Housing Roundup #14: You Can't Build That

2023-08-29 · Source: Don't Worry About the Vase · Field: Construction & Real Estate — Architecture & Urban Planning, Real Estate Investment & Finance, Construction Technology & Building · Depth: Intermediate, extended

Summary

The article argues that excessive government regulation, zoning codes, and bureaucratic hurdles severely impede housing construction and affordability across major US cities like Los Angeles and New York City. It highlights issues such as stringent fire codes dictating street width and building setbacks, historical preservation mandates protecting undesirable structures, and costly requirements like second staircases or unnecessary elevator operators. The piece also discusses how "affordable housing" initiatives often increase costs and restrict supply, citing examples like Chicago's slavery diligence requirement and California's SB 549, which incentivizes homelessness for housing eligibility. Furthermore, it notes that aesthetic concerns significantly drive opposition to new developments, often outweighing practical considerations like parking or tax revenue, and details how new wage requirements in New York City lead developers to cap projects at 99 units to avoid higher costs. Despite these challenges, some progress is noted in places like Baltimore, New Hampshire, and California with new legislation aimed at easing restrictions.

Key takeaway

For urban planners and policymakers aiming to address housing crises, you must critically re-evaluate existing zoning laws, building codes, and "affordable housing" mandates. Your focus should shift from prescriptive, often counterproductive, regulations to market-driven solutions that incentivize construction, reduce bureaucratic delays, and allow for diverse housing types like SROs. Consider state-level preemption to overcome local NIMBYism and ensure that new developments are not stifled by excessive costs or aesthetic objections, ultimately increasing housing supply and affordability.

Key insights

Overregulation, not market forces, is the primary barrier to affordable and abundant housing in major US cities.

Principles

• Regulatory costs often exceed fire risk benefits.
• Aesthetics significantly influence public housing support.
• Coordination problems hinder SRO legalization.

Method

The article implicitly advocates for deregulation, streamlining approval processes, and implementing state or federal preemption to overcome local opposition and coordination failures in housing development.

In practice

• Implement waivers for fire code compliance.
• Prioritize aesthetic design in new construction.
• Legalize Single Room Occupancy (SRO) housing.

Topics

• Zoning Regulations
• Building Codes
• Affordable Housing Policy
• Construction Costs
• NIMBYism

Best for: Policy Maker, Consultant, Entrepreneur

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Editorial summary, takeaway, and curation by AIssential. Original article published by Don't Worry About the Vase.