With the housing market still hot as a red poker despite an uptick in interest rates, Nolan Gray, in a recent article from Bloomberg’s CityLab, explores the idea of building brand-new cities (in the mode of 21st-century China or the Brasilia of the latter 20th century) to address the housing crisis. Alain Bertaud, a fellow at the Marron Institute for Urban Management and a former city planner at the World Bank, engages with Gray in this published interview to explain whether or not this is a realistic solution.
Host Abby Kinney and her co-host Charles Marohn of Strong Towns chew it over in this episode of Upzoned.
“Historically, infrastructure follows the market, not the other way around,” Kinney notes. “Huge public investments in infrastructure where there are no jobs are not really a very smart investment because the upfront costs of building an entire city's worth of infrastructure are so incredibly high. The public sector would have to be in a negative cash flow for a very long time.”
Marohn talks about places where this has actually been done, with the government fronting the money for infrastructure and subsidizing individuals through mortgages and commercial real estate loans. “They fail in every financial metric that is longer than the immediate sugar high you get out of the transaction,” he says.
There are interesting examples, as both hosts discuss, but it’s hard to beat an organically grown, incrementally developed city, where historic trial and error has made places that work. Where do you fall on this question?
Additional Show Notes“The Problem With Building a New City From Scratch,” by Nolan Gray, CityLab (April 2022).
Abby Kinney (Twitter)
Charles Marohn (Twitter)
Theme Music by Kemet the Phantom.
Accessory Dwelling Units Rock. But Should States Be Overriding Cities' Laws About Building Them?
Can Cities Like St. Louis Get Financially Stronger by Merging with Richer Places?
Can a Big City Solve a Big Housing Shortage Incrementally?
Is the Household Garage America's Favorite Room or America's Worst Mistake?
Should Single-Family Neighborhoods Be Able to Buy Their Way out of Building More Housing?
What the Explosion of the Dollar Store Says About the State of Our Cities
Would you move to a new city for $10,000?
Five Gifts For the Strong Towns Advocate in Your Life (or Just For Yourself)
Amazon HQ2: Really, New York?
Can Walmart Restore the Town Centers It Helped to Kill?
Do You Really Have to Wear a Bike Helmet?
When it Comes to Housing, Do Millennials Have a Different American Dream?
Is Landlord Greed Responsible for Vacant Storefronts in NYC?
Opportunity Zones, But for Whom?
Failure and the Scientific Method
House Flipping in the Rust Belt
Big box stores think their tax bills should be lower. Are they right?
Dams and Reservoirs Won't Save Us
Create your
podcast in
minutes
It is Free
The emPOWERed Half Hour
Social Dallas Podcast
Change Church Podcast
Nonprofits Are Messy: Lessons in Leadership | Fundraising | Board Development | Communications
System Catalysts
Advocacy Scoop Podcast