Tuesday, August 20, 2013

Low Cost Housing and Strict Zoning are not compatible

Dennis O'Keefe is once again running for the position of mayor of St. John's, Newfoundland. His only challenger is the nearly ideologically-identical Sheilagh O'Leary. If you go to her website, you'll find she never mentions her last name anywhere. I guess she is trying to turn her name into a sort of brand-name or something.

Anyway, Overlord O'Keefe has two desires - strict city planning, building height restrictions, minimal "urban sprawl", etc. and also affordable housing. Because he has no knowledge of economics, Dennis O'Keefe cannot see the contradiction in wanting these two things. Had he attended one economics 101 class, he would have discovered that as demand goes up, if supply stays the same, price will increase. It's the most basic economic lesson.

The fact is St. John's has some of the strictest building restrictions in a country which loves restrictions. Property values are at an all-time high. The natural desire of developers in such a context is to build skyward. The more property built on a space, the less cost per unit. Another option is to build outward, expanding the size of the city. Both of these options would decrease the price of housing. But of course, this is logical and therefore no one in city council will consider it.

One objection to unrestricted building is that the Harbour will lose its cozy fishing-village look. I mean what would happen to the enormous post-card industry if multi-colored houses weren't the only things you could see! How ugly would the harbour look with those skyscrapers. Better to keep St. John's 100 years behind everyone else. Those families who want affordable housing can live somewhere else! My nostalgia matters more!

Guess what St. John's, EVERY city in North America once looked quaint. And most cities have since embraced development and modernity.

But that's not the only thing. Buildings are subject to hundreds, if not thousands, of nit-picky regulations which stifles development. I have first-hand knowledge of a building proposal for a successful company. They complied with the height requirements, were going to build parking spaces, etc. The building design which was beautiful was not approved because it didn't look like it was from a hundred years ago. By the way, the building that currently occupied the lot was a 1960s monstrosity that was now a giant nest for birds and rodents.

I always find it strange how some people think they are so important that their "desire" to keep St. John's like a little bonsai tree is more important than people's ability to live here. How much bigger and how many more thousands of people would live here if it weren't for these control freaks.

You have a right to your own property, but not everyone else's. Many people complain about large buildings destroying the view. However, if large skyscrapers could occupy the harbourfront, many MORE people would get a spectacular view. Put it this way, if there is a height restriction of 50m and that is increased to 120m, then 140% more people will get a view of the harbour.

You can't have it both ways. You either allow people to own a home at an affordable price by increasing the supply of housing or you keep your subjective post-card worthy city going and keep the price of housing very high.

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