alt Hacker NewsWhen I say "trivially fix" I mean that, if the City/State wanted to fix the problem, they could.
>Re-zoning only works if there are developers who want to redevelop the land.
Developers very obviously want to redevelop the vast majority of LA. The marginal cost of a housing unit is vastly higher than the cost of building that unit. To raise long-term tax revenues, LA could not just legalize redevelopment. They could actually incentivize it.
>For existing neighborhoods this means buying dozens of SFH from people who don't want to move.
The people living in SFH don't want to move exactly because they're not generating enough tax revenue to keep the city afloat (mostly due to Prop 13). Eventually the city will start having to raise taxes very dramatically or declare bankruptcy. That's the entire message from Strong Towns.
The more we put it off, the bigger the impact will be. When your city is effectively long-run insolvent, but you have the ability to change that even if it's politically unpopular (and LA does), then it's "trivially" doable, it's just that people don't want to.
That's not the case in many other cities.
In other cities demand isn't there. People will just leave when taxes go up, and the town will declare bankruptcy. At that point, they will effectively lose most of their population, or people will just live without things like clean water. An example of this happening is Jackson Mississippi, where the water system failed, and the city didn't have the money to fix it. The ultimate solution was just a federal bailout, which is not sustainable if these types of crises become endemic: https://en.wikipedia.org/wiki/Jackson,_Mississippi_water_cri...
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> The marginal cost of a housing unit is vastly higher than the cost of building that unit.
The cost of building a housing unit is rather out of control in LA right now, due to a number of factors. Some of those factors involve permitting, but some involve complexities of complying with building regulation, and there is also insufficient availability of contractors and insufficient availability of labor.
>The people living in SFH don't want to move exactly because they're not generating enough tax revenue to keep the city afloat
So the kernel of the argument is that 1) someone bought a single-family home and based on ground truth (property tax, cost of living, etc.) and 2) that property tax isn't sufficient to fund the city?
Can you really blame someone for not sacrificing his position under these circumstances? If I'm meeting my obligation, what do I stand to gain from leaving my house and moving into an apartment? That's saying "I need you to move so that someone else can take your property." It's not going to go over well.
Every time I look at a city/county budget, the schools absolutely dwarf everything else (it's not quick to disentangle different levels of government, but roughly speaking, it seems like schools are usually roughly the same cost as all other services combined where I've looked), which makes it hard for me to take seriously the idea that it's infrastructure like roads and sewage specifically leading to unsustainable budgets. e.g. if I remember correctly, special ed programs cost more than roads when I looked at the previous metro I lived in's budget, and sewers were revenue neutral with a county sewer fee.
Strongtowns seems a bit motivated in their analysis, to put it mildly.