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Deconstructing
Jobs-Housing
Balance
CALIFORNIA PLANNING ROUNDTABLE
cproundtable.org
2008
C A L I F O R N I A P L A N N I N G R O U N D TA B L E DECONSTRUCTING JOBS-HOUSING BALANCE
Since this paper Dear Reader,
was prepared, The California Planning Roundtable (CPR) is pleased If you find this report valuable, I encourage you to learn
the skyrocketing to present this report on balancing jobs and housing in more about other CPR activities. CPR is an organization of
price of oil has experienced planning professionals who are members of the
California communities. The report is intended for a
encouraged—or American Planning Association (APA). CPR provides a
general readership, including urban and environmental
forced—changes forum for prominent planners to exercise creativity and
planners, policymakers, the public, and the press. The
in Americans’ travel behavior. Daily transit leadership in promoting understanding of California’s
report should be particularly useful for communities and
ridership and bicycle usage have increased, critical public policy issues and recommending action.
regions in which new residential or employment-generating
while households that are in the process of CPR periodically chooses timely and significant
relocating report that they are giving development is proposed.
California planning issues for study (such as jobs-housing
greater weight to commute distance in con- Deconstructing Jobs-Housing Balance first looks at
balance) and publishes the results in widely distributed
sidering their housing choices. common practice in the planning profession in using “jobs- papers or articles. CPR also organizes and presents panels
The substantial rise in the cost of gas, housing balance” as a planning concept. The paper then for California Chapter APA annual conferences and
by prompting people to reduce their driv- discusses the effectiveness of jobs-housing balance as a provides policy input to the Chapter’s legislative review
ing, should have an immediate influence in planning objective: whether targeting “balance” is a realis- program.
reducing auto congestion and a long-term tic measure to reduce commute trips and overall vehicle Please visit www.cproundtable.org for more informa-
influence on both urban development pat- miles traveled (VMT), and whether attainment of balance tion about CPR and its activities as well as an electronic ver-
terns and future transit options. While an would mean that communities would be less auto depend- sion of this report. For further information about the
increase in the price of oil is not discussed ent and more livable. report, please contact team leader Stan Hoffman, Stanley
explicitly in the paper, the oil price changes Rising fuel costs and global climate change have R. Hoffman Associates, Los Angeles, CA, at 310-820-2680
of just the first half of this year demonstrate heightened concerns about VMT in general and the length or stan@stanleyrhoffman.com.
the sensitivity of travel behavior to the cost of commute trips in particular. In this context, the
of auto fuel and to households’ decision- Al Herson, President, California Planning Roundtable
appropriateness of jobs-housing balance as a planning
making about where to live and work. In objective to reduce VMT and work trips takes on increased
this paper, we advocate multiple strategies importance. The report argues that a jobs-housing ratio is
to help reduce congestion and vehicle miles
better used as an indicator than as a specific quantitative
traveled. The new economic reality—oil
objective. The report then proposes a broader strategy: a
cost at $100+ per barrel and rising—com-
set of mutually-supportive options that can be more
plements those strategies by providing an
effective in achieving reductions in VMT and work trips
independent economic stimulus to change
than attempting to balance jobs and housing on a commu-
travel behavior. Planners and public agen-
cies face the challenge of rethinking the nity-by-community basis.
historic relationship between job location The report was prepared by a CPR Task Force composed
and housing location and retooling the of Stan Hoffman, Roberta Mundie, Wayne Goldberg,
urban system in response. We on the Marvin Roos, David Early, and Susan DeSantis. CPR greatly
California Planning Roundtable feel that appreciates peer reviews of drafts that were provided by
the current oil price crisis, on top of the CPR members and Professors Donald Shoup and Randall
long-term congestion problem, offers real Crane, UCLA Department of Urban Planning. However,
opportunities for significant change. CPR is solely responsible for the final contents of the report. ©The NewYorker Collection 2000 David Sipress from cartoonbank.com. All Rights Reserved.
Transit photo on cover courtesy of
Design, Community & Environment, Berkeley
California Planning Roundtable
2008 Active Members
Alexander Amoroso, AICP
William Anderson, FAICP Defining what constitutes a balance between jobs and
Jeff Carpenter, AICP
Elaine Costello, FAICP housing is not an easy task. Assuming a simple ratio of
Cathy E. Creswell
one job to one household is inappropriate to modern
Linda C. Dalton, PhD, AICP
S. Gail Goldberg, AICP economies that have many households with more than
Wayne Goldberg, AICP *
Stan Grady one person in the workforce…
Keith Gurnee
California Planning Roundtable, 1988
Al Herson, FAICP
Sharon Hightower
Stanley R. Hoffman, FAICP *
Thomas Jacobson, JD, AICP
Vivian Kahn, FAICP ABSTRACT
Brad L. Kilger, AICP
Tony Lashbrook Enabling Congestion:
Jeff Loux, PhD The published material on jobs-housing balance to date has focused on scholarly
Mike McCoy Can We Break the Habit?
Michael Moore analysis. What has been missing, in our opinion, is a summary for the practitioner
Steven A. Preston, FAICP
In his 1992 study, Stuck in Traffic,
that outlines both the objectives to be achieved and the strengths and shortcomings
James Rojas Anthony Downs looked at the
Marvin D. Roos, AICP * of the various methods that have been analyzed. Practitioners need to be able to causes of worsening traffic conges-
Victor Rubin advise their public officials and the public as to what a “balance” can be expected to tion and considered the possible
Janet Ruggiero, FAICP
Joan Sollenberger
achieve and whether it would be worth the pursuit. Most planning departments have remedies, analyzing the specific
Susan Stoddard, PhD, FAICP neither the level of data required to apply many of the analytical techniques nor the advantages and disadvantages of
Matthew Taecker, AICP every major strategy that had been
expertise on staff to apply the models if the data exist. A tool for local planners that
Linda Tatum, AICP proposed to reduce congestion.
