Posts

Image of downtown Los Angeles

Storper on the Roots of Housing Inequality

Michael Storper, distinguished professor of regional and international development in urban planning, co-wrote a paper featured prominently in a CityLab article. Storper and co-author Andrés Rodríguez-Pose of the London School of Economics argue that, while insufficient housing is a part of the problem, the idea that it is the main cause of urban economic problems is based on faulty premises. They find that increasing the housing supply does not lower housing costs. Rather, they find lower-income service workers move out of the city and higher-income “knowledge workers” move in. They write that the affordable housing crisis is “due less to over-regulation of housing markets than to the underlying wage and income inequalities, and a sharp increase in the value of central locations within metro areas, as employment and amenities concentrate in these places.” Storper is also the director of Global Public Affairs at UCLA Luskin.


 

Tilly on Economic Imbalance Exacerbated by Amazon’s Search for HQ2

Urban Planning Professor Chris Tilly discussed Amazon’s failure to reverse the concentration of wealth and power in the United States in a Ringer article explaining disappointment in the company’s choice for a second headquarters. Amazon garnered national attention when it announced the search for a home for “HQ2,” inviting cities with at least 1 million residents, an established mass transit system and proximity to an international airport to apply. Many saw this as an opportunity to spur economic growth in cities beyond established hubs. However, Amazon ultimately chose two smaller sites in New York and Virginia — both close to CEO Jeff Bezos’ personal homes in Washington, D.C., and New York City. Many cities vying to lure HQ2 were never realistic options for Amazon, Tilly said. He added, “The whole thing was a show with the ultimate purpose of getting the best possible benefits from one or more cities on the short list they already had in mind. I don’t think there was a genuine process of scoring the map of the United States.”