Tag Archives: urban planning

hidden parking costs

Hidden parking costs drive up the cost of rent in U.S. metropolitan areas by an average of 17% according this article. The implication is that people are paying for housing and parking together, and don’t realize it. By separating the two, the cost of housing would be reduced, and people would be free to choose to pay for parking, or use the money saved on other transportation options.

Hidden Costs and Deadweight Losses: Bundled Parking and Residential Rents in the Metropolitan United States

There is a major housing affordability crisis in many American metropolitan areas, particularly for renters. Minimum parking requirements in municipal zoning codes drive up the price of housing, and thus represent an important potential for reform for local policymakers. The relationship between parking and housing prices, however, remains poorly understood. We use national American Housing Survey data and hedonic regression techniques to investigate this relationship. We find that the cost of garage parking to renter households is approximately $1,700 per year, or an additional 17% of a housing unit’s rent. In addition to the magnitude of this transport cost burden being effectively hidden in housing prices, the lack of rental housing without bundled parking imposes a steep cost on carless renters—commonly the lowest income households—who may be paying for parking that they do not need or want. We estimate the direct deadweight loss for carless renters to be $440 million annually. We conclude by suggesting cities reduce or eliminate minimum parking requirements, and allow and encourage landlords to unbundle parking costs from housing costs.

transportation megaprojects exceed cost estimates by 28%

According to this Danish study, worldwide transportation “megaprojects” exceed their projected costs by an average of 28%.

  • In 9 out of 10 transportation infrastructure projects, costs are underestimated.
  • For rail projects, actual costs are on average 45% higher than estimated costs (sd=38).
  • For fixed-link projects (tunnels and bridges), actual costs are on average 34% higher than estimated costs (sd=62).
  • For road projects, actual costs are on average 20% higher than estimated costs (sd=30).
  • For all project types, actual costs are on average 28% higher than estimated costs (sd=39).
  • Cost underestimation exists across 20 nations and 5 continents; it appears to be a global phenomenon.
  • Cost underestimation appears to be more pronounced in developing nations than in North America and Europe (data for rail projects only).
  • Cost underestimation has not decreased over the past 70 years. No learning that would improve cost estimate accuracy seems to take place.
  • Cost underestimation cannot be explained by error and seems to be best explained by strategic misrepresentation, i.e., lying.
  • Transportation infrastructure projects do not appear to be more prone to cost underestimation than are other types of large projects.

June 2016 in Review

3 most frightening stories

  • Coral reefs are in pretty sad shape, perhaps the first natural ecosystem type to be devastated beyond repair by climate change.
  • Echoes of the Cold War are rearing their ugly heads in Western Europe.
  • Trump may very well have organized crime links. And Moody’s says that if he gets elected and manages to do the things he says, it could crash the economy.

3 most hopeful stories

  • China has a new(ish) sustainability plan called “ecological civilization” that weaves together urban and regional planning, environmental quality, sustainable agriculture, habitat and biodiversity concepts. This is good because a rapidly developing country the size of China has the ability to sink the rest of civilization if they let their ecological footprint explode, regardless of what the rest of us do. Maybe they can set a good example for the rest of the developing world to follow.
  • Genetic technology is appearing to provide some hope of real breakthroughs in cancer treatment.
  • There is still some hope for a technology-driven pick-up in productivity growth.

3 most interesting stories

more Donald Shoup!

Like I keep saying, you can never get too much Donald Shoup. Urban policy can get so complicated, but getting rid of minimum parking requirements would just be such a simple and easy thing to do, and have so many benefits.

Minimum parking requirements create especially severe problems. In The High Cost of Free Parking, I argued that parking requirements subsidize cars, increase traffic congestion and carbon emissions, pollute the air and water, encourage sprawl, raise housing costs, degrade urban design, reduce walkability, damage the economy, and exclude poor people. To my knowledge, no city planner has argued that parking requirements do not have these harmful effects. Instead, a flood of recent research has shown they do have these effects. We are poisoning our cities with too much parking…

Parking requirements reduce the cost of owning a car but raise the cost of everything else. Recently, I estimated that the parking spaces required for shopping centers in Los Angeles increase the cost of building a shopping center by 67 percent if the parking is in an aboveground structure and by 93 percent if the parking is underground.

