Category: Politics and Society
Dispersing Expensive Centers: Edge City Version
This is somewhat of an addendum to my post before about dispersal of urban networks toward cheaper cities. I addressed the question of dispersal from rich, expensive metro areas, especially San Francisco, to cheaper ones, as a way of dealing with high housing prices. But more common is dispersal within metro areas: gentrification spilling from a rebounding neighborhood to adjacent neighborhoods that remain cheaper, and office space spilling from the primary CBD to the edge cities. I am going to address the latter issue in this post.
CBDs are expensive. They have intense demand for office space, as well as high-end retail and hotels. In many cities, there’s demand for office space even at the construction costs of supertall skyscrapers, going up to about $5,000-6,000 per square meter in privately-built New York towers. Zoning regimes resist the height required to accommodate everyone, and this is worse in Europe than in North America and high-income East Asia. Paris proper has many towers just above the 100 meter mark, but only three above 120. On a list of the tallest buildings in Sweden, not a single one above 100 meters is in central Stockholm, and the tallest within the zone are not in the CBD but in Södermalm; compare this with Vancouver, a metro area of similar size. But in the US, too, expanding CBDs is difficult in the face of neighborhood opposition, even in Manhattan.
The solution many cities have adopted is to put the skyscrapers in edge cities. Paris famously built La Defense, which has far more skyscrapers than the city proper does; Stockholm is building skyscrapers in Kista; London built Canary Wharf; Washington, the major US city with the tightest CBD height limits, sprouted skyscraper clusters in several suburbs in Maryland and Virginia. Ryan Avent proposed this as one solution to NIMBYism: in new-build areas, there are few residents who could oppose the new development. In contrast, near zoning-constrained CBDs, not only are there many residents, but also the land is so desirable that they are typically high-income, which means they have the most political power to oppose new development.
The problem with this solution is that those secondary CBDs are not public transit hubs. In Paris, this has created an east-west disparity, in which people from (typically wealthy) western suburbs can easily reach La Defense, whereas people from poorer ones need to take long RER trips and often make multiple transfers. In every transit city, the CBD is unique in that it can be reached from anywhere. To give similar accessibility to a secondary center, massive investment is required; Paris is spending tens of billions of euros on circumferential regional rail lines to improve suburb-to-suburb connectivity, expand access in the eastern suburbs, and ameliorate the east-west imbalance (see for example isochrones on PDF-pp. 20-21 of the links here). Those lines are going to be well-patronized: the estimate is 2 million daily passengers. And yet, the east-west imbalance, if nothing else, would be a lesser problem if instead of building La Defense, Paris had built up Les Halles.
The situation in other cities is similar. Kista is on one branch of one subway line, two stops away from its outer terminus. Living in Central Stockholm, my coworkers and I can get to KTH on foot or by bike, but a coworker who teaches at KTH’s satellite campus in Kista has a long commute involving circumferential buses (taking the subway and changing at T-Central would be even longer because of the detour). While many individual sub-neighborhoods of Central Stockholm are quite dense, the overall density in the center is not particularly high, certainly not by the standards of Paris or New York. A similar problem happens in Washington, where the biggest edge city cluster, Tysons Corner, is traditionally auto-oriented and was only just connected to Metro, on a branch. This always affects poorer people the worst, as they can’t afford to live in the CBD, where there is easy access to all secondary destination, and often are pushed to suburbs with long commutes.
There is a political economy problem here, as is usually the case with zoning. (Although in the largest cities skyscraper heights are pushing beyond the point of constant marginal costs, purchase prices at least in New York are much higher than construction costs.) The people living near CBDs, as noted before, are usually rich. The displacement of office space to the suburbs affects them the least, for three reasons. First, if they desire work within walking distance or short subway distance, they can have it, since their firms typically make enough money to afford CBD office rents. Second, since they live in the transit hub, they can access suburban jobs in any direction. And third, if the transit options are lacking, they can afford cars, although of course traffic and parking remain problematic. Against their lack of incentive to support CBD office space, they have reasons to support the status quo: the high rents keep it exclusive and push poor people away, and often the traditional mid-rise buildings are genuinely more aesthetic than skyscrapers, especially ones built in modernist style.
These concerns are somewhat muted in the US, where rich people decamped for the suburbs throughout the 20th century, and have supported zoning that mandates single-family housing in the suburbs, instead of staying in the city and supporting zoning that keeps the city mid-rise. This may have a lot to do with the formation of high-rise downtowns in American cities of such size that in Europe they’d be essentially skyscraper-free.
However, what’s worse in the US is the possibility of short car-free commutes to the edge cities. Where La Defense is flanked by suburbs with high residential density, and Kista’s office blocks are adjacent to medium-density housing projects for working- and middle-class people, American edge cities are usually surrounded by low-density sprawl, where they are easily accessible by car but not by any other mode of transportation. This is because the American edge cities were usually not planned to be this way, but instead arose from intersections of freeways, and developed only after the residential suburbs did. As those edge cities are usually in rich areas, the residents again successfully resist new development; this is the point made in Edgeless Cities, which notes that, in major US metro areas, growth has been less in recognizable edge cities and more in lower-density edgeless cities.
As with the possibility of dispersing innovation clusters from rich, expensive metro areas to poorer and cheaper ones, the already-occurring dispersal from city centers to edge and subsequently edgeless cities has negative effects. It lengthens transit commutes. Although in Tokyo, long commutes first arose as a problem of a monocentric CBD, and the city developed secondary CBDs as a solution, the situation in European cities an order of magnitude smaller is very different. It worsens housing segregation: the development of an edge city tends to be in the direction of the favored quarter, since that’s where the senior managers live, and conversely, higher-income workers can choose to move nearby for the short commute. Although nearly all metro areas have favored quarters, decentralization of jobs thus tends to lengthen the commutes of poor people more than those of rich people.
This is not quite the same as what happens when entire metro areas are forced to disperse due to housing cost. The agglomerations generally stay intact, since an entire industry can move in the same direction: smaller cities have just one major favored quarter with edge cities, and larger ones still only have a few, so that industries can specialize, for example in New York, biotech and health care cluster in the Edison-Woodbridge-New Brunswick edge city. Moreover, the specialized workers are usually high-income enough that they can stay in the central city or migrate to the favored quarter. San Francisco’s programmers are not forced to move individually to faraway poor neighborhoods; they move in larger numbers to ones near already gentrifying ones, spurring a new wave of gentrification in the process; were they to move alone, they’d lose the access to the tech shuttles. The negative effects are predominantly not on richer people, but on poorer people.
The problem is that even among the poor, there is little short-term benefit from supporting upzoning. If Paris, London, and Stockholm liberalize housing and office construction, the first towers built of both kinds will be luxury, because of the large backlogs of people who would like to move in and are willing to pay far in excess of construction costs. I am going to develop this point further in two posts, on what is best called NITBYism – Not In Their Backyard – but this means that the incentive for poor and peripheral populations is not to care too much about development in rich centers. The marginal additional building in a rich city center is going to go to the upper middle class; sufficient construction would trickle to the middle class; only extensive construction would serve the working class, and then not all of it.
In the US, the marginal additional building may actually displace poor people, if no new construction is allowed, simply by removing low-income apartments. It may even create local demand for high-income housing, for example by signaling that the neighborhood has improved. In San Francisco, this is compounded by the tech shuttles, as a critical mass of Silicon Valley-bound residents can justify running shuttles, creating demand for more high-income housing.
The amount of construction required to benefit the bottom half of the national income distribution is likely to be massive. This is especially true in France and the UK, which have sharp income differences between the capital and the rest of the country; their backlogs of people who would like to move to the capital are likely in the millions, possibly the high millions. Such massive construction is beyond the pale of political reality: the current high-income resident population is simply not going to allow it – when forced to share a building with the working class, it pushes for poor doors, so why would it want zoning that would reduce the market-rate rent to what the working class would afford? The only political possibility in the short run is partial plans, but these are not going to be of partial use to the working class, but of no use to it, benefiting the middle class instead. As a result, there is no push by the working class and its social democratic political organs to liberalize construction, nor by the small-is-beautiful green movement.
Ultimately, the attempt to bypass restrictions on urban CBD formation by building edge cities, like every other kludge, is doomed to failure. The fundamental problem of rich people making it illegal to build housing nearby is not solved, and is often made even worse. The commutes get worse, and the inequality in commutes between the rich and the poor grows. Office space gets built, where otherwise it would spread along a larger share of the medium-rise CBD, but for most workers, this is not an improvement, and the environmental effects of more driving have negative consequences globally. And once city center is abandoned to the rich, there is no significant political force that can rectify the situation. What seems like a workaround and an acceptable compromise only makes the situation worse.
Dispersal of Urban Networks is Bad
The debate over upzoning has reached Paul Krugman, who is a strong supporter of liberalization (and an opponent of rent control), on the grounds that rich cities like New York and San Francisco are hotbeds of productivity and people should be allowed to move to them in greater numbers. Per Krugman, zoning rules in rich cities force people out, so instead they live in environments where they are less productive and thus earn lower wages, such as the Southern US. Dietrich Vollrath, an economist studying economic growth, makes a different suggestion:
Of course, there is an equivalent solution – move everyone in San Francisco to Houston or Atlanta. The reason SF is the most productive city is not because of some fixed, inherent quality of the location at 37.78 degrees North, 122.41 degrees West. It’s certainly not because of it’s fantastic summer climate. San Fran is the most productive city because it so happened that a unique collection of nerds coalesced there starting in the 1960’s. More nerds were attracted to the bright, shiny things that the original nerds were making, and now I have an iPhone. But here’s the thing about nerds – they are easy to move. You can easily strap one to a dolly and wheel them anywhere you want.
This is the economic equivalent of proposals for population dispersal used in discussions of poverty: urban renewal tends to involve such dispersal, with negative effects on community life, social support networks, and crime. (See for example what I wrote of proposals on the Israel left to disperse black refugees away from South Tel Aviv; while I fingered just one political party, the others seem to believe the same today.) Of course, the people Dietrich characterizes as nerds are not oppressed and are not going to turn to crime because of lack of opportunity, but they will not be as productive in Houston as they are in San Francisco, for similar reasons.
The key to the Bay Area’s success in the tech sector is not that it has people who came from all over the world, who could equally congregate elsewhere. On the contrary, as per a Wired infographic, tech giants tend to hire locally: the top universities feeding Silicon Valley firms are in the Bay Area (including San Jose State, and not just Stanford and Berkeley), and the top university feeding Microsoft is the University of Washington. The Bay Area, and to a lesser extent Boston and Seattle, has a culture that propels people with interests in science and engineering toward programming. New York’s culture is different, and propels them to finance. In addition to different regional cultures, there are also university cultures: Harvard may be in Cambridge, but is far less important as a tech feeder than MIT, with fewer than half as many grads per capita going to Silicon Valley.
