Urban Growth Boundaries: A “Smart” Approach for our Communities?

I recently attended a lecture on Smart Growth strategies, implementation, and implications, where the speaker discussed his work analyzing eight cities with varying degrees of implementation of Smart Growth measures.  At one point, he showed a graphic ranking these cities 1-8 in several categories.  Portland, a city chosen for the study due to its highly touted Smart Growth plan and strict Urban Growth Boundary (UGB), ranked high on several measures related to growth management, but lowest of all in housing affordability.  This got me thinking: is Smart Growth actually a smart strategy for our cities, which are typically home to many low- and moderate- income residents?

Since the 1970’s, UGBs have gained widespread popularity, have been instituted in over 100 cities, and are required by the state governments in Oregon, Washington, and Tennessee.  Essentially, a UGB is a line drawn around a city, outside of which development is limited or, in some cases, prohibited.  UGBs are used as a strategy of directing higher-density development into the cores of cities, thereby controlling growth and acting as a strong antidote to suburban, low-density sprawl.  Sounds great, right?  Well, it seems as though they are a little bit more complicated than they initially appear.

 

The Affordability Argument

Many people argue against UGBs on the basis that they result in a loss of affordable housing within the boundary.  The crux of this argument is that, logically, when growth is constrained, development will slow, and housing demand will rise disproportionately to supply, resulting in an increase in housing costs and a decrease in overall affordability.  This case is argued by Samuel Staley and Gerard Milner, who oppose the implementation of UGBs due to this negative effect upon affordability.  Between 1985 and 1997, they demonstrate a 158% increase in average values for single family homes in Napa, California; this time period corresponds to Napa’s implementation of growth controls.  Along similar lines, in Portland, Oregon, between 1995 and 1997, 80,000 units previously deemed “affordable” were lost to rapid market appreciation. 

Staley and Milner argue that even the successes associated with UGBs are double-edged swords.  The UGB in Portland has achieved its goal of downtown revitalization: the lack of vacant, developable land within the boundary has led developers to build new construction within the city core.  This achievement, however, has an unrecognized downside: with revitalization has come gentrification, and Portland’s low-income population has nowhere else to go.

 

The Counter-Argument

 The logical argument connecting growth constraints and decreasing affordability may not hold water, however.  A recent paper prepared by Arthur Nelson, Rolf Pendall, Casey Dawkins, and Gerrit Knapp for the Brookings Institute claims that it is not actually land constraints, but rather market demand, that have led to the increases in housing cost in Portland.  In fact, they claim that, since a spike in housing price in the mid 1990’s, Portland has seen housing prices rise at approximately the national average.  On top of that, they make the case that traditional land use regulation can have this effect on affordability as well, for many zoning codes have minimum lot sizes and maximum density requirements that allow only for more expensive development, effectively eliminating low-income individuals from participating in the housing market.  Looking at the issue in light of these counterarguments, UGBs don’t seem to negatively affect housing affordability any more than typical land use management, implemented across the country.

 

How To Proceed?

Both sides of this debate have logical and legitimate arguments, making it difficult to determine which has it right. It’s a fact that Portland has problems with affordability: the city has recently risen into the top ten least affordable cities in the United States, with an average housing cost to income ratio of 4.2 (anything over 4.1 is considered “seriously unaffordable”).  Ultimately, I’m not sure there’s enough research to say definitively whether this unaffordability is due to the city’s UGB, or just the fact that Portland is apparently an incredible place to live, and therefore must attract a large number of people, and, subsequently, housing demand.  In case Smart Growth is to blame, though, to make sure that it really is a smart decision for our cities, cities should make sure to pair UGBs with the following strategies:

• Make sure to increase density.  Some possible ideas:
  • Incentivize density: Cities can upzone their districts all they want, but without incentives, they may not be able to achieve the high levels of vertical growth required to offset the loss of horizontal growth.
  • Minimum density standards: Metro, Portland’s regional planning body, has instituted a minimum density standard of 80% of the maximum density, for all new housing development (with a few exceptions).
  • Promote hidden and invisible density measures, such as alleyway housing and accessory units.  These are strategies that can be used to increase density, especially in neighborhoods dominated by single-family detached homes.  These units are often much smaller than the home they are associated with, and therefore provide a more affordable option in otherwise unattainable neighborhood. 
  • Create an inclusionary zoning plan.  Inclusionary zoning can be used to set minimum requirements for affordable housing in all developments.  Portland’s ordinance allows for reduction in development fees, priority permitting, density bonus’, and reduction in parking requirements in exchange for the development of affordable housing. 
  • Promote transit-oriented development.  If homes are built in areas that are accessible to public transportation, the necessity of owning a vehicle is reduced. While this does not reduce housing price, it can offset this cost by reducing commuting and vehicle maintenance costs. 

