Boulder: 250,000 or Bust

Boulder has a housing problem. If you own your home, and everyone you’re close to here owns their homes, it can seem like Someone Else’s Problem. Or maybe an abstract problem to be solved in your spare time. Or maybe it’s not even a problem — just an unfortunate reality. When you rent, and are surrounded by other renters, it can feel like everyone is just waiting and wondering if they’re about to be sent into economic exile by the next rent increase or employment gap.

A couple of years ago I was at dinner with a group of younger professional types. The topic of housing came up. Those who’d bought condos were giddy — their “investment” was growing by double digits each year! Those renting were despondent. They felt like they’d missed their chance to stay here and be part of the community. It was an uncomfortable microcosm of Boulder’s housing wealth divide, playing out over years instead of decades. We quickly moved on to less divisive topics, but the divisions remained.

There are tens of thousands members of our community who don’t live here. Many would like to, but instead they drive into the city every day. We should invite them to spend the night. People working here should have the option of living here. We can do it without building on Open Space, and without building anything more than 55 — or even 38 — feet tall. If we want to, we can make most of the new housing owner occupied and permanently affordable to middle income folks, and we can do it without a mountain of public money.

However, we can’t do it without changing the city.

We can’t create affordability on a grand scale by moving money from one group of people to another. As He Who Shall Not Be Named has often informed Council: $100,000 per home to make 10,000 affordable homes is a billion dollars, or $10,000 per resident of the city! No linkage fee or tax or city bond can raise that kind of cash. It’s taken Open Space 50 years to spend its first billion.

But we can create massive amounts of durable affordability by allowing people to live modestly and share. Instead of a 5000 square foot monster home, we could allow five 1000 square foot apartments. Instead of a 3 people in a million dollar house on a $500,000 lot, we could have 12 people in five $200,000 flats, with each household paying another $100,000 for land. These numbers are rough, but some version of this strategy can make as much middle income housing as we care to have. And unlike an ADU, this density bonus is big enough that permanent affordability can be required, and still have building more housing be the most profitable option. If we did this on 10,000 single family lots, we could house 50,000 commuting households and put half of the city’s housing outside of the speculative market forever. Low income housing would still need financial support, but this strategy drastically reduces the funding required per home. It also preserves scarce public funds for helping those who actually need it.

We could do this, and we’d be much better stewards of the environment. Instead of long commutes to big houses, many folks might not drive at all, and would live in small homes built to Boulder’s stringent energy efficiency standards. City tax revenues would increase. Mass transit could be convenient and affordable. People who are already part of our community could be part of our civic life. Immigrants might actually feel welcome here. Most people wouldn’t have to worry about being priced out. A Boulder of 250,000 would still be an exclusive enclave — as any desirable place with a population cap must be — but we could choose something other than wealth as the criteria for inclusion.

This wouldn’t be a concrete jungle — it’s the same big houses we’re getting now, on the same big lots, on the same tree-lined streets. But instead of sheltering isolated millionaires, they’d be filled with people who want to share the city. Who would you prefer scraped your house?

We could do this, but we probably won’t. As the capital creeps in and sterilizes this place completely, remember that it was a choice. Remember that we chose to preserve our zoning rather than our community.

Zane Selvans wanders the Earth by bicycle with a laptop, liberating climate and energy data.

Is profit driven affordable housing possible?

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Last week at the Better Boulder Happy Hour (B2H2) we tried to talk about affordable housing.  The little nook at the Walnut Brewery was so packed that it was hard to even have a face-to-face conversation with folks, let alone do any kind of presentation that didn’t sound like an attempt at crowd control.  Which is good I guess… but not exactly what we’d planned.  I think a good chunk of the attendance was due to all the buzz generated by last Tuesday’s City Council meeting, and the talk of a citywide development moratorium.  Anyway, it was a learning experience.  We want these events to be informative, but also to get people talking to each other, and have it be more fun and social and network-building than a brown bag seminar or lecture that’s mostly going to appeal to the Usual Suspects, who are already engaged.  We need to get more “normal” people to show up and engage on these issues.

