Steve Randy Waldman
@interfluidity.com

excellent but dark. all i can say is, optimism of the will, motherfuckers. ht @olepetter.bsky.social

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Steve Randy Waldman
@interfluidity.com

i agree with that! it’s about how you generate supply, not just of sq ft of “housing”, but of desirable living spaces in dense, attractive neighborhoods, at scale and at speed. i think it will take some creativity.

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Steve Randy Waldman
@interfluidity.com

contractors probably not. they have no ownership stake and are paid by the job. but "capital disciple" — tacit pacing of investment at an industry level to avoid destructive price competition — is ubiquitous. in the US, the charge is mostly leveled at "landbanking" by larger homebuilders.

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Steve Randy Waldman
@interfluidity.com

i'm not advocating stopping sprawl, at least not in this conversation. in a US context, the argument that capital discipline / landbanking is a housing constraint is mostly about being a constraint on sprawl, so implicitly maybe i'm criticizing the blocking of sprawl. 1/

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Steve Randy Waldman
@interfluidity.com

(i do want to encourage dense rather than less-dense new development. i'd prefer public action to build new dense places rather than private restriction of "sprawl'. i don't know if there are restrictions of low-density sprawl i'd support, but the experience of eg Boulder wld make me cautious.) /fin

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Steve Randy Waldman
@interfluidity.com

different markets! in the US the reluctat supplier story is about landbanking and the sprawl-builders, not a claim that developers are rationing construction in Pacific Heights. the constraints that bind are different in different places, different markets.

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Steve Randy Waldman
@interfluidity.com

sometimes quantities really matter. if you’re trying to alter behavior with subsidies, the subsidies have to be of the same order of magnitude of not just the direct costs, but the opportunity costs. 1/

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Steve Randy Waldman
@interfluidity.com

the nordics largely cover the direct costs, and it helps at the margin, but no one comes close to matching opportunity costs. /fin

in reply to self
Steve Randy Waldman
@interfluidity.com

no. i think no one can do infill at scale in already affluent / desirable urban neighborhoods, but homebuilders know how to do sprawl. the market would love the infill, but the incumbents do not, and unless the incumbents are downscale, they win.

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Steve Randy Waldman
@interfluidity.com

i guess i think you are being unfair here to the plutocrats. it might have ended up becoming a destructive commute source to SF, but the people behind California Forever were genuinely trying to make a new city. if they wanted to be Lennar they’d have succeeded.

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Steve Randy Waldman
@interfluidity.com

you will catch me in some inconsistencies, in that then i was not so sold on density, i was fine with American suburbanization (even if i liked cities), and thought there were few barriers to mcmansions as far as the interstate would go. 1/

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Steve Randy Waldman
@interfluidity.com

now i oppose mcmansion-land (both environmental and sociological reasons now strike me as more compelling than then), so what looked like a decent, achievable, mostly private sector path then no longer strikes me as desirable. /fin

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Steve Randy Waldman
@interfluidity.com

I don’t know what they mean / meant to build. One of many reasons to prefer open, public projects to stealth initiatives by plutocrats. 1/

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Steve Randy Waldman
@interfluidity.com

(Yes, I hope they do get it built, and that it is reasonably dense. I don’t want to let the perfect or my ideological priors be the enemy of the good. But the approach they took was crap, and the political resistance predictable and understandable.) /fin

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Steve Randy Waldman
@interfluidity.com

Yes! The Federal government can pay people in ways that change what they want. Homebuilders presently want to sustain capital discipline for pricing power. Subsidies could be designed to change their calculation. An example of cooptation rather than conflict.

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Steve Randy Waldman
@interfluidity.com

I’m not saying you should accept what’s bad. I am saying that cooptation or circumvention often succeeds where conflict will not. The salience of land use policy to incumbent suburbanites perhaps does not contribute to desirable reforms.

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Steve Randy Waldman
@interfluidity.com

no. one of the advantages of public projects is they take risks private projects will not, ie they can be politic about circumventing objections of dug-in homeowners and still finance new districts at scale where objections aren’t so strong. 1/

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Steve Randy Waldman
@interfluidity.com

that doesn’t mean there isn’t a lot of regulatory reform that should happen! it doesn’t mean regulatory reform wouldn’t help publicly finance projects. it would! 2/

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Steve Randy Waldman
@interfluidity.com

but it does mean the state is held less hostage to regulatory reform than developers trying to do infill in desirable places. 3/

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Steve Randy Waldman
@interfluidity.com

and to me, the causality is more likely to go from more-public-sector-led development to regulatory reform (as incumbent homeowners become less threatened) than the other way around. /fin

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Steve Randy Waldman
@interfluidity.com

i’m in the dense greenfield camp. density is what matters for the environment. if you can get people living densely at scale and more quickly via greenfield projects, that is how you save the planet. drafts.interfluidity.com/2024/06/20/i...

It isn't sprawl if it's dense.

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Steve Randy Waldman
@interfluidity.com

i am profoundly pissed off that the apparent glut was not. before the crisis, i thought it kind of great that China was basically building homes for us (on the theory that the appetite for US debt subsidized mortgages), and i remain pissed that we abandoned that abundant supply path.

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Steve Randy Waldman
@interfluidity.com

i don’t think you’ll win big enough to address the problem if the strategy is overcoming bad policies over homeowners’ objections. i think you need some combination of greater emphasis on dense greenfields and using carrots to homeowners to diminish their objections.

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Steve Randy Waldman
@interfluidity.com

no. NIMBYism is a means of sustaining a status quo — financial, physical, sentimental, and sociological — to which homeowners are desperately and precariously levered. it’s more loss minimization than profit maximization. people buy homes in neighborhoods to shed risk that dynamism reintroduces.

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Steve Randy Waldman
@interfluidity.com

i agree with where you want to go! i usually support “missing middle” reforms. ( see drafts.interfluidity.com/2024/06/13/y... ) 1/

Yimboree

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Steve Randy Waldman
@interfluidity.com

land use reforms can help housing supply at certain margins. “doesn’t hurt” new supply (though may be accompanied by different harms). but i think people who imagine land use reforms will succeed at anything like the scale of our current and near-future housing deficit are badly mistaken. /fin

in reply to self
Steve Randy Waldman
@interfluidity.com

I agree that landlords and homeowners sometimes act cartelishly. but that is supportable despite their numbers because production is not their business, not how they gain, it’s someone else’s opportunity. ADUs subverts the homeowner cartel by making homeowners also potential developers. 1/

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Steve Randy Waldman
@interfluidity.com

Housing development is also an industry that can be and often is cartelishly consolidated. Lots of groups behave cartelishly, nearly every industry will if they can! /fin

in reply to self
Steve Randy Waldman
@interfluidity.com

We are so close to agreeing. The way that I’d put it is NIMBYism is endogenous to homeownership, especially in capitalist economies where homes become an highly levered antidiversified overwhelmingly predominant asset. To me, that suggests open conflict with NIMBYism may not be the wisest approach.

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