JPMorgan Chase, American Homes 4 Rent plan to build thousands of single-family rental homes

By Ben Lane : housingwire – excerpt

Joint venture will develop SFR properties in West and Southeast

One of the largest operators of single-family rental homes is partnering with one of the nation’s largest banks to build thousands of new rental homes.

J.P. Morgan Asset Management, the asset management arm of JPMorgan Chase and American Homes 4 Rent announced Thursday that they are establishing a joint venture that will seek to build approximately 2,500 single-family rentals in “multiple high-growth markets in the West and Southeast.”…

As for why the companies are partnering together now, amid a recession that’s crippled many homebuilders, the companies say the timing is actually ideal given the recent shifts in behavior and an increase in people’s desire to move away from more densely populated areas..

“This partnership provides us with the opportunity to capitalize on an increasing trend amongst city dwellers to seek additional space and the appeal of high-quality suburban living in a newly constructed community,” said Mike Kelly, Head of Real Estate Americas at J.P. Morgan Asset Management.

“We see this shift as particularly prevalent among the Millennial generation, the largest U.S. age cohort, who are looking to transition away from apartment living,” Kelly continued. “The move towards more spread-out living is also expected to accelerate in the wake of the COVID-19 pandemic, and we anticipate strong occupancy and rental growth rates across properties.”… (more)

A Backlash Against Cities Would Be Dangerous

By Scott Wiener, Anthony Iron : theatlantic – excerpt

Undue fears of urban density warp public policy—and make Americans more vulnerable.

Cities are a boon for public health—even now. As public-health experts have known for decades, people who live in a city are likely to walk and bike more often, and they live closer to community services such as grocery stores. Urban density also supports faster emergency-response times, better hospital staffing, and a greater concentration of intensive-care beds and other health-care resources.

In fact, no correlation exists between population density and rates of COVID-19 infection, according to recent studies examining the disease in China and Chicago. But if state and local governments still conclude that density itself is a problem, they are more likely to promote suburban sprawl as a matter of law—instead of making the accommodations, in their housing stock and their streetscapes, that allow people to live in cities safely and move about them comfortably…

One difference between New York City and San Francisco? The Bay Area responded to the pandemic earlier and more decisively than New York did, imposing social-distancing measures before major cities on the East Coast.…(more)

There is a difference between opposing cities and opposing unlimited growth in cities. The headline is misleading and the logic is missing. Senator Wiener aligns himself with the administration in Washington if he suggests we should return to business as usual. Most of his constituents disagree.

After being cooped up in tight quarters for weeks people are eager to get out. There was an exit from cities underway before the pandemic. Now the pace is picking up. Many workers have successfully transitioned to working at home and do not plan to return not the office. Employers are re-thinking their need for office space.

Cutting down on commuters does a better job of clearing the air than building dense transit-oriented housing and offices. The new normal will not be dense development. New health standards will require more space between people, throwing the crowding for profit principal  out. This will probably devalue property and reduce local taxes. Downsizing seems inevitable.

RELATED:

Gov. Andrew Cuomo of New York was blunt about the rationale behind this time of quarantine.

“There is a density level in NYC that is destructive,” he tweeted Sunday, after similar comments at one of his daily press briefings. He’d seen New Yorkers out in parks together, behaving as if this were a normal sunny spring weekend, and he was dismayed. Togetherness itself could now be deadly.

“It has to stop and it has to stop now,” he tweeted. “NYC must develop an immediate plan to reduce density.”… (more)

Now that Twitter employees can work at home forever, what’s to become of its headquarters?

By Brock Keeling : curbed – excerpt

The tech titan’s move into an Art Deco monolith in Mid-Market was supposed to be a symbol of change.

Jack Dorsey, Twitter CEO, emailed his employees Tuesday to tell them that they can work from home permanently, even after the pandemic’s shelter-in-place order ends.

“If our employees are in a role and situation that enables them to work from home and they want to continue to do so forever, we will make that happen,” a Twitter spokesperson said in a statement…

Under the lure of a tax break granted by the late Mayor Ed Lee, Twitter rented the building from Shorenstein Company. Amenities added inside the renovated digs include yoga rooms, a cafeteria serving artisan fare and microbrews, a rooftop deck for employees to soak in some vitamin D, and a garden.

The move, given much ink at the time, was supposed to kickstart a neighborhood-improvement trickle down effect, which wasn’t entirely successful. Restaurants boasting Michelin-starred pedigree, like Cadence and Alta, came and went in a matter of months. Open-air drug use and visible human suffering remains a problem. At best, Twitter’s presence sparked interest in the blighted area, helping nudge new housing in the neighborhood (see: Nema and Ava). At worst, the company’s Mid-Market takeover only magnified—without solving—the city’s glaring economic gap… (more)

 

National Trends Organic Urbanism is the Cure for New Urbanism By Douglas Newby : newgeography – excerpt

Organic Urbanism is the Cure for New Urbanism

By Douglas Newby : newgeography – excerpt

The New Normal. Who needs trees when you can have cranes and 100’s of thousands of new neighbors?

New Urbanism is like a virus. For 50 years it keeps coming back in mutated forms. It needs a cure.

First, the only thing new in New Urbanism is the new construction that tears down the organic city. A form of New Urbanism has been around for 50 years. Like I said, it is a virus that keeps coming back in mutated forms. But the scheme, of more density, new mixed-use construction, and fixed rail transit, replacing existing homes remains constant. The desire of planners to determine where you live and where you work also remains constant. New urbanists increasingly do not like single family homes, which most Americans prefer… (more)

Google plans to add tens of thousands of new jobs as it expands in 14 states

Edward C. Baig : usatoday – excerpt

Want a job at Google?

