Video and Song – And Now I Don’t Need No Transit – piano version above – original guitar version below
Song lyrics are as good a way to describe the world as are “big expert theories.”
This is apparent in the affordable housing crisis.
The affordable housing crisis exists because some people don’t have enough money to rent or buy a place to live while other people have enough money to buy houses that cost in excess of $25 million dollars.
Billionaires don’t live in tents and people without any money don’t live in $25 million dollar houses.
The richest 10% of the country owns 66.6% of the total wealth in the United States. The bottom 50% percent of the population holds around 2.5% percent of the total wealth in the United States.1 The bottom 50% of the population faces great difficulty finding an affordable place to buy or an affordable place to live.
The “missing middle expert marketing theory” is used by interested parties to convince City governments, County governments and State governments that the construction of high cost unaffordable housing will somehow solve the affordable housing crisis.
This is Total Nonsense.
Tank Report — Flat Outta Luck
Instead of supply and demand, it’s more like tearing down low cost housing and putting up expensive housing that only “richer” people can afford. “Poorer” people are pretty much flat outta luck. It happened and continues to happen all across the country. Many call it “gentrification.”
City councils and their staffs are sometimes wooed by ‘big expert theories’ and are sometimes unaware that they are being sold a marketing package.
Tank Report – $54 Billion Gone
In the $54 billion case, the “expert supply and demand” marketing package includes a $54 billion subsidy for transit stops near new expensive housing construction that only “richer” people can afford. A “big expert theory” sold to the city council is called “the missing middle” – a marketing slogan used by real estate brokers and pro development types to bamboosel city councils and state legislatures across the country – -a bunch of bunk. The problem is not the “missing middle” housing supply. The problem is . . . missing middle class income.
‘Missing middle’ and ‘supply and demand market experts’ use their theories to promote massive public construction projects they say will increase the supply of housing and temper the affordable housing crisis – – a bunch of bunk.
Housing constructed around huge public projects is primarily focused on the upper 50% percent income level of the population. This is true whether the project is a mass transit system, urban renewal, or a new football or baseball stadium.
These massive public construction projects satisfy the needs of elected politicians and local government staff members, environmental organizations, lawyers, bankers, construction trade unions, government program staffs, equipment manufacturers, developers, real estate companies, and a host of other parties.
But the people without money still can’t find a place to live. People in the bottom 50% percent income levels of the population still have a very small, and often non-existant, supply of housing options.
“Funny how that money, well, it’s all got to be spent.
But I don’t see no billionaires livin in a tent.”
Tank Report — The Missing Bottom
‘Fred’ is the Federal Reserve Bank of St. Louis.2
According to ‘Fred,’ income determines house prices. In an article titled, “Incomes determine house prices,” ‘Fred’ said, “…there have been fewer people with much more money chasing the same houses. So, house prices increase.”
Basically, ‘Fred’ said richer people are buying houses and pushing up prices.
Housing is a function of income.
Housing is not a function of supply and demand.
There is a huge market demand for housing from people with below median incomes. The market is not building housing for them.
Housing is a function of income. Housing is not a function of supply and demand.
More than a missing middle housing supply, we have a missing bottom housing supply.
The missing bottom is a lack of housing supply that needs to be created for below medium income households so they can gain wealth through ownership and pass it on to their next generation.
We need to ignore the “big expert theories” like supply and demand and find new and different ways of thinking.
We need to increase the incomes of the people in the bottom 50% percent income levels.
Otherwise, people will continue to sing:
“I got no place to live, and nothin to give,
but I can ride the Transit.”
John E Martin
by John E Martin
I got no place to live
And nothin to give
But I can ride the transit
Well, there ain’t no bus
I won’t make a fuss
But I can ride the transit
Got nothin to eat
I’m out on the street
But I can ride the transit
Well, they took my tent
And I can’t pay rent
But I can still ride the transit
$54 billion gone. My tent’s still out on the lawn
I got me a job and I work from home
And now I don’t need no transit
Funny how that money’s for the total social good
But I don’t see no billionaires livin in the woods
Funny how that money, well, it’s all got to be spent
But I don’t see no billionaires …. livin in a tent.
