Wednesday 28 March 2018

Auckland Plan refresh (2)


This is a short post with an update of 'where the money is going'.

In my last post I looked at the Auckland Plan refresh and the associated Long Term Plan (the 10 year budget), and asked the question as to whether the two plans are aligned. 

Having looked at the Long Term Plan in a bit more detail, it is useful to compare projected capital expenditure in the 2018 long term plan with the projections in the 2015 version of the same plan. Have priorities changed due to the Auckland Plan refresh or the Unitary Plan being settled, for example? 

The following are the 30 year projections of capital expenditure, by infrastructure, for the 2015 and 2018 long term plans. The numbers are billions of dollars. Running a city is not cheap!  

Table 1: Total 30 year projected expenditure by infrastructure type ($ billions)

Infrastructure type
2015 plan
2018 plan
Roads
16.8
26.3
PT
6.8
18.6
Wastewater
10.9
10.2
Water
9.6
9.6
Stormwater
3.9
4.5
Community
11.1
13.9
Total
59.1
83.1

The graph of the above figures looks like this. 

Figure 2: 30 year Capital Expenditure $ Billions


Total projected capital expenditure has increased by $24 Billion for the 30 year projection period, between the two plans. This extra expenditure has been identified in the 3 years between the plans. What gives? Is this increase in response to the rapid population growth experienced over the past 3 years; the plan to open up a lot of greenfields land for housing; a shift in priorities; or just a better idea of what is needed? Is it all of the above?

Interestingly, other council documents like the Future Urban Land Supply Strategy  (see this blog) identified the need for $20 billion dollars of infrastructure for greenfields areas, although that figure included NZTA spending on motorways. 

What sticks out is the huge increase in spending on 'roads’. Passenger transport also gets a big lift in investment and as an infrastructure class, sees the biggest percentage increase. Roads don’t just carry cars, they also provide space for buses, trucks and cyclists, so it not like the budget is all about ‘cars, cars, cars'. But due to the large investment in both roads and passenger transport, the combined transport categories now take up over 50% of the capital expenditure. As the graph shows, not much else changes. 

The following is the 10 year projection, again in billions of dollars. The 10 year budget allows for a bit more of a break down of the ‘community’ infrastructure category in the 30 year projection. 


Table 2: 10 year capital expenditure ($ Billions)
Infrastructure type
2015-25
2018-28
Transport
7.9
12
3 Waters
5.6
7
Parks and Community
2.4
2.6
Centres development
1
0.3
Other
1.8
1.8
Total
18.7
23.7


Here is the graph….

Figure 2: 10 year projected capital expenditure ($ Billions)



As I said in my last blog, it seems wrong that infrastructure that would add real amenity to an intensifying city - like more and better parks and open spaces, improved town and local centres and associated public spaces - gets so little investment. 

Once again, we seem to be letting transport investment dominate development and spending. Some of that investment will be helpful to the pattern of development suggested by the Auckland Plan refresh. But you do wonder about the mix between roads and passenger transport, and between these two classes of investment and the 'softer' infrastructure that is so important.

The worry is that the lift in investment in transport between the two plans reflects the work of AT and central government in identifying and planning for the future transport needs of a larger, more expansively developed city.  Good on them for doing this work. But has the same level of analysis and planning gone into identifying the 'soft' infrastructure needed, especially in the existing urban area? My guess would be: no. And that is why the above figures for community infrastructure essentially 'flat line' between the two budgets. Hopefully I'm wrong.

What gets funded, gets built. What is not funded, does not happen.


Thursday 22 March 2018

Auckland Plan refresh and the missing middle


The Auckland Plan refresh is out for consultation. I have spent the last few blogs looking at whether there is a missing  middle in the density profile of the city, and started to look at the associated urban design issues. Does the refreshed Auckland Plan signal that the 'middle' of the city (medium type densities in the middle ring of suburbs) needs to get a push along?

Well kind of yes - the refreshed plan shows a number of development areas that are scattered across the middle ring of suburbs, These are areas where  the plan anticipates a lot of urban redevelopment will occur.

The plan says that redevelopment in these areas will be of scale and require substantial infrastructure investment. That looks positive.

Quick thoughts are:
  • Where is the money is going?
  • Where is the money coming from?
  • What happened to urban design?
  • Where are the jobs and where is the housing?
  • Is the plan too much strategy and not spatial enough? 

