In “a successful city district”, “Some of the old buildings, year by year, are replaced by new ones – or rehabilitated to a degree equivalent to replacement. Over the years there is, therefore, constantly a mixture of buildings of many ages and types. This is, of course, a dynamic process, with what was once new in the mixture eventually becoming what is old in the mixture.” Jane Jacobs, Death and Life, page 189
The economics of redevelopment demand jarring increases in scale; throwing away an existing building is incredibly costly, and it takes a whole lot of additional density to recoup that cost. (Auto-centric suburban boxes sit in the very middle of their sites, and often must be thrown away to accommodate buildings at the street edge.) Planners have to learn to accept that there is no magically unnoticeable “incrementalist” approach, besides gentrification and 1-for-1 displacement. The only way to absorb increasing demand and maintain a uniform scale is through wholesale clearance and reconstruction at a much higher scale.
There’s an old builders’ rule called “the 4X rule,” stated by Joel Garreau as “a new house must sell for… the price of the land under it times four. If you build too much house on the land, it will not sell because it will be viewed as too expensive for the neighborhood. If you build too little, it will be viewed as substandard, given the price.” For multifamily, hard costs per square foot are higher, and it’s more like 6-10X, but at least the price can be divided among more people.
This implies that every redevelopment has to at least quadruple the value of the site. That implies a range of possibilities:
– a redevelopment at the same size will be 4X more expensive per square foot
– a redevelopment twice the size will be 2X more expensive
– a redevelopment four times the size will be as expensive
If you want prices to be lower, not higher, you have to allow much, much more building.
This was borne out by research by Tobias Peter et al into Seattle neighborhoods, where thousands of houses were redeveloped, many into townhouses. When four units replaced one unit, the new units sold for about the same price as the unit that was replaced. When five or more units replaced one unit, the new units sold for less. But when one new (and usually much larger) house replaced one old house, the new house sold for almost three times more than the old house.

