Dispersing people away from the Bay Area means dispersing them toward regions in which the business and social networks do not favor the same activities, and do not reward them as much. Houston has a core of nerds working for NASA, who may be interested in working for private tech firms that find themselves priced out of Boston and San Francisco. But those nerds are used to what is presumably a totally different business culture. If these private tech firms are started by local Houstonians, then they will have a business culture familiar to Houstonians, and alien to any San Franciscan they hire.
People in the software sector have specific ideas about how to do things, reinforced by what works in their industry; as a result, their ideas regarding public transit, a mature industry in which immense capital requirements and routinized tasks make the modern startup model inapplicable, are often painful and wrong, as I’ve ranted here, here, and here, and as Jarrett Walker has ranted here, here, here, and here. This also goes in the other direction – a corporate culture built around mature technology is unlikely to create innovative smartphone apps. If Uber were a Washington firm, it would be better at lobbying for regulations that would retroactively legalize it and give it favorable insurance requirements, but then it wouldn’t have invented a new way of hailing cabs in the first place. This is historically related to the growth of the Bay Area as a tech hub in the first place, as explained in Regional Advantage: Boston got there first, but its traditional corporate hierarchies couldn’t innovate at the same rate as the flatter networks of the Bay Area. One of the candidate US Sunbelt cities for poaching the tech cluster in Dietrich’s proposal, Dallas, is the home of Texas Instruments, where the integrated circuit was invented, but it is today a tertiary tech cluster because of this problem of corporate culture.
But all this assumes the tech cluster would even exist in whichever low-cost city it moved to. There is no real reason for it to do so. If high prices lead to an exodus of tech firms from the Bay Area, the community will dissipate rather than relocate. The richest members of it – Google, Apple, Facebook, the major venture capital firms – have the money to stay in the Bay Area, and to pay employees extra to cover rent in San Francisco. It’s the weaker members, typically startups, who are in danger of being priced out, and they are probably going to move to many different cities, depending on personal ties.
Once away from the Bay Area, they’d have to not only contend with a new urban culture, but also deal with it as a small minority. The same factors that cause unassimilated minorities to stay in their ethnic enclaves, even when discrimination is not a factor (ultra-Orthodox Jews own much of the housing in Brooklyn even outside their enclaves), favor clustering of industries. A hundred thousand Bay Area nerds could possibly remake parts of Houston in a way that’s favorable for their economic production; ten thousand could not. They’d have to rely on local venture capital firms, which are almost certainly looking for different business models. They’d have to recruit new workers from universities with student populations with different interests, expectations, and summer internships. In analogy with forced assimilation of ethnic whites in early- and mid-20th century America, they’d assimilate, to a nationwide economy with much lower per capita income than is normal in their sector.
The second assumption is that, if Houston became the next San Francisco, it would eventually accommodate a larger pool of tech workers. This is not necessarily true: Houston has a liberal process for permitting new construction, including of apartments, but only subject to onerous parking minimums and setbacks, which it doesn’t call zoning but which appear on the zoning codes of cities that do have zoning. It makes it easy to build new sprawl, but not so much new density, and eventually, the sprawl is going to lead to long commutes, producing the same rising prices in the deed-restricted and de facto zoned center that are seen in San Francisco and other coastal US cities. Fast-growing exurbs exist at the edge of metro areas everywhere in the US; the reason there’s not much growth in the expensive metro areas is that these exurbs are so far from the center that the commutes are too long for people to bother.
This is worse outside the US. The exact same problems of high costs coming from high rents exist in most other developed countries, only they don’t have fast-growing cities as large as Dallas, Atlanta, or Houston. Stockholm is rent-controlled and, judging by the almost complete absence of high-rises, tightly zoned; there are likely many people who’d move here if market-rate rents were in line with construction costs, but instead they have to live in Norrland, Malmö, and other peripheral areas. Houston’s metro area is not much smaller than the Bay Area’s, but in Europe, the cheaper cities are far smaller than their respective countries’ more expensive cities (often the capitals). The business networks formed in those cities would have to be smaller and less specialized. This is similar to the situation in the US involving New York’s great size, except that smaller Boston, San Francisco, and Washington achieve equivalent or higher incomes, so Houston should not be penalized for not being a hypercity.
The only problem is that Europe has no Houston. Its cheap larger cities, such as Naples and Berlin, have high unemployment and low incomes. Browse per capita income net of rent (see definitions here) by regions of European countries here, and per capita income by US metro area or county here. Houston and Dallas are both richer than the US average, and Atlanta is about 10% poorer. Berlin is 20% poorer than the German average, and 40% poorer than Munich’s region, Upper Bavaria, part of a general pattern of East-West inequality, driving a flight from the former East Germany to the West. In Italy, with its north-south divide, the southern regions, including Naples’ Campania, are about half as rich as Milan’s Lombardy, leading to a similar pattern of more immigration to the north. To tell people to move there and start their own social networks is, in American terms, like to tell people to move to Mississippi. In the smaller European countries we do not see such large income gaps, but we also do not see large metro areas with affordable housing.
Now, those rich capital cities (or non-capital ones, in the case of Milan) usually have rent control, which is how they achieve such high levels of per capita income even after subtracting rents. The people from the provinces who might have moved to them if they were cheaper do not benefit from this rent control, and have to either wait years for an apartment to open up or pay exorbitant rents. This reduces interregional mobility, and is a predictable side effect of a system in which housing is allocated to people based on how long they’ve lived in the city.
The idea of making do with tight zoning restrictions in some cities by bypassing them and developing alternative networks around the Houstons of the world is attractive, but fatally flawed. San Francisco – and Munich, and Stockholm, and Paris, and the major cities of Switzerland – is productive for reasons that go beyond individual denizens, who can be moved elsewhere freely. This, ironically, goes against the grain of San Francisco’s tech culture, which uses technology to overcome regulatory failures: NextBus and similar apps try to overcome byzantine bus schedules, Uber and Lyft try to avoid taxi medallion restrictions, AirBnB tries to overcome hotel regulations. The tech sector’s thinking is often that bad regulations should be subverted rather than reformed. It works in some cases and fails in others; in the case of zoning, it’s doomed to failure, on every level, from trying to shrink dwelling sizes to fit more people in, to recreating business clusters in cities with less awful zoning rules, as Dietrich proposes. Like Dietrich, I am pessimistic about the ability of the US and most European countries to reform their zoning rules to allow more intense urban development (or about Japan’s ability to allow more immigration), but on the other hand I also don’t think there’s any workaround avoiding a massive political fight about it.
Zoning and Market Pricing of Housing
The question of the effects of the supply restrictions in zoning on housing prices has erupted among leftist urbanist bloggers again. On the side saying that US urban housing prices are rising because of zoning, see anything by Daniel Kay Hertz, but most recently his article in the Washington Post on the subject. On the side saying that zoning doesn’t matter and the problem is demand (and by implication demand needs to be curbed), see the article Daniel is responding to in Gawker, and anything recent by Jim Russell of Burgh Diaspora, e.g. this link set and his Pacific Standard article on the subject.
This is not a post about why rising prices really are a matter of supply. I will briefly explain why they are, but the bulk of this post is about why, given that this is the case, cities need to apportion the bulk of their housing via market pricing and not rent controls, as a matter of good political economy. Few do, which is also explainable in terms of political economy.
But first, let us look at the anti-supply articles. Gawker claims that San Francisco prices are rising despite a building boom. We’ll come back to this point later, but let me note that in reality, growth in housing supply has been sluggish: Gawker links to a SPUR article about San Francisco’s housing growth, which shows there was high growth in 2012, but anemic growth in previous years. The Census put the city’s annual housing unit growth last decade at 0.8%. In New York, annual growth was 0.5%, as per a London study comparing London, Paris, New York, and Tokyo. In contrast, Tokyo, where zoning is relatively lax, growth was 2%, and rents have sharply fallen. The myth that there is a building boom in cities with very low housing unit growth is an important aspect of the non-market-priced system.
Jim’s arguments are more interesting. He quotes a Fed study showing that housing vacancies in the most expensive US cities have not fallen, as we’d expect if price hikes came from lack of supply. (In San Francisco, vacancies went up last decade, at least if you believe that the Census did not miss anyone.) This is too not completely right, because in Los Angeles County, as noted on PDF-page 18 here, vacancies did recently fall. But broadly, it’s correct that e.g. New York’s vacancy rate has been 3% since the late 1990s, as per its housing surveys. But I do not think it’s devastating to the supply position at all. The best way to think about it is in analogy with natural rates of unemployment.
Briefly: it’s understood in both Keynesian and neo-classical macroeconomics that an economy with zero employment will have high and rising inflation, because to get new workers, employers have to hire them away from existing jobs by offering higher wages. There is a minimum rate of unemployment consistent with stable inflation, below which even stable unemployment will trigger accelerating inflation. In the US, this is to my understanding about 4%; whether the recession caused structural changes that raised it is of course a critical question for macroeconomic policy. A similar concept can be borrowed into the more microeconomic concept of the housing market.
There’s also the issue of friction, again borrowed from unemployment. There’s a minimum frictional vacancy, in which all vacant apartments are briefly between tenants, and if people move between apartments more, it rises. For what it’s worth, the breakdown of 2011 New York vacancies on pages 3-4 by borough and type of apartment suggests friction is at play. First, the lowest vacancy by borough is 2.61%, in Brooklyn, not far below city average. Second, the only type of apartment with much lower vacancy than the city average is the public housing sector, with 1.4% vacancy, where presumably people stay for decades so that friction is very low; rent-stabilized units have lower vacancy than market-rate units, 2.6% vs. 4.4%, which accords with what I would guess about how often people move.
So if high rents are the result of supply restrictions, and it appears that they are, the way to reduce them should be to relax zoning restrictions. If this is done, then this allows living even in currently expensive areas without spending much on rent. Urban construction costs are lower than people think: New York’s condo average is $2,300 per square meter, and London’s is not much higher, entirely eaten by PPP conversions; Payton Chung notes the much higher cost of high-rises than that of low-rises, but the cost of high-rise apartment buildings is still only about $2,650/m^2 in Washington, and (using the same tool) about $3,100 in New York, and at least based on the same tool, mid-rises are barely any cheaper. For US-wide single-family houses, construction costs are 61.7% of sale prices, but the $3,100 figure already includes overheads and profit. Excluding land costs, which are someone else’s profit, construction, profit, and overheads are 92.5%; so let’s take our $3,100/m^2 New York high-rise and add the rest to get about $3,300, which is already more than most non-supertall office skyscrapers I have found data for in other major cities. The metro area appears to have a price-to-rent ratio of about 25, and with the caveat that this may go down slightly if the city gets more affordable, this corresponds to a monthly rent of $11 per square meter, at which point, a 100-m^2 apartment, sized for a middle-class family of four, becomes affordable, without subsidies, to families making about $44,000 a year and up, about twice the poverty line and well below the median for a family of that size. If we allow some compromises on construction costs – perhaps slightly smaller apartments, perhaps somewhat lower-end construction – we could cover most of the gap between this and the poverty line.
