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Monthly Archives: October 2016

Growth Boundaries Must Go

By | | Housing
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Urban-growth boundaries and other forms of growth management make housing expensive, housing prices volatile, and particularly harm low-income people. They slow regional growth, are a primary if not the primary cause of wealth inequality, and cost the nation nearly $2 trillion a year in economic productivity. These and other problems are documented in a new paper that the Cato Institute will publish tomorrow. Antiplanner readers can get a preview of the paper today.

Titled The New Feudalism, the paper points out, as the Antiplanner has previously noted, that strict government control of land uses resembles feudalism in every way but whose names are on the land titles. You may own land in California, but your ability to use that land the way you see fit can be restricted just as heavily as faced by occupants of land in Africa or other places where the government or a few oligarchs hold title to most land.

The paper also argues that regions that practice strict growth management aren’t going to solve their housing affordability problems by building to higher densities. Higher land costs, higher construction costs (at least for mid-rise and high-rise housing), and higher permitting costs can all add hundreds of thousands of dollars to the cost of a single housing unit.

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Better Housing Policy

By | | Housing
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The Washington Post is publishing a series of opinion pieces on what housing policies the next president should adopt. The first, by Urban Institute fellow Erika Poethig, argues that federal rental assistance should target the most vulnerable populations instead of, as is done today, simply anyone who makes a certain percentage below median incomes. The second, by University of Virginia economist Edgar Olsen, goes further and argues that all low-income housing subsidies should be in the form of rental assistance, not construction of low-income housing, which he says is not cost effective.

The most recent article is by the Antiplanner, and readers of this blog will not be surprised to learn that it focuses on land-use regulation. One point that I didn’t make in the article for lack of room (I was given a 500-word limit) was that land-use restrictions that make housing more expensive impose higher costs on taxpayers who are expected to provide low-income housing.
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On the same day, Oregon’s Cascade Policy Institute published a paper arguing that Oregon land-use regulation violates the Fair Housing Act just as much as if Oregon put up a sign saying, “No blacks allowed.” This is similar to a paper previously published by Hawaii’s Grassroot Institute, but of course with more of a focus on Oregon law.

Stifling the Economy

By | | News commentary
2 Comments

Sex scandals have drowned out the real scandal of 2016, which is the slow economic growth experienced since the 2008 financial crisis. This is the slowest recovery from a recession in history, and that has hurt tens of millions of Americans. Recent articles in the New York Times and Wall Street Journal have asked why the economy is growing so slowly, but neither answered the question.

The answer seems obvious to the Antiplanner: the economy is growing slowly because it is being stifled by a government doing the same thing the government did during the Great Depression (as described by Amity Shlaes), which is encumbering businesses with regulation while spending federal dollars on “stimulus” projects that aren’t very stimulating.

Here’s a true story. During the Depression, the railroads complained that they were heavily regulated by the Interstate Commerce Commission while the airlines, truckers, and bus companies were not. President Roosevelt named Joseph Eastman, a long-time member of the Interstate Commerce Commission, his “transportation czar” (formally, the “federal coordinator of transportation”). Eastman realized he had two alternatives: deregulate the railroads or overregulate everyone else. As someone comfortable with regulation, he choose the latter.

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Densification the Hammer; Cities the Nail

By | | News commentary, Urban areas
4 Comments

With 560 murders this year and counting, Chicago has become known as the murder capital of the nation. Some take issue with this, noting that Chicago’s murder rate per 100,000 people is much lower than many other cities including Baltimore, New Orleans, and Newark. Yet the moniker has stuck, leading many to ask why Chicago violence is so bad.

According to Atlantic‘s CityLab and Chicago’s Metropolitan Planning Organization, the answer is urban sprawl. Both say there is a strong correlation between declining city populations and rising crime.

Of “the six U.S. cities that have earned the dubious distinction of official ‘murder capital'” over the past 30 years, says CityLab, four have had declining populations. The Metropolitan Planning Council points to a study that found, “almost all of the crime-related population decline is attributable to increased outmigration rather than a decrease in arrivals.” The solution, both CityLab and the MPO argue, is to promote gentrification and immigration.

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Negative on Positive Train Control

By | | Transportation
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The National Transportation Safety Board hasn’t made any final determinations, but it’s looking more like the September 29 New Jersey train crash could have been prevented by positive train control (PTC) systems that Congress has mandated but the railroads have failed to install. This is going to lead to a spate of articles accusing New Jersey Transit and other railroads and transit agencies of dragging their feet in installing PTC. Yet the Antiplanner isn’t positive that positive train control is the best way to make rail lines safer.

According to National Transportation Statistics table 2-39, since 1990 an average of 8 passengers and 26 railroad employees have been killed per year in accidents, many of which could have been prevented by positive train control. Meanwhile, an average of 416 people per year have been killed when struck by trains at grade crossings and another 354 have been killed when struck by trains because they were trespassing on tracks. None of those deaths could have been prevented by positive train control.