Developers would provide some parking even if cities did not require it, but parking requirements would be superfluous if they did not increase the parking supply. This increased cost is then passed on to all shoppers. For example, parking requirements raise the price of food at a grocery store for everyone, regardless of how they travel. People who are too poor to own a car pay more for their groceries to ensure that richer people can park free when they drive to the store.

It’s one of those issues where the evidence is clear, but it may take a generation for professionals, bureaucrats, and politicians to pay attention to the evidence, reach the right conclusions, and act on them. Why is this so hard?

index of redevelopment potential

This is an index of redevelopment potential for individual properties in Philadelphia and other cities. The application to real estate is obvious, but I can also see a number of applications to public policy. For example, changes to codes and ordinances can improve the overall health, safety, and environmental impact of a city. But these get implemented slowly and incrementally, especially in older cities with fixed boundaries, where most development is redevelopment. If you had a reasonable prediction of where and when redevelopment is likely to occur, you would know which areas to sit back and be patient, and which areas of the city to intervene more directly if you want to see change on any reasonable time frame.

It’s a little bit of a shame the person is not sharing their methodology. I’ve had a number of urban planners and economists tell me over the years this is very hard to do, and seen a few try and give up. So this is either brilliant, or it is little more than a guess. If it’s brilliant it could be very valuable indeed, so I guess I can see the financial incentive not to publish the details. But there is no way to know the difference without knowing how it is done. The author could at least publish a white paper showing some back testing of the algorithm against historic data.

bicycles, airships, and things that go

I have read Cars, Trucks, and Things that Go to my 3 year old son at least 100 times. It is his favorite book in the world. I didn’t have a lot to do with this – I actually tried to steer him more toward animals and nature, but his fascination with wheels began shortly after birth and shows no signs of abating. It’s clearly baked in to his genetic makeup, which is interesting considering that almost all evolution of our genetic makeups happened before cars, trucks or other things that go (other than legs and muscles) ever existed. Perhaps humans, and the male of the species in general, just have an instinctive attraction to power, whether it comes from harnessing animals or burning things and then transferring that power through mechanical or electrical means. That would clearly give us an advantage and it makes total sense, but it is amazing that it emerges within months of birth.

I’m not going to censor Cars and Trucks and Things that Go. But there is a lot of pollution and unsafe road conditions in those books, plus head-scratching things like children driving cars, and enormous pileups where nobody gets hurt. So I think it’s great that some people are trying to update that classic winning formula with updated and more sustainable technology choices. Of course, kids don’t need to be brainwashed in the latest urban planning buzzwords, they need to be educated in how to think about systems so they can reach the right conclusions and make the right choices when they grow up. They also need to be entertained. We’ll see if this succeeds.

May 2016 in Review

3 most frightening stories

  • There are scary and seemingly reckless confrontations going on between U.S. and Russian planes and ships in the Indian Ocean. And yet, it is bizarrely humorous when real life imitates Top Gun.
  • The situation in Venezuela may be a preview of what the collapse of a modern country looks like.
  • Obama went to Hiroshima, where he said we can “chart a course that leads to the destruction” of nuclear weapons, only not in his lifetime. Obama out.

3 most hopeful stories

3 most interesting stories

  • I try not to let this blog get too political, really I do. But in an election season I just can’t help myself. This is a blog about the future of civilization, and the behavior of U.S. political, bureaucratic, and military elites obviously has some bearing on that. In May I mused on whether the U.S. could possibly be suffering from “too much democracy“, Dick Cheney, equality and equal opportunity, and what’s wrong with Pennsylvania. And yes, I’ve said it before and I’ll say it again, TRUMP IS A FASCIST!
  • The world has about a billion dogs.
  • It turns out coffee grounds may not make good compost.

