Art And Gentrification, Part 1: It’s Complicated

by William Skink

Artists have long been blamed for being unwitting agents of gentrification. According to New Urbanism guru, Richard Florida, “It’s an old story, the stuff of urban legend and conventional wisdom: First come the artists, then come the yuppies. But is this really the case? Are artists the “shock troops” of gentrification?

Richard Florida references a study that complicates the conventional wisdom noted above, but much more needs to be established before getting into the weeds of a city by city analysis of the arts and its complicated role in the process of gentrification.

I found a very insightful article from 2017 by Peter Moskowitz, titled What Role Do Artists Play In Gentrification? Here is some of the historical context the article provides:

The idea of the artist-as-gentrifier has staying power because it carries truth: Artists do often move into low-income communities of color, and bring with them gentrified aesthetics and commodities like $4 coffee. But the trope also hides nuance. Artists indeed participate in gentrification, but they are not its sole cause. To understand how art influences gentrification, and how artists can help fight against gentrification, we need to see a fuller picture.

The first piece of the puzzle to understand how art became so linked to gentrification is acknowledging that there were artists before gentrification: People of color and lower-income white people were living in cities and making art well before the term gentrification was coined by sociologist Ruth Glass in 1964. New York and San Francisco were seen as bastions of progressive and avant-garde art throughout the 1950s and ’60s, without much fuss being made about art’s effect on real estate values.

Two things changed that. Different kinds of people began moving into cities, and the art market grew tremendously, becoming increasingly professionalized and linked with global finance.

It’s at this point Moskowitz examines the post-WWII creation of suburbia, with its racist single family zoning. The “different kinds of people” referred to in the above quote are the progeny of suburbia, who started moving back to the city in the 70’s:

After World War II, the U.S. federal government essentially created suburbs out of thin air by subsidizing the mortgages of millions of Americans. But the mortgages came with conditions. Houses had to be single-family, and the mortgage owners in many cases had to be white: The federal government would draw maps of cities with red lines around neighborhoods with too many people of color to be eligible for mortgages. This process came to be known as redlining.

Redlining not only depressed the economies of inner cities, it created an entirely new kind of people in the suburbs—the white middle and upper-middle classes. For the first time in American history, the majority of white people were living largely privatized lives in single-family homes, without many community spaces or diversity, a lifestyle that reinforced the ideal of the nuclear family, with a stay-at-home mom and a working father. When the children of that economic and cultural experiment we now call “white flight” looked around, and decided they didn’t like what they saw, they began moving back to cities. In the 1970s, New York, San Francisco, and every other major urban center began experiencing an influx of a new kind of white person—one raised with the aesthetic, economic, and spatial values of the suburbs.

This influx of white, suburban artists fleeing the stifling conformity of suburbia was different from other types of people who came to the city for different reasons:

“Pre-gentrification cities were places people came to get away from the constricting values of American life,” Sarah Schulman, the author of Gentrification of the Mind: Witness to a Lost Imagination (2013), told me over the phone. “The suburbs produced a different kind of person that brought a completely different ethic and value system to cities. You used to get the rejects and the resisters. Now you’d get the products of an unnatural environment of hetero- and racial supremacy.”

In the view of Schulman and others, suburbanization unleashed on cities a deluge of artists who cared more about marketable aesthetics than about art that could create social change.

Simultaneously, between the 1970s and today, art itself became further entrenched within capitalism. The art market is now worth $45 billion a year, dozens of times its size a few decades ago. And big-ticket MFA programs have become seen as near-necessities for success in the art world.

With this historical context in mind, what can artists do to become more aware of their role in gentrifying urban spaces? Here is an excerpt from an article, titled An Artists Guide To Not Being Complicit With Gentrification:

We write in hopes that more artists will finally break with their sense of exceptionalism and consider their roles in gentrification. We recognize that art is an industry with a structural reality that must be acknowledged in order for artists to challenge their complicity in the displacement of long term residents in low-income and working class neighborhoods and fight against this. It’s important that people see the devastating impacts of securing housing in working class and poor neighborhoods, and setting up investment properties posing as art spaces. How can this loyalty to the notion of art as a pure form of positive change be reconsidered, particularly when such sentiment encourages the destructive endeavors of parasitic developers and landlords?

