Urbanexus Update - Issue #92
H. Pike Oliver compiles this weekly update of real estate and community development news. The inclusion of an article does not imply endorsement. And please note that some links may lead to items that are behind a paywall.
The economy
America’s debt spree isn’t stopping Americans have gotten used to Big Government while paying only for smaller government.
U.S. budget deficit to eclipse $1 trillion in 2020 A combination of the 2017 tax cuts and a surge in new spending has pushed the deficit wider.
Preparing for the next recession
Given the many differences between the housing market of 2008 and today, few analysts expect the next recession to have similarly devastating impacts. Nonetheless, it’s important to consider how severe the next recession is likely to be, and to prepare for the most likely impacts. RCLCO recently released the report, Impact of the Next Recession on Residential Real Estate Markets.
Office
Seattle-area office deals among the priciest nationwide
A report by Commercial Café shows eight of the country's 50 highest price office sales last year were in Bellevue and Seattle. Of these, two were in the top 10. The Seattle region's top sales were driven, in part, by Amazon, which leases the Troy Block in the South Lake Union area, and pre-leased Summit III in Bellevue. No. 9 was the sale of the two-building Troy Block. Properties occupied by Microsoft, T-Mobile, F5 Networks and Facebook also made the top 50 list.
Housing
Housing and first world problems
Since the second world war, governments across the rich world have made three big mistakes. They have made it too difficult to build the accommodation that their populations require; they have created unwise economic incentives for households to funnel more money into the housing market; and they have failed to design a regulatory infrastructure to constrain housing bubbles.
California rejects legislation to ease housing development
Phillip Sprincin writes in City Journal about the latest failure enact legislative reform to allow sufficient housing development in California. A half century of efforts to reduce environmental impacts in the Golden State have resulted more urban sprawl and increased economic inequality. It is a striking example of how government policies and regulations can lead to results that are worse than the problems they tried to solve.
A more positive view of housing regulation in California
In a post for Bloomberg Opinion, Justin Fox offers a “glass-is-half-full”assessment of how housing development regulation is evolving in California. Despite recent legislative setbacks, he thinks it's possible that state legislator attitudes toward development regulation are beginning to shift.
How can government make housing more affordable?
A quick video primer by Jenny Schuetz of the Brookings Institution outlines two housing problems: 1) low-income households cannot afford to buy or rent housing at market rates, and 2) local governments in larger metropolitan areas on the west coast and northeast of the USA have zoning laws that are too restrictive to new housing development.
Community development
Clarifying "density" — www.nytimes.com In cities, many people think “density” means crowded neighborhoods and greedy developers, but a new show at the Skyscraper Museum tells a different story.
Back to the future for urban design — www.hup.harvard.edu
Nearly everything we treasure in the world's most beautiful cities was built over a century ago. Yet the ideas and practices underlying these achievements have been abandoned. Nir Buras documents the humane design methods that held sway before the reign of Modernism and encourages us to relearn the time-tested principles of classic urban planning.
Street design is key to slowing traffic — www.strongtowns.org Two simple photos show the difference between a street simply designated 20 miles per hour, and one actually designed to be safe. We can't regulate our way to safety.
Construction
A timber revolution — architizer.com
New ways of engineering timber has seen a breadth of refreshing and innovative wooden architecture. These projects display these new methods.
Reinforced concrete core alternative — www.constructiondive.com
The 850-foot-tall, $570 million-to-$600 million Rainier Square Tower in Seattle is a proving ground for innovation in high-rise construction.
Inquiry into London's deadly Grenfell fire — www.thisisplace.org
A public inquiry into the 2017 fire at London's Grenfell Tower, which killed 72 people, has begun to zero in on how the densely populated social housing block was allowed to become a tinder box and who was to blame.
Around the world
Mass evictions prompt protests in Nigeria
Activists say evictions are leaving thousands homeless while U.N. warns of housing crisis as population surges.