But given that demand for housing at prices that match construction costs, there has to be a way of allocating apartments. Under market pricing, they’re allocated to the highest bidder. If there is a perfectly rigid supply of 2 million housing units and a demand for 4 million at construction costs, the top 2 million bidders get housing, at the rent that the 2 millionth bidder is willing to pay.
I do not know of any expensive city with low home ownership that uses market pricing: too many existing residents would lose their homes. High home ownership has the opposite effect, of course – Tel Aviv may have rising rents, and high price-to-income ratios, but since home ownership is high, the local middle class is profiting rather than being squeezed, or at least its older and slightly richer members are.
Instead, cities give preference to people who have lived in them for the longest time. Rent control, which limits the increase in annual rent, is one way to do this. City-states, i.e. Singapore and Monaco, have citizenship preference for public housing to keep rents down for their citizens. Other cities use regulations, including rent control but also assorted protections for tenants from eviction, to establish this preference. Instead of market pricing allocation, there is allocation based on a social hierarchy, depending on political connections and how long one has lived in the city. People who moved to San Francisco eight years ago, at age 23, organize to make it harder for other people to move to the city at this age today.
Going to market pricing, which means weakening rent controls over the next few years until they’re dead letter, is the only way to also ensure there is upzoning. Although rent control and upzoning both seem to be different policies aimed at affordability, they’re diametrically opposed to each other: one makes it easy for people to move in, one makes it hard. As I mentioned years ago, rent-controlled cities tend to have parallel markets: one is protected for long-timers, and for the rest there is a market that’s unregulated and, because so much of the city’s housing supply is taken off it, very expensive. In exchange-rate dollars, I pay $1,000 for a studio of 30 square meters, of which maybe 20 are usable, the rest having low sloped ceilings. In PPP dollars it’s $730, still very high for the size of the unit. If I put my name on a waiting list, I could get a similar apartment for a fraction of the price; to nearly all residents, rents are far lower than what I pay, because of tight rent controls. Stockholm at least has a relatively short waiting list for rent-controlled apartments, 1.5 years, for international visitors at my university; American cities (or perhaps American universities) never do foreigners such favors.
The problem here is entirely political. Cities have the power to zone. Thus, supply depends entirely on whether local community leaders accept more housing. This housing, almost invariably, goes to outsiders, who would dilute the community’s politics, forming alternative social networks and possibly caring about different political issues. It’s somewhat telling that ultra-Orthodox Jews in the New York areas support aggressive upzoning, since the new residents are their children and not outsiders; Stephen Smith has written before about the Brooklyn Satmars’ support for upzoning, and the resulting relatively low prices. In the vast majority of the first world, with its at- or below-replacement birth rates, this is not the case, and communities tend to oppose making it easier to build more housing.
There is a certain privilege to being organized here. We see the pattern when we compare how US minorities vote on zoning to what minority community leaders say. In San Francisco specifically, activists who oppose additional development have made appeals to white gentrification in nonwhite neighborhoods, primarily the Mission District. Actual votes on the subject reveal the exact opposite: see the discussion on PDF-pp. 13-15 of this history of Houston land use controls, which notes that low-income blacks voted against zoning by an overwhelming margin because of scare tactics employed by the zoning opponents. (Middle-income blacks voted for zoning, by a fairly large margin.) Polling can provide us with additional data, less dependent on voter turnout and mobilization, and in Santa Monica, Hispanics again favor new hotel development more than whites. In areas where being low-income or nonwhite means one is not organized, low-income minorities are not going to support restrictions that benefit community leaders.
The result is that organized communities are going to instead favor zoning, because it gives them more power, as long as they are insulated from the effect of rising prices. In suburbs with high home ownership, they actually want higher prices: my rents are their property values. In cities with low home ownership, rent controls provide the crucial insulation, ensuring that established factions do not have to pay higher rents. Zoning also ensures that, since the developers who do get variances can make great profits, community groups can extort them into providing amenities. This is of course the worst in high-income areas: every abuse of power is worse when committed by people who are already powerful. But the poor can learn to do it just the same, and this is what happens in San Francisco; TechCrunch has a comprehensive article about various abuses, by San Franciscans of all social classes, culminating in the violent protests against the Google shuttles, and in many cases, the key to the abuse was the community’s ability to veto private developments.
The risk, of course, is displacement. As the gap between the regulated and market rent grows, landlords have a greater incentive to harass regulated tenants into leaving. This is routine in New York and San Francisco. Community groups respond by attacking such harassment individually, which amounts to supporting additional tenant protections. In California, this is the debate over the Ellis Act. The present housing shortages are such that supporting measures that would lower the market rent has no visible short-term benefits, and may even backfire, if a small rent-controlled building is replaced by a large unregulated building.
So with rent controls, community groups have every incentive to support restrictive zoning, and none to support additional development. With market pricing, the opposite is the case. What of low-income city residents’ access to housing, then? Daniel mentions housing subsidies as a necessity for the poor. To be honest, I don’t see the purpose, outside land-constrained cities like Hong Kong and Singapore. If it is possible through supply saturation to cut rents to levels that are affordable to families making not much more than the poverty line, say 133% of the US poverty line, the Medicaid threshold, then direct cash benefits are better. In the ongoing debate over a guaranteed minimum income, the minimum should be slightly higher than the US poverty line, which is lower as a proportion of GDP per capita than most other developed countries’ poverty lines, as seen in the government programs with slightly higher limits, led by Medicaid.
Leftists have spent decades arguing for state involvement in health care and education – not just cash benefits, but either state provision, or state subsidies combined with some measure of cost control. There are many arguments, but the way I understand them, none applies to housing:
1. Positive externalities: Ed Glaeser has noted that if some people in a metro area get more education then there is higher income growth even for other people in the area. In health care, there are issues like herd immunity.
2. Very long-term benefits: if college is as expensive as it is in the US today, it takes many years for graduates’ extra incomes to be worth the debt. With health care, the equivalent is preventive care. When benefits take so much time to accrue, first some people face poverty traps and don’t have the disposable income today to invest in their own health and education, and second, the assumptions of rational behavior in classical economics are less true.
3. Natural monopolies outside large cities: hospitals, schools, and universities have high fixed capital costs, so there can only be sufficient competition in very large cities. The same is of course true of rail transit.
4. Asymmetric information: students and parents can’t know easily whether a school is effective, and patients face the same problem with doctors; short-term satisfaction surveys, such as student evaluations, may miss long-term benefits, and are as a result very unpopular in academia.
With housing, we instead have competitive builder markets everywhere, no appreciable benefits to having your neighbor get a bigger or better apartment, and properties that can be evaluated by viewing them.
The only question is what to do in the transition from the present situation to market pricing. This is where a limited amount of protection can be useful. For example, rent controls could be relaxed into a steady annual gain in the maximum allowed real rent. While market-rate housing remains expensive, public housing is a stopgap solution, and although it should be awarded primarily based on need rather than how long one has lived in the city, a small proportion should be set aside to people in rent-controlled small buildings that were replaced by new towers. None of this should be a long-term solution, but in the short run, this may guarantee the most vulnerable tenants a soft landing.
What this is not, however, is a workable compromise. Community organizations are not going to accept any zoning reform that lets in people who are members of out-groups. They have no real reason to negotiate in good faith; they can negotiate in bad faith as a delaying tactic, which has much the same effect as present zoning regimes. What they want is not just specific amenities, but also the power to demand more in the future; it’s precisely this power that ensures the neighborhoods that are desirable to outsiders are unaffordable to them. What they want is a system in which their political connections and social networks are real resources. A city that welcomes newcomers is the exact opposite. Expensive housing is ultimately not a market failure; it’s a political failure.
California HSR Should Not Have Been Funded This Way
Last month, California made a budget deal for the formula that would be used to distribute its cap-and-trade revenues. The state’s cap-and-trade bill does not deed the money to the general budget but to a separate account, to be distributed based on a variety of goals including subsidies to programs that reduce greenhouse gas emissions. The recent deal is to give most of the money to transportation (including transit-oriented development): this year the budget gives $600 out of $850 million to transportation (see PDF-p. 6 here), of which $250 million will go to high-speed rail, and according to an informational hearing the long-term deal gives 80% of revenues to transportation, including 15% to high-speed rail. Transit bloggers who are not in the process of moving across oceans covered the issue last month as the deal was made: Streetsblog wrote about the plan, Robert Cruickshank wrote multiple times in support of the decision, and Bruce McFarling explained how HSR’s projected emissions reductions should entitle it to a share of the cap-and-trade proceeds.
In reality, although it’s a good thing that California HSR is getting funded, it’s a bad way of funding it, betraying both environmental incompetence and political mistrust. The basic problem is that the HSR project is not going to reduce emissions enough to justify 15% of the pot, nor is transportation such a big share of California’s emissions inventory to deserve 80%: it accounts for only 37% of statewide emissions. Electricity, and related sources of emissions such as building heating and industrial emissions, get far less than their share of emissions.
Bruce’s post runs the numbers on HSR, notes that the projections are currently $250-400 in construction costs per ton of CO2 reduction, and proposes that if cap-and-trade results in a carbon cost of $75 per ton then this justifies using the revenues for 20-35% of the cost of HSR. The projected revenue from cap-and-trade is a range whose top end is $5 billion statewide, corresponding to about $11 per metric ton; at this level, assuming HSR saves $250/t-CO2 means it should get 4.4% of its funding from emissions reduction, or (at the current cost of $53 billion in constant dollars) about $2.3 billion over the lifetime of the program. If the revenue is indeed $5 billion a year, this spending level is projected to be reached in 3 years.
For some evidence of what the state is really doing, consider how the deal comments on each share of the funding. The informational hearing details the investment strategy as follows:
25% for a permanent source of funding for transit operations, distributed based on greenhouse gas criteria.
20% for affordable housing and miscellaneous urban planning goals (including TOD), of which at least half must be for affordable housing (including TOD, again); the money is to be distributed based on “competitive GHG performance.”
15% low-carbon transportation, based on both long-term clean air and GHG goals.
13% energy, including electricity and building efficiency.
7% natural resources, waste diversion, and water projects.
15% HSR.
5% “new or existing” intercity rail, based on GHG criteria.
Note that internally to four categories, comprising 65% of the total funds, the hearing mentions greenhouse gas criteria. In three out of the four, comprising half of the funds, the hearing implies that the decision of how to distribute the funds will be based on competitive grants according to which project reduces emissions the most.
