Search Results for: Portland, OR

Portland Addresses Housing Crisis By Making Housing More Expensive

By | | Housing
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Portland housing prices are growing faster than almost anywhere in the nation. So the Portland city council has decided to address this problem by building 1,300 units of “affordable” housing, adding less than one-half percent to the city’s housing inventory.

How are they going to pay for this? By taxing new homes 1 percent of their value. Because new and existing homes are easily substitutable for one another, when the price of new homes goes up by 1 percent, the price of existing homes will also go up by 1 percent.

The problem is that politicians don’t understand the difference (or hope voters don’t understand the difference) between “affordable housing” and “housing affordability.” The former is something governments build to help people who are too poor to afford decent housing. The latter is the general level of housing prices relative to the general level of incomes. Building “affordable homes” addresses the first problem, but not the second–except in cases such as Portland where affordable housing makes housing less affordable.
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Portland Metro: More Lies Per Capita

By | | Transportation, Urban areas
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“We’re driving less than other metros,” says Portland Metro, “and we’re driving less than 20 years ago.” These are the kinds of lies that are so typical of Portland planners: easy to check, but since few will bother, they get away with it. First, although Portlanders do drive a little less than residents of other large urban areas, they also drove a little less than residents of those same urban areas 20 years ago, so that’s no change.

More important, Portlanders are in fact driving more than they were 20 years ago. Metro’s source for its data is the Texas Transportation Institute (TTI) urban mobility study. But those data only count miles of driving on freeways and other arterials. Because Portland hasn’t built any new freeways or arterials in 20 years, people are forced to drive more on collectors and other roads. When all driving is counted, according to the Federal Highway Administration (which is the source of TTI’s data), Portlanders drove an average of 22.9 miles per person per day in 2014, up 13 percent from 20.2 miles per person per day in 1994.

Metro uses lies like these to implicitly claim that all of its spending on light rail is worthwhile. In fact, light rail is just not very important to Portland travel. As the Antiplanner showed last week, transit carries just 2.6 percent of motorized travel in the Portland urban areas, and since light rail is less than 40 percent of transit, that means light rail is less than 1 percent of all motorized travel.

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Transit Down, Driving Up to Downtown Portland Jobs

By | | Transportation, Urban areas
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The Portland Business Alliance’s latest survey of downtown Portland employers shows a massive decline in transit commuting and a massive increase increase in commuting by car to downtown jobs between 2013 and 2014. The 2013 survey found that about 44,800 downtown workers commuted by transit and 36,600 commuted by car; in 2014 transit declined to 38,600 while auto increased to nearly 46,400.

At least some of this shift is likely due to survey error. As the above chart shows, 2013 numbers showed a huge increase in transit commuting combined with a sharp decline in auto commuting, both deviating from trend lines from previous years. The Antiplanner didn’t find 2013’s numbers to be credible, and this year’s survey bears that out.

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Portland Metro in a State of Denial

By | | Housing, Regional planning
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The State of Oregon should change its name to Denial, as state and local leaders seem to be living in that state most of the time. Although Portland Mayor Charlie Hales has declared the region’s housing crisis to be an emergency–one that contributed to his decision not to run for re-election–no one wants to get serious about fixing the problem.

The latest is that Metro, Portland’s regional planning agency, has decided that there is no need to expand the region’s urban-growth boundary as there is plenty of room to accommodate the 400,000 new residents that region is expected to gain in the next two decades. Metro’s plans calls for housing 80 percent of those new residents in multifamily housing primarily located in downtowns and along transit corridors.


Downtown Austin today houses about 10,000 people.

As Texas transportation official Mike Heiligenstein pointed out at the American Dream conference in Austin two weeks ago, the idea that huge numbers of people can live downtown is absurd. Downtown Austin today seems to be a forest of high-rise condos, yet only 10,000 people live there. He pictured what it would look like with 20,000 more residents and it seems impossibly dense–yet 20,000 is less than 5 percent of the region’s anticipated growth. Most Americans simply don’t want to live in Manhattan, and given the nation’s wide-open spaces, they shouldn’t have to–yet planners in both Portland and Austin think they should.
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Turning Portland into San Francisco

By | | Housing, Regional planning
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A couple of decades ago, the planning mantra in Oregon was “don’t turn Portland into Los Angeles,” meaning don’t make it more congested. So planners were a bit chagrinned to discover that their plans actually aimed to turn Portland into Los Angeles (see p. 7), meaning a dense urban area (L.A. is the densest in the nation) with a low number of freeway miles per capita (L.A. has the lowest of the nation’s fifty largest urban areas). Since then, Portland-area congestion (measured in hours of delay per commuter) has reached the Los Angeles’ 1985 level.

