Abstract
The formation of a marketing system often reflects historical legacies that seek to protect and preserve longstanding community interests. These legacies encourage some patterns of adaptive growth, but they may also limit other avenues of productive change. In this essay, we focus on the United States housing system as an illustration of a marketing system with significant legacy structures. Historically, this marketplace system arose to provide safe shelter for citizens and was enacted through building codes. These codes arose for historically important reasons, many of which are still pertinent today. Other legacies, however, inhibit market innovations, such as the significant barriers that exist for developing affordable housing. We argue that change in legacy market systems may require tactical moments of creative destruction. We examine a multi-stakeholder approach across the macro, meso, and micro levels of the marketplace to enable novel solutions for systemic change.
Something is happening in Detroit’s Elmhurst neighborhood that has not happened in over 30 years—homes are being built. Cass Community Social Services, a nonprofit, has built a Tudor, a modern, a shotgun, and a Cape Code home, and a Victorian home is under way. Founder Reverend Faith Fowler says this privately-funded project “is really about home ownership and the American dream for people who have stopped dreaming.” For the 40% of Detroit residents who live below the poverty line, obstacles to home ownership are often insurmountable, such as being unqualified for a mortgage or lacking money for a down payment. For the lucky few accepted into this program, they will rent-to-own these homes across seven years. The level of community interest is high and 122 people have applied to live in the first six homes in a centrally-located neighborhood (PBS Newshour 2017).
Given the problem of blighted neighborhoods, the city sold the 25 city lots for $15,000 and public utilities already existed. But significant obstacles arose for the non-profit organization. The nonprofit had to raise over a million dollars and organize volunteer labor and donated materials to keep the home costs around $40-50,000. They built tiny homes on fixed lots of less than 400 square feet that are rented at $1 per square foot. One obstacle the project did not face is Detroit has no minimum house size or zoning restrictions, which are often a significant obstacle for building affordable housing (Hickman 2017). Of course, this rent-to-own project represents a drop in the bucket of the affordable housing crisis. The American Dream may be to own a home (Rohe and Watson 2007), but for 12 consecutive years, home ownership rates have declined and are currently at historic lows of 63.4%. For more than a third of consumers in the United States, homeownership of any kind is increasingly an elusive dream (Joint Center for Housing 2017).
The housing marketplace is a complex and interrelated system (Redmond 2012). The United States housing market is a hybrid system that combines both private and public sector entities (Layton 2015). This housing market is “a system of multiple, specialized, and interconnected markets” cutting across a broad array of actors and regulatory issues (Redmond 2013, p. 117). Not surprisingly, a polysemy of competing and sometimes conflicting interests arises. Thus, the housing market provides an ideal context in which to explore how legacy structures can inhibit innovation in this system, such as creating new affordable housing options. By definition, for housing to be affordable, costs should not exceed 30% of household income (Stone 2006). A public policy emphasis on reducing risk within the housing system, however, has had the unintended consequence of reducing the stock of affordable housing (Fischel 2000). How can the housing system adapt to better meet citizens’ rapidly expanding demand for affordable housing?
Opportunities emerge for marketing systems to evolve during times of disruption. Baker et al. (2014) observed how a town’s exchange system evolved to meet new functions, mechanisms, and meanings when upturned by a tornado. Phipps and Brace-Govan (2011) demonstrated how the antecedents of a water marketing system shifted to present new legislative and social marketing opportunities during a severe and persistent drought. Saunders (2016) revealed how a marketing systems approach helped build new partnerships between communities and stakeholders following a cyclone in Vanuatu. Ozanne and Ozanne (2016) documented how a community trading system morphed to meet the new needs of a community following an earthquake.
We argue that the United States housing market represents another system severely disrupted (Redmond 2013). Furthermore, we examine how this crisis presents opportunities to shift longstanding rules, regulations, and the ideological underpinning of this system toward one that can foster more innovation and meet a broader array of housing needs. This problem extends beyond the United States (US) borders and is one of global scale. Worldwide people increasingly migrate in greater numbers to urban areas that are unprepared to house them (United Nations 2014; Woetzel et al. 2014).