The key point here is that the state has effectively said what the best way is to ensure the spending side of cap-and-trade will reduce emissions optimally: projects will compete for scarce funding based on greenhouse gas criteria. Once it has made the political decision to distribute funds by a formula that disproportionately goes to transportation, it has no objection to using greenhouse gas criteria internally to each category. The problem is that the transportation projects in general and HSR in particular would never make it out of a grant process based on such criteria if they were not shielded from competition with non-transportation priorities.
There are two legitimate ways to distribute funds coming out of an externality tax, which is what cap-and-trade really is. One is to let the tax side do the work of reducing impact, and put the money into the general budget. This is common practice for most developed countries’ fuel taxes (though not the US’s). In this approach, HSR would compete with all of the state’s other budget priorities. If the state wanted to reduce other taxes against the cap-and-trade funds rather than raise spending, it could. If it wanted to spend the money on unrelated things, such as education, it could as well. There already is a more or less open and democratic budget process for this.
The other way is to reduce all political discretion, and distribute the funds based entirely on greenhouse gas criteria, without breaking the money into categories. The state seems to prefer this way, judging by its use of this process within each category. With other externality taxes there is another option, of giving the money directly to victims of the externality, e.g. spending cigarette taxes on lung cancer treatment; however, the bulk of damage caused by climate change is to developing countries, and spending cap-and-trade revenues on targeted aid to vulnerable developing countries is politically unacceptable.
The state’s hybrid approach is effectively a slush fund. High-level politicians, including Governor Jerry Brown, want to build a visible legacy, and HSR is far more visible than making household appliances consume less electricity. Emissions reductions are secondary to this concern. They’ll be happy to make their legacy a project that reduces greenhouse gas emissions, but they have no quantitative preference for projects that reduce emissions more than others. On the contrary, when they pull strings, they might even make decisions that make these projects less environmentally beneficial: the decision to connect Los Angeles to Bakersfield via Palmdale rather than directly has no technical merit, and judging by LA County’s support appears to be motivated by concerns for development in the Palmdale area. As the incremental cost of going through Palmdale is about $5 billion, nearly 10% of the HSR cost, the result is that the state is going to spend a substantial amount of cap-and-trade money on spurring more development in the High Desert exurbs.
Needless to say, when the cap-and-trade bill was passed, it did not state or even imply that the state could use the money to spur more development in the exurbs. The bill did not adopt a GHG-only approach, but listed several additional goals, none of which included transportation. Chapter 1, Part 2, paragraph h states,
It is the intent of the Legislature that the State Air Resources Board design emissions reduction measures to meet the state wide emissions limits for greenhouse gases established pursuant to this division in a manner that minimizes costs and maximizes benefits for California’s economy, improves and modernizes California’s energy infrastructure and maintains electric system reliability, maximizes additional environmental and economic co-benefits for California, and complements the state’s efforts to improve air quality.
There is an explicit mention of air quality, and explicit mentions of energy and electricity, which are only getting 13% of the funding despite accounting for 54% of emissions. Elsewhere the list of legislative intents includes vague terms such as technological leadership, but the only explicit mention of transportation in the bill is in paragraph c, which says that historically California provided leadership on several environmental issues, including emissions limits on cars as well as energy efficiency and renewable energy.
However, the cap-and-trade bill is older than the current administration, and the political priorities have changed. Since a regular budget process giving HSR the money it needs would run into opposition from competing priorities, it’s best to raid a new source of revenue, one without legislative inertia or established supporters directing the money to more useful purposes.
Hence, a slush fund.
What Elites Do Instead of Providing Services
I realized last year that even when they face a problem that is evidently about city services, city governments prefer to go for monuments that glorify their leadership. The most blatant example then was Cornell NYC Tech, the city-backed university whose campus construction alone is several times as expensive as the CUNY system per student. Since then I’ve tried to collect examples of power brokers proposing similar schemes, of which the worst is Larry Summers’ proposal to solve US inequality by spending public money on airport improvements. These are, to be frank, analogs of what American transit activists have to deal with routinely, with agencies preferring expensive iconic stations to ordinary capital and operating improvements in service.
The argument for Cornell NYC Tech is that New York needs tech entrepreneurs of the kind that Silicon Valley has, and that for that it needs its own Stanford. Instead of investing in STEM education across the CUNY system, or in its dedicated technological campus at the New York City College of Technology, it decided to start a private university from scratch, inviting other universities to bid on it. The city wanted Stanford to win the bid, but instead the winning bid was a joint effort by Cornell and the Technion, Israel’s technological university. The Technion was never run this way; it was started as a German-style technical university and is now a public university, funded and run on the same terms as the other Israeli public universities.
For Cornell NYC Tech, the city has lined up $2 billion in public and private funds for campus construction, expecting 2,000 students in 2037, which at 4% interest is $40,000 per student-year; annual capital and operating spending together, from all sources including tuition, is $16,000 per full-time equivalent student at the CUNY senior colleges and $11,000 at the CUNY community colleges (see PDF-page 65 of the budget request). This is the educational equivalent of airport connectors, which cities routinely spend several times per rider on as they would on ordinary subway extensions.
Summers’ proposal for airport improvements is in a way more frustrating, and more telling. He did not propose it as part of an independent infrastructure plan, but as a way to build public works to reduce US inequality, on the grounds that JFK is “an embarrassment as an entry point” and “the wealthiest, by flying privately, largely escape its depredations.” The proportion of people who fly privately is tiny; an income level at the bottom of the US top 1%, $400,000 per year, will buy you a lot of intercontinental business-class travel or some first-class travel, while affording a late-model Learjet requires an annual income of many tens of millions of dollars. Since poor people don’t fly as much as rich people, the users of JFK skew richer than the general city public.
My frustration comes from the fact that Summers is not trying to derail the conversation: he previously wrote about inequality as a problem and proposed standard center-left solutions, including raising taxes on capital gains and inheritances, supporting unionization, and (by implication) investment in public education. He clearly cares about the problem. He just seems to think that airport investment benefits the poor more than the rich. Most likely, this comes out of years of insider schmoozing with people so rich that they do own private jets, and generalizing to the considerably broader class of rich people.
In both cases, even on its stated merits, the proposal misses key facts about the situation. Silicon Valley began around Stanford, but once the initial tech cluster formed, it became independent of the university, so that even companies formed by people with no affiliation with Stanford or the Bay Area, such as Facebook, relocated to the area. New York is not going to grow its tech industry to the proportion of Silicon Valley’s by building an enterprise university any more than the Bay Area can become a world financial center by building affiliate universities for Columbia and NYU, from which many finance workers are recruited. As for JFK, like many of its users, when I arrive my first experience is the immigration line, a humiliating experience that involves fingerprinting and standing in line possibly for hours, depending on what terminal I use and what time I arrive. Public works will not solve that.
The problem with making even the merit-based argument is that public monuments are never truly merit-based projects. The decision-making process goes in the other direction: first the city elites (or, in case Summers’ proposal makes it into a national jobs bill, national elites) decide on something they want to see built, usually with the adjective world-class thrown in: a world-class university, a world-class airport, a world-class train station, a world-class office tower. The image of a world-class monument is more important than whether it works at its stated goal, such as improving education or transportation or fulfilling a need for class A office space.
Witness all the problems involving World Trade Center, which is being built entirely for prestige value, at enormous cost. The associated PATH station is $4 billion, almost as much as Second Avenue Subway, and about the same as 20 kilometers of subway in an average first-world city. One World Trade Center cost about $12,000 per square meter. I am not aware of any office tower in the world that is this expensive outside the WTC area and Hudson Yards; the tallest recent tower built in New York excluding 1 WTC, Bank of America Tower, cost about $5,500 per square meter in 2012 dollars, while the range I have seen for office towers in the 200+ meter range is about $2,500-6,000. Meanwhile, the WTC site struggles to find tenants: 1 WTC is almost half empty.
The sentiments after 9/11 ensured WTC would be rebuilt taller, regardless of actual demand in Lower Manhattan. Viewed through this lens, 1 WTC is not really about office space, but about proving a point about the power of US and New York to come back and not surrender to terrorism. This is why the transit spending went mainly to the PATH station and not to bringing the LIRR to Lower Manhattan, as proposed by the Regional Plan Association and studied officially in subsequent years: the LIRR project would’ve been about Lower Manhattan in general, without enhancing the specific prestige of WTC, while the billions poured into the WTC site and its PATH stations are all about the prestige.
Those other projects – various overrated transit schemes such as airport connectors, but also Cornell NYC Tech and Summers’ JFK proposals – are the same. They are not about what people living in, working in, or visiting the city need. They are not even about what they want. Whereas there was a citywide impulse to rebuild WTC taller after 9/11, there is no equivalent impulse to build an exclusive technical university, except among the power brokers. They are entirely about being able to say, “we have our own ___” and “I got that built.” It looks like development, but at best provides a fraction of the advertised value, and at worst provides nothing.
Whenever an urban project is proposed, the most important question to be asked is “what problem is this solving?”. Often, the problem is real, but there are much cheaper and less glamorous solutions. At other times, the project is a solution in search of a problem, and this is often detectable when proponents tout many unrelated benefits, almost as if the project can solve every major problem.
Compare this with solid public transit projects. Consider the lines I think North American cities should be focusing on, and the lines proposed in comments, especially as the Vermont subway in Los Angeles. In every single case, there are strong arguments for why the ridership of those lines would be high relative to the cost, and why existing subway lines (if any) and surface transit options are inadequate. The problem being solved is underserved neighborhoods with high transit demand, or in the case of the crosstown lines underserved origin-destination pairs in high demand. For other lines, not listed, there might be a separate argument regarding transit-oriented development: American cities tend to oversell TOD, as the problems with Hudson Yards show, but there do exist cases in which extending a subway line can allow dense development, or the construction of a new business district. But this involves figuring out where the development comes from – for example, the housing market may be very expensive, signaling high demand, or there may be projections of high future metropolitan population growth.
Usually, support for prestige projects to the exclusion of providing public services is the hallmark of moderates, along a broad arc from the center-left to the center-right. In the last few years, Republicans too far right to be called center-right have prioritized cutting taxes and spending and weakening the unions; signature projects conflict with their opposition to government spending. Conversely, urban leftist activists tend to oppose these prestige projects, on such grounds as gentrification, displacement, and private-sector involvement in public services.
The people in between those two ends are the ones most guilty of this kind of thinking. They are usually neo-liberal enough that they believe the government should champion market solutions and oppose industrial policy, and yet what they do is in many cases exactly industrial policy: Cornell NYC Tech is an attempt to curry favor with the technology industry. They are not so conservative as to believe government is always the problem, but the role they envision for government is to partner with the private sector to build public projects, which they tend to choose on grounds of what looks good rather than what provides the best public service. They know the buzzwords of urban politics well: for example, they’ll happily argue climate change to push a desired agenda that is usually only partly related to the problem, but lack the urgency of actual environmentalist activists and often also build roads and other dirty projects.