Elwood “Woodie” Tescher is not suitable for hands-on understanding, application, and communication is
Carol Whiteside To alleviate the congestion problem,
unlikely to be useful, and if the output is not readily translatable into programs that
both government officials and
Participating have a high likelihood of success, then it will not justify the use of discretionary local
Emeritus Members citizens must be prepared to make
Susan DeSantis * planning budgets. In this paper, we have tried to simplify the explanations of the fundamental changes, in both travel
David Early, AICP * various approaches and show the pitfalls of the methodologies. We also highlight the behavior and public policies. At that
Roberta Mundie, AICP *
fallacy of assuming that a hypothetical match of the number of jobs and housing or time, Downs concluded that neither
* Denotes project team. group seemed willing to make those
employed residents will, by itself, meet the desired objectives. The conclusion of this
For further information changes. This California Planning
about this report, paper is that working toward jobs-housing balance may be a desirable element of a
Roundtable paper asks, “Is now
please contact Team Leader strategy to reduce peak period congestion, but it is only one of a number of trans-
Stan Hoffman, President the time that fundamental change
Stanley R. Hoffman Associates, portation and land use policies and strategies that must be pursued. can happen?”
at stan@stanleyrhoffman.com
3 |
C A L I F O R N I A P L A N N I N G R O U N D TA B L E DECONSTRUCTING JOBS-HOUSING BALANCE
Evolution of the CPR Like a perennial best-seller, jobs-housing balance This paper is not a technical analysis, but a com-
Jobs/Housing/Transportation has held a place on the collective agendas of planners mentary on thinking about jobs-housing balance
Project and decisionmakers for the past three decades. Mem- that recognizes the work of sophisticated analysts on
bers of the California Planning Roundtable, like the one hand and the practicing planner’s data and
planners in general and many other people in local resource limits on the other. Part of its purpose is to
CPR began this project in 2003 with the government, have been engaged in the evaluation of “deconstruct” the jobs-housing balance concept: to
intent of making a unique contribution on an how our cities’ transportation and land use systems decode and define it to allow a better understanding
emerging issue. At the time the project started to
interact. Our observations, as well as academic of what it measures and whether it can be applied as
take shape, CPR’s membership included for the
first time state and regional agency staff and research and the in-progress experience of demon- a useful policy tool for land use decisionmaking.
consultants who were currently engaged with stration programs, put planners in a better position The paper:
addressing jobs-housing balance issues. It was today than we were in 1980 or 1990 or even 2000 to
thought that CPR could capitalize on the efforts provide understanding and guidance on jobs-hous- ■ Describes the benefits often attributed to jobs-
of its members in the field to prepare a paper that ing strategies to decisionmakers and citizens. housing balance.
crystallized the issues and offered insights to gov- ■ Presents an overview of how typical jobs-
ernment officials at the state, regional and local
housing ratios are constructed.
levels involved with policy making, grant funding,
and program implementation. ■ Discusses sources of “friction” that prevent
As work proceeded on the CPR Project, it attainment of jobs-housing parity at the
became apparent that real world events in the jurisdictional level.
public policy arena would eclipse and take
precedence over CPR’s project as initially ■ Recommends a combination of more sharply
envisioned. Government at all levels, interest focused strategies to attain the goals put
groups, individuals, and funding programs have forward by jobs-housing balance advocates.
all grappled with one or more of the factors that
contribute to the complexity of home/work (and The paper also draws upon both research and
home/other) travel patterns. “Jobs-housing bal-
observation to review the experience of the concept
ance” has been the subject of a range of analyses
and policy prescriptions in response to the knot and its application to date, considering why the
of issues implicit in the term, and some of these attainment of balance has proven elusive and what
inquiries and approaches have contributed to a that implies for our understanding of urban systems.
better understanding of why our current situation We argue that a jobs-housing ratio is better used as
is as it is and what an improvement might require. indicator than as an objective—particularly as a
The paper argues for keeping the broader picture specific quantitative objective—and our recommen-
in mind while seeking incremental – but tangible
dations have taken shape as a broadly based set of
– results through targeted, locally relevant inte-
grated planning and transportation programs at strategies that collectively move us in the direction
the local, regional and state levels. of better land use-transportation integration.
Concept: Los Angeles, Department of City Planning, Los Angeles, CA 1970
| 4
Jobs-Housing Balance: The Case and The Question
Jobs-housing parity can sound like a commuter’s advocates is attaining parity between the number of jobs It is traffic congestion, more than any other single
nirvana: traffic congestion and the burden it imposes on and the number of resident workers: an achievement factor, that fuels interest in jobs-housing balance. Some
individuals, families, and businesses vanish. That bur- they contend would not only reduce congestion but also of the jobs-housing analysis suggests that improvements
den is real and heavy, particularly in California. provide numerous other benefits.5 in the “match” between housing and jobs in local areas
Researchers from the Texas Transportation Institute1 could reduce auto usage. According to Robert Cervero
recently ranked four California metropolitan areas and Michael Duncan, “Notwithstanding the many ob-
among the nation’s 10 most congested areas in terms of stacles to jobs-housing balance, there is little ambiguity
Benefits
time lost per year: Los Angeles/Long Beach/ Santa Ana in our findings: Linking jobs and housing holds signifi-
(1), San Francisco/Oakland (2), San Diego (6), and San
Typically Attributed to cant potential to reduce VMT (vehicle miles traveled)
Jose (tied for 8th), with sizable percentage increases since Jobs-Housing Balance and VHT (vehicle hours traveled).”6 All other things
1982, according to the Institute’s study. The same report ■ Reduced driving and congestion being equal, Cervero and Duncan found that every 10%
observes that about two weeks of time per year per ■ Fewer air pollution emissions increase in the number of jobs in the same occupational
worker is lost to congestion in southern California—a ■ Lower costs to businesses and
category within four miles of one’s residence is associ-
figure that the Southern California Association of Gov- commuters ated with a 3.29% decrease in daily work-hour VMT.