Google plans to hire tens of thousands of employees across the U.S. this year, through investments in new data centers and offices. CEO Sundar Pichai announced Google’s plans in a blog post Wednesday.

According to Pichai, Google’s investment of more than $13 billion in 2019 will lead to major expansion in 14 states and also create more than 10,000 new construction jobs in Nebraska, Nevada, Ohio, Oklahoma, South Carolina, Texas and Virginia.

“These new investments will give us the capacity to hire tens of thousands of employees, and enable the creation of more than 10,000 new construction jobs,” he posted… (more)

Good news for the over-saturated cities in SF Bay who have had to take all the growing pains of rapidly (or is that rabidly) expanding tech firms. Good idea for them to grow elsewhere for a while.

Building Opportunity: Mapping Gentrification and Investment across Opportunity Zones

By Eric Willett, Vice President, and Brett Dunlavey, Analyst : rclco – excerpt

Among the more controversial aspects of the Tax Cuts and Jobs Act of 2017 was the designation of certain parcels of land as “Opportunity Zones,” which would allow investors to defer or completely waive all capital gains taxes on qualified investments in these areas.[1] While regulations for opportunity zone investments have yet to be wholly finalized, real estate investors have amassed sizable amounts of private capital to target commercial real estate within these geographies.

Given the significant attention and capital this investment strategy has already attracted, we set out to identify the census tracts that had most gentrified in recent years, and therefore would most likely become the target of Opportunity Zone investment. Our analysis quantifies changes in real estate investment, household income levels, and associated demographic characteristics[2] to build a Gentrification Index that is then applied to every Opportunity Zone in the 25 largest metro areas. Our analysis finds that there are a number of quickly gentrifying qualified Opportunity Zones, some with tens of thousands of multifamily units to be delivered over the next several years.

Read through our key findings below, or use the interactive dashboard to explore the Opportunity Zones in your city that have gentrified the most…(more)

 

Guest opinion: Battle for the soul of Mountain View

by Lenny Siegel : mv-voice – excerpt

New housing shouldn’t displace residents

There is a battle underway for the soul of Mountain View. For decades the Mountain View community has treasured diversity. We have long accepted people regardless of ethnic background, political or religious beliefs, or economic condition. In turn, they have helped build our community, performing jobs that we all need.

But the fabric that holds Mountain View together is at risk. Our extraordinary economic growth is causing gentrification and the displacement of many low- and middle-income residents. When we turn a blind eye, we lose part of our soul as a community…

We do need new housing in Mountain View, but we don’t have to displace people to build it. The city is encouraging both apartment and ownership housing construction on land that is currently in commercial use. We can’t legally force the owners of old apartments to stay in business, but we can eliminate their incentive to demolish by denying redevelopments that displace low- and moderate-income tenants…

If you value our apartment dwellers, vehicle residents, and mobile-home owners, please join me in signing the Soul of Mountain View petition at http://chng.it/TC7SFb4tPD. The soul of our community is at stake… (more)

‘Incentive to create havoc’: Self-driving cars set to turn streets into gridlocked hell – study

RT – excerpt

Driverless cars could spark a gridlock nightmare to avoid paying for parking, a new study warns. Autonomous vehicles could even gang up to create traffic delays, allowing them to continuously cruise around instead of park.

The idea sounds like a smart one: Avoid ever having to pay for parking by getting your car to simply continue to drive around the block until you’re ready to take off again. However, this seemingly savvy hack could turn our urban streets into traffic-clogged hellscapes, roads flooded with driverless cars, making it a challenge to actually get anywhere…(more)

Major Regional Housing Plan – CASA Compact discussion on KQED Forum

Re: KQED Forum on CASA (audio track included)Monday at 9:00 am

Host: Rachael Myrow and Guests: Susan Kirsch, Founder, Livable California;
Michael Covarrubias, CASA Co-Chair, CEO, TMG Partners and Guy Marzorati, reporter, KQED’s California Politics and Government Desk.

See https://www.kqed.org/forum/2010101869236/major-housing-plan-gets-approval-from-mtc-association-of-bay-area-governments

Who will pay for the CASA Compact programs if they are implemented? Who will finance a new regional development organization composed of unelected officials with authority to collecting new taxes? It feels as if the major theme is to use our taxes against us to create a dense living situation that we oppose.

The unelected bureaucracies that keep us stuck in traffic

By Jackie Lavalleye : californiapolicycenter – excerpt

… In December 1991, the role of the Associations of Governments was expanded by passage of the Intermodal Surface Transportation Efficiency Act of 1991. This law provided more power over planning to metropolitan areas; thereby, increasing the authority of metropolitan planning organizations over transportation-related activities. In short, every project related to roads, pedestrians, traffic, and all other issues of relevance to transportation must be discussed by, coordinated with, and approved by these agencies…

Four of the largest Associations of Governments in California are the San Diego Association of Governments (SANDAG), the Southern California Association of Governments (SCAG), the Metropolitan Transportation Commission (MTC), and the Sacramento Area Council of Governments (SACOG). SCAG is the largest Association of Government in the country based on population and geographic territory size. MTC also has shared responsibilities with the Association of Bay Area Governments (ABAG). As of late, MTC and ABAG have been working toward consolidating their staffs for improved efficiencies… (more)

This article from 2017, explains the creation and goals of the regional state agencies.

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