Developing a new metric for inclusive cities

Four urban personas: developing a new metric for inclusive cities

A study from Cushman & Wakefield sets a global benchmark for how inclusive cities really are across Europe, the Middle East, Africa and Asia Pacific

As the urgency to develop more sustainable cities across the world heightens, Cushman & Wakefield has embarked on a study to measure the social, economic, environmental and spatial inclusiveness of almost 80 global cities across the EMEA and APAC regions.

The global real estate firm has developed the ‘Inclusive Cities Barometer’ to quantify the social value of our cities by mapping, tracking and measuring how inclusive our cities really are.

Across the dimensions

The study measures the inclusivity of 44 cities in EMEA and 35 in APAC based on 9,000 data points, and 110 metrics across four dimensions and 12 sub-dimensions. These dimensions include:

Social inclusion – measuring 58 variables including health and wellbeing, tolerance, respect and personal freedom, education, and population and density growth.

Economic inclusion – a measure of 22 variables including employment, economic vitality and growth, and innovation.

Spatial inclusion – a measure of 25 variables including housing and property, security, safety and social infrastructure, accessibility and urban attractiveness.

Environmental inclusion – a measure of five variables including climate, pollution, and the United Nations SDG score.

The cities represented in the research are at varying stages of their journey towards more inclusive and vibrant urban environments. Instead of ranking them by performance, the Inclusive Cities Barometer measures progress relative to starting points, highlighting an actionable roadmap for improvement.

Cushman & Wakefield defines inclusive cities as ‘urban environments that prioritize diversity, equity, and accessibility for all residents, regardless of their background, identity or socio-economic status.’

The four city personas

The cities were categorized into personas representing different stages of their journey towards developing inclusive urban environments, reflecting varying degrees of maturity.

Mature urban centres: These are cities with a longstanding commitment to social inclusion, that prioritize the needs of all citizens. They focus on equal distribution of wealth alongside strong but balanced economic growth. In EMEA this includes four Nordic capital cities, as well as Amsterdam and Rotterdam in the Netherlands, and Edinburgh and Glasgow in Scotland. In APAC, Australian cities such as Brisbane, Perth, Sydney and Melbourne sit firmly in this category.

Social drivers: These cities are demonstrating strong rates of social inclusion across many of the dimensions, although not as mature in their journey to reduce wealth and lifestyle inequity. Cities in this category include global economic powerhouses such as London, Paris, Brussels, Berlin, Tokyo, Singapore and Seoul.

Rapid risers: Rapid risers are cities previously less active on equitable economic and social development that are now rapidly advancing social inclusion initiatives. This includes cities such as Athens, Budapest, Milan and Warsaw in Europe, and Chinese cities such as Beijing, Shenzhen and Shanghai, as well as Hong Kong.

Emergers: Emergers are at the beginning of their journey to increase rates of inclusivity throughout, but with strong ambitions. In EMEA, these cities are predominantly based in the Middle East and Africa and include Abu Dhabi, Cairo, Istanbul, Lagos, and Johannesburg. In APAC, these cities are located in South and South East Asia amongst whom are Bangkok, Bengaluru, Chennai, Ho Chi Minh City, Kuala Lumpur and Mumbai.

The path forward

As governments chart a course towards building cities that account for the needs of all citizens, the report argues that alongside governance, the real estate and construction sectors have a critical role to play in the future of the urban environment. They can influence the development, management, occupation and strategic planning of cities – thus spreading the burden of responsibility for developing sustainable, inclusive cities more evenly.

In recognizing that the scale and complexity of delivering inclusive cities can be overwhelming, the report urges that the real estate industry takes a more straight-forward approach – to recognize inclusiveness as an asset, not a cost. The report sets out a checklist for developers, investors and corporate occupiers to consider when developing inclusive cities.

The checklist asks developers and investors to consider working with local resident groups to ensure than the consequences of the development on the wider community is co-managed. They should also create destination places that inspire and represent the city’s identity and respond to the needs of the community.

‘Consider employee needs outside the office, factoring in leisure activities ‘

For corporate occupiers, they should consider employee needs outside the office, factoring in leisure activities such as restaurants, entertainment and retail. The building itself should promote health and wellbeing, and offer a diverse range of settings so everyone can find a space they feel comfortable working in.

The report concludes with statement that ‘engaging in socially responsible real estate practices not only enhances community social value but also fosters long-term economic success by building more resilient and vibrant neighborhoods’.

Access the Inclusive Cities Barometer from Cushman & Wakefield here.

Source: Worktechacademy

American cities need more homes

Restrictions are being lifted in New York City and elsewhere in the US to allow offices to be converted into apartments

On the edge of Manhattan’s financial district, a 1960s brutalist tower designed with narrow slits of glass to look like a computer punch card has been given a fitting facelift. Formerly occupied by back-office staff at JPMorgan Chase, the renovated building at 25 Water Street is America’s largest office-to residential conversion to date.