What do I mean by the above?

Where is the money going?. 

The Plan is accompanied by the draft 10 year budget. That document makes more interesting reading than the Auckland Plan refresh. The question is: are these strategies aligned? Does the spatial plan go one way and the funding plan go the other way?  This is not an idle question. There is always a tension between where development is best to go versus where it actually goes. Read any previous growth strategy and the overriding impression is that the plan says “growth should go here”, but the reality is that “growth goes over there”. In no small part this is because infrastructure spending has followed the people, not the plan (and what is more, often the people benefiting from that infrastructure do not pay for all of that investment).

Take for example, Direction 4 of the Auckland Plan: Provide sufficient public places and spaces that are inclusive, accessible and contribute to urban living.

Sounds good. I presume this type of action is linked to the Auckland Plan’s development strategy and its objective of enabling urban redevelopment in a number of areas across the city, not all of which will be easy markets for urban redevelopment to take hold. Some parts of the city will need an injection of public amenity to help spark redevelopment, redevelopment that will be necessary to accommodate growth, but also to ‘spread growth around’. Then we have the following statement:

Planning and investment will be targeted and prioritised to these areas where the greatest development capacity is taken up. 

Is that development that will be delivered by the market or development enabled and stimulated by public investment? Will that be investment in the development areas identified by the plan, or anywhere where growth springs up. Bit hard to untangle these questions, but there is a very big difference between these options.

 Elsewhere is the following:

Investment must therefore be specifically targeted at: 

• those areas that undergo significant growth and where population densities are increasing 

• those parts of Auckland that are currently under-served and where it will make the most difference to quality of life.  

So another objective is added (which is hard to argue with). We now have three objectives for infrastructure investment:
  1. Investment to help stimulate urban redevelopment
  2. Investment to support and follow along after market-led development
  3. Investment to help existing areas ‘catch up’, but not really  provide for future growth. 
So quite a lot of investment needed then, and not much of the city is untouched by the above objectives. So is there really a strategy here?

Two things to look at in more detail with regard to the principle of identifying urban development areas - first is investment in parks, open spaces and community facilities. I often think this is the type of investment that is needed more than others to help support quality urban redevelopment. Density around amenity is the call, not density around transport hubs.

Look at the 10 year budget . Deep within this is an infrastructure strategy and a 10 year financial strategy.

Under the heading 'Community assets (parks, recreation and community facilities) to support growth and development', three options are outlined:

Option A: Limited provision of new community assets (parks, recreation and community facilities) to provide for growth and diversification. Results in a lower level of provision than identified in the council’s adopted strategies and guidelines.

Option B: Moderate additional provision of community assets (parks, recreation and community facilities) to provide for growth and diversification.

Option C: Provision of community assets (parks, recreation and community facilities) to provide for growth in the areas identified in the Future Urban Land Supply Strategy for Decade 1 only. 


Guess which option gets recommended? Option A.  So not much joy there. At least the focus is not just on the future growth areas (Option C), but Option A is hardly designed to tip the playing field towards urban redevelopment through amenity improvements.

But what about public-led regeneration efforts? That is tied in with the new Housing and Transport Minister’s call for 10 to 15 large development areas to help deliver his Kiwibuild.

Perhaps the money is going to go into property acquisition, site amalgamation, private-public partnerships and the like in the identified development areas. There is a section in the infrastructure strategy with a heading: ‘Panuku Programme Options 2018-2028’. That also sounds promising.

There is even this statement: “Successful regeneration and development requires investment in amenity and infrastructure upfront to build community support, homeowner demand and private sector interest”. That sentence would be ‘on the money’..... if there were any money.

Then two options:

A: Funding requirement of $344 million over 10-years. 

B: Funding requirement of $942 million over 10-years.


Option A completes legacy projects. Option B is said to meet the level of likely capital returns expected from Transform and Unlock locations. I think that means that Option B would stimulate a lot more development which would benefit council coffers. Which option is recommended? Yes, Option A.

I know that there is always a gap between aspirations and funding, where choices have to be made. And at least the infrastructure and funding strategies are making some choices. But you wonder about the focus on transport and fixing up stormwater problems (which are the two big ticket items in the strategies that soak up any new funding) which have crowded out other priorities.