As far as how we see our own position in these debates and struggles, we constantly reckon with and interrogate our personal culpability and contradictions as people who participate in exhibitions and have jobs in the arts, be it in nonprofit educational institutions or otherwise. We hold ourselves accountable by organizing with our neighbors for the human right to housing.

We are in a moment where the connection between art, real estate, and the displacement of longtime residents is undeniable. How might artists take responsibility for how we alter people’s lives, in terms of the impacts of real estate speculation and gentrification? How do we refuse co-optation and engage locally with our neighbors? How are artists, curators, galleries, and museums complicit with the same finance capital that gentrifies neighborhoods across the globe? We ask all of this as we involve ourselves deeply with tenant rights groups, to listen and learn from political and social urgencies. We refuse to accept that pointing at problems is enough. Rather, we look to create a collective analysis, to “act our way into thinking ” — a phrase borrowed from fellow organizer Leonardo Vilchis of Unión de Vecinos — which we’ve come to understand as the learning process that comes out of collective action, as opposed to relying on and residing only in theory. In this spirit, we share some of the lessons we’ve learned through our organizing and pedagogical work.

What follows this quote is a numbered list of what these artists have learned. I recommend reading them all, but number five stood out to me in particular:

5. We must choose between prioritizing our own individualistic artistic careers or prioritizing the dismantling of oppressive structures. There are no places without contradiction, nor places where we can be absolved of reinforcing oppressive structures. Instead, we must reorient our priorities so that we can be honest about what we are actually working towards. It takes time to learn how to point at a problem, yet too often we feel the work ends there. When it comes to art, there’s a certain cultural capital gained by criticizing capitalism, but it doesn’t necessarily mean that we are putting anything on the line to dismantle it. In far too many instances, the violence of the status quo is actually protected, guarded, and upheld in smug, self-assured condescension by artists with careers to protect when those who seek to rattle the cage more vigorously violate liberal taboos like “tone” and “unity.” If we get involved in anti-oppression struggles, listen, and are aware of privilege and the differing crises that surround us, it’s difficult to see an individual art career as something worthwhile. We’ve seen many artists with visibility (i.e. artists with gallery representation or those who have received major recognition of their work through awards or grants) who dismiss and criticize the artists and local organizers who choose to stand with the local neighbors of Boyle Heights in the form of social media rants and public media outlets (calling them misguided and naive). How might we tune our listening away from those with powerful art world platforms to those most impacted by gentrification?

Because the role of artists in perpetuating gentrification is a complicated one, I’ll be revisiting this topic over the next few weeks. Part two will examine a Missoulian op-ed in order to shift the focus to more recent local developments.

Stay tuned…

The Consequence Of Saying No To Inclusionary Zoning

by William Skink

Over the weekend I took a look at some zoning issues that impact housing, specifically the idea of liberalizing the zoning code, or “upzoning”.

This is a national trend because it ultimately benefits developers. The jury is still out on whether the implementation of these policies are actually producing the desired effects on housing supply and affordability.

Today’s post is going to take a look at a different type of zoning that Missoula COULD have had if the three year process of developing a set of housing policies had included it in its policy recommendations.

Unfortunately, inclusionary zoning was NOT one of the tools the city decided to go with when it rolled out its set of policy recommendations to deal with the housing crisis in Missoula.

The reason I’m thinking about inclusionary zoning again is a headline in today’s Missoulian, which reads Missoula Opportunity Zone: Officials research affordable housing.

The word in the headline I want you to pay extra attention to is “research”. From the link:

The Missoula Opportunity Zone has seen a couple of large projects break ground using the Opportunity Fund so far, including a new engineering office and a new gastroenterology facility. Those projects will upgrade sewers, sidewalks, roads, lighting and street trees in the low-income Westside neighborhood through the use of Tax Increment Financing. Much of Missoula’s Opportunity Zone overlaps with Urban Renewal District II, where developers are eligible for TIF awards.

In November, staff with the Missoula Economic Partnership visited three communities in Oregon to meet with developers and tour specific projects.

For one, they toured a 21-story mixed-use building in Portland called YARD. It’s mostly a luxury apartment complex, but 25% of the units are designated as workforce units for people who earn 80% of the area median income or less. The developer got 10 years of tax abatement and a 20% reduction in fees in exchange for making sure the workforce units are affordable in perpetuity.