ernments (SCAG) considers a sizable underestimate.2 Cervero’s and Duncan’s work is complemented by
■ Lower public expenditures on
For southern California, average commute time in facilities and services that of Stone, et al.,7 which concludes, based on analysis
2006 was 28.4 minutes, compared with 26.8 minutes for of simulated future growth patterns in metropolitan
■ Greater family stability
the state and 25 minutes for the nation. Travel during areas across the United States, that increased compact-
■ Higher quality of life
peak periods takes more time than during free flow con- ness of development results in a reduction in vehicle
ditions, a difference that is expressed by a travel time SCAG, The New Economy and Jobs-Housing Balance travel of a larger magnitude than has been estimated in
in Southern California, April 2001, pp. 19-20.
index. SCAG reports a peak hour travel time index of previous studies. They found that a 10% increase in
1.5 in the Los Angeles/Orange County area: the nation’s population density is associated with a 3.5% reduction
highest.3 (The San Francisco Bay Area ranks second with in household vehicle travel and emissions.8 Addition-
a peak hour travel time index of 1.4.) SCAG estimates ally, they found that density increases in urban areas
that for the southern California region about $10.5 were more than twice as effective in reducing vehicle
billion in additional costs are incurred by commuters miles traveled as density increases within suburban
due to the time delays created by congestion.4 zones. The future compact growth scenarios analyzed
Nationwide, as the commute burden persists, the in their study were based on information from the Port-
task often falls to planners to find the remedy for con- land region on the shares of regional population growth
gestion. The remedy proposed by jobs-housing balance captured by census tracts between 1980 and 2000.
5 |
C A L I F O R N I A P L A N N I N G R O U N D TA B L E DECONSTRUCTING JOBS-HOUSING BALANCE
The U.S. Environmental Protection Agency has ■ Reduced car travel These are worthy objectives, but how realistic?
conducted parallel work on jobs-housing balance for People who live and work in the same jurisdiction Model-based studies can overstate the prospects for
the construction of a smart growth evaluation tool, the would be more likely to take transit, walk, or bicycle improvement if they project the future based on simu-
Smart Growth Index 2.0. This tool creates a ratio of to work than residents of less balanced communities lation of land use patterns and travel behavior that omit
employment to population, called “diversity,” that trans- and their vehicle trips would be shorter. Benefits much of the complexity of today’s actual conditions; the
lates the potential impact of changing the jobs-housing would include potential reductions in both vehicle support they provide to planners may, therefore, be
balance in a jurisdiction or region into reductions of miles traveled and vehicle hours traveled. more visionary than practical.
both total vehicle trips and VMT. The EPA study found This paper recognizes the objectives sought by jobs-
■ Expanded housing choice
that a doubling of the diversity indicator would result housing balance advocates, but focuses on practice.
Some researchers agree that a balance of jobs and
in a five percent reduction in VMT and a six percent We argue in this paper that the benefits ascribed to bal-
housing, within a reasonably defined area, is neces-
reduction in vehicle trips for people living and working ance can be addressed more directly through a broad
sary to give people the choice to live close to their
in the neighborhood measured. However, their report strategy of land use and transportation policy choices
workplaces.
cautions: “As a sketch tool, Smart Growth Index 2.0 sim- than through prioritizing the attainment of a particu-
ulates land use/transportation scenarios in a simplified ■ Enhanced economic and social vitality lar jobs-housing ratio.
manner, and should not be solely relied upon for eval- One outcome of adjustments to land use mix and
uating major investments or documenting regulatory location patterns that locate residents closer to uses to
compliance.”9 which they regularly travel would be greater land use
These complementary analyses suggest that, given heterogeneity within smaller spatial areas. Advocates
certain assumptions, success in jobs-housing “match- of “smart growth” strategies argue that concentrating
ing” would yield the following benefits: a mix of land uses in a comparatively small area—
accommodating increased walking, bicycling, and
transit usage—contributes to cities’ economic and
social vitality.
| 6
The Role of the Home-Based Work Trip in Jobs-Housing Balance
When observers point to peak hour congestion as the Exhibit Two
critical dysfunction of today’s land use and transportation
Annual VMT by Trip Purpose, 2001
patterns, the finger is pointed at home-based work trips.
The work trip represents a relatively small proportion of
Home-based work 20%
the total trips and VMT: the 2001 National Household
Travel Survey reported that home-based work trips consti- Not
Home-based
tute only about 16 percent of the total trips (Exhibit 1) and, 34%
when measured in vehicle miles traveled (VMT), home- Home-based
based work trips represent just slightly more at 20 percent shopping 16%
of total VMT (Exhibit 2). Nevertheless, it is the work trip—
producing more traffic than the system can handle at key
transportation nodes during peak hours—that is the main
Other
cause of the congestion problem. Home-based
Home-based
17% social/recreational 13%
Exhibit One Source: National Household Travel Survey, 2001
Annual Trips by Trip Purpose, 2001
Home-based work 16% Moderating congestion during commute hours has
proven difficult, in spite of the fact that, as noted by SCAG
Not
Home-based in their State of the Region 2007 report, transportation
33% investment decisions are heavily influenced by work trip
Home-based patterns. The work trip is peak hour based and not easily
shopping 23%
spread across the non-commute hours.