Not all transport investment will help stimulate redevelopment in the identified development areas, in fact much of it may be elsewhere, for example trying to keep up with growth out in the greenfields and across the suburbs.

The headline numbers for transport investment under the preferred option are:
  • Roads and footpaths $26.3 billion capital expenditure and  $23.8 billion operational expenditure
  • Public transport $18.0 billion capital and $42.0 billion operational. 
Is that the right mix to support the middle, rather just spreading growth around?

But note the lurking issue over funding of the escalating operational costs of public transport compared to roads in general. Something needs to be sorted out, as the operational funding demands may be the break on the amount of capital invested.

Much of the money going into water quality is to fix historical problems in the western Isthmus which experiences constant wastewater overflows. Can’t argue with that as I live in the area, but there is not a heck of a lot of growth going to happen in the inner west. The outer west gets heaps more growth (at least that is what the plan says).

So are we back to investment following people (voters) who may not necessarily pay for all of that investment, and investment not really following the spatial plan?


Where is the money coming from?


The fact that investment in infrastructure follows the people rather than the plan may just reflect the futility of plans and planners. But it may also reflect the fact that people’s housing, transport and related choices are shaped by the costs and incentives that they face. Give them infrastructure that they do not have to directly pay for, and they will head off in all sorts of directions, knowing that the infrastructure will follow them.  Furthermore,  if people’s locational choices are shaped by costs and benefits that tend to be short term, lopsided and often incomplete in nature, then there is a role for plans to compensate for these deficiencies in the interests of overall urban efficiency. But if proactive public investment (like more parks and urban regeneration programmes) that seeks to compensate for bad price signals is limited, then the plan needs to amend the price signals that influence people’s locational choices. So the question of where the money is coming from is as increasingly important as where the money is going.

The financial strategy mentions a more ‘growth pays’ type approach to funding. Petrol tax and targeted rates are identified. I think these are positive, albeit tentative, steps to leveling the playing field between expansion and intensification. The realm of value uplift capture taxes or charges (which may require legislative changes) is not explored. 

But the discussion is mostly about how to fund more infrastructure, not manage demand for infrastructure and how to shape locational choices that will result in improved urban efficiencies, longer term. For example, the petrol tax is a blunt tool in terms of providing price signals about how to use the transport system.

What is also not explored are the spatial responses from people facing a greater proportion of the costs of their locational choices. As transport and infrastructure costs rise, then households tend to move closer into the centre to limit these costs. Getting people to face the costs of greenfields development is important, but  there must be the choice for them to find a home closer to inner areas. Hence the need for preparatory investment in these 'move to' areas.

In some cases, if the better pricing leads to more efficient use of infrastructure, then businesses may move further out. If roads are less congested because of road pricing, for example, then the business may use the travel time savings to shift to larger, less expensive premises further out.

Funding streams will become more ‘dedicated’ - targeted rates gathered in greenfields areas have to be spent on infrastructure in those areas. But will it be so easy to impose targeted rates in existing urban areas to fund upgrades when there is complex issues associated with new and existing residents? Here the danger is that the greenfields infrastructure gets funded but not the necessary brownfields infrastructure upgrades. In other words, it will be easier to fund infrastructure in places where growth wants to go, rather than where it ought to go. To get it to go where it ought to go will require carrots and sticks. Sticks from the costs of going elsewhere (the targeted rates), but also the carrot of the incentive to go to where there are multiple benefits (a  targeted subsidy?)  What we need is some 'transfer' taxes. Should the communities who perceive a benefit from not growing (eg eastern seaboard and heritage suburbs) but still get upgrades (like better water quality and PT services) pay for the privilege, and so help generate the funds to provide the subsidy needed to get other, existing urban areas ‘ ready for more growth’?



What happened to urban design? 

The refreshed plan makes the standard statement that Auckland will take a quality compact approach to growth and development.

Then this at page 182:

The quality aspect of this approach means that:

 • most development occurs in areas that are easily accessible by public transport, walking and cycling 

• most development is within reasonable walking distance of services and facilities including centres, community facilities, employment opportunities and open space 

• future development maximises efficient use of land 

• delivery of necessary infrastructure is coordinated to support growth in the right place at the right time. 


