Dana Blankenhorn

The Apartment Crisis

I wrote about the housing crisis” last year. My focus was on the tax law. It needs to discourage private equity from buying up houses, and encourage home ownership.

But there’s a second element at work. It’s demographic. Millennials, like my kids, aren’t marrying. If they’re marrying, they’re not having kids. They want small apartments near where they work. Most of them work in cities, where it’s very expensive to build.

Developers, united with young renters, are trying to increase density by block-busting urban homeowners. That’s what a lot of the current “affordable housing” debate is about. I saw it in the 1960s, when it was a racial divide. It’s ugly and leads to crime.

The good news is that apartment construction is already increasing. It is now near the level it was in 1972, just before the first oil crisis. If interest rates moderate even a little, the industry will blow past that number. 

I’m no NIMBY. Planned density can work. But rather than giving developers open season to wreck home values in the name of “15 minute neighborhoods," destroying the tree canopy, start with “30-minute cities," so that the infrastructure keeps up with the demand.

That 2002 Feeling

The last tech crash began in 2000 and I was in the center of it, a mid-career writer with a specialty called Internet Commerce.

That year saw denial and bargaining.

The next year saw anger and depression.

It was only in 2002 that acceptance came.

We know what followed. Talented programmers worked on open source projects and standards bodies created what became the Cloud. When proprietary advantage became worthless, and there seemed there was nothing to do, people worked together with technical goals in mind rather than just financial ones.

It was a slow build. In 2002 my gross income was zero dollars. In 2003 it was zero dollars. I got interested in what’s now the Machine Internet, which I christened the World of Always On, and in 2004 I finally made a few dollars. The next year I was asked to cover Open Source, and my career took off. For a time.

I’ve mentioned before how, in every photo of a stock market crash the people in it look similar. Similar age, similar backgrounds. They’re different people. Those who watched the 1987 crash were different from those who saw the 2000 crash, different from those who saw 2008, different from those who saw 2022.

YIMBY vs. NIMBY

There’s a growing movement of renters, working in conjunction with real estate developers, aiming to blockbust urban neighborhoods.

It’s called Yes In My Back Yard (YIMBY). It creates political support for developers in the name of “affordable housing.” It calls homeowners NIMBYs (for Not In My Back Yard) and denigrates their concerns. It’s a great way for developers to make money and it’s splitting cities apart.

If you’re renting this isn’t your backyard. Renters have no stake in the future of the places they rent. Owners do. Neighborhoods of renters are less stable than those where owners occupy houses. The owners of rental housing often resist repairs, and those who live in rental housing don’t take up that slack. It’s the difference between the chicken and the pig at breakfast time. A renter may be interested. An owner is committed.

The Limits of Senior Power

If I were around 100 years ago, I would be dead. Instead, I’m rich. (Pictured are my grandparents, May and Edmund O'Donnell, in 1918.)

It’s a demographic and economic transformation that is destroying hope for change in America and (perhaps) making us the last generation.

Until recently, people lived their first 20 years dependent on parents, the next 20 as parents, the next (if they were lucky) 20 as grandparents and anything past that dependent on the children. Most of the world still lives this way.

But starting with Social Security in 1934, and continuing through general prosperity to today, America has turned this on its head. Seniors aren’t just living to an average age of 83, we’re doing it with money. I’m just a 68-year old journalist but, thanks in large part to a wife who works in tech, I’m a millionaire. We own our house. We have enough invested to guarantee a fine retirement, God willing. There may even be something left when we’re gone.

This has changed political incentives. There’s no better example than Florida where The Villages, a huge retirement town of 150,000 (almost all of whom vote), has turned the state’s politics on its head. Add them to those already living up-and-down the state’s east, west and south coasts, and you get a huge state entirely devoted to short term thinking. Education, the environment? Fuck ‘em. We’ll be gone.

The Other Arms Race

We talk a lot about guns in the US, without doing anything about them.

But there’s another, even more dangerous arms race, going on.

It involves cars.