I got no place to live
And nothin to give
But I can ride the transit
There ain’t no bus
I won’t make a fuss
But I can ride the transit
Got nothin to eat
I’m out on the street
But I can ride the transit
Well, they took my tent
And I can’t pay rent
But I can still ride the transit
$54 billion gone. My tent’s still out on the lawn
I got me a job and I work from home
And now I don’t need no transit
Funny how that money’s for the total social good
But I don’t see no billionaires livin in the woods
Funny how that money, well, it’s all got to be spent
But I don’t see no billionaires …. livin in a tent.
I got no place to live
And nothin to give
But I can ride the transit
Well, there ain’t no bus
I won’t make a fuss
But I can ride the transit
Got nothin to eat
I’m out on the street
But I can ride the transit
Well, they took my tent
And I can’t pay rent
But I can still ride the transit
$54 billion gone. My tent’s still out on the lawn
I got me a job and I work from home
And now I don’t need no transit
- https://www.statista.com/statistics/203961/wealth-distribution-for-the-us/ ↩︎
- https://fredblog.stlouisfed.org/2017/10/incomes-determine-house-prices/?utm_source=series_page&utm_medium=related_content&utm_term=related_resources&utm_campaign=fredblog ↩︎
Tank Report — Flat Outta Luck
The Tank Report May 3, 2021.
John Martin General Comments delivered at the
Mountlake Terrace City Council Meeting
My name is John and it’s time for the Tank Report
I have been looking into the Antares and PNT projects in the Town Center area and I read a report titled the Economic Vitality Element. It’s a part of the Comprehensive Plan. (City of Mountlake Terrace Comprehensive Plan, Economic Vitality Element, September 2019)
There’s a few things that seem a little misleading.
The report says:
“The healthcare industry employs the largest share of Mountlake Terrace residents.” (16%).
(Source: U.S. Census Bureau, LEHD 2015, EV-7)
The report also says
39% of Mountlake Terrace’s jobs are in Finance, Insurance, and Real Estate.
(Puget Sound Regional Council Data 2017 Figure EV-5, EV-6, Table EV-2)
In fact, Healthcare is a sub-category of Services and 32% of Mountlake Terrace jobs are in Services.
(Healthcare and Social Assistance (NAICS code 62) is included in the services division).
The largest category, 39%, is Finance, Insurance and Real Estate.
(Puget Sound Regional Council Data 2017 Figure EV-5, EV-6 Table EV-2)
This includes banks and credit unions, real estate agencies, mortgage brokers, investment brokers, hedge funds, insurance and more.
In 2019, the mean hourly wage for business and financial operations was $42.51.
The mean hourly wage for healthcare support was $18.32.
(Bureau of Labor Statistics, Occupational Employment and Wages in Seattle-Tacoma-Bellevue — May 2019, Table A.)
When you talk about the economy, I believe it’s best to talk about the whole economy.
The Economic Vitality Report indicates more than one third of the households in Mountlake Terrace have incomes below $50,000.
More than half of the population of Mountlake Terrace – 56% – have household incomes that are under $75,000.
(Source: U.S. Census Bureau, American Community Survey, 5-Year Estimates, 2012-2016, EV-3)
And all these households have to live somewhere, preferably indoors.
But the goals in the Economic Vitality Report, do not mention addressing income disparity, and do not mention the critical problem of affordable housing.
Instead, the Economic Vitality goals read more like a marketing brochure for a real estate office. For example,
Policy EV-1.8 Encourage higher density housing and urban buildings near existing or planned
transit facilities.
That sounds good for banks, mortgage brokers, and real estate agents. Lot’s of listings.
But not so good if you’re looking for low cost housing.
Policy EV-2.15 Target recruitment and retention of clean technology and medical uses.
Or in plain English, gentrify Mountlake Terrace.