Hmmm…. I thought quality related to quality urban design, which does have a locational aspect to it, but also an equally important aspect of supporting quality public environments. Ever more so with the difficult design issues associated with small scale, site-by-site redevelopment of middle ring areas into medium density environments.

But there is this later on:

Embedding good design in all development. Good design includes the attributes of: 

• functionality 

• attractiveness 

• longevity 

• innovation 

• legibility. 


It needs to be integrated at all scales of development. It includes the quality of the city structure, the design of public places and spaces as well as building and house design.

But how to implement this? The refreshed plan says that the Auckland Design Manual provides guidance on good design and best practice examples.  Is that it? Nothing about Council leading with good design; the work of the urban design panel; monitoring the implementation of the Auckland Unitary Plan and whether a basic level of ‘quality’ is being achieved?

This all feels very under done. If the public will not invest much in the public realm in areas of change and not undertake many development projects themselves,  then the private realm needs to shoulder more of the burden of its impact on the public environment. Urban design needs to be given more emphasis, especially small scale developments supporting a safer, better quality public realm.


Jobs and Employment

Cities are not just about jobs and employment, but they are critical issues. Auckland has gone through a number of cycles of economic growth and decline - in terms of location and make up of jobs. Another cycle of change is around the corner - the refresh does mention the “4th industrial revolution”.

But does the refresh get to grips with the implications, beyond some bland statements about need to be flexible to address coming disruption?

There is some acknowledgement of the spatial issues involved. The refresh says:

The city centre is expected to remain the primary business centre for Auckland. However, the Development Strategy’s multi-nodal approach establishes several other centres. This has the potential to create opportunities for local jobs and educational opportunities. 

The word ‘potential’ in the last sentence is fairly weak.

Later on in the Development Strategy there is the statement that the north-south State Highway 1 corridor has a concentration of businesses making use of this corridor to access other parts of Auckland and New Zealand. As a result of this concentration, employment is currently concentrated in some parts of Auckland but is under-represented in the eastern and western parts of the urban area.

So Albany might take off as an employment area, but Westgate which is identified as a sub regional centre? Last time I was out at Westgate,  it was all shops. Perhaps these things take time.

The Auckland Plan seems to have a focus on employment being in centres, which sounds nice and tidy, but does this really match reality, and what may be around the corner, as we move towards AI and automation, but also an economy built on services and increasingly tourism?.

You get the feeling that the Plan doesn't really know what to do.

The quality compact approach to accommodating business growth in the future is to make the best use of existing business land, as well as create new business land in greenfield areas. Making the best use of existing business land means repurposing and intensifying centres and business areas, especially those in accessible locations. Existing business land, particularly important industrial areas, will be safeguarded. Once lost to other uses, such as housing, it is difficult to replace.


Nothing about mixed use corridors; small businesses in neighbourhoods; more employment in the south; the growth of the gig economy; the rise and rise of the service sector focused on residents needs where they live (like health, education and recreational services); of the inevitable shift out of inner areas of large footprint industries to the edge.


Is the Newton / Great North Road area - an area that is seeing a lot of apartments and mixed uses - a “development area”, for example?  Newton is part of the Inner west development area, but there is nothing really said about it.

And what about the southern coastal fringes of the Isthmus dominated by former industrial areas; are these Auckland’s real “docklands”?  These areas are in the 'middle'. Now dominated by warehousing and distribution businesses and numerous service activities, at some point soon they will transition over into mixed uses and housing as current business shift to locations with better transport options. Try to imagine a point equidistant between Auckland, Tauranga and Hamilton, in population and travel time weighted terms, from which driverless trucks can be dispatched in the dead of night to distribute or pick up goods and you probably end up with a spot just north of the Bombay Hills.

Rather limply the plan says that it is necessary to hang onto industrial areas, while more industrial land (or more correctly perhaps more space for land intensive employment - think big sheds) will be identified as part of structure planning for greenfields.  But my experience tells me that without strong direction, this will not happen in greenfields. But it has to happen, if urban Auckland is to continue to redevelop. 



Has the plan forgotten its roots?

Finally, but not least, has the plan lost its ‘spatial-ness’

The Auckland Plan is an odd mix of strategic planning and spatial planning. The refresh looks like it down plays its spatial component, but reference back to the guiding legislation shows that the plan is, first and foremost, supposed to be a spatial plan. Here is section 79 of the Local Government (Auckland Council) Act 2009. That section says that the Council must prepare and adopt a Spatial Plan, not a strategic plan.

