tag:blogger.com,1999:blog-7394091530012769761.post1948303844989314237..comments2024-03-27T04:02:47.206-04:00Comments on Old Urbanist: The Problem with Schools and Housing SupplyCharlie Gardnerhttp://www.blogger.com/profile/07317335121565650040noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-7394091530012769761.post-34366111919390307632014-06-25T15:57:50.602-04:002014-06-25T15:57:50.602-04:00Multifamily Transit Oriented Development can allev...Multifamily Transit Oriented Development can alleviate a tremendous amount of this burden and here are the facts (check Rutgers and UCal Berkeley): {we are not talking Affordable or Subsidized Housing}<br /><br />A) Construction Costs are high that you are forced to build premium market rate product and obtain Class "A" rents<br />B) TOD's average 5% School Children per unit so imagine a 150 unit building by the train station would be 7.5 kids; however local studies have found 50% of these folks send their children to private school so the impact might be only 3.25 kids grades K-12<br />C) a strange phenomenon is occurring demographically where new household formation is substantially lower than in years past; people are having less children<br />D) 25-40 don't have money for down payments especially in Westchester; also make the connection on age and likelihood of kids<br />E) Single family homes 54% have kids<br />F) TODs residents have 50% less amount of cars<br /><br />Here is why this is really interesting: Taxes too offset the burdens on everyone else.<br /><br />150 units with 7.5 kids paying roughly $7,500 per unit (usually greater than 3x gross rent) in local property taxes (150 x $7500) = $1.125 Million in Local Property Taxes. Take that figure and divide it by the number of kids 7.5 = $150,000 in taxes per kid. <br /><br />The median home value in Rye is $1,308,200. Average taxes are $19,731 and average home size is 2,349 square feet. <br /><br />54% of single family households have kids. Taking the same number of homes and units (150), the 150 homes would pay $2.9 Million in taxes or $54,808 per kid. <br /><br />Here is where it is really interesting: $150,000 divided by $54,808 = 2.74 times greater contribution by multifamily to the taxes than single family, thereby making the greatest return on investment for the local jurisdiction. <br /><br />Although the nominal figure is higher in single family (really due to an exaggerated home price in Rye; other less affluent areas the multifamily multiple would be significantly higher)<br /><br />Nationally, data make clear that apartments put much less of a burden on local school systems than single-family homes. In addition, apartments are taxed at higher rates than single-family houses. The average property tax rate for the median-value house in urban areas across the country is 1.41 percent; for apartments, the rate is 1.83 percent. As such, apartments contribute more to the local government revenue base than single-family houses. <br /><br />For some reason when people think of multifamily as old ugly nasty brick 1940s built (right after the war because they had too) buildings, but you have great local developers who design very attractive buildings where their architects and deliver really nice Class "A" type apartments. They are not eyesores, quite the contrary, most of them fit within their local architectural context.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7394091530012769761.post-91801194080718142112014-06-04T12:08:52.929-04:002014-06-04T12:08:52.929-04:00Maybe the solution is to control school costs. Eli...Maybe the solution is to control school costs. Eliminate half the administrators, for a start. Then the other half. Allow more charter schools; they do a good job of cutting costs while improving education. <br /><br />Of course, Democrat politicians need unionized teachers like a vampire needs blood, so this can never happen. Our cities will go bankrupt before politicans stop getting their taxpayer-funded union campaign contributions.Trimegistusnoreply@blogger.comtag:blogger.com,1999:blog-7394091530012769761.post-76944164704243210882014-06-03T15:32:31.708-04:002014-06-03T15:32:31.708-04:00This is good information because it puts a numeric...This is good information because it puts a numerical certainty to current building patterns in residential America. Jameshttps://www.blogger.com/profile/10611090577273639574noreply@blogger.comtag:blogger.com,1999:blog-7394091530012769761.post-81032681462004866602014-06-02T19:57:32.273-04:002014-06-02T19:57:32.273-04:00Alai -- the blog author shows his work here: http:...Alai -- the blog author shows his work here: http://zoningplan.org/2013/04/20/case-study-32000-assessed-value-2-children/<br /><br />So the ratio is more like 2-1 than 10-1. I've changed the quote to reflect that. Charlie Gardnerhttps://www.blogger.com/profile/07317335121565650040noreply@blogger.comtag:blogger.com,1999:blog-7394091530012769761.post-19119934548024289332014-06-02T01:12:20.027-04:002014-06-02T01:12:20.027-04:00"Each square foot of residential expansion ge..."Each square foot of residential expansion generates thirty-two dollars of city tax revenue but may cost the Rye schools more than three hundred dollars."<br /><br />I don't see how that even passes the smell test. A thousand-square-foot, two bedroom apartment costs the Rye schools $300,000?! Are these lifetime costs, or something?alaihttps://www.blogger.com/profile/05334835705248693244noreply@blogger.com