Brandon Donnelly — Daily insights for city builders. Published since 2013 by Toronto-based real estate developer Brandon Donnelly. — Page 620

This is a good follow-up to my recent post about the barriers to developing mid-rise here in Toronto . I have just learned (thanks to Michael Mortensen ) that Vancouver has proposed some specific zoning changes that are intended to increase the supply of new rental housing.

Oddly enough, some of these proposed changes are consistent with what I put forward in my post and include 1) streamlining the development approvals process and 2) simplifying the allowable built form. i.e. Fewer step-backs.

Here's a capture from the report that went to City Council:

The report is dated May 2020 and I truthfully don't know the current status of these proposed changes. I'm sure Michael would have all of the details. But regardless, the report very clearly acknowledges that lengthy entitlement timelines are a barrier to new rental housing, as are more complicated building forms. Speed and simplicity can go a long way.

For the full staff report, click here .

In the world of startups, a unicorn is used to refer to a company with a market cap greater than $1 billion. A decacorn, the latest benchmark, is what it sounds like in that it's a company with a market cap greater than $10 billion.

While unicorn status is just one measure, valuations are an important yardstick for cities and countries. How many big new companies are you creating? That is a critical question because, presumably, these big new companies are going to create a bunch of new jobs and generate a lot of new wealth for people.

This recent blog post by Elad Gil is a great summary of what's happening in the world from this perspective. The raw data is also available if you'd like to dig deeper.

Here are the number of new unicorns since October 2020 by city:

Silicon Valley, not surprisingly, continues to dominate, followed by New York.

Here is a breakdown for the United States as a whole:

Miami and Austin have been in the news a lot over the past year and their startup scenes may very well be on the rise relative to other US cities. But it's interesting to see other smaller cities on this list, like Salt Lake City, who are, at least right now, holding their own.

I found this last set of two charts particularly interesting:

They are showing unicorn count (first) and unicorn market cap (second) as a percentage of their respective countries. For example, Silicon Valley is sitting at about 47% and 51%, respectively. So about half of all unicorns in the US have originated from this geography.

But for most other cities on this list, the percentage is much higher and, in many cases, it is 100%. (Silicon Valley is perhaps relatively low because the US has lots of other big and important cities.) For me, this shows the continued dominance of cities. If you're building the next great unicorn or decacorn, the data tells us that you're probably doing it in a big city somewhere. And I don't see that changing anytime soon.

What happened in Surfside, Florida this week with the partial collapse of a 12 storey building is a horrible tragedy. My heart goes out to everybody who has been affected. I can't imagine how this must feel. The New York Times is reporting that some 159 people are still unaccounted for, as of last Friday night. At least 4 people have been killed in the incident.

The focus right now is on saving as many human lives as possible. Without a doubt, that is priority number one. But this situation also raises a critically important question: How the hell could this happen in North America? When I saw the terrible news this week, I immediately flipped the article to one of our structural engineers with a note asking basically this.

As many of you know, buildings are typically designed and built with lots of structural redundancies. This is so that these sorts of tragedies can be avoided. It is too early to know exactly what happened here, but there are going to be questions around the building's original design and construction, its maintenance program (saltwater is awful for buildings), and much more.

I am sure that all of this will come out in the fullness of time. And it is important that it does.