Other
Home-based Home-based
19% social/recreational 9%
Source: National Household Travel Survey, 2001
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C A L I F O R N I A P L A N N I N G R O U N D TA B L E DECONSTRUCTING JOBS-HOUSING BALANCE
Defining Jobs-Housing Balance
Jobs-housing balance, then, is often credited with ■ Jobs-households ratio vey). The housing side of a jobs-housing ratio counts
the potential to correct the tangible problem of con- The most common numerical measure of jobs- people where they live. It is often taken to be the total
gestion on the one hand, and promote general housing balance is a ratio between the total job number of households (persons, related or unrelated,
planning and land use objectives on the other. Whether count in a jurisdiction and the total household living in the same housing unit). In the absence of a
or not those are realistic expectations, it is a realistic count, i.e., occupied housing, in the same area. current enumeration, the number of households is
expectation that practicing planners will be asked to estimated as the number of occupied housing units.
assess the jobs-housing balance in their communities ■ Jobs-housing units ratio The “jobs” side of the ratio counts people where
and consider policies to modify it. What indicator(s) Because most local communities have counts of they work; therefore, it does not usually come from the
will they use, and what is being measured? Can this their local housing stock, a different measure from U. S. Census but from state agencies, based on required
puzzle of differently-sized and -shaped pieces be jobs-households is often used: jobs-housing units. reporting by employers. In California, employment
assembled into a coherent whole? This section identi- But this measure, which uses housing units as the estimates are available from the State Employment
fies several jobs-housing indicators that are in current proxy for the labor force side of the ratio, does not Development Department (EDD) for zip codes,
use, describes their data requirements, considers some take into account the fact that, at any one point in counties, and for municipal jurisdictions, not at the
of their shortcomings, and discusses sources of friction time, some housing units are vacant. Census-based tract, block or block-group level. Other
between their application and the attainment of potential sources of incongruence with Census-based
hoped-for results. ■ Jobs-employed residents ratio population counts include: (1) employment may be
This measure uses the count of employed residents reported from an administrative office in a different
(i.e., those in the labor force who are currently community from the actual job site; (2) some workers,
Constructing quantitative measures working) as a substitute for households or housing such as the self-employed, are not included in the
of jobs-housing balance units in the denominator of the ratio. It is generally programs for which reporting to the state is required;
superior to the other two ratios described, and is (3) workers with more than one job are counted
Jobs-housing ratios express quantitatively the rela- easier to understand and compare because parity multiple times; (4) part-and full-time workers are both
tionship between where people work (the “jobs” side) can be expressed as a one-to-one ratio, i.e., one local included in the count even if the part-time work does
and where they live (the “housing” side). Whatever job to one local worker, notwithstanding that there not represent a primary occupation (say, for the occa-
community is being analyzed, the same kinds of inputs will be a small proportion of multiple job holders. sional work done by students or retired persons); and
are required to construct a jobs-housing ratio, and sev- (5) many households have multiple job holders.10
eral kinds of ratios can be constructed. The typical The “housing” side of the ratio is most often derived For all these reasons, it can be difficult to develop
measures of the ratio of jobs to housing include jobs- from population and household counts at the census an estimate of local-area employment that is parallel
households, jobs-housing units, and jobs-employed tract level conducted by the U.S. Census at 10 year in- to the census-based housing estimate for purposes
residents: tervals, with interim updates based on estimates at the of constructing a jobs-housing ratio. Jobs-housing
jurisdictional level (in California, annual jurisdictional ratios therefore involve a higher level of estimation
estimates are published by the Department of Finance and approximation on the jobs side than on the
or by the Census Bureau’s American Community Sur- housing side.
| 8
Jobs-Household Ratios for California’s Five Most Populous and Five Least Populous Regions: 2007 to 2030
Exhibit 3
Current and projected variations in jobs-household
ratios are presented in Exhibit 3 for the five most populous
regions in California, shown in Figure 1, for the period
2007 to 2030 (see page 10). Based on the report, the jobs-
household ratios vary among the regions and range from
1.13 to 1.28 in 2007. By 2030, the forecasts show a range
of 1.06 to 1.44. This illustrates both the different eco-
nomic and demographic conditions among the regions
and the forecasted changes in the ratios over time.
Exhibit 4
Conversely, in Exhibit 4, current and projected variations
in jobs-household ratios are shown for the five least
populous regions in California, shown in Figure 1, for the
same period and illustrate far different patterns (see page
10). Based on 2007 data, the jobs-household ratios range
from 0.76 to 0.95. For the 2030 forecast year, the ratios
range from 0.81 to 1.12. These ratios are relatively lower
in terms of jobs and economic development than the
more urbanized regions and illustrate the difference in
very rural regions that in many cases supply workers who
commute into the neighboring and more economically
developed regions.
Source: Exhibits 3 and 4 prepared by Stanley R. Hoffman Associates based on data presented in the California County Economic Forecasts: 2007-2030, Mark Schniepp.
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C A L I F O R N I A P L A N N I N G R O U N D TA B L E DECONSTRUCTING JOBS-HOUSING BALANCE
Analyzing jobs-housing balance: tunities that parallels the labor force characteristics of that contribute to a pattern in which a high proportion
residents will increase the likelihood that community of employed persons work outside of their local commu-
the spatial dimension
members in the labor force will choose local employment. nities. Among these factors is the possibility of a limited
The principle behind jobs-housing matching strategies The apparent need for a better “match” is evidenced by the range of employment choices in the resident community:
is that the provision of a set of local employment oppor- fact that communities in which the number of jobs and for some workers, the most attractive jobs are elsewhere
the number of workers is close to parity may still have than where they prefer to live.
