In these last few decades, as Americans have flocked to major metros, two economic trends have surfaced. The first one, proven continually by coastal metros, like San Francisco and New York, is the law of supply and demand. That is, if a metro has fast population growth but limits housing supply—by maintaining what economists call an inelastic housing market—prices will increase far more than in an organic system. That’s common sense.
But another economic trend, far less explored, is the way that even elastic housing markets can struggle with high home prices, thanks to the inherent demands that come with fast growth. Some U.S. metros, after all, are increasing their populations by the high five or low six figures annually. While their housing growth is rapid, it is near-impossible for closings to occur fast enough that the market clears. So there will be ongoing housing shortages that inflate prices in certain areas and squeeze out certain demographics. This means, in plain terms, that the working class won’t always be able to find affordable housing in ideal locations.
Atlanta is one example of where this scenario plays out…[read the rest here]
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Seattle, WA — In January, city council passed an ordinance affirming Seattle “as a Welcoming City that promotes policies and programs to foster inclusion for all,” including “our immigrant and refugee neighbors.” But right now, council tolerates an interpretation of city law that keeps thousands of at-risk renters from affording the city. And it could be fixed with only a few words. You see, the Seattle Municipal Code (SMC), righteously enough, waives parking requirements for housing within a quarter mile of a bus stop with “frequent transit service” (roughly defined as transit arriving every 15 minutes). Unfortunately, the way SMC 23.84A.038 is written led a hearing examiner to interpret the law based not on if buses arrive this often on “average”, or as “scheduled”, but whether they literally arrive every 15 minutes “all the time.” The neighborhood associations have jumped on this technicality. By noting the obvious fact that not every last bus runs on time, they’re able to reduce the areas defined as receiving “frequent transit service” — and thus the areas that qualify for parking waivers. Council has already voted into law countless words about it being welcoming, taking the side of renters, and helping those with less money live in Seattle. But adopting a more common-sense definition of “frequent transit service” would be the words needed to actually create parking-free, and thus affordable, housing for such groups.Bryan Kirschner-June 13, 2018
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MARKET URBANISM
Market Urbanism is the cross between free-market policies and urban issues. Market Urbanists believe that if cities were liberalized, they would provide cheaper housing, faster transportation, enhanced public services, and a better quality of life.