Macromarketing comprises the study of the “growth, evolution and design” of marketing systems (Meade and Nason 1991, p. 72). Housing in the US has been critiqued as a system of growth and evolution that often lacks foresight and design (Redmond 2013). For example, during the sub-prime market, an influx of new actors flooded the market providing easy access to home mortgages (Redmond 2012). These actors had little appreciation or concern over the potential downside risks for consumers (Redmond 2013). Or, consider the affordable housing boom in Houston built upon the foundation of lax regulations and inadequate water drainage that has experienced disastrous results during Hurricane Harvey (Fernandez and Fausset 2017). Our essay explores how the current housing system needs to grow, evolve, and be redesigned to meet citizens’ need for affordable housing (Erickson 2013; Peterson 2006). Nevertheless, we also heed Redmond’s (2013) warning that new actors may experiment with untested and even dangerous housing options during periods of disruption.
In this essay, we explore four central questions: Why do marketing systems reflect historical legacies? How do these legacy structures inhibit marketplace evolution? When do marketplaces require tactical moments of creative destruction? What cautionary flags must be waved during this next evolutionary phase?
In the next section, we outline macromarketing research on the formation, growth, and adaptive change within marketplace legacy structures. We then discuss the important reasons why significant legacy structures exist within the US housing marketplace. Specifically, the use of Euclidean zoning first made widely available affordable and spacious homes. Nevertheless, Euclidean zoning restricted a number of affordable housing options despite the good intentions of city planners. We draw from methods of tactical urbanism to explore a method of creative destruction that could provide opportunities for greater innovation. We also provide a framework to depict how change might occur. Four specific areas for creative destruction are suggested that we title go smaller, more is merrier, let’s get moving, and growing organic families. We provide illustrative examples of tactical urbanism that demonstrate how ideological, legislative, and infrastructure shifts can be achieved while still minimizing the risk that the system has historically sought to avoid.
Formation, Growth, and Adaptive Change within Marketplace Legacy Structures
Core to macromarketing research is understanding mechanisms for change (Layton 1989). Layton’s (2015) Mechanism, Action, Structure (MAS) framework identifies the causal processes that underlie the formation, growth, and adaptive change in marketing systems. This framework draws on evolutionary theory from social and ecological sciences to provide a Darwinian perspective on systemic change. Layton (2015, p. 303) argues that a generalized Darwinian process exists where “variation, selection, and replication” brings about change in marketing systems over time. Individuals are differentially endowed to anticipate change and rethink the beliefs, behaviors, norms, values, and social practices they are willing to accept (Layton 2015).
Marketing systems also reflect “the historical context or legacies that each community has inherited” (Layton 2015, p. 305). These legacies include enduring socially constructed legacies—such as public policies and cultural values, as well obdurate infrastructure—such as roads, sewers, and power grids in the case of housing. In this essay, we seek to better understand how these legacy structures may inhibit individuals from imagining new social practices and therefore block the evolution of a marketing system. This issue is particularly relevant within markets like housing. In the housing market, interconnected hybrid systems exist where market actors support taken-for-granted interests that protect the status quo.
Past macromarketing research has explored legacy structures. For instance, Mittelstaedt, Kilbourne, and Mittelstaedt (2006, p. 135) note that “market structures and marketing systems reflect the environmental conditions from which they emerge.” Marketing systems are best understood by unpacking the cultural, political, and geographic conditions in which they operate. Specifically, they identified three classes of antecedents to marketplace structures: formal laws and regulations, informal culture, and ideological beliefs (Mittelstaedt, Kilbourne, and Mittelstaedt 2006). These antecedents to the marketplace are a legacy structure that both help to direct and, at the same time, may impede the processes of evolutionary change.
Phipps and Brace-Govan (2011) demonstrate these push-pull tensions in their investigation of the household water market in Melbourne, Australia. Despite evolving within the driest inhabited continent, the Australian water system was based on an ideological assumption that citizens had an unlimited supply of water and a right to consume freely. The upheaval of a decade-long drought led to the questioning of this widely held assumption. Overtime, households rethought social and cultural practices around water usage. Still, they were stymied by legacy structures within a marketing system that was slow to innovate (Phipps and Ozanne 2017). For instance, plumbing and water mains are relatively fixed, which means that innovations must adapt or work within these existing obdurate legacy structures. Nevertheless, evolution of new market structures eventually emerged based on a new widespread ideological commitment that water conservation was a core civic duty (Phipps and Brace-Govan 2011).