Buy property from lower income residents, develop higher income housing units, and then rent or sell the units to the new higher income clean technology workers.
Did you know that THAT’S what you’re really doing here?
Gentrifying Mountlake Terrace?
The effective goals of the Economic Vitality Report are 1)
1). systematically make the affordable housing crisis more intense,
2). add to the problem of homelessness,
3) ignore inequities in income distribution and
4). force hard working service workers to leave town in search of affordable housing.
Just where do you expect the $18.00 per hour healthcare workers to live?
In brand new townhomes? Or in a brand new million dollar house?
It seems to me that the rapid development in Mountlake Terrace is not helping the homeless or the affordable housing problem.
Quite the contrary, it seems that it’s is making it worse.
Simply stated, replacing moderate priced housing with high cost rentals and million dollar houses means
low and moderate income people who now live in low and moderate priced housing
are, pretty much,
flat outta luck.
My name is John,
And that’s the Tank Report.
Tank Report – $54 Billion Gone
The Tank Report May 17, 2021.
John Martin General Comments delivered at the
Mountlake Terrace City Council Meeting
My name is John, and it’s time for the Tank Report
They had a public hearing in Lynnwood last week and one of the wives of a Councilmember said
“Whether you call it filtering or gentrification it is happening right now,” …. “Many of our community members are finding themselves without a place to live.”
She noted that at Whispering Pines, over 200 affordable housing families will be forced to vacate by September.
(See Lynnwood Today May 13, 2021, “During public hearing, city council hear concerns about segregation, loss of single-family homes” https://lynnwoodtoday.com/during-public-hearing-city-council-hear-concerns-about-segregation-loss-of-single-family-homes/)
When asked why don’t you give people at Whispering Pines assistance, the housing analyst that spoke to The Mountlake Terrace City Council on April 15th said, “Because it doesn’t really help anybody.”
The answer is downright inhumane.
The analyst cares more about the “missing middle” and regional growth than about the human costs of the housing crisis.
The analyst had lots of interesting numbers.
And lots of really bad analysis.
Another citizen at the Lynnwood Council hearing said she wanted to dispel misconceptions that multi-family housing is the only answer to creating affordable housing.
And what is the “missing middle?”
The analyst who spoke to you said:
“….. a missed opportunity….
There is a gap in that middle density option that is apparent across the four county region.
And ….. it’s called the missing middle.
It’s the middle column.
It’s missing.
It’s just a phrase that makes itself.”
This is nonsense.
What it is, is a marketing slogan used by real estate brokers and pro development types.
In Snohomish County in 2000, the income required to buy a house was about the same as what people actually earned — $87,000.
In 2020, the income required to buy a house went up to $122,000 while actual income was only $93,000.
The problem is not the “missing middle.”
The problem is . . . missing middle class income.
Housing is an important factor in the economy, but it is not the determining factor.
People don’t follow housing. People follow jobs.
Jobs and income are determining factors.
People went to Alaska and California in search of gold, not in search housing
More recently, oil riggers rushed to South Dakota for jobs and there was a housing shortage. When the oil market crashed, they left and there was an over supply of housing.
The Mountlake Terrace City Council can give full consideration to the human costs of this housing crisis.
Mountlake Terrace can have a positive impact on affordable housing by rezoning the Town Center TC-1 district to explicitly allow construction that requires the use of the Low Income Housing Tax Credits.
(See http://www.wshfc.org/admin/30yearsLIHTC.pdf) (https://lihi.org/about/) (https://lihi.org/properties/)
But, oh my! We can’t do that because that’s a subsidy with restrictions and it might negatively impact the value of the land and that’s not fair to the land owner.
But the land is valuable because of a government subsidy – – a $54 billion dollar subsidy paid for by the public. It’s a government program called –Sound Transit.
You have tools that allow you to build multi-story Low Income Housing units in Mountlake Terrace.
You don’t even have to pay for them because you can use tax credits.
