Champion3
Sep 24, 2007, 7:13 PM
What’s so evil about sprawl?
WILLIAM D. MARRIOTT FOR THE CALGARY HERALD
In a few weeks, a pathetically small minority of Calgarians will elect a new local government. Whether it is general contempt for government, loss of confidence in the democratic process or a lack of any substantive issues, the vast majority of Calgarians will be doing something else on Oct. 15. No doubt the lack of a party system in municipal politics contributes to our indifference, since we often vote for a political philosophy rather than the best candidate.
These days, every candidate appears to belong to the Green Party, although there are important variations in shading. Voters need to know whether a candidate is more of a libertarian ecologist or prefers command-and-control solutions. The libertarian would value individual freedom to exercise a personal ecological morality. The command-and-control types use government coercion to force ecological behaviours upon unco-operative citizens. Last year’s vote on mandatory recycling revealed those council members who are of the command-and-control persuasion. Thanks to their votes, we are now prohibited from dropping off our recyclables when we go for groceries, nor can we purchase a pick-up service that is about half of the government fee.
What about another green issue — urban sprawl? Almost everyone is against the disgusting urban blight called suburbia. The Calgary Chamber of Commerce recently weighed in against further expansion. The Haskayne School of Business has suggested we could solve the problem of obesity by building fewer freeways.
As an economist observing our real estate market, I have to wonder how these groups have failed to notice it is primarily supply constraints that led to our housing crisis. Everyone knows supply and demand determines prices. And everyone knows Calgary has recently seen record inmigration and record levels of economic activity. But Calgary’s population has always been growing and we have always been a wealthy city. We have also always had some of the country’s most affordable housing, largely because of abundant and affordable land. What is different is the imposition of anti-sprawl ideology and its effects on restricting land development. Calgary’s homebuilders are beginning to despair. A recent survey ranks over-priced lots as their biggest concern followed closely by a shortage of lots. In third place are excessive government development charges. New housing permits are declining, which means our home construction industry is contracting in the midst of the worst housing shortage we have ever experienced. Yet we still we have advocacy groups calling for more restrictions on development? It seems to me there are more than enough already.
As a homeowner, I view the crisis with mixed feelings, but we landowners shouldn’t be too smug. Estimates of Calgary’s increased real estate values for just the last two years are around $50 billion. This is a huge transfer of wealth to the propertied class from first-time buyers. It forever condemns lower-income families to the mercy of an obscene rental market, and has virtually erased the hope of home ownership for the next generation. Wayne’s World was funny so long as the premise was the arrested development of a few gen Xers continuing to live in their parents’ basements. Bronco’s World includes new districts with $400,000 starter homes that three years ago were selling for $200,000. And if you don’t like having to pay $100 per hour for a plumber who fails to show up, you can always go to the “you can do it, we can help” folks except that the promise of help rings hollow as there isn’t a sales associate for miles. The current real estate market almost certainly ensures that our labour shortage will never be solved.
It would be nice to blame the developers, but they are merely acting like good businessmen. If your development proposals are rejected by city hall, you soon get the idea there will be a shortage of serviced lots. This changes you into a speculator. If you are prevented from developing land, you may as well maximize your earnings from your existing inventory.
A society that fails to provide the necessities of life at an affordable cost is in trouble. A market-based society whose government hampers the market by artificially restricting supply deserves to be voted out of office. The problem with civic government is we don’t know who the government is. But here is a guide if you want to reverse the current policy. The only way to get your kids out of the house is to vote for the aldermen who were not green enough to force mandatory recycling.
WILLIAM D. MARRIOTT FOR THE CALGARY HERALD
In a few weeks, a pathetically small minority of Calgarians will elect a new local government. Whether it is general contempt for government, loss of confidence in the democratic process or a lack of any substantive issues, the vast majority of Calgarians will be doing something else on Oct. 15. No doubt the lack of a party system in municipal politics contributes to our indifference, since we often vote for a political philosophy rather than the best candidate.
These days, every candidate appears to belong to the Green Party, although there are important variations in shading. Voters need to know whether a candidate is more of a libertarian ecologist or prefers command-and-control solutions. The libertarian would value individual freedom to exercise a personal ecological morality. The command-and-control types use government coercion to force ecological behaviours upon unco-operative citizens. Last year’s vote on mandatory recycling revealed those council members who are of the command-and-control persuasion. Thanks to their votes, we are now prohibited from dropping off our recyclables when we go for groceries, nor can we purchase a pick-up service that is about half of the government fee.
What about another green issue — urban sprawl? Almost everyone is against the disgusting urban blight called suburbia. The Calgary Chamber of Commerce recently weighed in against further expansion. The Haskayne School of Business has suggested we could solve the problem of obesity by building fewer freeways.
As an economist observing our real estate market, I have to wonder how these groups have failed to notice it is primarily supply constraints that led to our housing crisis. Everyone knows supply and demand determines prices. And everyone knows Calgary has recently seen record inmigration and record levels of economic activity. But Calgary’s population has always been growing and we have always been a wealthy city. We have also always had some of the country’s most affordable housing, largely because of abundant and affordable land. What is different is the imposition of anti-sprawl ideology and its effects on restricting land development. Calgary’s homebuilders are beginning to despair. A recent survey ranks over-priced lots as their biggest concern followed closely by a shortage of lots. In third place are excessive government development charges. New housing permits are declining, which means our home construction industry is contracting in the midst of the worst housing shortage we have ever experienced. Yet we still we have advocacy groups calling for more restrictions on development? It seems to me there are more than enough already.
As a homeowner, I view the crisis with mixed feelings, but we landowners shouldn’t be too smug. Estimates of Calgary’s increased real estate values for just the last two years are around $50 billion. This is a huge transfer of wealth to the propertied class from first-time buyers. It forever condemns lower-income families to the mercy of an obscene rental market, and has virtually erased the hope of home ownership for the next generation. Wayne’s World was funny so long as the premise was the arrested development of a few gen Xers continuing to live in their parents’ basements. Bronco’s World includes new districts with $400,000 starter homes that three years ago were selling for $200,000. And if you don’t like having to pay $100 per hour for a plumber who fails to show up, you can always go to the “you can do it, we can help” folks except that the promise of help rings hollow as there isn’t a sales associate for miles. The current real estate market almost certainly ensures that our labour shortage will never be solved.
It would be nice to blame the developers, but they are merely acting like good businessmen. If your development proposals are rejected by city hall, you soon get the idea there will be a shortage of serviced lots. This changes you into a speculator. If you are prevented from developing land, you may as well maximize your earnings from your existing inventory.
A society that fails to provide the necessities of life at an affordable cost is in trouble. A market-based society whose government hampers the market by artificially restricting supply deserves to be voted out of office. The problem with civic government is we don’t know who the government is. But here is a guide if you want to reverse the current policy. The only way to get your kids out of the house is to vote for the aldermen who were not green enough to force mandatory recycling.