The Wisdom of Mixed Use Development

The ongoing foreclosure nightmare has hit people from all walks of life. However, there seems to be a common thread that separates the foreclosure group from the non-foreclosure group.

It has been observed that homeowners who live close to their town have a significantly lower rate of foreclosures. The theory is that this population can walk, ride a bike, or take the bus to work.

When you look back at the beginning of the foreclosure landslide you’ll notice that it all started as gas prices were skyrocketing. Commuters who worked in the city and lived in bedroom communities were paying $200 to $300 at the pump each week (depending on the type of car, grade of gas, and driving distance.) That adds up fast. All of the sudden these people were forced to double their gas budget and come up with an additional $400 to $600 per month – out of thin air. On top of that home loans were adjusting and mortgage payments were, in some cases, doubling. In contrast, people who worked close to home were largely unaffected by the gas prices and could tolerate tightening their budget to make room for higher mortgage payments.

All in all, the areas worst hit were areas that lacked public transit, walking distance to amenities and jobs, and mixed use real estate. Metropolitan areas, where housing and jobs were close to transit and walk-to (or bike-to) amenities, saw their home values plateau instead of drop.

When you look at the benefits of a sustainable urban or suburban community that is served by transit and walking, you’ll notice an even greater benefit: cleaner air. Sprawl creates more greenhouse gas emissions and air pollution. Hence, California Senate Bill 375, America’s first statewide, anti-sprawl measure enacted into law in September 2008. This bill is designed to limit sprawl and provide communities and developers incentives like permit expediting or special funding to encourage local government and developers to build closer to existing transit or build close to planned transit and consider how much people will have to drive as a result of proposed projects. Besides incentives there are also punishments such as withholding federal transit funding for failure to comply.

The anti-sprawl bill provides guidelines for productive land use and transportation and serves as guidance for the expansive AB32 bill, California’s landmark bill that establishes a “first-in-the-world comprehensive program of regulatory and market mechanisms to achieve real, quantifiable, cost-effective reductions of greenhouse gases”.

Common Current published its top sustainability report of 2008 and cited that the high gas prices caused people to want to live near retail districts. Further, according to the Robert Wood Johnson Foundation, people would rather forego their neighborhood golf courses in exchange for retail in walking distance. Personally, I prefer to ride my bike to the grocery store and to restaurants because of the much-needed exercise – so, this type of “mixed-use” community is a blessing to me. I live close to my town and junior college – I chose my neighborhood based on the walking/bike riding paths and the fact I’m close to everything I need. I actually go weeks without ever starting up my car. There’s a reason why my neighborhood is one of the most desirable areas in the county and the mixed-use model is proof of that. People want it.

Nearly two out of every three Americans are overweight or obese. People would get daily exercise if their environment supported a more active way of life. The concept of “mixed-use” supports this lifestyle. The suburban developments of the past were disconnected from commerce and far from jobs – these types of developments have dominated the housing market.

Mixed-use development, if done tastefully, is a very attractive notion and will benefit everyone – business owners, job seekers, active lifestyle lovers, and the environment, not to mention it will keep tax revenue in the city.

Links:

• http://www.commoncurrent.com/notes/2008/11/limiting-sprawls-economic-and.html
• http://www.triplepundit.com/pages/top-sustainability-stories-and-business.php

Photo Credit: Striatic

Posted on February 3rd in Solar Politics by Beth.