We investigate the stubborn nature of legacy structures. We focus on what Layton (2015, p. 309) terms “episodes of creative destruction.” These moments can inspire adaptive change within these systems. Or, these moments of creative destruction can be vehicles of system growth as Schumpeter’s theory of innovation and economic development suggests (Abernathy and Clark 1985). The US housing marketplace represents a system with important legacies. Despite significant shocks, such as the global financial crisis, these legacies continue to hold firm even to the detriment of creating more widespread affordable housing alternatives. We explore the potential of more bottom-up adaptations where participants are tactical in how they challenge legacy structures.
Legacy Structures in the US Housing Market: Public Policies Supporting Growth
Post-World War II, US government policies supported “owner-occupied, single-family detached homes for nuclear families in the suburbs” (Liebig, Koenig, and Pynoos 2006, p. 156). This American dream of the suburban home was federally subsidized through tax deductions for mortgage interest, a policy that continues today (Lowe 2011; Schwartz 2010; Shlay 2006). Moreover, 11 million new single-family homes were built following the war with large subsidies from the Federal Housing Administration and the Veterans Administration’s loan program. Federal investments in the interstate highway system were also key to making commuting to the suburbs affordable (Kunstler 1994).
At the time, good reasons existed for these public zoning policies aimed at growth. The underlying objective of zoning was to keep incompatible uses separated (Burdette 2004). The urban growth plan envisioned four segregated single-use areas that were connected by roads: living in subdivisions of houses, shopping in retail centers or strip malls, working in business parks, and accessing public services in government buildings. City planners used zoning as a quantitative tool that was based on ideological assumptions drawn from military logics just demonstrated in World War II. These plans for suburban growth were ideologically defended as a rational and efficient way for more families to have affordable, spacious, and comfortable homes. Kwartler (1989) suggests that Euclidean zoning allows for development to be objective, predictable, and controlled. Moreover, zoning protects both personal property investments and public rights by controlling uses on adjacent sites (Burdette 2004). Next, we explore this logic that continues nearly a hundred years later as part of the legacy structure of the housing market.
1922 Standard Zoning Enabling Act and Euclidean Zoning
Zoning is the process of dividing a community into a set of distinct areas with specific uses (Abeles 1989; Kelly 2004). Zoning aims to “restrict noxious uses generally from urban areas dominated by housing” (Hirt 2012, p. 376). During the industrial revolution, city planners removed factories from residential areas restricting industry to commercial zones; they were lauded for improving air quality and city life. In the US, the 1922 Standard Zoning Enabling Act provided a common policy framework for local municipalities focused on decreasing density to reduce overcrowding, congestion, and crime, and protect public health (Wickersham 2001). The 1922 Act provided a model and tools to manage development and was adopted by all fifty US states (Kelly 2004). It is referred to as Euclidean zoning because of the court case in Euclid, Ohio, which established the Act’s constitutionality. Today the great majority of the population of the US lives in communities that are zoned (Fischel 2000).
Subsequently, many unintended consequences resulted. Suburbanites driving in cars spend a lot of time in traffic moving among single-use areas just to meet the needs of daily life. This stands in sharp contrast to the way past cities were built. In much of Europe, cities were built as compact, walkable, and encouraged mixed uses (Hirt 2012). Moreover, the four-use plan with interlocking roads requires tremendous investments in public infrastructure to support and manage growth and movement creating legacies structures that are difficult to change (Duany, Plater-Zyberk, and Speck 2010). Euclidean zoning reduced density (Schilling and Linton 2005; Wickersham 2001). But over time, Euclidean zoning separated multi-family housing from single-family housing, as well as segregated families with different incomes (Abeles 1989).
