Supply, Not Demand, Is the Problem

Portland officials are quick to blame population growth for the rapid decline in housing affordability. But Portland is hardly the fastest-growing urban area in America, and many that are growing faster remain much more affordable.

Census estimates show that, between 2010 and 2014, the Portland urbanized area gained 103,000 new residents. That’s a lot, but the Houston and Dallas-Ft. Worth urban areas both grew by more than four times that number, and Atlanta grew by three times that number, and all three remain very affordable. Portland’s median home value (American Community Survey table B25007) was 3.8 times median family income (American Community Survey table B19113) in 2014, while Houston’s was 2.2; Dallas-Fort Worth’s was 2.3; and Atlanta’s was 2.6 times incomes.
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Those urban areas are all larger than Portland’s, but the Raleigh urban area is only half the size of Portland’s, and it also gained about 100,000 people between 2010 and 2014. Yet its median home value was just 2.8 times median family incomes. There’s no getting around it: Portland housing would be quite affordable if the city didn’t have an urban-growth boundary artificially limiting the amount of land available for development.

A Quarter Trillion for the Northeast Corridor

A recent draft environmental impact statement published by the Federal Railroad Administration estimates that it would well over a quarter trillion dollars in capital improvements to make Amtrak “a dominant mode for Intercity travelers and commuters” in the Boston-Washington corridor. Even that is optimistic as the data in the report suggest that Amtrak would be far from dominant even after spending that much money.

Click image to go to the download page for the draft environmental impact statement, which is downloadable in more than 30 parts totaling well over 30 megabytes.

The statement considers four alternatives:

  • No action would keep train service at current levels. This would nevertheless cost $19.9 billion in maintenance and improvements over the next 25 years.
  • Alternative 1 would increase service at a rate equal to the region’s population growth. This would cost around $65 billion (the average of a range given in the DEIS), or $45 billion more than No Action.
  • Alternative 2 would increase service faster than population growth at a cost of around $133.5 billion, or more than double Alternative 1.
  • Alternative 3 would supposedly make rail “a dominant mode” in the region at a cost of around $287.3 billion, more than double Alternative 2.

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CES & Self-Driving Cars

The Consumer Electronics Show opens in Las Vegas today, so the next few days are likely to see new hype (some say overhype) about self-driving cars. Last month, Yahoo reported that Ford and Google would announce that they would build self-driving cars together, but Ford’s announcement yesterday about its electronics plans didn’t mention Google. Ford may still make an announcement with Google later in the show, but it is curious that Yahoo’s original story doesn’t seem to be live anymore.

A combination that has been confirmed is between General Motors and Lyft. While their goal is to create a system of shared, self-driving vehicles, the only substance in the announcement was that General Motors was “investing” $500 million in Lyft. So it isn’t clear which, if either, company will be developing the software and hardware needed to make GM cars self-driving.

A Ford-Google partnership probably makes more sense than a GM-Lyft combine. With the former, Ford offers car-making expertise while Google offers the software and the resulting products could be used for car sharing, individual ownership, trucking, and other services. The GM-Lyft partnership is limited to just sharing and neither of the partners has the software to do true autonomous cars.

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A Western Film Noir

The more I read about the case of Dwight and Steven Hammond, the more convinced I am that their prison sentences are a gross miscarriage of justice. After conducting prescribed fires on their own land that crossed onto a few acres of federal grasslands, they were convicted of arson on federal lands, which under a 1996 anti-terrorism law carries a five-year mandatory minimum sentence.

The law says, “Whoever maliciously damages or destroys . . . by means of fire or an explosive, any . . . real property in whole or in part owned or possessed by, or leased to, the United States . . . shall be imprisoned for not less than 5 years.” The key word is “maliciously”: there is nothing malicious about starting a prescribed fire, something that is regularly practiced by thousands of landowners as well as the government itself.

In its opinion on the case, the Ninth Circuit concluded that a 2001 fire (which the Hammonds started on their own land but which escaped to federal land) was malicious because Dwight Hammond’s grandson and Steven’s nephew, who was a 13 years old in 2001, “testified that Steven had instructed him to drop lit matches on the ground so as to ‘light up the whole country on fire.'” This betrays a divide between urban and rural cultures. To urbanites such as the judges on the Ninth Circuit, “the whole country” means the entire United States.

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No Good Guys

There are no good guys to cheer for in the militia takeover of an Oregon federal office building on January 2. The ostensible issue is the re-sentencing of two Oregon ranchers–Dwight Hammond and son Steven Hammond–for arson, while the underlying issue is federal land ownership of much of the West.

