>Re-zoning only works if there are developers who want to redevelop the land.
Developers very obviously want to redevelop the vast majority of LA. The marginal cost of a housing unit is vastly higher than the cost of building that unit. To raise long-term tax revenues, LA could not just legalize redevelopment. They could actually incentivize it.
>For existing neighborhoods this means buying dozens of SFH from people who don't want to move.
The people living in SFH don't want to move exactly because they're not generating enough tax revenue to keep the city afloat (mostly due to Prop 13). Eventually the city will start having to raise taxes very dramatically or declare bankruptcy. That's the entire message from Strong Towns.
The more we put it off, the bigger the impact will be. When your city is effectively long-run insolvent, but you have the ability to change that even if it's politically unpopular (and LA does), then it's "trivially" doable, it's just that people don't want to.
That's not the case in many other cities.
In other cities demand isn't there. People will just leave when taxes go up, and the town will declare bankruptcy. At that point, they will effectively lose most of their population, or people will just live without things like clean water. An example of this happening is Jackson Mississippi, where the water system failed, and the city didn't have the money to fix it. The ultimate solution was just a federal bailout, which is not sustainable if these types of crises become endemic: https://en.wikipedia.org/wiki/Jackson,_Mississippi_water_cri...
Strongtowns seems a bit motivated in their analysis, to put it mildly.
https://www.investopedia.com/terms/c/cashaccounting.asp
This looks at current costs. The school is a cost every year, so every year that cost shows up on the budget. The problem is that road/water/sewer maintenance often doesn't show up on these budgets because these systems are usually built all at once. Because of this they usually also need to be replaced all at once. To see those costs before they happen, you need to use accrual accounting:
https://www.investopedia.com/terms/a/accrualaccounting.asp
The entire message from Strong Towns is exactly that because cities often use cash accounting instead of accrual accounting in their budgetary processes these lingering issues of deferred maintenance don't show up until they do, and when they do, those costs will simply be too large for the city to cover without very politically unpopular interventions.
Strong Towns makes good arguments about certain things and are critical in a reasonable way of how civil engineering organizations rate the need for more civil engineering works. But the budget discussion makes zero sense.
The biggest expenses for county, city, town, village government are: schools, police & fire, Medicaid share in states that do that, and employee retirement and health. A small/midsize city spends 60% of its budget on police.
Capital projects are capitalized with bonds. Governments have the lowest bond expenses due to tax exemptions. Roadwork is not done in a cash basis. It’s bonded for 10-30 years depending on the job.
LA currently has about a billion dollars of outstanding general obligation bonds (edit: but that does not include all their future liabilities). They're still rated AA, but I presume that is because the credit writing agencies understand how many untapped revenue streams LA has, but again, those will require unpalatable political change. You can’t keep refinancing forever.
Philadelphia, Miami, and Chicago are getting close to junk bond status, and when that happens, the option to refinance starts evaporating very quickly.
My point is that much of what the city can tax has little to do with the city's GDP. Either the landscape of the city will have to change or the current taxation paradigm will have to change.
Again, putting $1B in some perspective, the LA Unified School District budget (which is county-level, so not directly comparable to the city, but anyway) is just under $19B. Maybe someone else can ballpark how much of that is associated to the city. Or look the other things that scale with population: police, medical, waste, social programs, etc.
LA is fine.
The city has a billion dollar deficit right now. Trivial for residents to afford ($83 per person), but difficult to actually implement politically.
If we cut the school budget only when we need to repave roads, we are playing fast and loose with our children’s future. When we set our budgets to be sustainable, we don’t rug pull parents who are trying to build a life in our cities.
Like I'm happy that my (suburban) city requires new developments to connect to a city-wide bike trail network. That's great. I just don't think Strong Towns/Not Just Bikes presents a realistic mental model of the world. They seem to clearly be pushing for a specific vision regardless of facts.
