Eric Garcetti for president? Really?

This article first appeared on The Orange County Register.

Someone may be putting something in the Los Angeles water supply. In the past months, two unlikely L.A.-based presidential contenders — Mayor Eric Garcetti and Disney Chief Robert Iger — have been floated in the media, including in the New York Times. Read more

The Bottom Line of the Culture Wars

This article first appeared at The Orange County Register.

America’s seemingly unceasing culture wars are not good for business, particularly for a region like Southern California. As we see Hollywood movie stars, professional athletes and the mainstream media types line up along uniform ideological lines, a substantial portion of the American ticket and TV watching population are turning them off, sometimes taking hundreds of millions of dollars from the bottom line. Read more

California Politicians Not Serious About Fixing Housing Crisis

This article first appeared in The Orange County Register.

California’s political leaders, having ignored and even abetted our housing shortage, now pretend that they will “solve it.” Don’t bet on it.

Their big ideas include a $4 billion housing subsidy bond and the stripping away of local control over zoning, and mandating densification of already developed areas. None of these steps addresses the fundamental causes for California’s housing crisis. Today, barely 29 percent of California households, notes the California Association of Realtors, can afford a median-priced house; in 2012, it was 56 percent.

At the heart of the problem lie “urban containment” policies that impose “urban growth boundaries” to restrict — or even prohibit — new suburban detached housing tracts from being built on greenfield land. Given the strong demand for single-family homes, it is no surprise that prices have soared.

Before these policies were widely adopted, housing prices in California had about the same relationship to incomes as in other parts of the country. Today, prices in places like Los Angeles, the Bay Area and Orange County are two to three times as high, adjusted for incomes, as in less-regulated states. Even in the once affordable Inland Empire, housing prices are nearing double that of most other areas, closing off one of the last remaining alternatives for middle- and working-class families.

How did we get here?

Largely in response to regulatory constraints, the state has been underproducing housing since the 1970s. So far this year, Los Angeles, the nation’s second-largest metropolitan region, has produced fewer homes than much smaller areas like Dallas-Fort Worth, Houston and Atlanta.

The California Environmental Quality Act and other laws and restrictions have helped to make building the number of houses needed by California’s middle-income families unattainable. The state’s more recent draconian climate change policies are also making the building of more affordable homes, usually on the fringe of urban areas, almost impossible.

Some developers and planners blame much of the problem on NIMBYs, or “not in my backyard” activists, who oppose high-density development in their communities. NIMBYism, often aligned with green policies, is part of the problem, but high-density housing is expensive, and there are not enough people looking for “micro-apartments” to solve the affordability crisis.

Indeed, housing in buildings of more than five stories requires rents approximately two-and-a-half times those from the development of garden apartments, notes Gerard Mildner, academic director of the Center for Real Estate at Portland State University. In the San Francisco Bay Area, the cost of townhouse development per square foot can double that of detached houses (excluding land costs), and units in high-rise condominium buildings can cost up to seven-and-a-half times as much.

Policies based on planning fantasies, not reality

The state of California calls for high-density development near transit stops, while requiring a certain percentage of lower-income units. Yet, the experience with this kind of “inclusionary zoning” is not a happy one. Such laws tend to increase the prices for market-rate housing, raising the prices for everyone else, including the more numerous poor who do not win the “affordable housing” lottery….

Read the rest of the article at The Orange County Register.

Photo credit: Great Valley Center, via Flickr under CC 2.0 License.

McIntyre In The Morning Interviews Joel Kotkin on California Transit

By: KABC 790
On: McIntyre In The Morning

Joel Kotkin interviewed on KABC. Joel discusses California transit policy, Measure M — and whether or not the way we are spending money makes sense.

Click the Play button to listen.

California’s Coming Youth Deficit

This article first appeared in The Orange County Register

Images of California, particularly the southern coast, are embedded with those associated with youthfulness — surfers, actors, models, glamorous entrepreneurs. Yet, in reality, the state — and the region — are falling well behind in the growth of their youthful population, which carries significant implications for our future economic trajectory and the nature of our society.