Apartments advertised for rent include studios starting from about $3,600 a month. And in a nod to the hybrid working era, for about $7,700 you can rent a studio with two home offices.

The 1,300-apartment building is among dozens of office conversions that New York City council hopes will help address the housing shortage.

In December the council voted in favor of the Yes for Housing Opportunity proposal, which would add 80,000 housing units beyond otherwise anticipated supply over the next 15 years. The policy includes lifting a restriction on converting offices built after 1961 into housing and moving the cut-off date to 1990 instead. Lawmakers in states across America are exploring quick fixes to boost the supply of housing.

Last year Arizona and Hawaii passed bills permitting vacant offices and other underused commercial space to be converted into homes. California, Hawaii, Massachusetts, Arizona and Rhode Island also passed laws allowing spaces such as basements, garages, attics and backyards to be turned into so called granny flats, or accessory dwelling units, to help increase the provision of affordable homes. Mark Zandi, chief economist at Moody’s Analytics, estimates America has a shortage of 2.8 million affordable homes.

Homelessness across the US rose by more than 18 per cent last year because of high housing costs, natural disasters and a rise in migration to large cities.

A survey in January last year for the US Department of Housing and Urban Development found that 770,000 people were in shelters, temporary housing or had no shelter, the highest number since the annual survey began in 2007.

Academics trace the country’s housing shortage back to the implementation of single-family zoning laws in the 1910s, which restricted certain areas to single family houses and prohibited the construction of apartment buildings and other properties such as factories.

The first such district was established in Berkeley, California, in 1916 to protect the neighborhood from infiltration by the working classes and ethnic minorities.

Jerome Powell, chairman of the US Federal Reserve, warned Congress last week that the central bank could not solve the affordable housing crisis simply by lowering interest rates.

President Trump has signed a presidential memorandum “to deliver emergency price relief for American families”. He ordered federal agencies to come up with proposals to drastically lower the cost of housing and expand supply.

Officials have been told to find red tape to cut that could lower construction costs and so make homes more affordable, and to review land-use policies to promote developments, such as higher density properties.

On this point, Trump has some shared beliefs with liberal politicians. After the devastating wildfires in Los Angeles last month, Gavin Newsom, California’s governor, signed an executive order suspending environmental reviews and ordering state agencies to identify regulations holding back construction.

Housebuilders have welcomed the move towards deregulation. However, they said the Trump administration’s decision to impose 25 per cent tariffs on all steel and aluminium products imported into the US would deter new development and frustrate efforts to rebuild after natural disasters. “Ultimately, consumers will pay for these tariffs in the form of higher home prices,” the National Association of Home Builders said.

Until regulatory reforms are implemented and building materials costs stabilize, more American city workers will be forced to consider creative housing solutions.

Source: The Times

House-sellers forced to temper prices

The rise in stamp duty in England next month has prompted a rush to sell, leading to the widest choice for buyers since 2015

Homeowners trying to sell their property are facing the toughest competition in a decade, according to research from the property website Rightmove.

March has historically been one of the best months for property sellers, but the average price of a home coming to market has risen by only 1.1 per cent to £371,870 this month, as the number of new sellers hits its highest level since 2015.

Colleen Babcock, a property expert at Rightmove, said those who were finding buyers were working hard with their agents to “price competitively”.

“The big milestone ahead in England is the stamp duty deadline and, with a massive logjam of 575,000 moves going through the legal completion process, many cost-conscious buyers will be doing all they can to get their move over the line and avoid unnecessary extra tax,” she said.

Rightmove expects there to be 1.15 million property transactions this year. About 74,000 moves, including 25,000 first-time buyers, are expected to miss the March 31 deadline and complete in April.

Tom Bill, of Knight Frank, the estate agent, said despite the prospect of higher stamp duty in the new tax year buyers had started the year cautiously.

“Most mortgage rates have remained stubbornly on the wrong side of 4 per cent due to volatility on global markets, which means equity-rich, needs-driven buyers have been more active by comparison,” he said.

“We expect low single-digit house price growth this year, but this month’s spring statement and the future rate of UK inflation will be key factors in setting the trajectory of the housing market in 2025.”

Separate research from Savills, the estate agent, found the UK housing market returned to growth last year, driven by a £22.3 billion increase in spending on house purchases. It found the total value of the UK housing market grew by 6.3 per cent to £379 billion.

There were 1.1 million transactions at an average sale price of £343,822. The increase in spending on house purchases was largely driven by a much higher use of mortgage debt, up 18.1 per cent to £24.3 billion.

The greatest increase in mortgage debt was among first-time buyers, where it rose by 21.4 per cent to £12.2 billion.

Source: The Times