substantial in- and out-commuting. Livermore in north- Data for southern California suggest some recent
ern California and Santa Clarita in southern California reconsideration of the “attractiveness” of the non-local
have relatively equal numbers of employed residents and job. Survey research for the Inland Empire has found that,
jobs, yet they see large numbers of workers driving into increasingly, workers may be willing to trade off longer
town to work each day, while large numbers of residents trips and higher trip costs for jobs closer to their place of
get in their cars to commute to jobs in other cities. Why? residence, even if it means some sacrifice in wages.12 The
There are numerous reasons. 2006 San Bernardino County Annual Survey found that,
A simple equivalency between jobs and households or among respondents working full time, a substantial
jobs and housing units does not take into account the percentage (36%) are willing to take at least a 5% pay cut
relationship between jobs by various occupations and to work closer to home. A lesser, but still substantial,
detailed housing characteristics including, importantly, percentage (29%) is willing to take a 10% pay cut to work
price. To “match” housing to jobs and vice versa requires closer to home. As economic conditions change in the
more complex ratios and a more detailed analysis of the future, travel costs may play a larger role in the home-to-
suitability of the housing stock (particularly economi- work location decision.
cally) for those who hold local jobs. On the jobs side, At the jurisdictional level, then—which is the level
variables may include the industry group of an most relevant to local community planners—the jobs-
employer, skill requirements of positions to housing relationship is a challenge to analyze. Data on
be filled, and prevailing wages. On the both sides—detailed job characteristics and detailed
worker (employed residents) side, worker characteristics—are hard to come by. At the same
Figure 1 variables may include education time, steps to better align a community’s employment
The Five Most and Least levels, earnings potential (af- profile with its labor force profile may be difficult to im-
Populous Regions fecting ability to pay local plement and negligible in effect, given cyclical employ-
in California housing costs), and ment trends, changing technologies that influence future
preferences for occu- labor force education and skill requirements, and the
pation or industry, or various influences on employers’ site selection decisions
5 Most Populous Regions both. (including availability and cost of space and location in
5 Least Populous Regions A recent article by relation to suppliers and markets, as well as labor force).
Robert Cervero and Finally, whatever a jurisdiction might do to provide a
Michael Duncan11 looks match between jobs and residents’ skills, employers in any
Source: Stanley R. Hoffman Associates, Inc. at an array of factors metro region are aware that many workers commute out-
| 10side their communities of residence; employers know Adjusting jobs-housing balance:
that they cannot rely solely on local workers to fill their
other sources of friction
jobs. For the smallest metro area jurisdictions, in any
event, expecting (or advocating) a match between jobs Developing effective planning strategies is important
and workers is unrealistic. Even in larger jurisdictions, because, as noted by Professor Chris Nelson,“More than
local economies may be “specialized” as the cumulative half of the built environment of the United States we will
result of individual decisions of employment uses see in 2025 did not exist in 2000, giving planners an
(industry group, type and scale of operation) and hous- unprecedented opportunity to reshape the landscape.”13
ing developers (type and price of housing and amount This is an observation that stimulates action, notwith-
of housing). standing the fact that today’s entrenched patterns of
These factors have prompted jobs-housing balance travel behavior are the product of decades of land use
analysts to look more broadly at the spatial units within and transportation decisions, and change will not yield For families with children, observers have noted the
which a jobs-housing balance goal makes sense, such as quick results. Some additional factors in the equation potent effect of the quality of schools as a factor for
a region or a “commute-shed.” A commute-shed is to note: working parents in choosing a place of residence.
defined as a labor market around a major concentration Where private schools are not within the family
■ Mode choice budget, some parents will move as far from their jobs
or center of employment in which the great majority of
Mode choice has clear impacts on overall travel as necessary to locations where they believe the edu-
workers will be able to find suitable housing, and the
patterns. For example, in the SCAG region, mode cation available to their children will be better. Where
great majority of residents will be able to find employ-
choice has consistently been above 70 percent for commute trips include school or childcare drop-offs,
ment within the employment center. Of course, once the
drive-alone automobile trips, although it has declined as well as housing and job location, modeling com-
spatial unit for analysis is regional or sub-regional, and
slightly from 76.7 percent in 2005 to 74.1 percent in mute behavior becomes complex indeed.
a jobs-employed resident ratio close to parity is sought,
2006. This recent pattern is similar at both the state
actions to address local levels of traffic and congestion
and national levels and the decline has been largely
may no longer be part of the local policy picture: land In summary, then, the picture of an individual juris-
attributed to the significant increase in the price of
use is largely a local decision, while transportation is diction in which most workers live close to jobs, and
gasoline over the past few years. Nationwide, the 2000
strong influenced by regional actions and funding. most places of employment can attract local workers,
Census’ Journey to Work survey reported that 4.7
with the result that journey-to-work is less of a journey
percent used public transit for work trips. However,
and there are fewer cars on the road, is a picture that not
while transit boardings have been increasing, transit
only doesn’t describe our present reality, but is unlikely
usage is still less than 2 percent of all types of trips in
to reflect the metropolitan future if its attainment
the SCAG region.14
depends solely on the actions of local government. Our
■ Gender and family considerations cities and counties simply do not have the spatial reach,
Men and women are observed to have different com- the political power, or the fiscal resources to accomplish
mute behavior. Crane15 notes a persistent “gender on their own all of the changes needed to reshape metro
gap” in commuting that “… stubbornly endure[s], areas into spatial arrangements of housing and jobs
with men’s and women’s commuting distances con- that offer us both less work-related travel and greater
verging only slowly and commuting times diverging.” community satisfaction.
11 |C A L I F O R N I A P L A N N I N G R O U N D TA B L E DECONSTRUCTING JOBS-HOUSING BALANCE
What Can Be Done?
