Showing posts with label housing. Show all posts
Showing posts with label housing. Show all posts

Monday, September 05, 2011

Should transit follow people - or people follow transit?

While not the exact subject of the post, a recent Human Transit post contains a general quote that's worth reflecting on.

This, to me, fits into a much larger agenda of insisting that everyone who makes a location choice -- especially about where to live -- should be required to acknowledge the transit impacts of that choice. Today it's still common to encounter the other sequence, in which someone (a) signs a lease or deed of sale or development agreement and then (b) yells at the transit agency because the service isn't what they desire.

This is pertinent in any city where transport service quality varies.

Here in Melbourne there are roughly three service tiers correlating with inner (0-10km), middle (10 - 30) and outer (30 - 50km) suburbs. The first is dominated by trams, normally on a 10 to 20 minute frequency, although a few ex-tram bus routes also qualify. The second has trains and/or higher service buses (15 to 30 minute frequency). Then there's the outer suburbs with buses and sometimes trains (40 to 60 minute frequency). To this may be added an exurban and near regional zone, whose service varies from nil to hourly.

The above is a broad generalisation and exceptions apply. There exist inner and middle suburbs (Kensington Banks, parts of Port Melbourne, northern Reservoir, parts of Sunshine North) with limited span, frequency and coverage. In contrast some semi-rural areas (Warrandyte, Yarrambat) have almost inner-type service levels. And others (Woori Yallock, Cockatoo) have buses running as late as in a regular suburb.

These are not academic discussions as service planning decisions have human impacts. These are disproportionate if a service (even if temporary) is introduced, relied on by a few, and then discontinued.

Take Kinglake, for example. It's a semi-rural lifetyle dormitory area north of Melbourne. People move there to 'get away from it all'. They may be semi-retired or drive to work in Melbourne's northern suburbs or the CBD itself.

It had one suburban bus each weekday to the major suburban centre of Greensborough. The area was devastated by bushfires and the government introduced a frequent 7-day service to assist with relief recovery. Average patronage was not high and the added services were withdrawn. A residents' campaign called for services to be restored. The government responded, introducing a limited service, to start next week on a trial basis.

People in Kinglake (like those in Mornington Peninsula, Pearcedale, Warneet, Kangaroo Ground, Mt Martha or Eynesbury) pay taxes and expect government services in return (including public transport). Even an affluent car-owning population in these parts may request public transport on behalf of others, eg for their teenage children with part-time jobs or elderly parents.

Unfortunately dead-end routes to semi-rural areas are unlikely to be well patronised. They require high subsidies per passenger. If the aim is the 'greatest good for the greatest number' better uses for the resources are likely to be found elsewhere. If we temper this approach to acknowlege the 'tyranny of the majority' and provide a minimal 'safety net' service to sparse areas, the extremes of under-provision are avoided but at some opportunity cost (most notably in services foregone to lower income outer suburbs or to provide main road frequent service corridors).

Jarrett's quotation suggests we should have little sympathy for those who move to a poorly served area and complain about the service. One might also add the irony of affluent city folk seeking to 'get away from it all' in an exurban hideaway but then demanding city-type services (largely paid for by others).

Moving house is a major decision and it's not unfair to expect people research where they're moving to beforehand. Such expectation of personal responsibility should rise with incomes; those who earn more by definition have more housing location choices. Families, in particular, are used to making these types of decisions, especially in relation to childrens' schooling. Ditto for some older people, though a regular suburban house has more nearby services to 'age in place' than a high-maintenance semi-rural acreage, so the latter may require an earlier move out.

I should add an important qualification. Jarrett sees a world where bus service quality is based on objective criteria like pedestrian catchments, population density or a corridor's importance. If we planned like this services are likely to be more secure since there is a reasonable alignment between service provision and demand. And cases of gross over and under servicing (neither of which are sustainable long-term) would be fewer.

However in practice we know that service levels and network need do not necessarily match. I mentioned Warrandyte and Yan Yean, both of which receive more service than density or demand alone may justify. In Yan Yean's case though, the service is only as good as it is because it is on a major cross-suburban orbital route. Provided through passenger numbers were high this may be justified, with Yan Yean being a lucky but incidental beneficiary.

Should we be shifting some responsibility for public transport on the individual? Ie should people without cars live in a semi-rural area and expect urban-type public transport? Or should there be some obligation to consider transport in location choices?

I lean towards the latter, with two major reservations.

The first is that service levels are transparently determined and fairly reflect likely demand or need. That a route runs frequently only because it was an old tram, or that it does a special extension to a long-closed hospital would not be good service planning, for example.

