Making the Problem Worse

Oregon is responding to its housing affordability crisis by doing all the wrong things. The crisis is due to a shortage in supply which in turn is due to urban-growth boundaries.

So the legislature legalized inclusionary zoning ordinances and Portland passed one. Such ordinances require developers to provide a certain percent of the homes they build to low-income people at below-market rates. In response, developers are building fewer homes, exacerbating the supply problem. City officials “hope the slowdown is temporary,” but that hasn’t proven to be the case in other cities that passed inclusionary zoning ordinances.

Now the state legislature is considering a bill to provide $5 million to help first-time home buyers make down payments on homes. This will have the effect of increasing demand, which will only drive up prices even more. Continue reading

How About Just Tear Them Down

Business Insider must have been channeling some urban planning magazine last week when it asked what could be done with the hundreds of shopping malls suffering from the great retail apocalypse caused by Amazon and other on-line retailers. The publication’s answers leaned heavily to uses that need government subsidies, including art galleries, classrooms, community gathering spaces, indoor farms, farmers markets, public libraries, public walkways, and other public spaces.

The Antiplanner remembers when Portland’s regional planning agency, Metro, decided it needed new office space, so it bought a former Sears Roebucks building. It could have torn down the building and built a new one for $15 million. But to prove its commitment to reuse and recycling, it converted the existing Sears store into an office building. The cost? $30 million.

The humorous postscript was that the Sears building was so old that its toilets had never been hooked up into Portland’s sewer system. For years after Metro–the agency whose mission was to protect the region’s water, air, and land–moved in, it was dumping raw human sewage into the Willamette River. If they had simply replaced the building, they would have discovered the need for hook ups right away. Continue reading