Yesterday the Commerce Department released that housing starts in the U.S. had dropped 10.6% in the month of October from the previous month. Cast in a predictably negative light, the markets responded with downward movement due to rising fears of a slow pace for our economic recovery. I find myself in the minority that sees this as long term good news, a market condition we should be embracing as we take a rare economic opportunity to try and move our jobs base from our historical model of unlimited growth to one of sustainable capitalism.
Traditionally, housing starts are seen as a leading indicator of economic health as they represent fuel for the construction industry which contributes 4-5% of our national GDP according to the Bureau of Economic Analysis. Building and purchasing new homes is one of the quickest ways for Americans to spend money—which is one of the things we do best. But not only is there no reason for us to be building more homes right now, but we should not emerge into a new economy built on the foundations of an outmoded concept of creating square footage ad infinitum.
If one were to forget the economic assumption that more housing starts is always positive, it is easy to see the number of reasons why we have no need for more housing right now. The recession has left us with an excess of homes. An article in the Wall Street Journal notes that “the number of homes listed for sale was 3.63 million in September according to the National Association of Realtors. That is enough to last about eight months at the current rate of sales.” The article also points out that foreclosures are still on the rise, leaving more property in the hands of banks (and even the FDIC) that want, and need, to unload them at bargain values, only further pressuring prices. We do not need more of a product that is in declining demand from a consumer that cannot afford to purchase it.
Furthermore, the NRDC’s Kaid Benfield pointed out last month that aging baby boomers are estimated to begin unloading their suburban homes at a rate of 5% per year between 2010 and 2030, only adding to the glut of available space.
Suburban homes are also not where we should be focusing our money and efforts when it comes to new living space. The financial crisis offered an opportunity to finally rein an expansion of suburban sprawl that has gone on for decades. New homes farther away from town and city centers bring with them more utilities, more emergency services and more energy wasted in commuting. We should be bolstering our urban centers and drawing people back to their inherent efficiencies of living. To have our government working on a carbon bill while we are using more farmland and natural landscape to prop up developer homes is ridiculous. It is the difference between the image of sustainability and the nature of sustainability—the latter is an encompassing system that affects a lifestyle in its entirety.
If Americans are serious about creating a more sustainable economy, then eventually we need to move away from a system where our barometer of success is continuous growth. It is possible for our country to be healthy without building an increasing number of new homes each month. Of course, it means asking those annoying questions like “What happens when there is no more acreage left to develop?” or “How many people can our country feasibly support indefinitely?” The easiest way to avoid the answers is to begin changing our trajectory now. Instead of new home construction we can be focusing on building retrofits, restoration and deconstruction. These practices use less energy, produce less waste and improve upon the building stock that we already have to make it better instead of tearing it down. One can imagine a combination of virgin building, recycling and upcycling that could bring us much closer to a level of construction stasis.
Construction is only one of the areas where we need to re-align our practices to change our economic growth expectations. Transit, energy production and distribution and water infrastructure all are viewed as continuously growing commodities and can all be curbed into regenerative social practices.
Photo Credit: Flickr movers_4u





In a consumer-driven market like the U.S., change often rests in the hands of buyers and investors. The fastest way to spread a new social norm through society is by making a product that people want to pay for. The environmental arena has made a lot of progress in what can be a difficult arena: turning a social movement into a salable marketplace—but the conversion comes with a catch. Organizations and companies that end up contributing to the “cause” want to make sure people know about it so it does not seem like money is just evaporating. For a number of entities this creates a tough choice of spending on things that are easiest to see or things that make the most difference.
The much debated climate bill is being heralded as legislation with the substance enough to begin to change our lives towards a new path of sustainability. One group that would arguably see the most change is the network of the country’s energy providers as carbon pricing leads to higher stakes for producing electricity from coal, oil and natural gas. Some have set up this confrontation as taking place between greenies and big power companies, but the power generation world is not as uniformly resistant as some might say. Is it possible that some of our biggest polluters could actually help lead our walk into the sustainable promised land?
The stimulus package has helped to renew consideration for updating our national rail system to include high speed trains, devoting $8 billion to funding new projects across the country. The desire for breaking into new territory is clearly there. Forty states have reportedly submitted $103 billion in requests for high speed rail funding (that is over 12 times the available pot.) However, unless we are complimenting these faster means of travel with smaller, more localized improvements to the network of alternative transit these dollars may be paying for a system with limited levels of efficiency.
The housing boom of the 90’s brought the explosion of “McMansions” across U.S. suburbs leaving us with hundreds of thousands of examples for a new wave for upper class living. While the recession may have created a lull in the construction of these shrines to excess, there is no data to suggest that Americans have outgrown their hunger for raw square footage and the public perception that space equals societal stature. The idea of a green home two, three or four times the size of the average house is a bit of an oxymoron with notions of efficiency and excess instantly butting heads, but perhaps there are ways for the lives of the luxurious to follow a more sustainable path. 

Spanish architecture firm Abalos and Herreros has a portfolio of work that has reinvestigated the appearance and nature of industrial programs like their recycling center in Valdemingómez, Spain. Contrary to the American standard of cheap metal siding and standing seam roofs, their facility is wrought with light to illuminate a terraced interior designed with an elegant order for industrial function. Solar farms and biomass plants could conceivably be realized in a second generation that is more viewer-friendly.