  The spatial plan must—

recognise and describe Auckland’s role in New Zealand; and

visually illustrate how Auckland may develop in the future, including how growth may be sequenced and how infrastructure may be provided; and

provide an evidential base to support decision making for Auckland, including evidence of trends, opportunities, and constraints within Auckland; and

identify the existing and future location and mix of—

(i) residential, business, rural production, and industrial activities within specific geographic areas within Auckland; and

(ii) critical infrastructure, services, and investment within Auckland (including, for example, services relating to cultural and social infrastructure, transport, open space, water supply, wastewater, and stormwater, and services managed by network utility operators); and

 identify nationally and regionally significant—

(i) recreational areas and open-space areas within Auckland; and

(ii) ecological areas within Auckland that should be protected from development; and

(iii) environmental constraints on development within Auckland (for example, flood-prone or unstable land); and

(iv) landscapes, areas of historic heritage value, and natural features within Auckland; and

(f) identify policies, priorities, land allocations, and programmes and investments to implement the strategic direction and specify how resources will be provided to implement the strategic direction.


Does the refresh do all of the above? In particular, is it clear about environmental constraints and landscapes and natural features that need to be protected? Is the development strategy too much about where growth should go, rather than about where it should not go?  If the plan is going to struggle to get growth to go into the areas it thinks growth should go to because of a lack of effective tools, then the plan needs to be very clear about the areas where growth is to be avoided. I think it is time to be very clear about the ‘no go’ areas on the edges of the city, especially with the rubbery RUB of the Unitary Plan now in place.

Tuesday 6 March 2018

Houses, flats and apartments (3): the missing middle, Auckland and Montreal


Comparing one country's housing market with another (or one city against another) is fun.

For example we are often told that Germany has had low house price growth, with housing still affordable and that renting is common. They have built lots of houses, apparently,  and the planning system is set up to enable growth.  “The reason why Germany got more built is because there was greater political will to do so. And there are better incentives for towns and cities to deliver the housing that their citizens need”. This is the view of the NZ Initiative (see note 1).

What is not mentioned is that Germany’s population is pretty stable and the outlook is for a declining population. The country’s population was 80.9m in 2010 and 82.2m in 2018. By 2030 it is expected to be 82.1m. So not a lot of growth overall, and ask any low growing NZ city and they will say that they have room to build more houses, if people came.

Having said that, some German cities are growing and some reports suggest that this is putting pressure on housing, just like Auckland. This from a 2018 review of the German Housing Market by Deutsche Bank (see note 2):

Metropolitan areas in Germany are booming. The current real-estate cycle started in 2009 and has led to significant price increases for residential property in many cities. Prices for apartments have as much as doubled in some cities. Strong population and employment growth and declining unemployment rates are driving demand, and supply elasticity is low. New construction is slow to pick up, and vacancy rates are declining. As a result, rent growth is accelerating. Regulatory measures are unlikely to provide sufficient relief. House prices and rents look set to rise markedly in 2018.

The review even mentions the possibility of a housing bubble!

So if German cities have an incentive to plan for growth, why are house prices growing in some areas? Maybe prices are not growing as fast as Auckland - who knows. Context is everything.

Image result for images of montreal quebec

A different quoted example of a city that has kept housing affordable is Montreal.  Does Montreal hold any clues as to how Auckland might grow in a way that recognises the ‘density challenge’ Auckland faces while enabling housing supply that can address affordability?

Montreal is one case study mentioned in a report called  “Yes you can build your way to affordable housing. Lessons from unexpected places” (note 3). This report argues that there are  number of big cities where housing supply has kept pace with demand. The title of the report tends to imply that cities can build themselves out of an affordability ‘hole’. While none of the cities listed have gone from unaffordability to affordability due to lots of extra housing supply, at least none of the cities have gone from affordability to unaffordability. Listed are Houston, Chicago, Tokyo, Vienna and Montreal.

Why focus on Montreal? Well it has the same population density as Auckland - around 2700 people per square kilometre - but house prices are a lot less, compared to incomes. On a basic median household income multiplier, Montreal median house prices are 4.78 median incomes, while Auckland is over 10.