As with most bad things in politics, it’s a result of weak democratic institutions on the local level. American mayors tend to be elected dictators, and the opposition to them tends to be based on personality rather than ideology. In this non-ideological framework, the role of government is not to balance market and state solutions based on the voters’ preferences, but to aggrandize the leaders. Signature initiatives must appeal to the broad spectrum of non-ideological voters, so they can’t involve merely increasing spending on a chosen priority like education or transportation. Doing nothing is not an option – something has to be passed to remind people that the government still exists and has a purpose. The political incentives are against any incremental improvements that lead to tangible results, and for white elephants.
State Boundaries and the Northeast (Hoisted from Comments)
Aaron Renn’s repost on US states mattering more than some people imagine made me think about the difference in attitudes toward state lines in different US regions. Aaron’s examples of state lines mattering come from the Midwest, specifically Indianapolis and Columbus. My usual examples of state lines not mattering come from the Northeast. And those two regions treat states very differently.
Imagine a thought experiment in which Congress allows states to redraw their own boundaries – to split, merge, or change borders on their own accord. Let’s ignore the Senate – perhaps it still uses the old boundaries. Let’s also assume that this is not a completely de novo redrawing, akin to the creation of the French departments, in which states are drawn to be of specific size or population.
In such a case, in most of the US, there would be small changes only. Indiana would lose the suburbs of Chicago, Cincinnati, and Louisville, but otherwise remain intact. Virginia would lose the DC suburbs and gain the North Carolina suburbs of Hampton Roads. Tennessee would gain the Memphis suburbs, and maybe possibly lose Chattanooga. Oregon and Washington would merge. California, Texas, and Florida could either survive more or less intact or split based on metro area spheres of influence. I do not know Florida well enough, but my understanding is that Texas and California have strong enough state identity that in a referendum, their major regions would vote against a split. Ohio might have cleaved if it had had only Cleveland and Cincinnati, but I believe the presence of Columbus would make it survive more or less intact. The only Midwestern state that would be completely dismembered is Missouri, which has no equivalent of Columbus between St. Louis and Kansas City.
The opposite is true of the Northeast. From talking to people from both Upstate and Downstate New York, I believe a referendum would result in both sides voting for a split. New Jersey exists as a coherent entity only in jokes about the state made by people from other states. Pennsylvania has at least three regions that do not identify with one another. But at the same time, a coherent Northeast region exists: there are strong migration ties, not only among the four main coastal metro areas but also to and from Pittsburgh and the Upstate metro areas, which have stronger migration ties to New York and Philadelphia than to Cleveland and Chicago. Along the coast, there is also suburb-sharing, which has led to the formation of just four combined statistical areas; there’s even a chain of suburb sharing connecting New York, Allentown (now in the New York CSA), and Philadelphia, and there may soon be direct sharing between New York and Philadelphia.
Unlike in the Midwest or Texas or California, the Northeast does not have the same university-enforced state boundaries, which are probably a major reason why Columbus specifically has migration ties with the entire state but not much with areas just outside the state. In much of the Northeast, a huge number of students go to private universities. In Massachusetts as far as I can tell there are more students at private universities than at public four-year colleges. New York has a very large public university system, but the SUNY/CUNY distinction reinforces the state’s internal divisions rather than erasing them the way Ohio State does.
In terms of a national rail plan, the Northeast practically is a single state (as is the Pacific Northwest, but that’s just two states), from Portland to Quantico. In California, Texas, and Florida, and even Ohio and South Carolina, there are potentially strong in-state intercity rail routes. New York and Pennsylvania have those as well, but both have even stronger routes that cross many states. The Midwest is full of routes that cross states, but usually those connect one or two states to Chicago; the main exception, Chicago-Detroit via Toledo, is indeed not pursued, in favor of the inferior I-94 route that mainly serves Michigan.
Regional rail is similar. It is possible to come up with a plan that’s at least theoretically coherent for regional rail in most parts of the US, to be run by a state agency (or in borderline cases a bi-state agency), or by a local agency with powers delegated by the state. In the Northeast, it’s completely impossible. It’s not even possible to cleanly cleave the region into separate states for the four primary coastal metro areas, because commuter rail services on the Northeast Corridor need to share track with intercity trains at least part of the way, and building infrastructure to avoid such track-sharing is needlessly expensive.
I do not know of a transport association that crosses so many boundaries of subnational entities in Europe. French services are run by the regions; they sometimes cross boundaries, but only in the Midwestern sense of a region bordering Ile-de-France running some of its regional trains to Paris. In Germany, Berlin and Brandenburg have the same transport association, and for all intents and purposes are a single state when it comes to rail network planning. Swiss services cross cantonal borders, but at least the Zurich regional rail network is again French or Midwestern, in that there’s a core of services funded by the ZVV, and services in bordering cantons that run through. In the Northeast, there are good reasons to have commuter services run through from Philadelphia to New York along the Northeast Corridor and maybe also the West Trenton Line; even metro area boundaries are not hard, let alone state boundaries.
Stepping back from the thought experiment, let’s think of how to organize transportation planning in the US. In the Midwest and the South, states are coherent entities. In the West, the areas where states really do not mean much are deep in the Interior West, where there’s no point in building additional ground transportation infrastructure in the first place. But in the Northeast, there may have to be a special exemption treating all of it, including Northern Virginia, as a single state for planning purposes. It can’t be run as tightly as a single state because of its size and its natural division into several metro areas, but some joint service between its various divisions is unavoidable.
More in general, the Ohio example showcases how coherent state identities can be manufactured by the presence of state institutions. On maps that center Cleveland and Cincinnati, such as maps of which baseball and football teams people support, Ohio looks completely dismembered. And yet, the presence of Columbus and Ohio State changes everything when it comes to economic ties such as migration: suddenly, the otherwise-artificial state border means something in terms of social services.
This is not something Northeastern states can really do, nor should they. Pennsylvania has Penn State at State College, but it’s in a small, faraway town, and people who can instead go to Penn or Carnegie Mellon will. New York can expand CUNY and SUNY, but there are too many campuses to provide the same social function of Ohio State. Of course states should expand public higher education, in terms of both opening new campuses where needed and subsidizing tuition, but there’s no room to create a new Columbus; such expansion would provide a necessary service to state residents, but not change economic geography the way it did in Ohio.
Transit Observations from Philadelphia
I was in Philadelphia last summer for about five days. I have few observations as a pedestrian: I stayed in West Philadelphia, in the gentrifying zone radiating out of University City, and traveled to Center City, and both neighborhoods seemed intimately familiar to me as a (former) New Yorker. The street widths and setbacks looked very much like those of New York; West Philadelphia could easily be an area of Brooklyn. The difference to me was in the public transit rather than the pedestrian experience.
In New York, the subway is for everyone. The same is true of Singapore and Vancouver. In Philadelphia, it is not the case. The city is about 40% white and 40% black. On the trains I took, the Market Street subway and the Subway-Surface Trolleys, nearly everyone was black. A friend who lived in Philadelphia for ten years has observed the same on the buses, and adds that white people on buses tend to be college students.
But there’s more to the story. I think it’s a commonplace that in American cities other than New York, blacks ride public transit more than whites. What I think is more important is that whites tend to ride transit at rush hour. When I rode the trains in Philadelphia at rush hour, there was still a clear black majority on the streetcar or the subway car, but there were a fair number of whites. In the off-peak, I was at times the only white person on a streetcar that was filled to its seated capacity. The aforementioned friend says she thinks she saw the same, but as she rarely rode at rush hour, she is not sure.
It is not hard to come up with explanations for the difference. In Philadelphia, as in the typical Rust Belt city, the white population is quite suburbanized, much more so than the black population. It is also substantially richer. Both contribute to car ownership, and to driving in whenever traffic allows; since traffic is worst at rush hour, that’s when we see the most white people on public transit. The people who ride the trains and the buses outside rush hour tend to be urban residents who do not own a car, and in a city with the income distribution and racial dynamics of Philadelphia, they are predominantly black.
This injects a racial element into a lot of transit planning, especially for commuter rail. North American commuter rail is designed exclusively for suburban residents, who in Philadelphia and similar cities are usually white and at least middle-class. This is why it gets away with such poor off-peak service: hourly on most SEPTA Regional Rail lines, hourly or even every two hours on the MBTA, hourly on most branches of the New York commuter rail network. Although New York itself doesn’t have the typical Rust Belt city demographics, its suburbs have typical Rust Belt suburb demographics, so the situation is the same. The same is true of Boston, when one remembers that a huge fraction of its urban white population is in Cambridge and Somerville. Philadelphia is only where this racial division is the most obvious even on the subway.
Everything about North American commuter rail screams “you’re better than the hoi polloi who ride the subway”: the seating arrangement maximizing seating rather than standing space, the park-and-rides, the fares, the lack of fare integration with local transit, the schedules. Since peak-only suburban transit serves precisely the niche that the traditional white suburban middle class is comfortable riding transit in, it is necessarily segregated. Its riders even fight to keep it that way: witness for example the opposition in Stamford to developing the Metro-North station and moving the parking 400 meters away. This article complaining about parking lot waits is typical of the species; these complaints persist despite very high spending on commuter rail parking lots, for example in Hicksville.
The same transit agencies that fudge or make up numbers to avoid serving minority neighborhoods also ignore the possibility of improving off-peak service. Although off-peak service is cheaper to provide than peak service – it requires no new vehicles or infrastructure and fewer split-shift crews – the plans for service expansion typically focus on more peak capacity, despite often high crowding levels on off-peak trains. This is worst on commuter rail, but also affects subway and bus systems. In New York, the MTA’s crowding guidelines call for setting off-peak frequency such that the average train on each line will have 25% more riders than seats at the most crowded point of its journey. As anyone who’s ridden trains in Manhattan in the evening knows, trains are quite often much more crowded than this average. The MTA needs to keep its losses to a reasonable minimum, and on the core lines the off-peak frequency is not bad; but why keep claiming that trains only have 25% more riders than cars? The MTA is by comparison more honest about its capacity problems on the Lexington express trains, for example in the Second Avenue Subway environmental impact statement.
Many of the problems of American transit systems are directly traceable to the fact that the managers don’t often ride the trains, and their peer group is not the same as the average transit user. This is why we see little concern for off-peak service, and practically none with off-peak service on the whitest and more suburban form of transit, commuter rail. None of these managers of course intends to be racist or classist, but they unwittingly are.
Loopy Ideas Are Fine, If You’re an Entrepreneur
There is a belief within American media that a successful person can succeed at anything. He (and it’s invariably he) is omnicompetent, and people who question him and laugh at his outlandish ideas will invariably fail and end up working for him. If he cares about something, it’s important; if he says something can be done, it can. The people who are already doing the same thing are peons and their opinions are to be discounted, since they are biased and he never is. He doesn’t need to provide references or evidence – even supposedly scientific science fiction falls into this trope, in which the hero gets ideas from his gut, is always right, and never needs to do experiments.
