Long-timers vs. newcomers: Census-reported rents are meaningless in some places

Earlier, I wrote about how the CNT/HUD Housing + Transportation Affordability index (HTA), while a very worthy addition to discussions around whether households can affordably live in suburban vs. urban areas, has a denominator problem at metropolitan boundaries, or even within metros which have severe income inequality. Yet LocationAffordability also has a numerator problem: For housing costs, it relies upon another Census data point which has One Weird Quirk.

Daniel Kay Hertz wrote an excellent “Definitive Field Guide to Median Rent Statistics” for City Observatory recently, noting that ACS-reported rents “Can’t answer: What is the median rental price facing people on the rental market today?”

 

DeKalb Market, Long Island University

The tract on the left (in downtown Brooklyn) is public housing, with a reported median monthly rent of $768; the tract on the right $2,467. But for someone just moving to town, the only vacancies are in that fancy new building. 

 

The rents that people report paying to the Census ACS are probably true, but in a few cities they have very little relationship to what vacant apartments are renting for. In particular, as Michael Lewyn flagged (and as we wrote up in Streetsblog a while ago) cities with rent control can look amazingly cheap:

[B]y looking at average rents, which in some cities include many rent-stabilized units, the calculation doesn’t necessarily capture what someone searching for shelter is likely to pay. If you’re trying to find an apartment in New York now, getting a place for the average rent would probably be extremely difficult.

Unlike the denominator problem, which shows up at a macro level, this discrepancy only really shows up at the micro level. I just noticed it in the recent “WalkUP equity ranking” from GW’s CREUA, which (based on HTA) found suspiciously low rents reported in some very upscale neighborhoods. I suspect the typical rents found are those paid by a small number of long-term residents in subsidized or rent-controlled units (set years ago), rather than those paid by the residents of the new luxury apartments.

HUD’s new Small Area Fair Market Rents are reported down to the ZIP code level (and have the big problem of not being available everywhere), which is a much larger level of analysis than Census tract, but they’re an attempt at figuring out a systematic answer to this problem.

McMillan isn’t next to Metro, which is less of a problem than you think

McMillan Reservoir

You can see the Capitol Dome from here. Photo by Eric Fidler, via Flickr

Yes, the McMillan Sand Filtration Site is one mile (from either end of the site) to the Red Line. It’s even 0.6 miles to the nearest express bus route (Georgia Avenue’s 79), and key network improvements are still in the planning stages. Yet from the point of view of someone who wants to reduce auto dependence (and the concomitant pollution, injury, and sprawl), what matters most is that MSFS is close to downtown, rather than close to Metro.

Transportation planning research has consistently shown that location relative to downtown and to other land uses is far more closely associated with the amount of driving than location relative to transit. Ewing and Cervero’s definitive 2010 meta-analysis (cited by 679 other scholarly articles) examined over 200 other studies, then combined the correlations found by 62 different studies:

Yes, it turns out that the number of miles that people drive is four-and-a-half times as closely correlated with the distance to downtown than with the distance to a transit stop. This strong relationship between driving and distance to downtown is borne out in local survey research by MWCOG/TPB. Note that whether an area has Metro access (like Largo or White Flint, vs. the Purple Line corridor) doesn’t actually seem to impact the number of drive-alone (SOV) trips.

Some suggest that development proposed for this site should instead go elsewhere. If the development is denied, those residents and employees and shoppers won’t just disappear, they’ll just go somewhere else. They won’t go to superior locations even closer to downtown and Metro (because those are so very plentiful!), but rather to far inferior locations. For instance, the life-sciences employers might choose an alternative location within our region that has already approved a similar mix of uses — such as Viva White Oak, Inova Fairfax, Great Seneca Science Corridor, and University Center in Ashburn, all of which are much further from both downtown and Metro.

This isn’t just the suburbs’ fault. Within the District, even more intensive development than what’s proposed at MSFS has already been given the go-ahead at locations such as the Armed Forces Retirement Home, Hecht Warehouse, and Buzzard Point. All of those sites are also inferior to MSFS from the standpoint of not just transit accessibility and distance to Metro Center, but also on all of the other factors shown to reduce VMT.

If the “Reasonable Development” types truly do care about reducing driving, I must have missed their years of caterwauling over the approval of all these other sites — not to mention the countless suburban developments that together pave over 100 acres of open space every single day in the Chesapeake Bay watershed. That’s why I give more credence to the people who do actually care about paving over the region, like the Piedmont Environmental Council — a/k/a the Coalition for Smarter Growth.

Brand-new timber loft offices, now for lease

N. Vancouver Ave. frontage of One North

Last week, I published a ULI Case Study about One North in Portland, an architecturally inventive response to my previous speculation that “new-build loft offices could be popular in similar downtown-adjacent submarkets, and transformative for Sunbelt cities where sparse ‘warehouse districts’ have little competing product.”

Indeed, the anchor tenant at One North is a mid-sized tech company that had outgrown its space in Portland’s Central Eastside. As in many other growing cities, there just wasn’t a cool old loft big enough, so instead they found a cool new loft.

T3 Minneapolis under construction

Southwest corner of T3 Minneapolis, showing CLT column stacked above concrete podium

I also had a chance last week to check in on T3, Hines’ new cross-laminated timber office building in Minneapolis. Less than a year after groundbreaking, the structure is complete and the facade is almost completely hung — almost a year faster than a comparably sized concrete building takes to build. The superstructure took less than 10 weeks to build.

The model is so successful that Hines is now replicating the T3 building at another location that’s even hungrier for lofts: Atlantic Station in Midtown Atlanta.