It’s not just that there are too many of them. They’re too damned big. Spending $60,000 for a pick-up that will never see a trailer hitch, or an SUV higher than an elephant’s eye, is stupid. Especially since these cars are sitting, unused, 90% of the time.

People buy giant cars for the same reason they buy guns. They make you feel safe. They buy as much car as they can afford, like these things are houses.

2022: The Global Cold War

It was clear in 2020 that Americans were at war with ourselves.

In 2021 that became a Cold War, mostly played out in the media and state legislatures. There were some violent outbursts. There always are. But for the most part it was our war.

In 2022 that war became global. Russia invaded Ukraine. China ratcheted up its rhetoric about invading Taiwan. Afghanistan and Iran criminalized every woman in their countries. And the war became hotter here.

With the good people of this country activated, we won some notable victories. We held off the horde in our general election. Ukraine held off Russia. China’s economy rolled over, giving Xi Jinping something else to think about. Iran’s women revolted. Jair Bolsonaro lost his re-election.

The Trouble with E-Bikes

A month ago, I bought an e-Bike for the family. The Lectric 3 is a great value at $1,000. It folds to fit into a trunk, gets 20 miles of hills on a charge. It can do our shopping, my son’s commute, and even get me back to Stone Mountain next year.

Meanwhile, one of Atlanta’s city councilmembers has introduced an e-Bike rebate program. It’s an effort to accelerate uptake, which barely needs the stimulus.

But before the revolution, we need to talk. There’s trouble coming to River City.

You can already see it if you ride the Beltline, which Atlanta advertises as its ticket to the future. The Beltline is a long sidewalk that sits on old railroad right of way. By the end of the decade, it’s supposed to run all the way around intown Atlanta, 22 miles in all.

I love the Beltline. I love the idea that the city is building paths leading to the Beltline. I love the idea that e-Bikes could force planners to assume less inner-city car traffic.

But…

Positives of a Tech Recession

Despite some stunning investment losses, I’m enjoying the latest tech recession.

No one likes a recession, but sometimes it’s like spring cleaning, necessary to clear the excess. There were a lot of zombie technologies, zombie companies and zombie assumptions that have been overrun since the Fed decided that money should cost money and there should be less of it around.

Web3, the metaverse, and crypto were all fake from the jump. Advocates for streaming and podcasting didn’t understand that the gating factor is time, not money. A lot of companies were selling themselves based solely on sales growth, ignoring the need for profit.

This means there’s now opportunity, in the form of talent, for new ideas that will power the economy forward. The main trends I described in 2019 – the end of oil, the Machine Internet, and DNA as a Programming Language – they’re still on. But there’s a lot more, too.

Urban Game Changer

I’ve been a bicyclist my whole life. My present one dates from 1981, and it works great. (Here it is in Centennial Olympic Park last year.)

I know most people aren’t me. Bicycling remains a niche activity. Bike lanes are rare because there is little demand. Rail lines scale, but they’re inflexible. Cars offer comfort, but roads don’t scale. The urban environment is little changed from when I came to Atlanta in 1981.

I’m getting older. At 67, the heart rate needed to maintain a good speed for a half hour is near my limit. All I’m good for at the end of 10 miles today is a nap.

But electric bikes are a game changer. I finally bought one this week, a Lectric 3.0. It unfolded from its box in about an hour and took no tools to set up. The battery runs 20-40 miles between charges, for which you use a 3-prong wall plug and a power supply just like your old laptop. Anyone can get it to go 10 mph, even over hills. You can buy a passenger seat or grocery baskets.

Junk Tech

Imagination is in a constant competition with Moore’s Law.

Imagination often loses.

Moore’s Law makes many things possible. Not all these things are worth doing.

I call things that aren’t worth doing junk tech.

Bitcoin is junk tech. Web3 is junk tech. Blockchain is junk tech. So is the “metaverse,” in the sense that we should all live in a virtual world rather than the real one.

Good applications can come from junk. The home shopping service I supported in 1984 became an Electronic Data Interchange (EDI) format. The map CD-ROM I worked on in 1989 became a format for geographic data. Creating lemonade from lemons is always a great opportunity.