“new vision” for suburbia

This article from The Smithsonian presents some ideas on the future of suburbia.

With truly autonomous vehicles still years away, no one can say with much certainty if they will result in people spending less time in cars. But Berger does foresee one big potential benefit—much less pavement. Based on the notion that there likely will be more car-sharing and less need for multiple lanes since vehicles could continuously loop on a single track, Berger believes the amount of pavement in a suburb of the future could be cut in half. You would no longer need huge shopping center parking lots, or even driveways and garages.

Not only would fewer paved surfaces increase the amount of space that could be used for carbon-storing trees and plants, but it also would allow more water to be absorbed and reduce the risk of flooding in cities downstream.

That kind of interdependence between suburbs and downtowns is at the heart of how Berger and others at the CAU see the future. Instead of bedroom communities of cul-de-sacs and shopping malls, the suburbs they’ve imagined would focus on using more of their space to sustain themselves and nearby urban centers—whether it’s by providing energy through solar panel micro-grids or using more of the land to grow food and store water.

I almost liked the article until I got to the Joel Kotkin quote:

“The reality is that the large majority of people want to live in suburbs,” says Joel Kotkin, a fellow of urban studies at Chapman University in California and the author of The Human City: Urbanism for the Rest of Us. “People make these choices for all kinds of reasons that urban theorists don’t pay attention to. They’d rather live in a detached house than in an apartment building. Or they can’t afford to live in the middle of a city. Or they’re worried about where their kids will go to school.”

It’s a scare tactic. Yes, dictators of the past may have forced people into high rise housing blocks at gunpoint in a few cases. That is not happening in the United States right now. In fact, most of us are not able to make a choice between car-dependent and walkable communities because walkable communities are in short supply. Things that are in short supply and high demand tend to be expensive. They are expensive because they are desirable and limited, not because they are undesirable and people are being forced to live there against their will. The nascent trend toward city living would have to continue for a long, long time before there is any lack of suburbs to choose from.

I can’t deny that the state of many urban school districts is problematic. Schools in the United States tend to be locally funded, so that areas with higher concentrations of poverty have worse schools. And areas with higher concentrations of minorities have worse schools because racist and ideologically anti-city politicians from rural areas are able to starve them of funding in many states. All this leads to a downward spiral of poor outcomes and low expectations that is hard to break out of.

Pennsylvania governor on anti-city policies

Here is the Pennsylvania governor talking about how state policy disadvantages cities and what could be done about it.

  • Regional land use planning
  • Zoning ordinances and planning codes that allow mixed use, high density communities
  • Urban growth boundaries like Portland, Oregon
  • Inclusive zoning like Montgomery County, Maryland
  • Change public infrastructure investment strategy to promote redevelopment of old settlements
  • Strike a better balance between highway and mass transit funding
  • Consolidate and restore old industrial sites for redevelopment
  • Reform local tax policies starting with the state taking a bigger share of funding for public education

In the end, the struggle for our cities will depend on the outcome of the competition between suburbs and cities. The outcome will largely be determined by the extent to which that competition is a fair one.

I like most of this, but I’m not so sure about the city vs. suburb talk. Part of regional coordination and planning would be to think of the success of a metro area as a whole, from its most intensely urbanized core out to the less dense areas. But I like the urban growth boundary concept, because it puts a lower limit on how far out that development can go and how much infrastructure it can gobble up to get services to people who are spread out, at every else’s expense. Education funding could be done well at this metro area scale, rather than pitting many tiny municipalities and school districts against each other as it does now (a problem across the U.S., but Pennsylvania is particularly bad). I am skeptical of the state, which draws much of its political power from the empty spaces between metro areas, being the solution. Its existence depends on sucking resources out of the population centers where economic activity happens and taxes get paid, and redistributing them to the empty spaces. Even more insidious, in our state at least racism plays a role in the urban vs. rural divide, as well as the city center vs. suburban divide.