After working on issues of urban development and cooperative housing for close to a decade in Boulder, I’ve gotten the sense that the organizational tools and public polices we are familiar with in the US are not up to the task of creating equitable, accessible, evolving, sustainable cities. We don’t seem to have any model for what urban success is supposed to look like. Either that, or our model of success is horribly inequitable and exclusive, and we’re okay with that. By default, the financing, land use, transportation, and property rights policy regimes in the US turn any successful city into a socioeconomic sorting machine — poorer residents are expelled, as land prices are bid up and the city is socially and potentially physically transformed.
There have to be other, better ways for cities to succeed — for change to happen, and new residents to be accommodated without this kind of exclusion and erasure. But much of the urban development and housing discussion in the US seems to center on giving less wealthy residents the same powers of exclusion enjoyed by richer property owners. This might be more equitable, but it’s still a bad model of urban success. Cities are powerful economic engines, and also perhaps the best available platform and scale we have for creating an ecologically sustainable civilization. We need to allow more people into our thriving cities, and somehow use this demand to facilitate their transformation into places where a high quality of life can be had — by anyone — with very low energy and material resource requirements, without destroying the social and community structures that already exist.
Richard Rothstein's recent book The Color of Law looks at the history of racism in US housing policy. It focuses especially on African Americans, and the constitutionality of these policies in light of the reconstruction era amendments that ended slavery.
Throughout the book, Rothstein makes a big point of the difference between de jure (in law) segregation and de facto (in fact) segregation. The purpose of the book (belied in its subtitle: "A forgotten history of how our government segregated America.") is to remind us that residential segregation did not just happen because private citizens expressed discriminatory preferences. Instead, he lays out the gory details of how government at all levels — through laws, official policies, financing terms, and officially sanctioned lack of enforcement — has enacted de jure segregation for more than a century. This has often included creatingand enforcing segregation where it did not previously exist, in the West, and in the northern industrial centers as successive waves of migration from the South took place in the first half of the 20th century. He argues that because this segregation was perpetrated by the government, with the full force of law, we have a constitutional obligation to ameliorate the harm it has done to generations of African Americans.
The book felt kind of like a hybrid between Michelle Alexander's The New Jim Crow (about successive & evolving systems of black subjugation after the end of slavery, especially drug-war mediated mass incarceration) and Kenneth T. Jackson's Crabgrass Frontier (a history of suburbanization in the US). One of the main themes in The New Jim Crow is the remarkable adaptability of our systems of race-based social control. We outlawed slavery, but just a few decades later, Jim Crow was in full force, disenfranchising blacks throughout the south. The Civil Rights reforms of the 1960s outlawed many Jim Crow practices, but it wasn't long before the War on Drugs and mass incarceration had filled the gap.
In my last post, I suggested that while we like to think of housing as an investment, it’s really more like a crappy savings plan, potentially redeemed by the fact that you can live inside the piggy bank. Land can be a profitable speculative investment, but allowing land to appreciate and drag the cost of housing upward in real terms is fundamentally incompatible with housing being affordable.
Economists (including Adam Smith, David Ricardo, Thomas Paine, Henry George, Thomas Friedman, Joseph Stiglitz, and Matt Yglesias) have highlighted the negative impacts of allowing land owners to collect monopolistic “ground rents” but nobody seems to care. So now tens of trillions of dollars worth of real estate in the US is predicated on the idea that landowners get to retain these speculative gains. Barring a glorious Georgist Revolution, this is probably the arrangement we have to work within.
Build, Baby Build!
Luckily, in a city with increasing land values, where property owners get to keep all of those unearned financial gains, there’s an All American Capitalist Solution™ of sorts, which can potentially keep housing affordable, even when land is expensive: build more housing on less land. By building densely, high land costs can be shared across more households, reducing the overall impacts of expensive land, and allowing home buyers & renters to pay primarily for housing instead of land.