Montreal is also a liveable, pleasant city (except perhaps in mid winter). Montreal is 23rd on the Mercer quality of living index, while Auckland is 3rd. Montreal is well ahead of Chicago at 47, Tokyo at 48 and Houston at 67.

But most of all, it is a city that seems to focus on the 'middle'.

To put Auckland and Montreal in context, the table at the end of this post (Table 1)  lists a range of data from two Demographia reports - on world urban areas and housing affordability. While Demographia’s analysis of housing affordability is pretty blunt (median incomes to median house prices) at least it allows for comparisons across cities. The data on urban area population and urban land area is based on Demographia data, the exact details of which are not set out in their report, but the  population figures seem close enough. For example, Stats NZ report that at 2013, the Auckland urban area (as defined by them) had a population of 1.38m. Demographia list Auckland’s urban population as 1.41m as of 2014.  The critical number is the physical size of the urban area. That is more difficult to measure.

I have listed cities over 1m people in NZ (Auckland obviously), Australia and Canada - our Commonwealth cuzzies. I'm not too sure about comparisons with European and American cities given the different historical and socio-economic factors. Table 2 lists the data on size, density and affordability for Vienna, Houston and Chicago.

If cities in the sample of Commonwealth countries are ogranised by population density (people per square kilometre), then Auckland is the second most densely developed city of the sample, second to Toronoto, with Montreal close by.





If density is organised by urban area population (from larger to smaller), then Auckland is much more densely developed than its peers.





Other cities with more affordable housing listed in the table - places like Ottawa and Edmonton in Canada and Perth and Brisbane in Australia - are much lower density than Auckland. Places with similar or higher densities to Auckland - such as Vancouver and Toronto - are equally expensive, except for Montreal.

The following scatter plot is of median income multiplier (median house price divided by median household income) and urban density. There is no obvious pattern or relationship between density and affordability.



There are four cities with similar density to Auckland (red dot at top right). Montreal is the top, left hand dot.

Montreal is a lot bigger than Auckland at 3.55 million people, but it is growing slower than Auckland, 1% per anum rather than 2%. The difference between 1 and 2% may sound small, but I think the rate of growth is an important issue. A moderate growth rate is a lot easier to manage than a faster growth rate.

Auckland looks like it has higher household incomes, but also a much higher median house price.
What other factors may influence house prices?

When you look at the Montreal metro area, then most of the urban footprint is within 20km of the city centre.  The city is basically the shape of a circle.






The blog site ‘Urbankchoze.blogspot” notes that Montréal's downtown area is located on an island, which itself is on a river, but the island is well-equipped in terms of bridges and roads, with some commuter rail too. As a result, (the city) is able to "sprawl" in every direction, and once passed the river, there are flatlands, perfect for development.





Being able to grow in all directions makes a big difference to transport outcomes and the amount of land needed to accommodate growth.  And by the looks of things, there is plenty of land to expand into.

Figures provided by Stats Canada show that Montreal hasn’t been shy about expanding its urban footprint. The settled area has basically doubled in size over the 40 years from 1971 to 2011. 





Expansion of the housing stock has kept up with population growth. Between 2011 and 2016, Montreal added fewer people than Auckland, but more houses.




Population change 2011-16
Change in dwellings 2011-2016
New dwellings per 1000
Auckland Region
154,900
37,758
244
Montreal urban area
131,942
44,769
339




Montreal has achieved this growth in a way that has not seen urban density substantially decline.  If anything, it looks like density has gone up a bit over the past 10 years.

The aspect of Montreal that makes it worth looking at is its mix of housing. The city has a lot of 3 storey walk up type apartments.  This is the standard format in the city's inner suburbs and they kind of set the character of the city.




Stand alone houses make up about 33% of the stock of occupied houses. The following graph shows the number of occupied dwellings in the metro area by topology.





Auckland's profile is almost the opposite, although this is changing slowly. See my blog of 2 Feb 2018.

Some of the reasons given for Montreal’s ability to keep up with growth demands include:
  • Plenty of land 
  • Moderate, not fast growth
  • A history of medium intensity of development
  • Zoning that enables moderately dense neighbourhoods.  
For example:

Montréal has the advantage that zoning in most of the city, if it's not keen on high-rises, will at least typically allow low-rise apartments, and urban planners in the suburbs are open to the idea of allowing plenty of low-rise condos (and pressured to).

