Small Lots, Big Difference. Townhomes Work Everywhere. Conversation with Dominic Behrens

In this episode, Dominic Behrens joins us from Sydney, Australia where he is a senior economist with The Centre for International Economics. He is also the co-founder of Sydney YIMBY. Dominic walks us through a real-world experiment most places never get to see. In 2013, a suburban municipality in Australia allowed property owners to subdivide lots down to just 150 square meters, about 1,600 square feet, small enough for townhouses. Construction went up by two-thirds right away. Then in 2019, the required lost size was increased to 250 square meters, about 2,700 square feet, and construction went back down.  Dominic and his co-authors got access to incredibly detailed data and were able to analyze who built these homes (mostly small local builders) who moved in, (young families looking to upgrade), and what happened to the homes they left behind. That last part is fascinating. Research traced the ripple effect of these new townhomes across the much wider market. As young families moved to these high-end small homes, their old apartments became available to people of somewhat lower income and so on creating better the housing options further and further down the income ladder. We also discussed into why these reforms got reversed, even though less than one percent of residents objected, and why Dominic believes townhouses, unlike big apartment towers, could and should be allowed everywhere. Read article here: https://e61.in/what-local-land-use-reform-does-and-doesnt-do/