..as the steelworkers' motto goes. Good to see Tony Allwright back blogging and boosting skyscrapers for Dublin, celebrating the grant of planning permission last week for Ireland's tallest building (designed, incidentally, by my old boss Paul Keogh). While I am in broad agreement with Tony about the merits of tall buildings, I think he begs the question about the cost of housing in his characterisation of the "root" of Dublin's traffic "problem":
The root of the problem is the high price of urban land which, with Ireland's boom of the last ten years, has led to a house-price explosion. Unless you can raise half-a-million €uro-or-so, you are forced to buy further and further out of town. Of course, the Irish love affair with purchasing homes rather than renting them is another issue, which further inflates prices while depressing rents to uneconomic levels. Indeed, no sane person would dream of buying when rents are so cheap (disclosure - I am one of the insane majority.). I have therefore long argued that what is needed is to despoil the skyline with high rise apartment blocks. There are plenty of existing apartment blocks, but due to planning restrictions they rarely exceed about six storeys, which means the exorbitant land price is shared by only six flat-owners. To keep costs down, they are often small and cheaply-made in order to offset the high land price.
[By the way, the notion that houses are "cheaply-made" is a bit of a nonsense. They are patently "expensively-made" enough otherwise there wouldn't be punters for them. If there were sufficient demand for more luxurious materials and better quality construction developers would cater for this] The "high" price for development land and housing is a reflection of the same phenomenon - fixed or increasing demand and restricted supply. The root problem is the whole idea of a zoning and planning permission system in the first place. Such government oversight has a generally lamentable record in predicting population growth and actual demand.
The procedure involved in zoning goes as follows: Some bureaucrat decides, based on some ancient surveys and nonsensical projections, that "what Dublin needs" in the next five years is X hA of land for residential development, YhA of land for industrial development, Z hA of "greenbelt" etc. There follows plenty of horsetrading as to precisely which land gets rezoned - such rezoning amounts to a financial windfall for landowners and has in the past incentivised corruption - and a whole series of restrictions on the type of development are written into the development plan. This plan is rubberstamped by the elected councillors. Any development seeking planning permission must conform to those restrictions.
This "central planning" may track mediocre social-democratic style growth but has proved utterly incapable of responding to Ireland's economically-liberal boom. Given a liberalised system, without the whole development plan apparatus and without the second-guessing planning application process, there would be no financial windfall on "zoned" land as there would no longer be any zoned land. Land which proved suitable for housing would get developed and, given Ireland's extremely low population density, could drastically increase supply without leading to a massive despoilation of the countryside.
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