We have focused on “deconstructing jobs-housing does not employ a cost optimization analysis when decid- portation systems and encouraging appropriate densities
balance” to better understand this planning indicator and ing where to live and work, the cost of travel reflected in to support transit. Multi-nodal economic development
to begin “reconstructing” a philosophy or approach that fuel costs and vehicle miles per gallon are certainly becom- patterns may not lend themselves well to “balance” if the
gives planners a practical way of looking at jobs-housing ing more important considerations. While broad regional home-to-work trip cannot be efficiently served by transit.
balance and a set of complementary strategies to move approaches, such as creating more housing in jobs-rich
toward the objectives of a better match between commu- areas and conversely, creating more jobs in housing-rich Consider congestion pricing and parking
nities’ land use resources and available transportation areas, have a certain logic, conforming to a policy-specified strategies to optimize use of
services. If we are to truly reduce congestion, we have to ratio of jobs-housing balance may be less effective in transportation systems
adjust both commuter behavior (by moderating the reducing household or community-wide commuting than The relatively low cost of auto travel and parking over
“demand” side) and circulation capacity (by reducing creating affordable housing or better accessibility between the past half century has encouraged an outward migration
bottlenecks on the “supply” side). The measures themselves housing locations and job centers. of development that has widened jobs-housing disparity.
are not the answer, but rather useful guidelines if applied Congestion pricing of major highways and freeways, while
correctly and in conjunction with a range of policy options Facilitate mixed use, infill, and not always a politically popular option, has been advanced
that are suggested below: contiguous development by economists as an effective way to utilize finite trans-
Mixing uses in individual developments is also consid- portation resources and reduce vehicle miles and time trav-
Be judicious in applying jobs-housing ered an effective way to reduce vehicle trips, if the uses pro- eled as well as encourage a broader range of mode choice.18
balance ratios vided are located and arranged to be walkable or bikable Parking can also be rationed efficiently by price. As
Ratios, in and of themselves, do not capture the deci- and/or served by transit, and include amenities that draw Shoup (2007) suggests, “Abundant free parking also
sion-making process that leads to better planning strate- people onto sidewalks and paths rather than into their contributes to our high demand for cars because it greatly
gies, and jurisdictions within a complex urban area have a individual vehicles. However, this may have minimal reduces the cost of car ownership.”19 If we were to pay the
variety of jobs-housing ratios depending on their central impact on the jobs-housing commuting relationship and true market cost of parking, he argues, it could lead not
or outlying location. A single, standardized ratio is not more on the non-work trips. As reported by Crane (1999), only to better utilization of land for parking, but potentially
feasible given the spatial dynamics of historic job growth the relationship between local urban form and regional more economic development and affordable housing on
and the wide demographic range among local communi- commute behavior is weak. Furthermore, nationally only land that is currently used inefficiently for parking.
ties, let alone the marked differences among regions in about 16 percent of total trips and 20 percent of total VMT Congestion pricing programs have been put in place in
employment patterns, housing patterns, and access to are home-based work trips.17 a number of cities around the world. London, Stockholm,
transportation. Cervero suggests that his research in the and Singapore have developed programs that combine
San Francisco Bay Area argues “…against any universal Design growth patterns that optimize use of congestion pricing with improvements in transit systems.20
standard for jobs-housing balance.”16 transportation systems In California, San Diego has developed a successful toll
The location of development within a region is an system on the I-15 Freeway that is planned for expansion to
Emphasize tradeoffs between housing important factor in the ability of people to access jobs and other roadways in that region, and the San Francisco Bay
affordability and travel costs housing. It also has a significant impact on vehicle travel Area and SCAG regions have recently received federal fund-
Since urban theory suggests that the jobs-housing and air pollution. If we are to minimize commuting, air and ing to begin to developing pilot congestion pricing
relationship is primarily a tradeoff between the housing water pollution, and the loss of open space, we need to de- approaches. Congestion pricing has the potential to both
location decision and the travel cost decision, there are a velop planning programs that consider development loca- improve the flow of traffic and generate revenues that can
number of strategies that researchers have suggested. tions not only with an emphasis on infill and contiguous be used for transit, high-speed rail, and other transporta-
Notwithstanding that the average Californian probably development, but also on optimizing the use of our trans- tion infrastructure investments.
| 12State of California
Confront the challenges of Benefit from the value of regional Capitalize on the State of Supports
public financing and local cooperation California’s important role Integrated Planning
A critical piece of the puzzle is the shortage In order to create more livable jobs-hous- California has already taken important
of public funds to finance either the develop- ing patterns, city and county governments will steps through the Regional California Blue- In July 2000, AB 2864
ment of infrastructure (to reduce transporta- need to cooperate at the regional and sub-re- print Planning Program toward facilitating (Torlakson) established the
tion bottlenecks) or the expansion of housing gional levels. Decisionmakers from different the kinds of integrated planning that can state-funded Inter-Regional
choices (to put more affordable housing in regions and counties must join in partner- assist in establishing more workable jobs- Partnership program to
closer proximity to major employment centers). ships capable of addressing regional market housing relationships. (See sidebar.) Also improve the balance of jobs
Since its approval in 1978, the effects of the forces that cross jurisdictional boundaries. and housing in urbanized
needed at the state level is support for policies
landmark Proposition 13 measure and its re- Potential collaborative efforts include: areas throughout California.