Let me summarize what’s going on here so you can be as thoroughly pissed off as I am.

First, the opportunity zone provides a financial tool for investors to avoid paying taxes on capital gains.

Second, public money is utilized to prepare the ground for development, and all the increased value from this development will go to the Missoula Redevelopment instead of the general fund.

Third, because Missoula DOES NOT HAVE inclusionary zoning, MORE SUBSIDIES are being “researched” to further sweeten the development pot for affordable housing.

In Portland, the developer scored 10 years of tax abatement and a 20% reduction in fees, all so a mere 25% of a LUXURY APARTMENT COMPLEX can be offered to the “workforce” who will serve the residents their avocado toast.

Last June, Hermina Harold penned a great op-ed about the big mistake Missoula made when officials refused to include the inclusionary zoning tool in the old too box (a worn out metaphor if you ask me). This part is worth repeating:

Recently, the Missoula City Council was handed a slate of housing policy recommendations to review, and they have work to do before the June 24 vote. The policy recommendations are skewed in the direction of developer incentives. These types of incentives largely failed when Bozeman and Whitefish tried them. Both cities have now switched over to mandatory inclusionary zoning policies.

We don’t have the luxury of time to wait and see if the incentives work and then change course. A University of Montana Bureau of Business and Economic Research study from 2018 reported that when median wages are compared to median home prices, Missoula housing is already less affordable than Bozeman, Denver, Seattle, Portland and Miami.

I am asking our City Council and Missoula Redevelopment Agency to enact two regulatory policies to stop the displacement of working people: 1) mandatory inclusionary zoning and 2) Tax Increment Finance District affordability requirements.

Because our local officials like to either ignore or incarcerate those who don’t go along with their gentrification schemes, Harold’s plea fell on deaf ears. No surprise there.

If Missoula officials had been able to hear the public over the loud cha-ching of more TIF loot, there would be no reason to visit Oregon to research how to create MORE subsidies for developers.

Sadly, that’s not how things played out in our liberal utopia.

Stay tuned as our electrd gentrifiers plot more “incentives” to get the public a few peanuts as the building boom continues and our collective debt bomb ticks down to a macro reset.

The Culture Class Wins The Race

by William Skink

There is a place in Missoula I’m not going to tell you about because it’s a magical place that gives me poems. Many of my most recent poems were snatched from the ether of this natural landscape.

Perhaps the fabric of time and space is thin there, for this latest batch of verses appears to come from the not-so-distant future and authored by the victors of the class war.

Enjoy your Monday!

THE CULTURE CLASS WINS THE WAR
for Richard Florida

stick a fork in it
your downtown is done
the condos all glisten
in the hot hipster sun

walk car-less streets
With geo-chip friends
from cradle to grave
they give perfect lens

back when complainers
made people mad
with negative narratives
about how we’re bad

discordant notes struck
and bothered the minds
of follow-prone people
with irregular rhymes

so happy that’s fixed
with everything put right
in new urban spaces
not one speck of blight!

can you feel all that culture
from the perch of your loft?
do you marvel at mixed use
whatever the cost?

single family zoning
you dumb, racist shits
must be destroyed
so the races can mix

because good selection
breeds a good stock
for convenient extraction
to get what we want

Will Liberalizing Zoning Codes Produce More Affordable Housing?

by William Skink

Today’s post is going to be a fun and exciting look at zoning, specifically single family zoning. Is single family zoning bad? Is it racist? Will banning single family zoning in order to allow higher, more dense residential structures lead to more affordable housing?

These questions were sparked by a brief back and forth I had with a commenter by the name of Abby. Here is Abby’s first comment:

Single family zoning is racist to the core and no amount of cloaking it in anti-gentrification buzz words will change that. The landowning class must protect those precious property values…

The logic here is that single family zoning doesn’t allow for multi-family housing to be built in neighborhoods like the Rattlesnake and University District. Furthermore, because those neighborhoods have a strong NIMBY component that would actively fight changes to the character of their neighborhoods, they should be seen as selfish racists who fear poor, non-white people will invade their neighborhoods if single family zoning is banned.

Abby and other proponents of banning single family zoning assume that once this task is accomplished, denser construction will increase supply and lower prices. This makes sense. But will it actually happen?