Euclidean zoning is now synonymous with hierarchical zoning where exclusive and attractive zones are set aside for single-family housing (Pollak 1994; Shlay and Rossi 1981). Local policy makers prescribe regulations for each zone addressing its use, intensity, and bulk, which are standardized throughout a specific zone (Kelly 2004). The intensity of a particular use is determined by minimum lot size, number of dwellings, building height restrictions, and parking requirements. Bulk refers to the actual volume of space of a building and is addressed by setback and maximum building coverage requirements (Burdette 2004). Potentially innovative forms of affordable or high density housing are often blocked by regulations around intensity of use and bulk.
Euclidean zoning is widespread despite long standing critiques (Been, Gross, and Infranca 2014; Burdette 2004; Jacobs 1961; McDougal 1972). Zoning is part of socially constructed legacy structures that include public policy decisions, such as those made by Federal Housing Administration (FHA) to offer loans with more or less stringent financing requirements. Social legacy structures include widely shared values and social patterns, such as the American dream of homeownership and the dynamics in the real estate market (Rohe and Watson 2007). For example, builders often focus to meet the needs of higher priced housing market segments and favor building large homes (Smith 2007). Today, builders are constructing fewer single-family homes under 1800 square feet and the building of townhouses has dropped in half (Joint Center for Housing Studies 2017). These marketplace legacies are further cemented through obdurate infrastructure, such as roads, sewers, power grid, waste collection, schools, and policing (see Figure 1).

Creative destruction within legacy structures.
In Figure 1, we provide a snap shot of how the socially-constructed and obdurate legacy structures work to hold in place a housing market that is difficult to change, even though significant unintended consequences exist. For example, current zoning policy has “unintentionally shaped the US landscape into a sprawling, auto-dependent society characterized by segregated communities of isolated populations” (Burdette 2004, p. 2). Unintended consequences include suburban sprawl (Hall 2007; Wickersham 2001), racial and socioeconomic segregation (Hall 2007; Jacobs 1961; Shlay and Rossi 1981), increased average housing prices (Kling 2002), environmental and energy problems (Newman 1994), strained public services and infrastructure (Levy and Melliar-Smith 2003), and reduced quality of life (Schilling and Linton 2005), to name but a few.
Figure 1 outlines the unintended consequences of marketplace legacy structures.
At the macro level, socially-constructed and obdurate legacy structures create unintended social consequences within the US housing marketplace, such as a lack of affordable housing. At the micro level, however, it is possible to test temporary solutions to the problem of unaffordable housing—such as the rent-to-own example discussed in the introduction. Later in the essay, we explain one approach for encouraging tactical moments of creative destruction where grassroots experiments can be encouraged and evaluated to see if they are potentially scalable. At the meso level, for these fledgling solutions to be successful, social and infrastructure integration is needed. For example, the tiny house experiment in Detroit only worked when the rent-to-own pricing strategy was devised that was sensitive to the economic realities of low income consumers. Similarly, we know that people see their homes as an extension of themselves (Belk 1988). These one-of-a-kind homes with different styles were likely appealing to consumers and could be part of a successful formula horizontally scalable to other cities that also have blighted neighborhoods. Such a program will only be integrated if infrastructure exists, from sewers and plumbing to trash and educational services. In this rent-to-own program, other services already existed, such as bicycle loaning program for affordable transportation and a jobs program to help the chronically unemployed (PBS Newshour 2017). The next two sections demonstrate this interconnectivity by outlining the legacy structures and tactical moments of creative destruction needed to integrate affordable housing into the marketplace system.
Legacy Structures Limit Adaptations for Affordable Housing
The Euclidean public policy plan for urban growth and its consequences was codified as the law of the land in contemporary zoning practices—a vision that is literally cemented in roadways, byways, and infrastructure. Despite being envisioned as a plan for affordable living, city regulations actually restrict affordable options. For instance, minimum space codes restrict alternative dwelling units like granny flats. Maximum density codes ban boarding houses and limit the number of roommates (Alexander 2005; Antoninetti 2008; Liebig, Koenig, and Pynoos 2006). As Lerman (2006, p. 386) explains, “Many communities, especially affluent suburbs, have kept lower income families from moving into the community through ‘exclusionary’ zoning by requiring large minimum lot sizes and large minimum floor areas, prohibiting mobile homes, and limiting multi-family residential areas.”