The arson fires lit by the Hammonds in 2001 and 2006 may have actually represented sensible land management, but the Hammonds lost the high ground by their failure to coordinate with the government agency managing the land they burned. Prescribed fire is a tool used to improve wildlife habitat, increase land productivity, and control wildfire. The 2001 fire aimed at improving productivity, but the government says the ranchers didn’t bother informing the Bureau of Land Management (BLM) they planned to burn until two hours after they lit the fire. While they lit the fire on their own land, it escaped and burned 139 acres of federal land, but that fire probably did not do serious damage to the grassland and they put the fire out themselves.

The 2006 fire was more questionable. A wildfire was burning on BLM land near the Hammond’s ranch, so to defend their land they lit a backfire on their own land. That would be standard procedure except, again, they didn’t tell anyone and when their fire crossed over onto federal land it endangered firefighters who the Hammonds apparently knew were located between the wildfire and their backfire. Due to severe fire hazards, the county had a no-burn rule which the Hammonds apparently violated, but this was hardly a terrorist act.

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Happy New Year

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What Is Your Sin?

Over at Green Car Reports, the “guide to cleaner, greener driving,” electric car advocate David Noland asks, “Which sins worse: cars or planes?” The “sin,” of course, is carbon emissions, and his answer, while interesting, is flawed in many respects.

“The passenger jet blows away the automobile in terms of efficiency and CO2 emissions per mile,” he says, a result he apparently considers surprising. But it’s not surprising at all to anyone familiar with the Department of Energy’s Transportation Energy Data Book. According to tables in the book, airlines emitted about 2,568 grams of carbon per passenger mile in 2013, while the average car emitted 3,144 grams (or 3,564 if SUVs and other light trucks are included).

But it’s not enough to show that both cars and airlines have been rapidly improving their energy efficiency. Noland wants to really blow cars out of contention, so he biases his analysis in several ways.

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Civil Rights and Fiscal Wrongs

Are the NAACP and ACLU serious when they argue, in a lawsuit filed last week, that cancellation of the Baltimore Red Line light-rail project is a civil rights issue? Or are they just acting as a front for, or the unwitting stooges of, rail contractors and other rail proponents?

In Los Angeles, the NAACP filed a successful lawsuit against the county Metropolitan Transportation Authority for building light rail. The group argued that light rail was so expensive that the agency was forced to cut bus service to minority neighborhoods, resulting in a huge decline in transit ridership. The court ordered the agency to restore bus service, allowing ridership to recover. But in Baltimore, the NAACP seems to be arguing that cuts in bus service are worth building a billion-dollar tunnel under an African-American neighborhood.

Maybe this is a case of the NAACP’s Right Coast not knowing what its Left Coast was doing. But the heart of the complaint in Baltimore seems to be that blacks are somehow harmed because the state of Maryland chose to spend hundreds of millions of dollars on bus improvements instead of billions of dollars on one light-rail line. This suggests that the Maryland NAACP thinks dollars spent are more important than results. After all, Baltimore’s other light-rail lines are all embarrassing failures, with costs greater than projections but ridership well below projections.

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The Vision Zero Cult

The Vision Zero Initiative seeks to reduce traffic deaths to zero–certainly a worthy goal. However, I looked throughout its web site and couldn’t find anything about how they propose to achieve that goal. Instead, there is a lot of mumbo jumbo along with a few poorly chosen statistics about how safe roads are in Sweden. The lack of specific recommendations combined with the misuse of data leads me to believe that this initiative is no better than a cult trying to get money out of gullible government officials with the promise that, if they pay enough, they’ll get a magic formula to safer streets.

The statistic they most commonly use is number of traffic deaths per 100,000 residents. The problem with this is that this number is bound to be higher in countries where people drive the most. Considering that commercial fishing is one of the most dangerous jobs in the world, you could just as well argue that countries that have totally destroyed their fisheries due to overfishing have superior policies to ones that still have healthy fisheries. However, there are better ways of improving safety than destroying the utility of whatever it is that might be dangerous.

Only by searching other web sites, including Wikipedia, do we learn Vision Zero’s secret: they make streets safer by slowing traffic down to a crawl. In other words, they greatly reduce the utility of the automobile. We know from various research that slower speeds means lower economic productivity.

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Seasons’ Greetings from Oregon

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Mt. Washington, Oregon Cascades.