Gentrification and Housing Affordability

An opinion piece in the Los Angeles Times this week repeats the argument that gentrification is reducing transit ridership. The Antiplanner was not persuaded by this when the claim was presented in the Eastsider last fall, but it and Senate Bill 827 raise another issue: what does gentrification do to housing affordability?

A standard theory of housing is that people who can afford to do so buy new homes and older homes trickle down to lower-income people. But this assumes that the older homes aren’t torn down to make way for the new. In regions with urban-growth boundaries, most new homes can be built only by sacrificing old ones — gentrification. This process is further encouraged by cities like Portland and Los Angeles that subsidize developers to build transit-oriented developments along rail transit lines.

People who already own homes aren’t hurt by this; in fact, their home values rise. But gentrification can price renters out of their housing and leave them with no comparably priced housing to go to. Continue reading

Share

The Difference Between Class & Income

Business Insider is stunned by the notion that Silicon Valley residents who earn $400,000 a year consider themselves middle class. Yet they are; the only reason Business Insider doesn’t think so is that neither it nor Palo Alto Online — the source of Business Insider‘s data — understands the difference between class and income.

According to the Pew Research Center, “middle class” includes families of four that earn $48,000 and $144,000. But that’s not middle class; that’s middle income. While classes and incomes can be correlated, they are not the same. Social classes include upper, middle, and lower, but most of lower being working class.

The working class includes people who earn incomes through manual labor and who generally do not have college degrees. But some of them may earn a lot of money, such as the Long Island Railroad conductor who earned $239,000 in 2009. Continue reading

Share

Just the Infrastructure We Don’t Need

Here’s the great thing about driverless cars: They will need no new infrastructure because the people designing them are making them work with existing infrastructure. All they ask is for cities and states to fill the potholes and do other basic maintenance.

Here’s another great thing about driverless cars: Most congestion results from slow human reflexes, and simulations show that congestion will significantly decline if as few as 5 percent of vehicles on the road are driverless. So, even if you don’t have a driverless car, you will benefit from others being driverless.

So what the heck is Bexar County (San Antonio) Commissioner Kevin Wolff thinking when he proposes that the county use federal infrastructure dollars to build new interstate highway lanes open only to driverless cars? On one hand, they don’t need special lanes. On the other hand, separating them from other traffic eliminates the congestion relief benefits they can provide. Continue reading

Share

A Poster Child for Government Waste

The Maryland Transit Administration suddenly shut down the Baltimore Metro last week, forcing commuters and other riders to find alternatives with less than 24 hours notice. The state said an inspection had found unexpectedly excessive wear on the rails that could have caused a derailment, and it plans to keep the line closed for a month while it fixes the problem — and then to close it again this summer for further work.

Productivity of United States Metro Systems
Thousands of Trips Per Year

 Trips/mileTrips/stationSubsidy/Trip
New York Subway3,2115,6991.64
NY-NJ Path2,0496,7941.60
Boston1,6153,2312.66
Los Angeles1,3492,8757.82
Philadelphia-SEPTA1,0201,35816.05
Washington8522,7381.96
Chicago9001,6454.56
Atlanta6931,8936.08
Oakland5103,1053.48
Miami3689335.18
Baltimore3598726.92
San Juan3225139.17
Staten Island2713912.34
Philadelphia-PATCO2778193.23
Cleveland1683563.11
“Subsidies” equal operations & maintenance divided by fares. Source: 2016 National Transit Database.

The coincidence that the shut-down took place the same day the White House announced its infrastructure plan led the Washington Post to call the metro the latest poster child for the need for more infrastructure spending. In fact, it is a poster child for less infrastructure spending, as it should never have been built in the first place. Continue reading

Share

RIP Tom Rapp

The Antiplanner was surfing the web on Saturday and happened to learn that Tom Rapp died last week of cancer. That may not mean anything to you and he didn’t have anything to do with the Antiplanner’s usual issues, but his music had a big influence on me.

“If you cannot be universal,” Rapp said about this thought-provoking song, “you should at least be ambiguous,” a statement that applies to a lot of his work.

Growing up in Portland, I often listened to a radio station called KVAN, which from 1967 to 1979 focused on “progressive rock.” Its owner was Catholic and the station also played a mass every evening, but she apparently didn’t care what its disk jockeys did the rest of the day. So they often played full albums of then-unknown artists such as Pink Floyd (I first heard A Saucerful of Secrets on KVAN), Jethro Tull, Bruce Springsteen, and many others. In 1969, I was fortunate to be listening when they played the full album of These Things Too by Pearls Before Swine. Most of the songs on the album were written by the group’s lead singer, Tom Rapp. Continue reading

Share

Will Density Make Housing Affordable?