that reduce the burden on jurisdictions with
strictive limitations on property taxes have In establishing the demon-
■ Creating parcel level databases to track a surplus of housing and provide incentives
profoundly shaped land use policy and public stration program, the State
development trends to help identify prox- for jobs-surplus communities to bring in new
finance. In many communities housing Legislature identified policy
imate housing sites near existing or housing, both of which are critical to this goals for the Interregional
became viewed as the fiscally undesirable use
and commercial centers and auto malls as the developing job centers. Where parcel-level effort. With the recent passage of Assembly Partnerships (IRP) ranging
fiscally desired land uses because of their data has been collected, as in the Sacra- Bill 32, the Global Warming Solutions Act of from mitigating the negative
generation of taxable sales. Other economic mento region (SACOG), it is proving very 2006, California has clearly placed itself in the impacts of jobs-housing
development that has a strong influence on valuable for regional planning efforts. vanguard of the effort to reduce greenhouse imbalances to encouraging
commute patterns, such as industrial, research ■ Pursuing staff and funding resources to gas emissions, of which about 41 percent are integrated planning, incor-
and development, and professional/technical allow on-going data collection and infor- attributed to transportation, according to the porating housing, transpor-
jobs, typically became an afterthought because mation-sharing of key data points such California Energy Commission.21 tation, and the environment,
they were not viewed as fiscally significant. as infill sites, transit oriented development encouraging transit-ori-
While changes in fiscal policies to better locations, and regional transportation
Apply a range of creative options ented development, and
balance the distribution of public resources corridors. In conclusion, this paper does not propose promoting regional plan-
have been advocated for many years, Propo- that assessment of jobs-housing balance be ning and collaboration
■ Analyzing the scale at which data are col- among cities and counties.
sition 13 remains very much a constraint on discontinued, but it argues that such ratios are
our ability to balance jobs and housing within lected through the California Employment Today, the State’s
best used as generalized indicators. Produc-
local communities and it has proven very Development Department and determin- Regional Blueprint Planning
tive policy responses depend on delving
resistant to voter change. In a few isolated ing whether it is feasible or desirable to Program is designed to
deeper into the causes of the imbalance and
cases, some communities have independently collect employment data in a standardized support related statutory
developing specific policies to address the lo-
started to collaborate and share revenues manner for pre-defined, sub-regional geo- requirements, programs
calized conditions that cause the perceived
where it makes sense to plan adjacent land graphical areas or commute-sheds. and guidelines that address
imbalance. Because the urban-suburban dev-
uses in their jurisdictions cooperatively. A ■ Using GIS-based, scenario-planning soft- elopment process is complex and not easily the need for integrated
regionwide tax sharing plan was attempted ware to help communities and regions predictable, responsive local policies will likely planning. Regional agencies
several years ago in the SACOG region (the visualize the long-term impacts of various cover a wide range of options from creating and local governments are
counties of El Dorado, Placer, Sacramento, growth and transportation patterns. affordable housing to economic development encouraged to reach consen-
Sutter, Yolo and Yuba), but ultimately, it was to transit-oriented transportation solutions sus on a preferred growth
■ Creating information sharing networks
not successful. However, the need for com- scenario—or “blueprint”—
between jurisdictions to facilitate regional to congestion pricing and parking supply
prehensive change still exists. Maybe it’s time to achieve the objectives
cooperation and planning. management strategies.
to take a serious look at ways to adequately specified for a 20-year (or
fund both public services and infrastructure ■ Explicitly including a regional/state coop- longer) planning horizon.
that voters will accept. eration strategy in local General Plans.
13 |C A L I F O R N I A P L A N N I N G R O U N D TA B L E DECONSTRUCTING JOBS-HOUSING BALANCE
What Can Be Done?
Real Planning for the Next 7 to 11 Million Californians
■ Be judicious in applying jobs-housing
The questions we face about the table Member and Director of Plan- munities. We need a systemwide per- balance ratios
distribution of jobs and housing are ning, City of Los Angeles, challenges spective and an approach that applies
real. Unless we find solutions and put her staff, her city, and all of us to “Do a range of techniques involving juris- ■ Emphasize tradeoffs between housing
them in place, we can look forward to Real Planning.”23 dictions at all levels of government affordability and travel costs
sharing even more problematical In this paper, we have suggested and in constructive partnerships with
■ Facilitate mixed use, infill and contiguous
conditions with some 7 to 11 million that ratios are useful indicators, but the development industry. (See side-
additional Californians by 2025.22 that we must be prepared to under- bar). Rather than focusing on a single development
Postponing effective action is not our stand and grapple with the major measure, we must build upon evolv- ■ Design growth patterns that optimize use
best choice. forces that have shaped our state in ing research and lessons learned to
of transportation systems
The issue of new jobs and new the past and will shape it in the fu- date to improve the jobs-housing
housing can seem daunting unless we ture. Painting-by-the-numbers does relationship by putting in place a ■ Consider congestion pricing and parking
develop a long-term strategy to meet not result in great art, and planning more efficient overall land use-trans- strategies
the challenge. Gail Goldberg, Round- by ratios will not create great com- portation system.
■ Confront the challenges of public financing
■ Benefit from the value of regional and
local cooperation
■ Capitalize on the State of California’s
important role
■ Apply a range of creative options
California Planning Roundtable, 2008.
| 14FOOTNOTES REFERENCES
1 David Schrank and Tim Lomax, The 2007 Urban Mobility Report, Texas Trans- Bockman, Shel, Barbara Sirotnik, and Christen Ruiz. Los Angeles City Planning Commission. Do Real
portation Institute, The Texas A&M University System, September, 2007, pp.32-33. The 2006 San Bernardino County Annual Survey. Planning, a 14-point policy agenda to set the City on
2 SCAG estimates that traffic averages 20 miles per hour (mph)—with some
Institute of Applied Research and Policy Analysis, a course toward sustainability developed by Gail
segments averaging 10 mph during peak hours—rather than the 35 mph average April 4, 2007. Goldberg, City of Los Angeles Planning Director, 2007.
used in the study. Available on the Internet July 2008, at
3 Southern California Association of Governments, The State of the Region 2007,
Cervero, Robert. “Jobs-Housing Balance Revisited,” http://cityplanning.lacity.org/forms_Procedures/do-
p. 68. real-planning-final_1.pdf.
4
Journal of American Planning Association (JAPA),
Ibid. p. 72.
