Smart cities intent deploying big data, information and communication technology to become more sustainable and livable. At best, they proceed not only in favour of their citizens but together with them in the first place. In addition, they enable citizens to develop initiatives of their own. So far so good.
Who is invited to the party?
The question is arising: who are those citizens? Or using Suketu Mehta’s words: Who is invited to the party? After all, making a living in big cities becomes unattainable for many. Buying an apartment in New York City is virtually beyond reach even for double-income couples. Not to speak about renting one. A mattress in a room in Chinatown NYC during an eight hours timeslot a day, costs you $ 200 a month.
Chinatown apartments – Photo: Getty Immages
Already now 50 percent of households in NYC spend more then 30 percent of their income at housing. Thirty percent of all households spend more than half of their income. As a consequence, 14 million households in the USA have already moved out of urban areas during the last decade. In the same period in Chicago only, the number of school children decreased by 145,000. We are in the middle of a large-scaled process of de-urbanization.
The real estate revolution
Saskia Sassen has been studying real estate in world cities since the eighties. Throughout this period, the size of speculative investments has increased annually. Over the past five years, rise has been spectacular. In 2015, it went up to $ 1 trillion, compared with ‘only’ $ 600 billion in 2014. More striking is that nowadays real estate transactions often include whole territories, for instance old industrial areas or railway yards. The purpose of these investments is demolishing existing structures and erecting fancy offices and expensive apartments. A recent example is the acquisition of Atlantic Yards in NYC for $ 5 billion. Currently a territory with small industries and homes. They will be replaced by fifteen giant apartment complexes.
Atlantic Yards, NYC – Photo AP
A similar phenomenon can be observed in London. The sale of entire areas – for instance the area of the Battersea Power Station – is accompanied by the privatization of public space. Granary Square near Kings Cross station is one of the biggest London ‘pops’ (private-owned public spaces) with its own rules and guards.
Granary Square, Kings Cross London – Photo: John Sturrock (the Gardian)
Booming housing costs: A global phenomenon
Booming housing costs are a global phenomenon. Even a sharp rise in rentals (sometimes 300%) indicates the beginning of gentrification in the favelas in Rio de Janeiro, which have become safer places due to pacification programs. The next next step will be large scale housing in cheap high-rise apartment buildings, as happened happening in many Asian cities. Leaving a lot of empty space for prestigous destinations.
The tragic human cost of smartification
In Africa, the process of smartification also took off. A number of smart cities are being built from ‘scratch’, for instance Eko-Atlantic City in Lagos (Nigeria). Bulldozers and police force are mighty tools in the process of their creation. Recently, the High Council of Nigeria has stopped the demolition of Mpape, a neighborhood of at least 300,000 inhabitants adjacent to the capital city of Abuja, because of the absence of any prospect of rehousing of the expelled residents.
The abolition of Otodo Gbame, Lagos (Nigeria) – Photo: Common Edge
In the end, the result of unbridled speculation might be that only the rich will benefit from smartification. Amsterdam too must be vigilant. During 2013 – 2014, property sales to investors increased by 248%. In 2016, the average price for housing increased by almost 23% compared with 2015 . Affordable rental is virtually non-existant.
Because of the exclusion of a large group of citizens, the process of smartifcation is at risk turning into a proces of foolification. Foolish cities are sterile cities, inhabited by a rich cosmopolitans. Without young people socializing at in the squares, craftsmen in their workshops, middle classes people in their shops and a diverse and plural group of inhabitants, they will become dead cities, in spite of all smart technology.
This is the second of a sequence of six reviewing aspects of the smartification of cities. Fiction or reality, mission or marketing, progress or illusion. This article has already been posted in The Smart City Hub.