Lots of Opportunity: Estimating the Zoning Tax in Vancouver

(Joint with Jens von Bergmann and cross-posted at MountainMath)

TLDR

We estimate the land value lost by lot subdivision restrictions in the RS (single-family) zoned lands of Vancouver. These restrictions, also known as the zoning tax, subsidize hoarding of land for the wealthy at the cost of those who wouldn’t mind sharing. We conservatively estimate the overall cost of preventing splitting of lots at $43 billion, or an average of 37% of existing lot land value. Alternative formulations enabling deeper subdivisions raise our zoning tax estimates to $146 billion. We provide examples of what subdivision could look like, tally up non-conforming lots by zone, and discuss some of the implications.

The zoning tax is real, and it is enormous. The exact amount of the zoning tax is hard to pin down because we are so far away from the equilibrium of where people would stop subdividing land or air parcels if they were allowed to do so.

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Basement Confidential: Vancouver’s Informal Housing Stock

(Joint with Jens von Bergmann and cross-posted at Mountainmath)

Informal housing

While housing is highly regulated via zoning bylaws, building code, and fire code, in situations of housing scarcity we often get informal housing that exists outside of – or only partially covered by – the existing regulatory framework. We often associate slums or shantytowns with the term informal housing, but it also applies to more organized settlements like Kowloon Walled City, or, in the context of subterranean Vancouver, a good portion of our secondary suite stock.

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Virtual Vancouver Zoning Tour

Most years I take my students on a tour around City Hall, with a focus on showing off various aspects of how City Hall is working (or not) upon the landscape around it. This year, of course, I can’t do that with my classes! So I’m moving the tour on-line, where anybody can come along if they like. Also I’m making the slides linked below available as a PDF document, in case anyone wants to download them and bring them along to walk the route.

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Industrial Strength Zombies: Vancouver Edition

(Joint with Jens von Bergmann and cross-posted at MountainMath)

The “real estate has swallowed Vancouver’s economy” zombie is back, with wild claims by a City Councillor that

“If you look at the long-form census data going back to 1986 every 5 years, […] we went from selling logs to selling real estate […], major shift from resource extraction to real estate property development and construction as the primary driver in the local economy.”

Here we want to try and put the zombie out of our misery (again!), but also use this moment to ask some interesting questions about Vancouver history and what we can get from the long-form census. Mostly what we get from the census, of course, is what people list as their jobs. We can use this to ask a series of questions, including:

Just how many people work in the real estate industry in Vancouver? Is it growing?

What about finance? Are we turning into a “Global City”?

Have these activities truly replaced selling logs (or other extractive industries) as the basis for Vancouver’s economy in terms of jobs?

How about manufacturing? Didn’t we used to make things?

What about retail? Or health care and social services? Are we mostly relegated to being a regional commerce and service centre for BC?

What about the “creative class”? Is it growing? And what even is that?

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Henderson’s Guide to Pandemic History

What will happen when the Pandemic ends?

Will pre-Pandemic patterns, like people moving to Vancouver, go back to normal? Or will small towns, far-flung suburbs, and rural areas see a boost at the expense of cities, reflecting perhaps a new aversion to density and/or embrace of the rise in telecommuting acceptability? (we’ve seen such speculation in certain corners of City Hall).

Or indeed, might we see the opposite? Will people flock to cities like Vancouver as we return to mobility (including newly amped up immigration along with outreach to Hong Kong) and enjoyment of all the urban pleasures we’ve given up during the pandemic?

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Vancouver’s Crime Pandemic! That wasn’t.

We now have over six months of pandemic conditions in Vancouver and crime data to (roughly) match. We also have all kinds of claims about crime flying around, sometimes pushed by the police (VPD) themselves, only heightened by click-seeking reporters and the vote-seeking politicians. So we should probably check into the data. Long story short: there’s scant evidence of a crime wave showing up in the VPD crime data.

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