But the acceptance of medium density does not seem to be any planning-led strategy of sustainable development. It may lie in the history of the city. As observed by one Canadian newspaper in 2016:

As anyone who has visited the city can attest, it's full of three-storey walk-ups festooned with spiral staircases. The numbers bear this out. The greater Montreal area boasts about 500,000 rental apartments, compared with just 100,000 in the Vancouver area, which has about half Montreal's population.

That glut of supply can be traced back to the city's 19th-century roots. When Montreal was being built up, decades before most of Canada's urban areas, apartments were the standard housing unit of city life.

Three storey walk ups are not confined to the core. Apparently they are common in the suburbs. That may just reflect that the typology is the accepted norm for the city, as compared to Auckland’s preponderance of stand alone houses. Similar to Auckland, it looks like nobody in Montreal is too keen on taller apartments replacing 3 storey walk ups in the inner suburbs.

Somehow the city seems to have escaped the speculative pressures felt in the Vancouver and Toronto housing markets. Montreal used to be Canada’s largest city, but in the 1990s is suffered as Toronto grew. Pressure for Quebec to separate from the rest of Canada did not help. As reported by the Globe and Mail:

This….., is the story of Montreal's improbably cheap rent: ample but antique housing stock; a sluggish economy; and a language barrier that puts a soft cap on population growth. The bad news for the rest of Canada: It's a brew that may be easier to envy than to replicate.

Montreal is different to Auckland - different geography, different history and different growth pressures.  The one interesting aspect is the emphasis on the middle density typology. That maybe worth looking at in more detail.

Table 1


City
Pop
(Millions)
Year
Pop
(millions)
Year
Area (km2)
Density people per square km
Median house price
Median Income
Ratio House price to income
Pop growth rate -
Annual
%
Vancouver
2.30
2017
2.26
2016
876
2626
$ 830,100
70,500
11.77
1.55%
Toronto
6.53
2017
6.43
2016
2300
2839
$ 615,800
79,700
7.73
1.51%
Ottawa
1.00
2017
0.99
2016
521
1929
$ 315,300
81,800
3.85
1.52%
Montreal
3.55
2017
3.52
2016
1294
2747
$ 284,700
59,500
4.78
0.99%
Edmonton
1.08
2017
1.06
2016
573
1894
$ 356,000
87,000
4.09
2.07%
Calgary
1.26
2017
1.23
2016
586
2159
$427,700
93,100
4.59
2.18%
Sydney
4.10
2017
3.90
2011
2037
2013
1,077,000
88,000
12.24
0.80%
Perth
1.81
2017
1.62
2011
1566
1159
$528,300
87,300
6.05
1.83%
Melbourne
4.01
2017
3.70
2011
2543
1577
$740,000
78,200
9.46
1.31%
Adelaide
1.16
2017
1.10
2011
852
1362
$435,000
66,000
6.59
0.83%
Brisbane
2.06
2017
1.87
2011
1972
1047
$ 495,000
79,400
6.23
1.63%
Auckland
1.50
2017
1.41
2014
544
2757
$ 850,000
83,000
10.24
2.01%

Table 2


City
Pop
(Millions)
Year
Pop
(millions)
Year
Area (km2)
Density people per square km
Median house price
Median Income
Ratio House price to income
Pop growth rate -
Annua
%
Vienna
1.78
2017
1.71
2010
453
3900
0.57%
Houston
6.15
2017
5.29
2010
4841
1100
$       217,400
$       62,800
3.46
2.18%
Chicago
9.14
2017
9.02
2010
6856
1300
$       244,100
$       64,500
3.78
0.19%


Note 1: https://www.stuff.co.nz/business/property/88739960/Germany-may-hold-the-key-to-solving-New-Zealands-housing-woes

Note 2: https://www.dbresearch.com/PROD/RPS_EN-PROD/PROD0000000000460528/The_German_housing_market_in_2018.pdf

Note 3: http://www.sightline.org/2017/09/21/yes-you-can-build-your-way-to-affordable-housing/

Note 4: http://urbankchoze.blogspot.co.nz/2015/04/why-is-montreal-so-much-more-affordable.html

Note 5: https://www.theglobeandmail.com/news/national/how-does-montreal-maintain-its-enviably-low-rents/article31285810/