Thus we get Hyperloop, a loopy intercity rail transit idea proposed by Tesla Motors’ Elon Musk, an entrepreneur who hopes to make a living some day building cars. And thus a fair amount of the media coverage is analysis-free summary of what Tesla already said: see stenography by ABC, Forbes, the Washington Post’s Wonkblog, and even BusinessWeek (which added that critics deal with “limited information”). Some media channels are more nuanced, sometimes even critical; the Wall Street Journal deserves especial credit, but Wonkblog also has a second, mildly critical post. But none has pressed Musk or Tesla about the inconsistencies in his proposal, which far exceed the obvious questions about the proposed $6 billion price tag (compare $53 billion in today’s money for California HSR). For better prior criticism, see James Sinclair’s post and Clem Tillier’s comment on California HSR Blog.
My specific problems are that Hyperloop a) made up the cost projections, b) has awful passenger comfort, c) has very little capacity, and d) lies about energy consumption of conventional HSR. All of these come from Musk’s complex in which he must reinvent everything and ignore prior work done in the field; these also raise doubts about the systems safety that he claims is impeccable.
In principle, Hyperloop is supposed to get people from Los Angeles to San Francisco in half an hour, running in a tube with near-vacuum at speeds topping at 1,220 km/h. In practice, both the costs and the running times are full of magic asterisks. The LA end is really Sylmar, at the edge of the LA Basin; with additional access time and security checks, this is no faster than conventional HSR doing the trip in 2:40. There is a crossing of the San Francisco Bay, but there’s no mention of the high cost of bridging over or tunneling under the Bay – we’re supposed to take it on faith the unit cost is the same as along the I-5 corridor in the Central Valley.
There is no systematic attempt at figuring out standard practices for cost, or earthquake safety (about which the report is full of FUD about the risks of a “ground-based system”). There are no references for anything; they’re beneath the entrepreneur’s dignity. It’s fine if Musk thinks he can build certain structures for lower cost than is normal, or achieve better safety, but he should at least mention how. Instead, we get “it is expected” and “targeted” language. On Wikipedia, it would get hammered with “citation needed” and “avoid weasel words.”
The worst is the cost of the civil infrastructure, the dominant term in any major transportation project’s cost. Hundreds of years of incrementally-built expertise in bridge building is brushed aside with the following passage:
The pods and linear motors are relatively minor expenses compared to the tube itself – several hundred million dollars at most, compared with several billion dollars for the tube. Even several billion is a low number when compared with several tens of billion proposed for the track of the California rail project.
The key advantages of a tube vs. a railway track are that it can be built above the ground on pylons and it can be built in prefabricated sections that are dropped in place and joined with an orbital seam welder. By building it on pylons, you can almost entirely avoid the need to buy land by following alongside the mostly very straight California Interstate 5 highway, with only minor deviations when the highway makes a sharp turn.
In reality, an all-elevated system is a bug rather than a feature. Central Valley land is cheap; pylons are expensive, as can be readily seen by the costs of elevated highways and trains all over the world. The unit costs for viaducts on California HSR, without overhead and management fees, are already several times as high as Musk’s cost: as per PDF-page 15 of the cost overrun breakdown, unit costs for viaducts range from $50 million to $80 million per mile. Overheads and contingencies convert per-mile cost almost perfectly to per-km costs. And yet Musk thinks he can build more than 500 km of viaduct for $2.5 billion, as per PDF-page 28 of his proposal: a tenth the unit cost. The unrealistically low tunnel unit cost is at least excused on PDF-page 31 on the grounds that the tunnel diameter is low (this can also be done with trains if they’re as narrow as Hyperloop, whose capsule seating is 2-abreast rather than 4- or 5-abreast as on HSR; see below on capacity). The low viaduct unit cost is not.
This alone suggests that the real cost of constructing civil infrastructure for Hyperloop is ten times as high as advertised, to say nothing of the Bay crossing. So it’s the same cost as standard HSR. It’s supposedly faster, but since it doesn’t go all the way to Downtown Los Angeles it doesn’t actually provide faster door-to-door trip times.
Nor is the system more comfortable for the passenger. Levitating systems can get away with higher cant than conventional rail because they sway less: Transrapid’s lateral acceleration in the horizontal plane is about 3.6 m/s^2 in Shanghai, and the company claims 4.37 m/s^2 is possible. On standard-gauge rail, the conversion rate is approximately 150 mm of total equivalent cant per 1 m/s^2. HSR cant tops at 180-200 mm, and cant deficiency tops at 180 mm for Talgos and 270-300 mm for medium-speed Pendolinos, so about 2.5 m/s^2 at high speed; this was shown safe by simulation in Martin Lindahl’s thesis, which is also a good source for track construction standards.
But Hyperloop goes one step further and proposes a lateral acceleration of 4.9 m/s^2: 0.5 g. This is after canting, according to the standards proposed:
The Hyperloop will be capable of traveling between Los Angeles and San Francisco in approximately 35 minutes. This requirement tends to size other portions of the system. Given the performance specification of the Hyperloop, a route has been devised to satisfy this design requirement. The Hyperloop route should be based on several considerations, including:
- Maintaining the tube as closely as possible to existing rights of way (e.g., following the I-5).
- Limiting the maximum capsule speed to 760 mph (1,220 kph) for aerodynamic considerations.
- Limiting accelerations on the passengers to 0.5g.
- Optimizing locations of the linear motor tube sections driving the capsules.
- Local geographical constraints, including location of urban areas, mountain ranges, reservoirs, national parks, roads, railroads, airports, etc. The route must respect existing structures.
For aerodynamic efficiency, the velocity of a capsule in the Hyperloop is
typically:
- 300 mph (480 kph) where local geography necessitates a tube bend radii < 1.0 mile (1.6 km)
- 760 mph (1,220 kph) where local geography allows a tube bend > 3.0 miles (4.8 km) or where local geography permits a straight tube.
These bend radii have been calculated so that the passenger does not experience inertial accelerations that exceed 0.5 g. This is deemed the maximum inertial acceleration that can be comfortably sustained by humans for short periods. To further reduce the inertial acceleration experienced by passengers, the capsule and/or tube will incorporate a mechanism that will allow a degree of ‘banking’.
0.5 g, or 4.9 m/s^2, is extreme. Non-tilting trains do not accelerate laterally at more than 1.2 m/s^2 in the plane of the track (i.e. after accounting for cant), and at high speed they have lower lateral acceleration, about 0.67 m/s^2 with limiting cases of about 0.8 for some tilting trains relative to the plane of the train floor. For example, the Tokaido Shinkansen has 200 mm of cant and maximum speed of 255 km/h on non-tilting trains on 2,500-meter curves, for 100 mm of cant deficiency, or 0.67 m/s^2.
The proposed relationship between curve radius and speed in the Hyperloop standards is for a lateral acceleration much greater than 4.9 m/s^2 in the horizontal plane: 480 km/h at 1,600 meters is 11.1 m/s^2. This only drops to 5 m/s^2 after perfectly canting the track, converting the downward 9.8 m/s^2 gravity and the sideways acceleration into a single 14.8 m/s^2 acceleration vector downward in the plane of the capsule floor, or 5 m/s^2 more than passengers are used to. This is worse than sideways acceleration: track standards for vertical acceleration are tighter than for horizontal acceleration, about 0.5-0.67 m/s^2, one tenth to one seventh what Musk wants to subject his passengers to. It’s not transportation; it’s a barf ride.
Even 4.9 m/s^2 in the horizontal plane is too much. With perfect canting, it combines with gravity to accelerate passengers downward by 11 m/s^2, 1.2 m/s^2 more than the usual, twice as high as the usual standards. Motion sickness is still to be fully expected in such a case. Transrapid’s 4.37 m/s^2, which adds 0.93 m/s^2 in the vertical component with perfect canting, is the limit of what’s possible.
Speaking of vertical acceleration, this gets no comment at all in the Hyperloop proposal. At 1,220 km/h, it is very hard to climb grades, which would require very tall viaducts and deep tunnels under mountains. Climbing grades is easy, but vertical acceleration is such that the vertical curve radius has to be very large. A lateral acceleration of 0.67 m/s^2 would impose a minimum vertical curve radius of 170 km, versus 15 km at 360 km/h HSR speed. Changing the grade from flat to 2% would take 3.4 km, and changing back would take the same, so for climbing small hills, the effective average grade is very low (it takes 6.8 km to climb 68 meters).
Nor does jerk get any treatment. Reversing a curve takes several seconds at the cant and cant deficiency of conventional HSR (about 3 seconds by Swedish standards, more by German ones); reversing a curve with the extreme canting levels of Hyperloop would take much longer. Maintaining comfort at high total equivalent cant requires tight control of the third derivative as well as the second one; see a tilting train thesis for references.
The barf ride that is as expensive as California HSR and takes as long door-to-door is also very low-capacity. The capsules are inexplicably very short, with 28 passengers per capsule. The proposed headway is 30 seconds, for 3,360 passengers per direction per hour. A freeway lane can do better: about 2,000 vehicles, with an average intercity car occupancy of 2. HSR can do 12,000 passengers per direction per hour: 12 trains per hour is possible, and each train can easily fit 1,000 people (the Tokaido Shinkansen tops at 14 tph and 1,323 passengers per train).
But even 30 seconds appears well beyond the limit of emergency braking. It’s common in gadgetbahn to propose extremely tight headways, presuming computerized control allowing vehicles to behave as if they’re connected by a rod. Personal rapid transit proponents argue the same. In reality, such systems have been a subject of research for train control for quite a while now, with no positive results so far. Safety today still means safe stopping distances. If vehicles brake at a constant rate, the safe headway is half the total deceleration time; if a vehicle brakes from 1,220 km/h to zero in 60 seconds, the average acceleration is more than 5 m/s^2, twice the current regulatory safety limit for passengers with seat belts.
Most of this could be chalked to the feeling of some entrepreneurs that they must reinvent everything. The indifference to civil engineering costs, passenger comfort issues, and signal safety could all be chalked to this. So could the FUD about earthquake safety of HSR on PDF-page 5.
However, one thing could not: the chart on PDF-page 9 showing that only the Hyperloop is energy-efficient. The chart has a train consuming nearly 900 megajoules per person for an LA-San Francisco trip, about as much as a car or a plane; this is about 1,300 kJ per passenger-km. This may be true of Amtrak’s diesel locomotives; but energy consumption for HSR in Spain is on average 73 Watt-hour (263 kJ) per passenger-km (see PDF-page 17 on a UIC paper on the subject of HSR carbon emissions), one fifth as much as Tesla claims. Tesla either engages in fraud or is channeling dodgy research about the electricity consumption of high-speed trains.