Today, the mantra is “don’t turn Portland into San Francisco,” meaning an extremely unaffordable housing market. So it should be no surprise that Portland planners are following exactly the policies that will turn Portland into San Francisco.

“We have a crisis of housing affordability in this city,” says Portland Mayor Hales. But expanding the urban-growth boundary is not the answer, he claims. “It’s not true that new housing at the edge is affordable,” he argues. “Maybe it once was when there was cheap land, cheap money and cheap transportation. That’s not true anymore.” Yes, but the reason it isn’t true is the urban-growth boundary. Get rid of the boundary and associated planning restrictions, and vacant land becomes cheap, and new homes built on the urban fringe will cost a lot less. In turn, that will force prices down throughout the city and region.

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Portland Attracts the Creative Class by Increasing Congestion and Demolishing Neighborhoods

By | | Transportation, Urban areas
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Joseph Rose, the Oregonian reporter who proved that streetcars are slower than walking, has left the paper’s transportation beat. So it took another Oregonian reporter, Andrew Theen, to make the brilliant discover that Portland highways really are at or above capacity.

Of course, that shouldn’t be a surprise to anyone who lives in the Portland area. According to the Texas Transportation Institute’s latest urban mobility report, Portland has more congestion today (measured by hours of delay per auto commuter) than Los Angeles did 30 years ago, when LA was considered to be about the worst congested city in the world.

It’s no wonder, since Portland and Oregon have added virtually no new road capacity since the 1970s, when the region’s population was about half what it is today. Although officials complained to Theen that new capacity was too expensive, the region hasn’t hesitated to spend roughly $5 billion on light-rail lines that carry an insignificant share of the region’s traffic.

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Portland Cuts Police to Fund TODs

By | | City planning
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The Portland Tribune reports that the number of police officers in Portland has declined by 9 percent since 2001, even as the city’s population grew by 13 percent, resulting in a 20 percent decline in officers per capita. This decline is typical for a city that is neglecting its streets, its schools, and other essential services all so that it can fund streetcars and transit-oriented developments.

The Portland Development Commission (the city’s urban-renewal agency) is using tax-increment financing (which is a polite term for stealing) to gobble up as much tax revenue as it can. According to the State Department of Revenue, that’s nearly $100 million per year (see page 45). Since nearly all of that development would have taken place without the subsidies (though perhaps not as dense as planners would like), that’s $100 million that’s not available for police, streets, schools, and other services that depend on property taxes.
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All of that urban renewal isn’t doing much to create jobs. Oregon was just ranked the second-worst state to make a living in due to its high cost of living (meaning housing costs), low average incomes, and the highest income taxes in the country.

Portland’s Housing Future

By | | Housing, Urban areas
14 Comments

The Antiplanner spent yesterday in the Portland, visiting the neighborhood where I grew up and seeing the new homes springing up in people’s backyards, sideyards, frontyards, and just about anywhere where there is a little open space. Portland planners say that 55 percent of new homes built in the next two decades will be multifamily or single-family attached homes (row houses). If the single-family homes being built in my old neighborhood are good examples of the kind of single-family planners want for the remaining 45 percent, they won’t be any more attractive than the 55 percent.

Economist Bill Reid argues that Metro planners are greatly overestimating the desire for multifamily housing. Based on a survey published by Metro itself, Reid predicts that Metro’s plans will result in a shortfall of more than 40,000 single-family detached homes. Unfortunately, Reid’s study doesn’t seem to be available on line, but it is described in this Portland Tribune article.

Predictably, one of the comments on the Portland Tribune article lauds Metro and urban-growth boundaries for protecting Oregon from becoming like “overcrowded California.” In fact, these policies are deliberately designed to turn Portland into another overcrowded California urban area.

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Turning Portland into San Francisco

By | | Housing, Regional planning, Urban areas
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Portland is “going to look like San Francisco in 10 years,” predicts real estate broker Douglas MacLeod. That’s because people like him are buying homes, demolishing them, and replacing them with two, three, or four skinny houses–houses as narrow as 15 feet in width but (unlike row houses) with around ten feet of space between them.

This continuing process has enough Portlanders upset that the city council recently voted to require developers to notify nearby homeowners at least 35 days before they begin demolition of a home, not that the homeowners will be able to do much about it. It has also led the Oregonian to commission these interactive graphics showing where homes have been replaced and how fast they are being demolished.

Of course, few are willing to discuss the real answer, which is to abolish or at least greatly enlarge Portland’s urban-growth boundary. The 2010 census found that Oregon is 98.8 percent rural, and more than 80 percent of its residents are confined to the remaining 1.2 percent that is urbanized.

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