Autumn 1996, 492.
5Southern California Association of Governments, The New Economy and Nelson, A.C. “Longer View: Leadership in a new era,”
Jobs-Housing Balance in Southern California, April 2001, pp. 19-20. Journal of the American Planning Association, (JAPA),
Cervero, Robert, and Michael Duncan. “Which Reduces
6Robert Cervero and Michael Duncan, “Which Reduces Vehicle Travel More:
Vehicle Travel More: Jobs-Housing Balance or Retail- 72 (4), 393-406, Fall 2006.
Jobs-Housing Balance or Retail-Housing Mixing?”, The Journal of American
Planning Association, Autumn 2006, pp. 475-490. Housing Mixing?” Journal of American Planning
Replogle, Michael. “Is Congestion Pricing Ready for
7Brian Stone, Jr., et al., “Is Compact Growth Good for Air Quality?”, The Journal Association (JAPA), Autumn 2006, pp. 475-490.
Prime Time?” Planning, May 2008.
of the American Planning Association, 73 (4), Autumn 2007, pp. 404-418.
8 Ibid. California Center for Regional Leadership in Partner-
Schniepp, Mark. California County Economic Forecasts:
9 Smart Growth Index 2.0, U.S. Environmental Protection Agency.
ship with CalTrans, CALCOG, and University of
2007-2030. California Economic Forecast for California
California, Davis. The 2007 California Regional Progress
10The U.S. Census Bureau’s Journey to Work: 2000 report provides statistics in Department of Transportation, October, 2007.
the Journey to Work data that are drawn from the economic information provided Report. California Center for Regional Leadership, 2007.
in the population questionnaires. While this source of travel data is very helpful Schrank, David, and Tim Lomax. The 2007 Urban
regarding the flow of commuters between home and work locations, it does not California Chapter of the American Planning Associa-
represent the full array of wage and industry detail usually provided with Mobility Report, Texas Transportation Institute, The
tion. Plan California, The Legislative Platform of the Texas A&M University System, September, 2007.
employment data tabulated by the state from information provided by employers.
11
California Chapter of the American Planning Association
Cervero and Duncan, 2006, pp. 475-490.
(CCAPA). Adopted by the CCAPA Board of Directors, Shoup, Donald C. The High Cost of Free Parking,
12Shel Bockman, et al., The 2006 San Bernardino County Annual Survey, Institute March 3, 2007. Chicago: Planners Press, 2005.
of Applied Research and Policy Analysis, April 4, 2007, p.8.
13 A.C. Nelson, “Longer View: Leadership in a new era,” Journal of the American
Crane, Randall. The Impacts of Urban Form on Travel: Southern California Association of Governments.
Planning Association, (JAPA), 72 (4), Fall 2006, page 393.
14
A Critical Review, Lincoln Institute of Land Policy, The New Economy and Jobs-Housing Balance in South-
Southern California Association of Governments, The State of the Region 2007,
p. 70. Working Paper, WP99RC1, 1999. ern California, Los Angeles, California, April 2001.
15Randall Crane, “Is There a Quiet Revolution in Women’s Travel? Revisiting
the Gender Gap in Commuting,” Journal of the American Planning Association, Crane, Randall. “Is There a Quiet Revolution in Southern California Association of Governments.
Summer 2007, pp. 298-316. Women’s Travel? Revisiting the Gender Gap in The State of the Region 2007, Los Angeles, California,
16 Robert Cervero, “Jobs-Housing Balance Revisited,” Journal of American Commuting,” Journal of the American Planning December 2007.
Planning Association, Autumn 1996, p. 508. Association (JAPA), Summer 2007, 298-316.
17 National Household Travel Survey, 2001, http://nhts.ornl.gov/ Stone, Jr., Brian, Adam C. Mednick, Tracey Holloway,
18 Cervero, 1996, p.507. Downs, Anthony. Stuck in Traffic: Coping with Peak- and Scott N. Spak. “Is Compact Growth Good for
19 Donald C. Shoup, The High Cost of Free Parking, 2005, p.4.
Hour Traffic Congestion, Brookings Institution Press Air Quality?” The Journal of the American Planning
20
and Lincoln Institute of Land Policy, 1992. Association, (JAPA) 73 (4), 404-418, Autumn 2007.
Michael Replogle, “Is Congestion Pricing Ready for Prime Time?”, Planning,
May 2008, pp. 6-11.
21
Lang, Robert E., and Arthur C. Nelson, FAICP. “The U.S. Census Bureau, Journey to Work: 2000, Census 2000
Niko Letunic and Michael Hendrix, “Analyzing Impacts Related to Global
Climate Change Under CEQA,” CalPlanner, September – October 2007, p. 1. Rise of the Megapolitans,” Planning, the magazine of the Brief. U.S. Department of Commerce, Economics and
22 American Planning Association, January 2007, pp. 7-12. Statistics Administration.
The 2007-2008 Legislative Platform of the California Chapter of the American
Planning Association.
23
Letunic, Niko, and Michael Hendrix. “Analyzing Im- U.S. Environmental Protection Agency. Smart Growth
A 14-point policy paper adopted in 2007 by the Los Angeles City Planning
Commission. Available on the Internet (July 2008), at: pacts Related to Global Climate Change Under CEQA,” Index 2.0 developed by Criterion Planners and
http://cityplanning.lacity.org/forms_Procedures/do-real-planning-final_1.pdf Cal Planner, September-October 2007. Engineers, Portland, Oregon.
15 |State of Commuting: Gridlock Eats
More Hours,
Stalled and Getting Worse Survey Shows
In the Region With Gas Over $4, Cities Explore
The Commuting Conundrum Whether It’s Smart to Be Dense
CALIFORNIA PLANNING ROUNDTABLE
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