I found a very interesting study that raises some very serious questions about these assumptions, and none other than New Urbanist guru Richard Florida is helping to raise the alarm that banning single family housing may not have the desired impact people like Abby assume it will.

Before getting to the study, here is how Florida frames the thinking about zoning reform:

One of the most influential ideas in urbanism today is that the key to addressing the housing crisis is reforming zoning and building codes to allow for taller buildings and higher population densities.

A growing chorus of market urbanists and YIMBYs make the case: Restrict supply, and demand and therefore prices go up. So, it follows, liberalizing codes to make it easier to build—and to permit taller, denser structures—will increase supply and cause prices to fall, which will then make housing (and expensive cities) more affordable.

This idea of liberalizing codes, or “upzoning”, is getting some critical pushback after a study looking at zoning changes in Chicago provided some surprising results. Here is how the study was structured:

But a new study published in the journal Urban Affairs Review throws a bit of a proverbial wrench into the works. Its author, Yonah Freemark, a doctoral student in urban planning at MIT, has analyzed the effects of upzonings in Chicago neighborhoods. His study takes the form of a natural experiment (the “gold standard” of social-science research) by comparing an initial set of zoning reforms, undertaken in 2013 to encourage development around transit stops, with a more aggressive set of reforms from 2015, which expanded the upzoned areas and increased incentives for taller, denser development.

The study design allows Freemark to overcome the analytical problem of an endogenous relationship between upzoning and changes in prices and construction activity. He uses Chicago zoning files to determine the parcels of land affected by the two zoning changes, as well as data on building permits from the city and property values from the Illinois Department of Revenue. The study tracks the period 2010 to 2018, before and after the zoning changes.

So, what were the results?

Freemark reaches two startling conclusions that should at least temper our enthusiasm about the potential of zoning reform to solve the housing crisis—conclusions that, interestingly enough, he has said he did not set out to find. First, he finds no effect from zoning changes on housing supply—that is, on the construction of newly permitted units over five years. (As he acknowledges, the process of adding supply is arduous and may take longer than five years to register.) Caveats and all, this is an important finding that is very much at odds with the conventional wisdom.

Second, instead of falling prices, as the conventional wisdom predicts, the study finds the opposite. Housing prices rose on the parcels and in projects that were upzoned, notably those where building sizes increased.

The conventional wisdom, according to this study, does not apparently align with the actual impacts of upzoning in this specific geographic location. Why?

Freemark identifies two key mechanisms by which upzoning acts to increase prices. First, the fact that upzoning registered so quickly in higher prices is a signal that land prices respond rapidly to the ability to build more units, which translates into money in the pockets of incumbent landlords. Second, the large effect of reduced parking minimums on the value of vacant land means that the biggest impact of zoning liberalization is on land that is ripe for development anyway. As Freemark puts it bluntly: “[T]he short-term, local-level impacts of upzoning are higher property prices but no additional new housing construction.”

So, liberalizing codes by itself does not seem to produce the desired effects of increasing the housing supply and lowering prices. It will produce luxury condo units, like the controversial 4th street condo project in Missoula.

Here is Richard Florida discussing this trend:

Freemark’s findings are in line with my own thinking, in my book The New Urban Crisis. There, I argued that although it is important to combat unnecessarily restrictive zoning and building codes (whose advocates I dubbed “New Urban Luddites”), easing these codes would do little to address housing affordability and might actually serve to increase housing prices in the neighborhoods in question, for the simple reason that developers would use the land not for affordable units but for luxury construction.

I noted that the markets—and neighborhoods—for luxury and affordable housing are very different, and it is unlikely that any increases in high-end supply would trickle down to less advantaged groups. Another economist who is more pro-market than I am, Tyler Cowen, has similarly argued that the result of liberalizing zoning codes to allow for taller buildings will likely be more luxury housing and more profits for landlords and developers.

Again, the 4th street condo project exemplifies how the push for density will be exploited by developers to do what will make them the most money.

There is a type of zoning that could help, called “inclusionary zoning”, but our enlightened leaders in Missoula chose NOT to make use of this zoning tool. I wrote about that unfortunate decision last November.

The findings from this study examining the real world impact of liberalizing zoning codes to build higher, more dense residential structures, confirms my skepticism that the supposed cures being offered to our community will produce the desired results.