That suggests that positive train control, which the Association of American Railroads says is likely to cost $10 billion, may not be the most cost-effective way of making railroads safer. Every death is tragic, but if the $10 billion the railroads have to spend to save 34 lives a year could have been spent improving grade crossings and fencing off railroad rights of way, it might be able to save hundreds of lives per year instead.

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Combining MPOs Won’t Fix Planning Failures

By | | Regional planning
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In The Death and Life of Great American Cities, Jane Jacobs defined a “region” as “an area safely larger than the last one to whose problems we found no solution.” A proposed rule published by the Obama administration would take the next step in this process, demanding that planning organizations for what were once multiple regions combine or coordinate to produce single regional plans for their now enlarged regions.

The rule states that if multiple metropolitan planning organizations (MPOs) exist within a single urbanized area, they must merge or jointly prepare single transportation plans for their area. According to a DOT estimate, about a third of metropolitan planning organizations are affected by the proposed rule.

Congress requires that MPOs write and update two key plans: the long-range (20-year) transportation plan, which must be updated every five years; and the short-term (4-year) transportation improvement plan (TIP), a list of projects the MPO wants to fund, which must be updated every year. As defined by the Census Bureau, urbanized areas often cross state boundaries. However, since MPOs are designated by state governors, they generally do not cross state boundaries. This means the New York urbanized area has separate MPOs for the New York and New Jersey parts of the area, while the Philadelphia urbanized area has three separate MPOs. These would all have to work together to write single long-range plans and TIPs to submit to the federal government.

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Sorry, Mr. President, But the System Is Rigged

By | | News commentary
6 Comments

President Obama has a lengthy commentary in the Economist, which that magazine-that-calls-itself-a-newspaper says is an “open letter to his successor. The Economist also describes the essay as “centrist,” as it criticizes Bernie Sanders’ leftism as much as, if not more than it criticized Trump.

But the article isn’t really centrist. Instead, Obama is defending the liberal (in a classical sense of the term) consensus in favor of free trade, relatively open borders, and mostly free markets. That is what liberals believed in during the nineteenth century, and it is what both the liberal and conservative elites believe today, which is why neither Bill Clinton nor George Bush questioned these ideas.

This election year, in fact, is the first time in many decades–perhaps more than a century–that a candidate who challenged these ideas won a major party nomination for president. While Trump openly challenged the open borders ideas, Sanders gained a lot of votes by challenging the free-market ideas. Brexit and similar votes in Europe show this isn’t unique to the United States: many people are feeling disenchanted with the liberal consensus.

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A City Is Not a Fugue

By | | Book reviews
8 Comments

If you want a book demonstrating that smart growth is based on mumbo-jumbo, half-truths, and outright fabrications, there are few better examples than The Well-Tempered City. Jonathan Rose is a real estate developer who happens to be married to the sister of New Urbanist architect Peter Calthorpe. Rose claims to have been at the 1996 meeting where the term “smart growth” was coined, though he doesn’t mention that one of the reasons for choosing the name was so its supporters could tar anyone who disagreed with them for favoring “dumb growth.”

Full disclosure: The publisher gave me a copy of this book on the condition that I write a review in my blog, so anything positive I say about the book should be taken with a grain of salt. I told the publisher my review might not be too positive, but they seemed to think a bad review was better than none at all. As it turned out, the book is far worse than I suspected, as I usually expect a semblance of reason from people I disagree with. I could find none in The Well-Tempered City.

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To BnB or Not to BnB

By | | Housing, News commentary
7 Comments

Last February, the Austin city council voted to stop licensing short-term rentals (via AirBnB or similar services) of homes that are not occupied by the homeowner. This has led the Texas Public Policy Foundation to sue, saying this violates people’s property rights.

Members of the city council argued that unoccupied short-term rental houses often get turned into noisy, “party houses” and that the use of those homes for short-term rentals made housing more expensive for everyone else. The first point might be legitimate, but no owner or renter wants to see their home trashed and so it is likely to be self-policed. The second point isn’t legitimate at all; it is Austin’s over regulated land-use rules that make housing there unaffordable.
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New Infrastructure We Can Let Crumble

By | | Transportation
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Hillary Clinton and Donald Trump both say they want to spend more to fix America’s supposedly crumbling infrastructure. But if Congress passes an infrastructure spending bill, this is the kind of thing it will be spent on: digging two tunnels for Interstates 84 and 91 in Hartford, Connecticut. This project is being promoted by Representative John Larson (D-CT), who is obviously looking forward to the day when Democrats control the White House and at least one house of Congress.

How much would these tunnels cost? A mere $10 billion, estimates Larson, who promises that “It’s not remotely close to what the Big Dig was.” No, the Big Dig was only supposed to cost $2.8 billion. Since it eventually cost $14.5 billion, will the Hartford dig end up costing $40 billion?

The purpose of the tunnels is to relieve congestion since there is supposedly no room to add capacity to the existing, above-ground highways. I suspect Larson hasn’t considered overhead solutions such as the Selmon Expressway in Tampa, which added three lanes without taking any new right of way by being built in the median strip of an existing highway. It cost about $7 million a lane mile, far less than a tunnel.

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