The Amalgamated Dwellings in New York City. Photo: Theo Mackey Pollack.
I have a new article published at TAC’s New Urbs blog, about the history and legal structure of New York City’s limited-equity housing cooperatives, which continue to provide surprisingly affordable, high-quality housing units in one of the most expensive real estate markets in the United States. The piece tells the story about how limited-equity co-ops got started; their philosophical roots; their early successes; why the model declined in popularity; and how an approach that recovers its best qualities might be be compatible with various subsets of the polarized political landscape of contemporary America.
I think there’s little question that the shortage of affordable housing in the regions with the best economies is a major driving force in the structural inequality that characterizes our current moment; and that the biggest beneficiaries of this status quo are rent seekers, rather than actors who contribute anything dynamic or innovative to the economy. Taking the role of speculation out of the equation can do a lot to keep prices in line with what residents can actually afford. For the reasons described in my article, I think this is an important idea that deserves to be recovered and applied in today’s metropolitan real estate economies.
Most would not be as fancy as Alexandre Dumas’.
Driving home from the train station on a recent night, I heard this piece on NPR’s Marketplace: a story about a recent California statute that makes it significantly easier for homeowners in that state to develop additional units on their property. Here’s a link to a memo from the Department of Housing and Community Development, describing the changes. Among other things, the new statute overrides certain off-street parking requirements, which can preclude new units that would otherwise be permitted under zoning rules. These requirements are particularly onerous in large cities where public transportation is a viable option — and this law takes aim, specifically, at requirements within walking distance of transit. Of course, this development is just a small step toward achieving a land marketplace that is actually allowed to be responsive to market demands, rather than legal ones; but I think it is a very important one.
As early as the mid-1970s, the primary cases in New Jersey’s Mount Laurel doctrine began to lay out all of the major land use regulatory devices that have stifled the development of resourceful housing options since the early 20th century. Getting rid of unnecessary off-street parking requirements, and taking a publicly favorable stand toward in increase in the number of units in heavily-regulated suburban neighborhoods, are both major steps toward dismantling the regulatory morass that has been strangling housing development as the amount of raw, zoned land has dwindled throughout our major metropolitan areas. This is an important step in the right direction. Would be interested in hearing from people who would like to see a similar bill in New Jersey.
One of the most important takeaways from the NPR story was its hard evidence of pent-up demand for smaller, less-expensive housing units in pricey California. Local builders and contractors who specialize in the construction of small homes cannot keep up with demand. Their schedules are full for months into the future.