In any case, Betsey Martens, director of Boulder Housing Partners (the city’s housing authority) got up and said a few words to the assembled crowd.  She made a point which is in retrospect obvious, but that got me thinking anyway.  The costs of creating additional housing in Boulder (or anywhere, really) can be divided up into three categories:

  1. Hard development costs — the cost of actually building the housing.
  2. Soft development costs — e.g. the financing and permitting costs, carrying costs associated with regulatory delay, organizational overhead, etc.
  3. The cost of land.

She pointed out that you can do all the work you want to reduce hard and soft development costs — using standardized designs, prefabricated buildings, streamlined permitting for affordable housing — but ultimately those optimizations just nibble around the edges of affordability.  The real driver of housing costs in a desirable place is the cost of the land, which is pretty irreducible.  If you’ve got a funding stream (as we do here from our inclusionary housing policy), then you can buy up a bunch of land and create housing on it, but there’s still an opportunity cost to be had for using the land inefficiently — the same money might have created more affordable housing.

The obvious way to attack this problem is to spread the fixed land cost across more dwelling units.  You may not be able to reduce the price of the land, but you can share it with more people, decreasing per unit costs, and increasing density.  Naysayers are quick to point out that all the density in Manhattan and Tokyo has not made them cheap.  A common response is that they’re cheaper than they would have been if they hadn’t been more densely developed, but I’m not sure this is really the right answer (even if it’s true).

Continue reading Is profit driven affordable housing possible?

Unlocking Home

Alan Durning from Seattle’s Sightline Institute has put together a 50 page eBook polemic called Unlocking Home that explores and advocates for three simple code changes many North American cities could make, to almost instantly create hundreds of thousands if not millions of affordable residential units in our existing cities, without requiring subsidies or even much construction.  They all center around bringing back historical dwelling forms that have provided intrinsically affordable housing for as long as people have lived in cities, and eschewing our current habit of legally mandating middle-class norms of desirability for everyone, regardless of their own personal taste or economic means.

First, he advocates re-legalizing rooming/boarding houses in which private sleeping/living areas share some common spaces and amenities (bathrooms, kitchens, courtyards, laundry facilities, gardens, etc.).  This type of living arrangement provided affordable housing for not just the poor, but working class singles and the young and upwardly mobile in North American cities for a century or more, before it was shut down for largely racist reasons in the 1920s, with the advent of “modern” zoning laws.

Second, (in a chapter which is posted in full on Shareable) he says we should decriminalize roommates — in Cascadia alone he estimates that there are roughly 5 million bedrooms in which nobody is sleeping, partly because of occupancy limits which prohibit non-family members living together.  Even if only a small fraction of those rooms got rented out, it would be a vast affordable housing resource.  Boulder has exactly the same kind of laws, and they make creating a (legal) housing co-op here nearly impossible.

Third, he points out the latent sub-lot-scale infill capacity that converted garages, basements, carriage houses, garden cottages, and other Accessory/Auxiliary Dwelling Units (ADUs) represent. Vancouver’s Kitsilano neighborhood — a low-rise area filled with 2 and 3 bedroom duplexes built in the 1920s — managed to illegally double its population density via ADUs by the 1980s, to about 13 dwelling units per acre, without altering the character of the neighborhood.  This density is enough to allow neighborhood retail and self-supporting full and frequent mass transit.  After the fact, Vancouver decided to decriminalize these accommodations, regularizing and then encouraging them — currently they’re debating whether to require new construction to be built such that conversion to ADUs is cheap and easy in the future.

These three code changes (along with the end of off-street parking requirements) are really the low hanging fruit of sustainable, affordable housing development.  Fixing these codes is just getting out of the way, allowing people to live modestly if they prefer to do so.  There are also much more aggressive and exciting ways forward, like the Baugruppen of Germany — collaborative, community-oriented owner-built urban infill developments that now house hundreds of thousands of people.