how does economics work?

April 22, 2008 Economics, Historic Districts Comments (0) 1081

There was a great symposium Saturday at the Chicago Architecture Foundation, one of several in conjunction with their exhibit on the history of Chicago preservation: “Do We Dare Squander Chicago’s Great Architectural Heritage?” that runs through May 9 (See it now!). Prof. Bob Bruegmann opened it up with an excellent history of teardowns and the inquisitive, expectation-overturning perspective he brings to everything. Prof. Richard Dye, an economist, explained the economics of teardowns. Both men suggested that an upside of teardowns was that they shouldered a bigger portion of the tax base, a fact that neighbors of teardowns are perhaps loath to admit. Bob did note that increased values could mean higher taxes for the teardown-adjacent in their little historic houses as well, and he also sagely discussed the new penchant for small houses, which are of course greener and thus more chic and popular with the wealthy. Continue Reading

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Texas Symposium

March 27, 2006 Blog, Technology, Texas Comments Off on Texas Symposium 1014

I was at Texas A & M University this weekend for a preservation symposium. Several of the Texas schools presented their projects, notably student study trips to Mexico and Elizabeth Louden’s amazing work with a 3D Laser scanner, which her graduate design studio used to model (and animate and fly-through etc. etc.) the main street in Troy, Texas. I am no technophile but this thing is pretty neat, and apparently you can get one for less than half what they cost a few years ago. A bargain at $100,000 ( I wonder if it is Mac compatible??)

I also did a presentation about my historic districts research, which is also the subject of a graduate seminar I am teaching this semester. The reaction was pretty good to my basic thesis, which is that community planning activists have infused the preservation movement with a broader set of goals and objectives and altered its nature. The students in the seminar have done a nice job digging through the past of districts in various cities – especially the early ones in places like Boston, Philadelphia, New York, San Francisco and Pittsburgh. Next they are going to tackle various Chicago districts. Continue Reading

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Home Economics

March 20, 2006 Economics, Historic Districts Comments Off on Home Economics 1088

In the last month I have read two articles both titled “Home Economics” and both might be said to be profiles of anti-landmarks persons. The first was in Chicago magazine and profiled a local lawyer who helped quash landmark designation in the Sheffield/De Paul neighborhood. Her argument was that designation would hurt property values and cause all sorts of expenses for homeowners.

The other “Home Economics” profile was of economist Ed Glaeser in the New York Times, and he said just the opposite.

On Thursday the Wall Street Journal published an article about the proliferation of local historic districts driven by residents’ desire to raise their property values. That counters our Chicago attorney-cum-economist, but it supports Glaeser. Continue Reading

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Lazy Money

January 30, 2006 Economics, Historic Districts Comments (0) 1167

My student Dorothy Bobco wrote me a marvelous note the other day about “lazy money”. Here is a quote:

“I think I have figured out why people get so upset when they think their property values are going down. They are losing free money, lazy money. You can buy a house and do nothing and the value will probably go up. If anything happens that changes that, they lose money that they did not have to work for. That is what makes them mad, losing money they did not have to work for. It is laziness and greed that drives the real estate market. ” Continue Reading

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Historic Districts

January 29, 2006 Economics, Historic Districts Comments (0) 997

We are starting a class on Historic Districts tomorrow – looking at how they evolved and what motivates people to designate their community as an historic district. Historic districts are a fascinating combination of two postwar movements – the broadened historic preservation movement, which was inching beyond associative and architectural history to start looking at the state of cities, towns and rural places in a bigger way; and the community planning movement, which was trying to wrest control over development decision-making from the urban experts who began to radically refashion cities after World War II.

We will be looking at a lot of different cities and districts and I hope that the students help me to understand the whys of the historic district, especially why people choose it – or fight it. For those ideological free market types, historic districts are a bit more fair than traditional individual landmarks, because they put a whole area – or “market” – under the same set of rules, as opposed to individual landmarks, which are seen to be at a development disadvantage from their neighbors. Yet historic districts are also mechanisms for community empowerment, allowing a group to control the form of its environment in a manner more precise – and perhaps less predictable – than zoning, which regulates use and density. Continue Reading

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