Here in DC, one great location could be the PDR-2 zoned land (90′ height permitted with setback, no residential) on the west side of the Met Branch Trail along Eckington and Edgewood, one of the hottest corridors in town. Another could be around Union Market/Gallaudet, where JBG’s Andrew VanHorn says “we see the tenant base there evolving. The pre-lease opportunities we’re talking to for our office building are all private market, very young companies, as far as their employee demographics.” Or maybe this is what his firm has in mind for the “creative loft office” at RTC West.

An aside: this is another strike against “Investment Ready Places.” It sounds counter-intuitive, but it’s easier to move buildings to people than to move people to buildings. The “good bones” that economically unviable places have can have “good enough” replicas in New Urbanist settings like Atlantic Station and Reston Town Center. Not to mention that building all of the new infrastructure to overcome IRPs’ deficient locations, and then rehabilitating their buildings to code, would be much more expensive than just building anew in prime locations. It’s cheaper and easier to build new lofts in Reston than to rehab lofts in West Baltimore, and to build the new rail connection that would make West Baltimore feasible for NoVA’s growing companies.

Cities are built around people, not the other way around.

One year’s progress at the Wharf

I’ve been taking a time series of photos of construction at the Wharf from two vantage points for several months now: from the Case Bridge (under the sign for D St.) and from Banneker Overlook (by the trash can).

By complete coincidence, I seem to have snapped photos on 22 July 2015 and 22 July 2016. In July 2015, excavation was wrapping up and the tower cranes were just arriving to start building back out of the hole. In July 2016, the hotel towers appear to be almost topped-off.

Cranes at the Wharf, 22 July

Banneker Overlook, July 2015. There are still pile drivers on the site to drill the foundation, but the first tower cranes had just arrived.

 

Cranes at the Wharf, 2016-07-22

Banneker Overlook, July 2016. 950 Maine Avenue is front and center; below the trusses in the middle of the block will be a 6,000-seat venue, wrapped with two apartment towers.

 

Cranes at the Wharf, 22 July

Case Bridge, July 2015. Water-side construction of the piers was still taking place, and the excavation roads were still in use.

 

Cranes at the Wharf, 2016-07-22

Case Bridge, July 2016

(This isn’t really a Friday photo post, but it’s Thursday and I’ll be on vacation tomorrow.)

Friday photo: A balcony to nowhere

Twinbrook Hilton, faux John Portman

Twinbrook Hilton, Rockville, Md.

Architect John Portman was fond of putting “balconies” around the edges of his hotels’ massive atria. Perhaps this was part of the concurrent “conversation pit” trend that afflicted malls of that era, maybe people really did just pause and gawk at the tremendous volumes while walking to/fro the elevators, or maybe he liked the “columns around the Forum” look that they lend to the interior. Yet… nobody quite knows what to do with them today.

Who, after all, has need to stop and gather in a hotel hallway, the very definition of a neither-public-nor-private space? Why not go to the lobby, if it’s a public conversation, or into a room?

At the faux-Portman Twinbrook Hilton in Rockville,* the management was sick of complaints from atrium-facing rooms (one-third of the total) about nighttime noise. One option was to replace the atrium-facing windows with airport-style noise-insulating glass, but ultimately it proved cheaper to just wall off the entire atrium with a curtain-wall system – including putting these silly aluminum doors to wall off the balconies. Maybe someday they’ll put furniture out there, which surely will just gather dust. Or maybe there really are people who use these spaces, like maybe gossipy 8th graders on school trips who don’t want to keep their roommates/chaperones awake. (Isn’t that what Snapchat is for?)

Of course, that particular solution is still better than the temporary option I once spotted at the true-Portman Bonaventure, apparently aimed at LA’s exhibitionist-fitness-enthusiast crowd:

Pod people

Westin Bonaventure, Los Angeles, Calif.

* I remember once staying here as a child and getting evacuated from the building by an overnight fire alarm, in my first (but definitely not last) high-rise fire alarm experience.

Friday photo: ENOUGH!

ENOUGH

A college friend stole this sign off a neighbor’s lawn and gave it to me in 1999 (good thing MoCo isn’t the DPRK). Of all the political lawn signs I’ve had, including a few from early Obama campaigns, it’s my obvious favorite.

Apparently, the sign was made to protest the 1998 Friendship Heights Sector Plan, which set the stage for the Wisconsin Place and Chevy Chase Collection “over-development”s.

All this “over-development” has done the local homeowners a whole lot of good: since 2000, their housing values have more than tripled.

It turns out that this very same group is involved in the recent Westbard protests (of course), wailing about how Westbard is part of a war against Western civilization. Given their history, I suggest taking their hyperventilated claims with a healthy dose of salt.

Friday photos: Jane Jacobs in Georgetown

 

Farewell Georgetown, C&O Canal

Grace Street, between Chaia and Dog Tag Bakery

There’s one passage in Death and Life where Jane Jacobs singles out the District for praise. Not surprisingly, it’s for the back streets of Georgetown, which (of course) house some of my favorite little eateries.

In city districts that become successful or magnetic, streets are virtually never made to disappear. Quite the contrary. Where it is possible, they multiply. Thus in the Rittenhouse Square district of Philadelphia and in Georgetown in the District of Columbia, what were once back alleys down the centers of blocks have become streets with buildings fronting on them, and users using them like streets. In Philadelphia, they often include commerce.

Cady's Alley shared street

Cady’s Alley, a shared street, with Leopold’s Kafe

Georgetown passages

C&O Towpath at 31st St., with Sushi to Go. Baked & Wired, Il Canale, and Snap Cafe are around the corner.

Georgetown passages

The newly opened Sovereign lies just behind the 100% corner at Wisconsin & M, at the end of an unnamed alley. More retail is planned for the interior of this block, between M, Wisconsin, Prospect, and Potomac.