Read more

State Governments Are Oppressive, Too

Historically, the battle over the size and scale of government has been focused largely on “states’ rights.” This federalist notion also has been associated with many shameful things, such as slavery, Jim Crow laws and other abuses of personal freedom.

Yet, increasingly, the clearest threat to democracy and minority rights today comes not just from a surfeit of central power concentrated in Washington, D.C., but also from increased centralization of authority within states, and even regional agencies. Oppressive diktats from state capitals increasingly seek to limit local control over basic issues such as education, zoning, bathroom designations, guns and energy development.

This follows a historical trend over the past century. Ever since the Great Depression, and even before, governmental power has been shifting inexorably from the local governments to regional, state and, of course, federal jurisdictions. In 1910, the federal level accounted for 30.8 percent of all government spending, with state governments comprising 7.7 percent and the local level more than 61 percent. More than 100 years later, not only had the federal share exploded to nearly 60 percent, but, far less recognized, the state share had nearly doubled, while that of local governments has fallen to barely 25 percent, a nearly 60 percent drop. Much of what is done at the local level today is at the behest, and often with funding derived from, the statehouse or Washington.

Diversity vs. regimentation

This trend is particularly notable in the country’s two megastates: California and Texas. Each is increasingly controlled by ideological fanatics who see in their statehouse dominion an ideal chance to impose their agenda on dissenting communities. In California, Jerry Brown’s climate jihad is the rationale for employing “the coercive power of the central state,” in his own words, to gain control over virtually every aspect of planning and development.

In Texas, the impetus comes from the far right, which has been working to strip localities of their traditional ability to control their own affairs, which, as two Houston scholars recently pointed out, has been critical to that state’s success. These efforts cover a host of issues, from fracking and ride-sharing to transgender bathrooms, a topic which affects very few but has, absurdly, become the key issue for a legislative special session.

Just as Californians find themselves increasingly controlled by climate warriors and anti-suburban ideologues, diverse Texans in cities like Austin now must conform to the dictates of strident demands by a “liberty caucus” that eerily resembles their authoritarian doppelgangers in Sacramento.

In other cases, such as in North Carolina, social conservatives, like their Texan bedfellows, seek to circumscribe progressive policies in places like Raleigh or Charlotte. Businesses, in particular, are concerned that some bills, like the state’s transgender bathroom legislation, could lead to painful boycotts by corporations and event planners. Conversely, some blue-state policies, like high mandated minimum wages and policies restricting fossil fuels, hurt disproportionately poorer areas, like upstate New York and rural California, which have lost much of their political clout.

Read the entire piece in the Los Angeles Daily News.

Photo by LoneStarMike (Own work) [CC BY 3.0], via Wikimedia Commons

What’s the Future of Beleaguered Fossil Fuels?

This article first appeared in The Orange County Register.

Perhaps no economic issue — even trade — is as divisive as the energy industry. Once a standard driver of economic progress, the conventional energy industry has become increasingly vilified by the national media Read more

High-Flying California Charts Its Own Path — Is A Cliff Ahead?

This piece originally appeared at Forbes.

As its economy bounced back from the Great Recession, California emerged as a progressive role model, with New York Times columnist Paul Krugman arguing that the state’s “success” was proof of the superiority of a high tax, high regulation economy. Some have even embraced the notion that California should secede to form its own more perfect union. Read more

Is California Anti-family?

This article first appeared in The Orange County Register.

In its race against rapidly aging Europe and East Asia, America’s relatively vibrant nurseries have provided some welcome demographic dynamism. Yet, in recent years, notably since the Great Recession and the weak recovery that followed, America’s birthrate has continued to drop, and is now at a record low. Read more

Can California Survive a Tech Bust?

This article first appeared in the The Orange County Register.

California’s economic revival has sparked widespread notions, shared by Jerry Brown and observers elsewhere, that its economy — and policy agenda — should be adopted by the rest of the country. And, to be sure, the Golden State has made a strong recovery in the last five years, but this may prove to be far more vulnerable than its boosters imagine. Read more