Indeed, a train with a thousand seats, 20 MW of power drawn, 60% seat occupancy, and a speed of 360 km/h can only ever expend 333 kJ per passenger-km while accelerating, and much less while cruising (acceleration at lower speed requires more energy per unit of distance, but cruising at lower speed expends only a fraction of the energy of full-power acceleration). Tesla’s train energy consumption numbers do not pass a sanity check, which suggests either reckless disregard for the research or fraud. I wouldn’t put either past Musk: the lack of references is consistent with the former, and the fact that Musk’s current primary endeavor is a car company is consistent with the latter.
There is no redeeming feature of Hyperloop. Small things can possibly be fixed; the cost problems, the locations of the stations, and the passenger comfort issues given cost constraints can’t. Industry insiders with ties to other speculative proposals meant to replace conventional rail, such as maglev, are in fact skeptical of Hyperloop’s promises of perfect safety.
It’s possible to discover something new, but people who do almost always realize the context of the discovery. If Musk really found a way to build viaducts for $5 million per kilometer, this is a huge thing for civil engineering in general and he should announce this in the most general context of urban transportation, rather than the niche of intercity transportation. If Musk has experiments showing that it’s possible to have sharper turns or faster deceleration than claimed by Transrapid, then he’s made a major discovery in aviation and should announce it as such. That he thinks it just applies to his project suggests he doesn’t really have any real improvement.
In math, one common sanity check on a result is, “does it prove too much?” If my ten-page paper proves a result that implies a famous open problem, then either my paper is wrong or I’ve proved the famous open problem, and it’s up to me to take extra care to make sure I did not miss anything. Most people in this situation do this extra step and then realize that they were subtly wrong. If a famous question could be solved in ten pages, it probably wouldn’t still be open. The same is even true in undergrad-level proof classes: if your homework answer proves things that are too strong, you’ve almost certainly made a mistake.
Musk’s real sin is not the elementary mistakes; it’s this lack of context. The lack of references comes from the same place, and so does the utter indifference to the unrealistically low costs. This turns it from a wrong idea that still has interesting contributions to make to a hackneyed proposal that should be dismissed and forgotten as soon as possible.
I write this not to help bury Musk; I’m not nearly famous enough to even hit a nail in his coffin. I write this to point out that, in the US, people will treat any crank seriously if he has enough money or enough prowess in another field. A sufficiently rich person is surrounded by sycophants and stenographers who won’t check his numbers against anything.
There are two stories here. In the less interesting one, Musk is a modern-day streetcar conspiracy mogul: he has a car company, he hopes to make money off of it in the future and uses non-generally accepted accounting to claim he already does, and he constantly trash-talks high-speed rail, which competes with his product. Since he’s not proposing to build Hyperloop soon, it could be viewed as clever distraction or FUD.
The more interesting possibility, which I am inclined toward, is that this is not fraud, or not primarily fraud. Musk is the sort of person who thinks he can wend his way from starting online companies to building cars and selling them without dealerships. I have not seen a single defense of the technical details of the proposal except for one Facebook comment that claims, doubly erroneously, that the high lateral acceleration is no problem because the tubes can be canted. Everyone, including the Facebook comment, instead gushes about Musk personally. The thinking is that he’s rich, so he must always have something interesting to say; he can’t be a huckster when venturing outside his field. It would be unthinkable to treat people as professionals in their own fields, who take years to make a successful sideways move and who need to be extremely careful not to make elementary mistakes. The superheros of American media coverage would instantly collapse, relegated to a specialized role while mere mortals take over most functions.
This culture of superstars is a major obstacle frustrating any attempt to improve existing technology. It more or less works for commercial websites, where the startup capital requirements are low, profits per employee are vast, and employee turnover is such that corporate culture is impossible. People get extremely rich for doing something first, even if in their absence their competitors would’ve done the same six months later. Valve, a video game company that recognizes this, oriented its entire structure around having no formal management at all, but for the most part what this leads to is extremely rich people like Bill Gates and Mark Zuckerberg who get treated like superstars and think they can do anything.
In infrastructure, this is not workable. Trains are 19th-century technology, as are cars and buses. Planes are from the 20th century. Companies can get extremely successful improving the technology somehow, but this works differently from the kind of entrepreneurship that’s successful in the software and internet sectors. The most important airline invention since the jet engine is either the widebody (i.e. more capacity) or the suite of features that make for low-cost flights, such as quick turnarounds. What Southwest and its ultra low-cost successors have done is precious: they’ve figured how to trim every airline expense, from better crew utilization to incentives for lower-transaction cost booking methods. This requires perfect knowledge of preexisting practices and still takes decades to do. The growth rate of Microsoft, Google, and Facebook is not possible in such an environment, and so the individual superstar matters far less than a positive corporate culture that can transmit itself over multiple generations of managers.
There is plenty of room for improvement in HSR technology, then, but it’s of a different kind. It involves adapting techniques used by low-cost airlines to reduce costs, as SNCF is doing right now with its new low-cost TGV product. It perhaps involves controlling construction costs more tightly, though $5 million per km for viaducts seems like an impossible fantasy. But it has to come from within the business, or from someone who intimately understands the business.
And with the kind of success that US media harps on, this is almost impossible to do domestically. Someone as smart as Musk, or any of many other Silicon Valley entrepreneurs, could find a detailed breakdown of the operating and construction costs of civil infrastructure, and figure out ways of reducing them, Megabus- or Southwest-style. That’s what I would do if I had the unlimited resources Musk has: I’d obtain unit costs at far greater detail than “X meters of tunnel cost $Y” and compare what New York is doing wrong that Madrid is doing right. But I don’t have the resources – in money, in ability to manage people, in time. And the people who do are constantly told that they don’t need to do that, that they’re smart enough they can reinvent everything and that the world will bow to their greatness.
Update: people all over the Internet, including in comments below, defend the low cost projections on the grounds that the system is lighter and thinner than your average train. The proposal itself also defends the low tunneling costs on those same grounds. To see to what extent Musk takes his own idea seriously, compare the two proposals: the first for a passenger-only tube, and the second for a larger tube capable of carrying both passengers and vehicles. On PDF-pp. 25-26, the proposal states that the passenger-only tube would have an internal diameter of 2.23 meters and the passenger-plus-vehicle tube would have an internal diameter of 3.3 meters, 47% more. Despite that, the tunneling costs on PDF-p. 28 are $600 and $700 million, a difference of just 17%.
The same is true of the “but the Hyperloop capsule is lighter than a train” argument for lower pylon construction costs. Together with the differences in tube thickness posited on PDF-p. 27, 20-23 mm versus 23-25, there is 60% more tube lining in the passenger-plus-vehicle version, but the tube and pylons are projected to cost just 24% more. In this larger version, the twin tube has 0.025*3.3*pi*2 = 0.5 cubic meters of steel per meter of length, weighing about 4 tons. This ranges from a bit less than twice to a bit more than twice the weight of a train. To say nothing of the pylons’ need to support their own considerable weight, which is larger than for HSR due to the need for taller viaducts coming from the constrained ability to change grade. They are far more obtrusive than trees and telephone poles, contra the claims of minimal obtrusiveness and disruption.
Update update (12/24): Hyperloop is in the news again; I’ve been getting a lot of pingbacks copying this article. You can read the plan here; the construction costs are now up from a laughable sub-$10 million per kilometer to $10-30 million, which is perfectly feasible if you’re building in flat terrain and if what you’re building is conventional rail and not a vactrain. There’s virtually no discussion of why the costs are so much lower, just an assurance that the team ran the numbers and that they’re looking into minimizing the costs of the construction material (costs that, for conventional HSR, are a small proportion of the total construction costs – concrete is cheap, it’s pouring it that’s expensive). On PDF-p. 19 of the new plan, the accelerations are explicitly stated to be 0.5 g in normal service, which the person heading the team trying to build it claims is not a barf ride in the article, but which is in reality is again worse than the acceleration felt by passengers on an airplane taking off. There already exists a mode of transportation that involves security theater, travel at 1,000 km/h, poor comfort, and motion sickness.
Tel Aviv Needs a Subway, Done Right
After decades of false starts, Tel Aviv is finally building a subway-surface line. The political opinions of activists and urban planners in Israel are divided between supporters, who believe the line is long overdue, and opponents, who instead believe buses remain the solution and also oppose the Jerusalem light rail. I on the contrary think that on the one hand Tel Aviv needs a subway, but on the other hand the current plan has deep flaws, both political and technical, and is learning the wrong lessons from recent first-world greenfield subways.
In some ways, the Tel Aviv subway resembles New York’s Second Avenue Subway. It passes through neighborhoods that are very dense – the line under construction connects some of the densest cities in Israel, albeit poorly. Nobody believes it will be built because of all the false starts. Real incompetence in construction leading to cost overruns has led to speculation about much greater cost overruns.
For nearly a hundred years, the conurbation around Tel Aviv and Jaffa has been the largest metro area in what is now Israel; it is also the largest first-world metro area outside the US that has no urban rail. There were preliminary plans for a Tel Aviv subway in the 1930s, followed by repeated plans since independence, all of which were shelved. A proposal from just after independence for developing coastal Israel around rail and rapid transit trunks was rejected by Prime Minister David Ben Gurion because it conflicted with the political goal of Jewish population dispersal; to further its political goals, the state concentrated on building roads instead. In the late 1950s there was a new integrated national rail plan that was not implemented. Haifa got a six-station, one-line funicular, but Tel Aviv and Jerusalem remained bus-only. In the 1960s a skyscraper in Central Tel Aviv was built with a subway station, but there were no tunnels built; a subsequent 1971 plan was abandoned in 1973 due to the Yom Kippur War. The current subway plan dates to the 1990s, and has suffered from repeated delays, and construction only began recently, with opening expected for 2016.
Unlike in the North American debate, in Israel the left is pro-BRT and anti-rail, due to a long tradition of mistrust in mainstream (center-right to right-wing) politics. The same is true of urban planners who follow the Jacobsian tradition, such as Yoav Lerner Lerman (Heb.). The article I translated two years ago about Jerusalem’s light rail is in that tradition: it attacks genuine problems with cost overruns and a politicized route choice process, but then concludes that BRT is the solution because it’s been implemented in Curitiba and Bogota successfully. The result is that people whose ideas about trade, energy, health care, education, and housing are well to the left of what is considered acceptable in the US end up channeling the Reason Foundation on bus versus rail issues.
In reality, Tel Aviv’s urban form is quite dense. The city itself has 8,000 people per square kilometer, much lower than Paris and Barcelona, but higher than most other European central cities (say, every single German city). Like Los Angeles, its municipal borders do not conform to the informal borders of the inner-urban area, since it contains lower-density modernist neighborhoods north of the Yarkon, while dense Ramat Gan, Giv’atayim, Bnei Brak, and Bat Yam are separate municipalities. The inner ring of suburbs, including the above-named four, has 7,400 people per square kilometer; excluding the more affluent but emptier northern suburbs, this approaches 10,000/km^2.
