainable levels and the socialization of all activities by their relocation to highly restricted urban settlement centers.”

Nothing like cherry-picking the more extreme arguments…there is not much defense of the “traditional American suburbs” here. At the same time, I thought this was a decent summary of some of the arguments out there though, of course, it remains to be seen which side Americans will choose. Is “everyone” really interested in merging urban and suburban life? Opponents of sprawl can continue to tout the advantages of denser living but we don’t have the proof yet that we are headed toward a full “greatinversion” back to city life.

Another note: there is a small paragraph in this article suggesting that government could do more to promote alternatives to sprawl. This is true but one doesn’t have to go all the way to a Agenda 21 level of involvement. Local governments could provide tax breaks or incentives for denser (and more affordable) housing. Gas taxes could be raised. More money could be spent on mass transit. The government could revoke the mortgage interest deduction. Different levels of government could cede some of their own power (such as 45 mosquito abatement districts in DuPage County) in order to work together on a metropolitan level and solve problems together. And so on. The federal government helped promote suburban sprawl throughout much of the 21st century – what would happen if the playing field started tilting in the other direction? Is any attempt to provide alternatives to sprawl “feudal socialism”?

 

Comparing the mass-produced ranch to the mass-produced McMansion

I’ve recently seen several articles about the ranch house (I discussed Atomic Ranch magazine a few weeks ago) but this one, “Ranch housing style makes a comeback,” led me to thinking why the mass-produced ranch may be popular and the mass-produced McMansion is not. Here is a brief explanation from the article:

Cicaloni is not alone in her appreciation for the ranch. Though it will never be as popular as the ubiquitous Colonial here in New England, the ranch is making a return. The simple home is being embraced by young people attracted to the mid-century modern vibe; by aging boomers who no longer want to deal with stairs; and, as always, by those looking for an affordable home…

“Popular publications portrayed a confident and easygoing way of life that could be accessible to one and all; of particular interest was the casual California lifestyle, implying prosperity, glamour and optimism as embodied in a sunlit and breezy ranch house where indoors and outdoors blended effortlessly,” Betsy Friedberg of the Massachusetts Historical Commission wrote in a 2003 issue of Preservation Advocate. “In the 1950s, I think, [ranches] were considered fresh,” says Zimmerman. “They were built at the same time as Capes, which looked very traditional. If you were a person who was up to date and interested in the latest thing, then, yes, a ranch is the thing you would have chosen in 1952.”…

BUT EVENTUALLY, thanks to tract housing like in the infamous Levittowns, people didn’t see the charm anymore. The 1962 song “Little Boxes,” inspired by a drive through a postwar development in California, ridiculed the conformity: Little boxes on the hillside, little boxes all the same. There’s a green one and a pink one, and a blue one and a yellow one. And they’re all made out of ticky tacky, and they all look just the same…

But the other thing is that taste in homes, like fashion, is cyclical. “All building styles go through a period when they are unpopular,” says Zimmerman. “At one point, Victorian houses were thought of as white elephants and hard to heat and not set up for modern living and not in tune with the landscape. So, in the ’60s, we lost a lot of Victorians.” And so, the ranches often derided as “ranch burgers”?—?as in mass-produced by a fast-food chain?—?were replaced with homes that came to be known as “McMansions.’’

So it’s simply a matter that ranch houses are on an up-cycle? It is somewhat amusing to think that these simple houses could be an antidote to an era of supersizing house size and debt.

I’m sure some critics of suburban houses would argue that ranch homes and McMansions share several important characteristics. To start, they are associated with sprawl and tract subdivisions. McMansions may be an easy target today but there were plenty of critics of the Levittowns and similar subdivisions built after World War II. In this sense, the problem may not be with the homes themselves per se but rather with the way of life that promotes building mass-produced houses. Second, both ranches and McMansions are not prized for their design or architecture due to their mass-produced nature as well as their unpleasing aesthetics (though these differ: ranches are meant to be more simple while McMansions are meant to impress or be flashy).

It would be interesting to see figures about how quickly housing stock is replaced in the United States. For example, how many ranch houses were built and how quickly were they replaced? What can this tell us about how quickly McMansions might be replaced?

Argument: we need to question today’s economic equations that are based on the suburban experiment

Here is an interesting argument regarding the American suburbs: Charles Marohn suggests the economic equations behind suburban development need to be questioned.

I’m struck by how strongly our culture associates growth and prosperity with highway construction and expansion. Tom Friedman, a respected left-of-center columnist with the New York Times, had an entire chapter in his most recent book, That Used to Be Us: How America fell behind in the world it invented and how we can come back, devoted to the concept that “our winning equation” is, in part, to invest in infrastructure and then watch prosperity flourish, just like it did in the 1950’s and 1960’s.

Of course, this ignores that fact that our investments during the first generation of America’s Suburban Experiment (1950-1975) were higher return investments that generated a lot of positive cash flow. I like to point out that, when we built the 35W bridge here in Minnesota for the first time, it connected far flung areas of the Minneapolis/St. Paul metropolitan region in a way that had not been done before. Following that investment, new commercial real estate was developed, new residential housing went in and the resulting influx of tax receipts made us feel wealthy. When the bridge fell down and had to be rebuilt, we didn’t experience all that new growth, just the costs of construction and delay. Maintenance has an entirely different set of financial metrics than new construction…

Unfortunately, we base this belief on the illusion of wealth that was created in the early years of the Suburban Experiment, where the first life cycle of horizontal expansion had produced growth for our economy and that pesky overhang of maintenance was still a decade or more away. We should know better by now, but there are few in a position to change the system that don’t benefit, at least in the short term, from it being perpetuated…

Now let me drop the bomb I’ve been alluding too: Those “benefits” that we kind of think of as prosperity, wealth or GDP; they really aren’t. There are derived from a set of narrow correlations between time saved and prosperity that we witnessed in the early 1950’s when we built those initial highways. We connected these far flung places — places only served by railroads or poorly constructed roadways prior — and we saw all kinds of economic gains. We then used that knowledge to build equations to justify expansion of the system. Nobody ever questions those equations today (why would they) and nobody stops to consider the diminishing returns of the system.

So there is not actually any money here, just a few seconds of saved time here and there that economists and engineers equate with money when they are trying to justify a project. Do you take home more money, generate more wealth for the economy or spend more of your income when you can arrive at work 45 seconds more quickly? Not me either. These equations are a joke. (If you want to learn more, read our 2010 series on Costs and Benefits.)

An interesting update to an old argument: the suburbs are unsustainable in the long run because they are based on new growth and continuous reinvestment. In the end, there won’t be enough money left to sustain it all, even if we could keep the infrastructure up to date.

Is Marohn really saying that the economic growth of the United States since the 1950s is largely an illusion? I’d like to hear about more of this aspect of the argument…

This reminds me of some of my research on suburban communities that are approaching build-out. In their earlier growth phases, these communities could expect a certain amount of money to flow in from new development and fees. However, once this stopped (and combined with the recent economic crisis), these towns are left scrambling for money. Without a good amount of new development, the budgets aren’t increasing much even as residents continue to push for equal or increased levels of service plus everything is aging (infrastructure, housing stock which makes it less attractive, municipal buildings, etc.). Is this an analogous situation?

Bonus: you even get a financial analysis of a diverging diamond interchange!