 

Guest Contributor:  Margot Elton

 

 

 

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[Candace Pearson]

Thanks Margot, I found your post about the possible effects of urban growth boundaries on affordability to be quite instructive. I believe innovations like this in city planning are often criticized because of how solutions to one problem often create issues of an entirely different nature. It is important to acknowledge these relationships, and debate the trade-offs, so that they can be addressed.

I was first introduced to the idea of an Urban Growth Boundary when I visited Freiburg, Germany last summer. Their Urban Growth Boundary had been implemented years before and had anticipated some room for expansion. One of the reasons it gained popular support was because those who lived in the city did not want to morph into, or be subsumed by, neighboring cities as each expanded. Therefore, part of the effort to concentrate growth was meant to retain distinctiveness from the places around them. I had never thought of urban sprawl in this context, but in Germany, sprawl was a threat to local identity and character. Concentrating the city made sure that identity would not be lost in unending growth.

Another interesting way Freiburg approached the Urban Growth Boundary was how they planned to preserve a variety of lifestyles, while accommodating higher densities. There were areas where town houses shared a common yard and playground, so that the city would still be welcoming for families. Traditional cul-de-sacs were also preserved and well integrated into the transportation system. At the same time, easing height restrictions on apartment buildings encouraged new construction. This allowed for increased density in targeted areas, while respecting the existing housing stock as valuable.

In regards to affordability, the city planner was a big promoter of mixed income housing. Many new developments combined low income housing, or housing for the elderly or handicapped, with traditional housing. This reduced the stigma of living in a low-income house because it was virtually indistinguishable from the other houses around it. Furthermore, it was assumed that low-income residents or the elderly would benefit from having relationships with the larger community. These efforts to experiment with how housing could influence social relationships were not just limited to the poor or elderly. One apartment complex was built for single mothers, with a common area where mothers could take turns watching the children, or share in household duties. In this way, preserving good places for the underprivileged to live, was part of the changes that had accompany instituting an Urban Growth Boundary.

In light of all this I think your conclusion is right, Margot, to say that a growth boundary must be paired with other strategies to avoid price hikes and gentrification. I think though, that as Freiburg shows, some of the solutions may be more unique than simply accounting for a certain number of affordable housing options. Certain underprivileged groups should be accounted for, and ways of life, like living in a single family home, should be preserved. Any city’s health is dependent on having a rich and diverse population, and an artificial control of the market should not threaten that.

[Emily Bacha]

There are two sides to every story, and Margot does a good job of capturing the benefits and challenges of Urban Growth Boundaries (UGBs) in this post. Specifically, Margot points out that there need to be additional controls established along with the UGB to allow for affordable housing development. This is true of any policy; policymakers should address all stakeholders involved in the process. Inclusionary zoning does the best job of requiring developers to build affordable housing units. However, I think the notion of building affordable housing units within transit oriented development, truly addresses the multiple needs of low-income households we discussed in class this semester. It helps families easily commute from home to school, work, and community facilities and connects these people to the surrounding community.

I am left wondering:
• Are East Coast and Midwest cities are experiencing the safe difficulties with securing affordable housing within UGB and smart growth communities? Maryland has an extensive smart growth policy, but does not present the same feel as the elite-dominated communities like Napa and Portland mentioned in the article. Also, are UGB limiting affordable housing on the international front?
• The larger housing market collapse increased the need for affordable housing, particularly rental units, nationwide. How did the housing market collapse affect those communities with UGBs, especially given the higher land values?
• A large role of the UGB is to preserve natural resources and land outside of its boundaries. Oftentimes, localities derive revenues from these protected parcels, as is the case in Albemarle County. Are there ways to direct such revenue to developing affordable housing units? Are there examples?

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À la lumière de tout cela, je pense que votre conclusion est juste, Margot, de dire que la limite la croissance doit être couplé avec d'autres stratégies pour éviter les hausses de prix et de gentrification.

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