If Sound Transit can subsidize development for the affluent,
Sound Transit can subsidize development for the low income.
The housing analyst you heard recommended that you create home ownership options for people who make over $70,000.
That means that over half of the population of Mountlake Terrace who make under $70,000 will not be given the option of buying a new home here.
(Mountlake Terrace Comprehensive Plan, Economic Vitality Element, -EV5- Figure EV3, https://www.cityofmlt.com/DocumentCenter/View/21643/Economic-Vitality-Element-2019)
These Mountlake Terrace residents will not accumulate wealth through new home ownership.
While bankers, real estate brokers and developers are still making a killing.
My name is John,
And that’s the Tank Report.
Tank Report — The Missing Bottom
The Tank Report July 6, 2021.
John Martin General Comments delivered at the
Mountlake Terrace City Council Meeting
My name is John and it’s time for the Tank Report
The Missing Bottom.
What is the Missing Bottom?
The Missing Bottom is a lack of housing supply that needs to be created for BELOW medium income households so they can gain wealth through home ownership and pass it on to their next generation.
The Missing Bottom approach is about using Local Mountlake Terrace zoning to reduce evictions and displacement of people from their homes.
The Missing Bottom approach creates housing options for over half of the population of Mountlake Terrace who make below $70,000 per year so they will be given an opportunity to buy a new home, right here in Mountlake Terrace.
(Mountlake Terrace Comprehensive Plan, Economic Vitality Element, -EV5- Figure EV3, https://www.cityofmlt.com/DocumentCenter/View/21643/Economic-Vitality-Element-2019)
The Missing bottom approach is about using Local Mountlake Terrace zoning to reduce evictions and displacement of people from their homes.
Missing Middle proponents recommended that you create home ownership options for people who make OVER $70,000 per year.
Missing Middle proponents attribute the huge income disparities in home ownership opportunities to
“…..Just the market doing its thing,”
and,
When asked why don’t you give people that are facing eviction ASSISTANCE, they said
“Because it doesn’t really help anybody.”
(See Mountlake Terrace City Council April 15, 2021 Work Study Session Video, at 1:21:55; 1:09:33 and 1:33:30)
Do not let this gross and inhumane Missing Middle mentality pervade this council.
The Missing Bottom approach is about keeping people from getting zoned out or evicted.
Next door to the rezone on 240th is a mobile home park with about 65 moderate income families that pay property taxes.
Let’s be proactive and assume someone will want to rezone the Park for upper income housing.
Instead, lets rezone it for the Missing Bottom.
Let’s rezone it for single family Missing Bottom housing and make the minimum lot size, the size of a trailer space – – about 900 square feet and call it The Missing Bottom Transition Mobil Home Park Rezone.
With this zoning, current residents are given the option to buy the land beneath their mobile home.
And with this zoning, if a mobile home is sold, the land beneath the mobile home must be sold with it.
Rezone the mobile home park so residents can live out their life with the option of passing their property wealth to their next generation.
And who pays?
First, there’s the market approach.
After The Missing Bottom Mobil Home Park is rezoned, let the market
Quote
“….do its thing.”
Now for all you Mobil Home Park owners in the region who fear of letting the market do its thing,
there’s also something called a Community Land Trust.
The Mobil Home Park residents can either own the land or lease the land for 99 years.
The Missing Bottom approach creates housing opportunities for below median income households
……… and that’s where the housing crisis is.
The Missing Bottom — a lack of housing supply that needs to be created for below median income households so they can gain wealth through home ownership and pass it on to their next generation—
Make the Missing Bottom approach a priority in the Comprehensive Plan.
My name is John and that’s the tank report.
***
Song – And Now I Don’t Need No Transit. by John E. Martin, Guitar and Vocal. Recorded at Martin Music Studios
Copyright © 2024 Martin Music
Video – And Now I Don’t Need No Transit Live performed by Susan Goodenough and John E. Martin. Video taped live at Dave Perry’s Mid-Summer Party – 2024
Copyright 1976-2024
© Martin Music
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