The cost of building a housing unit is rather out of control in LA right now, due to a number of factors. Some of those factors involve permitting, but some involve complexities of complying with building regulation, and there is also insufficient availability of contractors and insufficient availability of labor.
The point is that the vast majority of budgetary issues in LA could be solved by just legalizing, and streamlining the production of something as simple as three-story row housing like the kind that's normal in San Francisco (which has a surprisingly good long-term outlook despite their current budget woes).
It's not rocket science here. If you make it easy to build housing, the industry grow to meet demand. If you make it difficult, it will be dominated by a handful of major players who can navigate the process.
Inflation for materials and labor makes any build incredibly expensive.
But non-union construction is known to be unstable even outside construction's general boom-bust cycles and nobody is going to travel 1500 miles away without a contract guaranteeing they will have work/pay past the first 2 weeks. Too many workers have gotten burned being given great offers to travel for work only to get screwed over before they can recuperate their costs. Hell our own President is famous for screwing over construction companies and people just accept it as normal for the industry.
So the kernel of the argument is that 1) someone bought a single-family home and based on ground truth (property tax, cost of living, etc.) and 2) that property tax isn't sufficient to fund the city?
Can you really blame someone for not sacrificing his position under these circumstances? If I'm meeting my obligation, what do I stand to gain from leaving my house and moving into an apartment? That's saying "I need you to move so that someone else can take your property." It's not going to go over well.
A common zoning change here is based on street frontage for semi-detached homes - the new ones are still 3-4BR, just attached at the garage and with smaller yards. If development required 15m frontage, but then that changed to 12-13m, that would mobilise a lot of owners to take advantage, though obviously others can just stay as is if they prefer.
It usually happens that an $800k lot value becomes $1m, regardless of the state of the house. The owner can then demolish a decades old house, build two places for $600k, sell one as a new home for $800k-1m to finance the build (and costs of moving out during that phase), and end up in a new house themselves. Often they've sacrificed yard that they found annoying to maintain anyway.
The above can be adjusted where it's possible to build 3-4 on a block, or a larger development of apartments.
Zone changes typically allow change, not force it, surely? An owner can just keep their SFH and large yard if they prefer. What they can't always control and often vote against is the composition of their neighbourhood.
What? There is a structural deficit problem. The ship is sinking. Complaining about how "we shouldn't have to change anything about the ship" isn't really a reasonable argument. We live on this ship... we have every incentive to make sure it stays above water.
You might think there is option 4--municipal bankruptcy--but that is just option 2 and 3 combined.
Building buildings somewhere else will not fix your neighborhood.
I don't really think those are the only three choices, though. The government can fail and be replaced with a new one that will shape things up. Then it'll be replaced by another that thinks it's too big and well off to fail, squander it, and fail. That's the typical cycle.
- I could make more money
- if the zoning allowed it.
As it is right now, it'd be profitable, but the zoning isn't there for it.
So for each new street widening, new road, and piece of highway capacity, LA was increasing it's financial liability to revenue ratio.
Add over decades all of the street and road construction that LA has done, and it now has a unsustainable amount of road maintenance it's responsible for compared to the amount of revenue it pulls in. I'm having a hard time finding numbers though so please correct me or add numbers if you can find them.
California is doing a ton of things to create housing — just look at the many state bills that have passed in a span of 2-3 years: https://cayimby.org/legislation/?_filter_by_status=signed
Sure, some cities are resisting or having trouble but even the state is overriding them with state policies.
It’s just going to take time between passing bills, incentives lining up, and getting money for building homes. That’s also why the state has focused on ADUs too — because individuals can get through a whole decision process to develop housing quicker than a big developer can. ADUs have a lot of problems but the state knows this and is attacking the issue on both short and long term scales.
You don’t just steer the 4th largest economy in the world. It’s built like a steakhouse and steers like one.
They don't want it, even if they need it. They're kicking and screaming and doing anything they can to stop it, while at the same time their city budgets are in the toilet. The only thing that's actually driving this reform is that housing prices are out of control, so you have a large demographics of people fighting to increase density.