Given the public subsidies involved, and the allied public interest, it could be useful to weigh up the merits of more widely distributing patronage data versus holding tight. Release would likely strengthen the hand of the service planner when pressing 'greater good' cases for service reform and educate the community about the trade-offs and opportunity costs involved. Such information would also be a useful antidote against those who may lobby to retain an indirect route deviation but never used it when it ran.

Secondly, there may be a need to provide coverage to some areas to 'complete the network' or 'fulfil social needs', even though these services may not be highly patronised. However their potential opportunity costs should be acknowledged by planners and shared with the public to better inform the decision made and increase acceptance of it.

For instance running an indirect route via a street with retirement homes in a low income area may be accepted (though ideally planning policies would only approve such developments near actual or likely bus routes). Whereas the strict '90% within 400 metres' coverage requirement could be relaxed in less needy or less dense areas (eg Brighton and Templestowe), especially where alternatives like trains and high-service buses are available to most within 800 metres.

Wednesday, October 14, 2009

Why housing's 'Zone 1' price premium is no longer justified

Estate agents and property investment spruikers will tell you that one of the benefits of buying an inner suburban home is its cheaper fares (for city commuters) than a place beyond about 15km from the city. Anecdotally many buyers and renters seem to value this criteria as well. 'Located in Zone 1' is perhaps not quite as coveted as being in the catchment of a so-called 'good school' but it's not far off, especially for childless couples.

Three years ago I demonstrated out that the higher mortgage payments of a dearer inner suburban home generally outstripped the savings in fares. Unless the Zone 1 suburb 14km from the CBD had amenity benefits that the Zone 2 suburb 16km out didn't have, the fare difference is not worth paying much of a premium for if buying a home.

To put it in dollar terms, the difference in monthly fares for a full fare passenger is about $60 per month or $15 per week. Double that for a two income household (both taking public transport to a city job) and half that for a concession passenger. $15 per week is just under $700 per year, or the same as 7% interest on $10 000 owing. And $10 000 is trivial where average house prices are over $100 000 different between adjoining suburbs on opposite sides of the zone divide.

Has anything changed in 2009? Average house prices are generally higher than in 2006 but interest rates are lower, so the difference in mortgage payments between then and now even out.

While we have a metropolitan fare system that generally works well, don't let anyone tell you it is immune from change. For example, in the last 30 years we have seen section-based fares with fine increments, one type of zone system, its abolition in favour of a neighbourhood system, another type of zone system and lately its significant modification with new flat fare tickets.

The two major fare changes in the last five years or so are:

The first is a gradual flattening of the fare system. Longer trips are now a lower fare multiple of the shortest trips. Each recent trend has been in this direction. Examples include the abolition of both the cheapest fares (Rail+2, Short-Trip, National Bus section tickets) and the dearest fares (Zone 3, V/Line fare reductions). In 2006 only Seniors could get flat fare tickets (the Seniors Daily).

Since then new ticket types, starting with the Sunday Saver, school student periodicals and then the Weekend Saver, extended flat fares to new groups of passengers. Free travel at certain times has been extended, with the Early Bird and Sunday Pass being examples. While trips that involve zonal tickets still remain in the majority, zones are becoming irrelevant for an increasing amount of travel.

The second change is what is likely to happen with Myki ticketing. Nominally this involves no change to fares or zones. However people who select the 'Myki Money' option won't need to think about zones if they don't want to; instead they will just top up when their balance gets low. Fare zones become less of a 'barrier', which can happen with otherwise flexible tickets such as the 10 x 2 hour. Finkestein argues that users of roads with electronic toll collection are less mindful of the amount they pay than where toll collection was manual. There is no reason to suggest that passenger behaviour will be different with public transport smartcards.

To summarise, both flatter fares and less awareness of exact payment amounts will make fare zones less important in real life. Unless flat fares completely take over, distance (or its modern proxy of zones) will remain one of the main bases of calculating fares along with travel time, time of travel, and method of ticket purchase or payment.

While there is a great deal of appeal in buying in a Zone 1 suburb, it is desirable to know the real factors that attract people to the area. These are things like general amenity, facilities, walkability and quality of transport which do affect quality of life. While Zone 1 status doesn't hurt, the lower fare won't save much money compared to the likely higher price paid to buy into the area. Contrary to what the property agents and promoters claim, Zone 1 isn't worth paying much of a premium for if the area otherwise satisfies 'high amenity' or 'value for money' tests.