California left-wingers who want to densify cities to make them affordable are getting some push-back from other left-wingers who think density will push low-income people out of neighborhoods. A proposed bill to eliminate zoning in transit-rich areas in order to allow developers to build high-density housing would, say opponents, displace low-income families from neighborhoods with high rental rates in favor of high-income whites who can afford to pay for high-rise housing.

The opponents aren’t wrong. On one hand, increasing housing supply would seem to make housing more affordable. But affordable for whom? With housing prices in some California cities averaging more than $1,000 per square foot, building high-density housing that costs $400 to $500 a square foot would allow people who can afford that to find a place to live. But hardly anyone can afford that.

The problem is that high-density housing–that is, mid-rise and high-rise housing–costs 50 to 68 percent more, per square foot, to build than low-density housing. If California really wants to build housing that is affordable to low-income people, it needs to build more low-density housing. To build that, it needs to open up land that has been off-limits to development because it is outside of urban-growth boundaries. Continue reading

Share

Capital Metro to Try, Try Again

Having lost two light-rail ballot measures at the polls, and having built a semi-commuter-rail line that flopped, you’d think Austin’s Capital Metro would have learned its lesson. But no, twice as much to start, as originally projected, now costs nearly ten times as much per vehicle mile as Austin commuter buses, yet still only carries around 1,400 round trips a day. As the Antiplanner never tires of saying, it would have cost less to give every daily round-trip rider a new Toyota Prius every year than to run this.

On top of this, Capital Metro has lost 19 percent of its transit riders since 2012. Capital Metro hasn’t significantly cut either bus or rail service, so most of the lost riders were probably taken by ride sharing. Continue reading

Share

Is Ride Sharing Deepening Inequality?

In the latest made-up panic of the year, ride sharing is supposedly “deepening social and economic inequity.” According to Tracey Lindemen, writing in Vice magazine, it’s doing that by stealing riders from public transit, which forces transit systems to cut their services, reducing the mobility of transit-dependent people.

In fact, Linderman has it backwards: public transit is the source of income inequality, while ride sharing can reduce it.

Linderman claims that “Public transit used to be the great equalizer,” but that was never true. Before cars, transit was used by the middle class, but the working class couldn’t afford it. The Model T Ford was the great equalizer, bringing mobility to those who couldn’t afford transit. In 1910, no more than a quarter of Americans regularly used transit. By 1926, over half of American families owned a car. Continue reading

Share

Trump Plan Won’t Fix Infrastructure

The White House released President Trump’s infrastructure plan today, which calls for spending $200 billion federal dollars as seed money to stimulate a total of $1.5 trillion on “gleaming new infrastructure.” Almost lost in the dozens of pages of documents issued by the administration is that the reason why the federal government supposedly needs a new infrastructure program is that our infrastructure is crumbling, and the reason it is crumbling is that politicians would rather spend money on gleaming new projects than on maintaining the old ones.

The White House proposes several new funding programs. The administration could have dedicated one or more of these programs to maintenance and repair of worn-out infrastructure. Instead, all $200 billion can be spent on new projects, and knowing politicians, most of it will be. To make matters worse, funds for most of the programs would be distributed in the form of competitive grants, but experience has proven that competitive grants are highly politicized.

“In the past, the Federal Government politically allocated funds for projects, leading to waste, mismanagement, and misplaced priorities,” agrees White House economic advisor Gary Cohn. The administration’s solution, Cohn continues, is to “stimulate State, local, and private investment.” In other words, instead of most decisions being made by Washington politicians, they will be made by local politicians. But if local politicians were any better at maintaining infrastructure, then we wouldn’t have tens of thousands of local bridges classed as “structurally deficient” and the New York, Washington, Boston, and other subway systems wouldn’t be falling apart. Continue reading

Share

Bringing the Danish Plan to the Front Range

In 1976, Boulder Colorado city councilor Paul Danish persuaded the rest of the council to pass a slow-growth ordinance that limited the growth of Boulder to 2 percent per year. Ever since then, it’s been called the Danish Plan. In 1995, the ordinance was modified to reduce growth to just 1 percent per year, and the city of Golden Colorado also passed a similar limit in 1995.

Now Denis Hayes, the Golden resident who persuaded the city pass that limit, wants to extend the benefits of slow growth to the entire Colorado Front Range. His ballot initiative 66, if approved, would limit growth in Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, El Paso, Jefferson, Larimer and Weld counties to 1 percent per year. After each city or county in the region has issued its quota of building permits in a given year, it would not be allowed to issue any more that year.

“Rapid growth raises the price of land and makes it hard for industry to move in,” says Hayes. “Amazon would be a lot more likely to settle here if we are controlling growth.” Continue reading

Share