Where this is not happening is everywhere else (think: Texas, Florida, North Carolina, Virginia, Arizona). Those areas don't have the same demand for density, but they still have the same long-term structural deficit problems.
Now I think this is a problem with reflecting on. Why is it that given the choice, many people with financial means move away from America’s cities? I did. I promise you the reasons have nothing to do with zoning.
I would disagree. The engineers absolutely steer the space of available solutions. Caltrans is a prime example, I have personally met Caltrans engineers who might as well have stepped out of a time machine from 1970. This absolutely influences the priorities of both the state and the cities that depends on the framework it sets up.
And yes city politics is separately a major problem.
This is the problem with outsourcing everything in the name of "efficiency".
If you don't actually do things in house, you don't know how to do them.
Everybody wants the US to manufacturer and build more until they have to cut a check.
Everyone hates Nassim Taleb and he can be an asshole, but his math is impeccable. When your concern is with someone's personality because you don't like their math, then you've lost the plot.
I got into a fight with my city over nonexistent crosswalks (the adhesive line strips wore off) near my home in an area where drivers have a hard time realizing where pedestrians cross due to a unique road setup.
You can’t just paint lines. The project ended up costing about $1.2M and required a traffic study, some stupid ADA assessment and accommodation that frankly any layperson could have figured out, and a complete streets assessment.
Basically, they sent out a few engineering technicians who make $20/hr, billed out 80 hours at $120 to count cars and people, and printed some boilerplate analysis (@$250/hr). The end result was they painted new crosswalks and added textured curb surfaces for ADA compliance, which allowed for the use of recovery act funds.
I am willing to guess they probably did, even if it doesn't seem directly related.
The state of California already mandated certain density improvements:
https://calmatters.org/housing/2025/10/newsom-signs-massive-...
There is another law that mandated local communities plan to manage housing to accommodate population growth or the local community loses it's ability to deny permits. Struggling to find that but it was well before 2025 I believe.
The more likely reasons is corruption and paying off rising CalPERS costs:
https://californiapolicycenter.org/repeat-pension-history/ https://www.ppic.org/publication/public-pensions-in-californ...
Your argument might be plausible if it weren't for the fact that this issue is happening -- predictably -- in every major sprawling city in America. Strong Towns has literally built a tool to effectively convert cities' cash-accounting budgets into accrual-accounting budgets. You can see it happening over time... you just need to account for the future liabilities in the way you look at your budget instead of ignoring them until it's time to replace the infrastructure.
None of those cities are saving money or even _planning_ for the inevitable repaving, pipe re-lining, etc. Worse: many of them were built up in waves so much of the city's infrastructure will "come due" around the same time.
I never imagined we would see San Francisco (of all places) overhaul its permit process. I can now build a deck in my backyard, add a story to my house, or build an ADU without having to pay DBI to send certified letters to all my neighbors asking if they'd like to object, then being forced in front of the planning commission when they do so. That's a direct result of the pro-housing legislation at the state level, something Wiener has been heavily involved in.
edit: nevermind, found lots of example here! https://www.google.com/maps/d/u/0/viewer?mid=1iV3NEJqsY0y8N1...
sadly lots of the big cities I was interested not included. Guessing with these it's more difficult to get the input numbers.
One interesting question: what is "density"? Is it number of people per road-mile? Number of households? Structures? Sales tax revenue? Property tax revenue? Property value per road mile?
LA has somewhat insane property values right now, and by the metric of millions of dollars of residential value per road-mile, I think one might imagine the density to be sufficient to afford decent streets. Of course, that does not translate to municipal budgets or even to disposable income of the owners or the residents in those properties.
There are other ways around this though. If you force your citizens to maintain their own septic and well water (or even small-pipe potable water), and have unsurfaced roads, then you can do with much less revenue-per-road mile.