However, the urban form is quite old, in the sense that the density is fairly constant, without the concentrations of density near nodes that typify modern transit cities. Tel Aviv’s residential high-rise construction is not very dense because it still follows the modernist paradigm of a tower in a park, leading to low lot coverage and a density that’s not much higher than that of the old four-story apartment blocks. The Old North achieves about 15,000 people per square kilometer with a floor area ratio of 2: the setbacks are such that only about half of each lot is buildable, and there are four floors per building. The Akirov Towers complex averages about 2.5.
Although this density pattern favors surface transit rather than rapid transit, Tel Aviv doesn’t have the street network for efficient surface transit. Paris, a poster child for efficient recent construction of light rail (see costs and ridership estimates on The Transport Politic), is a city of wide boulevards. Central Tel Aviv has about two such streets – Ibn Gabirol and Rothschild – and one auto-oriented arterial, Namir Road, which the subway line under construction will go under. The street network is too haphazard to leverage those two for surface BRT or light rail, and the major destinations of the central areas are often on narrower streets, for example Dizengoff. On top of that, light rail speeds in Paris are lower than 20 km/h, whereas newly built subways are much faster, approaching 40 km/h in Vancouver and Copenhagen. Outside Central Tel Aviv, the roads become wider, but not nearly as wide as those used for BRT in Bogota, and there is nothing for surface transit on those streets to connect to on the surface. A surface implementation of Route 66, following Jabotinsky Street (the eastern leg of the subway line under construction) in Ramat Gan, Bnei Brak, and Petah Tikva, wouldn’t be very fast on the surface to begin with, but would come to a crawl once crossing the freeway into Tel Aviv.
Tel Aviv also has two more important reasons to imitate Vancouver and Copenhagen, besides speed: religious politics, and economic and demographic comparability. Public transportation in Israel operates six days a week, with few exceptions, to avoid running on the Sabbath. A driverless train, built to be quiet even on elevated sections, with no turnstiles and free fares on the Sabbath, could circumvent religious opposition to seven-days-a-week operation.
Even without the religious question, Copenhagen and especially Vancouver are good models for Tel Aviv to follow, more so than middle-income Curitiba or Bogota. Israel is a high-construction cost country, but Canada is not very cheap, and Vancouver has cut construction costs by making elevated trains more palatable and reducing station lengths. Greater Tel Aviv has 2.5-3.5 million people depending on who you ask, not much higher than the range for Copenhagen and Vancouver. Tel Aviv is about as dense as Copenhagen and Vancouver, though Vancouver’s density is spikier. Tel Aviv expects fast population growth, like Vancouver, though in Tel Aviv’s case it’s a matter of high birth rates whereas in Vancouver it’s only immigration.
One way in which Vancouver is not a good model is the role of regional rail. Israel has no equivalent of Transport Canada or FRA regulations. It even connected Tel Aviv’s northern and southern rail networks and through-routes nearly all commuter and intercity trains. However, the network has real limitations, coming from its poor urban station locations, often in highway medians; the through-running project was completed simultaneously with the construction of the freeway. For example, the Tel Aviv University station is located far downhill from the actual university. As a result, even when there is development near the train stations, it is usually not walkable. This compels new rail service with stations in more central locations as well as east-west service, complementing the north-south mainline.
However, for service to the less dense suburbs, the construction of new lines, and electrification of the entire national network (so far only the Haifa commuter network is scheduled for electrification), should provide the backbone. There is no integrated planning between regional rail and shorter-distance urban rail, the first failing of the current plan.
More broadly, the plan fails not just because of the wrong mode choice – subway-surface rather than driverless metro with a regional rail complement – but also because of how it treats urban geography. The proposed network – on which the red line is under construction and the green line is intended to be the second built – is too sparse in the center, and ignores the older urban centers. The phasing ignores preexisting transportation centers, and often the choice of who to serve and how to serve them is political.
The worst political decision concerns Jaffa, the old core of the metro area. (Tel Aviv was founded as a nominally independent city, but really as a Jewish suburb of Jaffa.) The most activity is in the Old City and the Flea Market, going down along Yefet Street to Ajami, since 1948 the only majority-Arabic speaking neighborhood in the municipality, and the only neighborhood that is completely unplanned. The streets are narrow, favoring a subway, and the residents are poor and have low car ownership rates. Instead, the route through Jaffa is on the surface and follows Jerusalem Boulevard, a less busy road built by the city’s then-mayor out of envy of then-separate Tel Aviv’s Rothschild Boulevard. This serves the more gentrified Jewish parts. Ajami is gentrifying – it’s close to Central Tel Aviv, is right next to the coast, and has stunning architecture – but is still majority-Arab.
The other neighborhood that due to ethnic differences is viewed separately from Tel Aviv, Hatikva, is also underserved. In this case, the residents are Jewish, but are predominantly Mizrahi and traditional-to-religious, with high poverty levels. The plan does serve Hatikva, but much later than it should given the neighborhood’s density, intensity of low-end commercial activity, and proximity to Central Tel Aviv. A northwest-southeast line, following Dizengoff and then serving Central Bus Station (a larger transportation center still than any mainline rail station) and Hatikva before continuing east into the inner suburbs, should be a high priority, but isn’t. The Central Bus Station area is also a concentration of refugees, another low-income, low-car ownership population, though since this concentration is more recent than the plans for the subway, the lack of priority service to the bus station is not a result of racism.
It’s not only about class reasons, or racial ones: Tel Aviv had to fight to get the Ministry of Transportation to agree to build the second line underground under Ibn Gabirol, and that’s to an upper middle-class Ashkenazi neighborhoods. The common thread within the city proper is a preference for new modernist luxury towers over serving existing walkable density, even when that density is hardly lower than what the towers are providing. (The towers can be built more densely, with less open space; by the same token, the low-rise buildings could be upzoned from one half the lot and four story to three-quarters and six stories.)
Another example of bad politics is the way military bases are served. The very center of Tel Aviv is home to the Ministry of Defense and the main military headquarters, the Kirya. The inner urban area is ringed with much larger military bases, including Tsrifin to the south, Glilot to the north, and the Bakum to the east. But the officer corps is concentrated in the Kirya, while Tsrifin is a more general base, Bakum is dedicated to new draftees so that they can be told what unit they’re to be sent to, and Glilot is somewhat higher-end than Tsrifin due to its role in military intelligence but still lacks the Kirya’s concentration of high-ranking officers. Since draftees almost never own cars and often ride buses for hours, the three outlying bases are all natural outer anchors for lines, and Glilot and Tsrifin both lie on easy spurs from the mainline rail network. Despite this, there are no plans for regular service, while the Kirya is part of the subway line under construction and is the intersection point with the second line to be built.
Even on pure geography, the plan makes critical mistakes. The eastern leg of the line under construction is much better than its southern leg: it goes straight from the train station through Ramat Gan and Bnei Brak to a secondary anchor in Petah Tikva. And yet, the station spacing in Bnei Brak, the densest city in Israel, is the widest, even though higher density allows shorter station spacing. In contrast, the surface segment in less dense Petah Tikva is intended to have denser stop spacing. Moreover, despite the advantages subway-surface operation has in terms of branching, the branching is meant to be really a short-turn, with half of all trains going straight to the depot still in the underground section and half continuing to Petah Tikva. Central Petah Tikva is well to the south of the line, which is intended to terminate at Petah Tikva’s peripherally located central bus station, but there is no branch serving that center, despite high intended frequencies (3 minutes on the surface, 1.5 minutes underground).
I believe that in addition to an electrified mainline rail trunk, Tel Aviv needs a driverless subway network that looks roughly like an E: one or two north-south lines (west of the freeway if one, one on each side if two), three east-west lines intersecting the mainline rail at the three main Tel Aviv stations. The east-west lines should be anchored at the eastern ends at Petah Tikva, Bar Ilan University, and the Bakum or Kiryat Ono; the north-south lines should go about as far north and south as required to serve the center, letting mainline rail take care of destinations roughly from Glilot or Herzliya north and from Tsrifin south. Such a network would not serve political goals of making Tel Aviv a luxury city; it would just serve the transportation goals of the urban area’s residents.
Quick Note: Why Quinn is Unfit to be Mayor
The Triboro RX plan calls for using preexisting freight rail rights-of-way with minimal freight traffic to build a circumferential subway line through the Bronx, Queens, and Brooklyn. It was mentioned as a possible project by then-MTA head Lee Sander and more recently by Scott Stringer and on The Atlantic Cities by Eric Jaffe. Despite not having nearly as much ridership potential as Second Avenue Subway or a future Utica subway, the presumed low cost of reactivating the right-of-way makes it a promising project.
According to Capital New York, leading mayoral contender Christine Quinn has just made up a price tag of $25 billion for Triboro, while claiming that paving portions of the right-of-way for buses will cost only $25 million. This is on the heels of city council member Brad Lander’s proposal for more investment in bus service. The difference is that Lander proposed using buses for what buses do well, that is service along city streets, and his plan includes bus lanes on major street and what appears to be systemwide off-board fare collection. In contrast, Quinn is just channeling the “buses are always cheaper than rail” mantra and proposing to expand bus service at the expense of a future subway line.
There is no support offered for either of the two cost figures Quinn is using, and plenty of contradictory evidence. Paving over rail lines for bus service is expensive; a recent example from Hartford and a proposal from Staten Island both point to about $40 million per km in the US. The map in the Capital New York article suggests significant detours away from the right-of-way, including on-street turns making the bus as slow as the existing circumferential B35 route, but also several kilometers on the railroad in Queens. Conversely, reusing rail lines for rail service is not nearly as expensive as building a subway. The MTA’s own biased study says a combined on-street and existing-right-of-way North Shore service would cost 65% more if it were light rail than if it were a busway; since the Triboro right-of-way is intact, the cost of service is in the light rail range, rather than the $25 billion for 35 km Quinn says.
But the reason Quinn is unfit for office rather than just wrong is the trust factor coming from this. She isn’t just sandbagging a project she thinks is too hard; the MTA is doing that on its own already. She appears to be brazenly making up outlandish numbers in support of a mantra about bus and rail construction costs. Nor has anyone else proposed a Triboro busway – she made the logical leap herself, despite not having any background in transit advocacy. Politicians who want to succeed need to know which advocates’ ideas to channel, and Quinn is failing at that on the transit front. If I can’t trust anything she says about transit, how can I trust anything she says about the effectiveness of stop-and-frisk, or about housing affordability, or about the consequences of labor regulations?
Update: Stephen Smith asked Quinn’s spokesperson, who cited a $21 billion figure for a far larger RPA plan including Second Avenue Subway and commuter rail through-running with new lines through Manhattan. I am not holding my breath for a retraction of the bus paving plan from the Quinn campaign.
Update 2: Quinn admitted the mistake on the rail plan, and revised the estimate of the cost down to $1 billion, but sticks to the bus plan and its $25 million estimate.
Pedestrian Observations 