The point is that the federal government usually pays for the infrastructure up from (as an "investment"), but when that subsidized infrastructure is a net money-loser in the long run, cities growing actually makes the problem worse.
I kind of disagree. Deferring maintenance does make emergency repairs more likely, but if you need to replace your sewer piping (for example) every 30-50 years, doing it at 33 year intervals means three installs in 100 years, and doing at 50 years means two installs in 100 years.
As long as you don't push the deferral so long that you end up having emergency repairs and remediation of significant leaks, deferring maintenance reduces the burdens of maintenance.
You do need to invest more in surveillance if you want to run your installed infrastructure longer, but surveillance is a good practice regardless, because sometimes 30-50 year infrastructure fails early. For sewers, the idea is camera inspections of all the municipal lines every 3-5 years to generate a prioritized list of maintenance/replacement projects; do the work as budget allows, rinse and repeat. Older sewer systems will benefit from more frequent inspections and newer systems can get by with less. You really shouldn't fully eliminate inspections on new systems, because earth movement and early material failure due to manufacturing error don't always happen on your schedule.
That said, a lot of sewers were initially installed in the post war boom times of the 1950s and deferred maintenance is coming due -- many portions may have been replaced as needed, but a lot of original pipes are hitting 70+ years of service life and are likely nearing the end of their life. There's an argument to be made that if they had been replaced at their forecast service life, things would be better now ... but that really just brings forward the next replacement.
IMHO, The City of Los Angeles really should be multiple municipalities. The boundary is pretty wonky, in part to capture the port of Los Angeles and Los Angeles International Airport, but also downtown vs San Fernando Valley; and that has got to make a lot of administration stuff significantly harder than if it were multiple geographically focused municipalities.
> California cities could trivially fix their budget problems by satisfying the demand for housing by adding density
I agree that density is likely the right way forward, but I don't think it's trivial. Especially since organic density increases have been suppressed for so long, it's helpful to coordinate rapid increases in density so that dense housing lands in places with appropriate transit and other services; but coordination is difficult.
Also, in 2025 they spent 3 times as much dealing with legal fallout from police misconduct compared to street maintenance.
That said, currently I live in West LA. Traffic is atrocious! Doubling or tripling density will make it even worse, probably exponentially worse. Adding non-car transit options just isn't in the cards in any reasonable time frame because of all the people that block construction and because the USA, like most countries, refuses to setup a win-win situation for transit (like Japan) and instead continues to insist it be government based and therefore most likely to go over budget during construction and then under budgeted during operation.
At the same time, I wish our entire coast was 30-50 story high-rises. It's ridiculous to me that only a few elites get to view the ocean from their homes on the coast and everyone else is shut out because no one is allowed to build the high-rises.
Tha perpetually increasing population growth is no more and that means no more growing tax base to paper over terrible decisions to pass them onto another generation.
For the first time in a long while we're looking at actual, real selection pressures on municiptalities.
ADA code is insanely expensive. We did a couple blocks of those silly dimple ramps for $250,000 . You could hire every blind person in town a personal guide for less than it would be to ADA all the side walks.
The sidewalks are going to have to be completely replaced eventually... not just the sections that need ramps. Right now the city can't afford to replaces just the ramp sections.
Activists came up with a doorjamb law to require bike lanes, ADA and road diets on every block that receives repair. That's just not practical in LA. You can't punish drivers into riding a bike to work.
this is coming from someone who biked and bussed to work in LA for 10+ years.
It's reckless policy that will only undermine your efforts and never reach the desired outcome.
Yes I understand there is a funding issue, it needs to be solved by making the design and approval process more flexible and efficient, not by perpetuating the insane car-only design that kills pedestrians and cyclists.
> Strong Towns thesis is correct... slow moving crisis... The idea that LA literally can't afford to bring it's sidewalks up to ADA code is insane
see, this tells me you're not getting it at all. it is an insult to process, yes. But there's no crisis. Strong Towns is kind of obviously wrong.