Although shelter is a basic and universal need essential for well-being (Universal Declaration of Human Rights, Article 25), a perfect storm is brewing in the last decade that is bringing the problem of affordable housing to a crisis level. Demographic shifts of urbanization mean more people are living in the city; these pressures are compounded by the rise in single-person households. Uneven economic recovery has reduced local government budgets, and more than half of states have not returned to their pre-recession levels (Pew Trust 2015).
Thus, affordable housing is increasingly elusive for many households. Middle class households are under strain but low income households are harder hit (Dewan 2014). Drops in home ownership place pressure on the rental market. Renting rose across all age groups except for people over age 75 (Joint Center for Housing Studies 2014). In 2015, the largest single-year jump in net new renter households occurred with over 36% of households renting (Joint Center for Housing Studies 2016). This may be due to a desire for financial flexibility, job mobility, and a preference to outsource property maintenance (Olick 2014). However, in 2010, 50% of renters paid more than 30% of their income and 25% of all renters alarmingly paid over half of their income for shelter (Joint Center for Housing Studies 2014). “The lack of affordable housing options forces cost-burdened renters to sacrifice other basic needs, settle for inadequate living conditions, and/or face housing instability—all with serious immediate and long-term consequences” (Joint Center for Housing Studies 2016, p. 5). Also, research finds that neighborhoods with the highest median rent-to-income ratios have much higher eviction rates than neighborhoods where residents spent less of their income on rent (Desmond 2016; McMullen 2016).
For the first time in 2010, over 50% of the world’s population lived in a city. By 2050, 66% of humanity is predicted to be urban (Runde 2015; United Nations 2014). In addition, with urban migration, we see rural depopulation leading to a potential decline in public services and forcing many businesses to close. According to some estimates, the struggle to obtain decent, affordable housing could affect over 1.6 billion people globally within a decade (Woetzel et al. 2014). A third of urbanites currently live in slums or temporary settlements particularly in developing economies (WHO and UN-HABITAT 2010).
Clearly, the housing market is a context replete with legacy structures slow to change and often unresponsive to the current market realities (Mishel et al. 2012). For example, the global demographic shifts toward urbanization are straining the capacity of governments to provide services (Hinshaw and Holan 2011). The global trend in urban revitalization, also called gentrification, is a double-edge sword. Although investments improve infrastructure, poor residents are generally forced out because the improved neighborhoods and housing become unaffordable (Grier and Perry 2014).
Tactical Moments of Creative Destruction
Zoning regulations seek to increase housing safety and minimize the mixing of incompatible land uses, but they have had the unintended consequence of dampening innovation in the housing system and impeding evolutionary change. The co-evolution of beliefs, values, behaviors, and practices works at all levels of a marketing system (Layton 2015). But a challenge exists in terms of how do we increase the number of mutations to provide potential viable solutions that can be selected and replicated? We advocate for tactical moments of creative destruction in specific locales to help jumpstart the generalized Darwinian processes of mutation, selection, and replication. Tactical urbanism is discussed next as a grassroots movement that also has a method for quickly generating mutations that can be tested on a limited basis. Bad mutations can be weeded out and good mutations can be replicated or taken to scale.
Tactical Urbanism as Creative Disruption
Tactical urbanism is an approach to re-envision and re-design public spaces to be more people-centered. Other terms abound, including participatory urbanism, DIY urbanism, open-source urbanism, pop-up urbanism, and guerilla urbanism (Finn 2014; Hou 2010; Wortham-Galvin 2013). Specifically, tactical urbanism is the use of small-scale interventions that are “short-term, low-cost, and scalable” yet are aimed at long-term social change (Lydon and Garcia 2015, p. 2). One of the earliest examples is guerrilla gardening where citizens took over a vacant lot, cleared it, and built a community garden even though they had no legal right to the property (Wilson and Weinberg 1999). Often local community members, and even gatekeepers, become advocates when these interventions are well executed; urban tacticians’ ability to build multi-stakeholder coalitions is an important advantage (Davidson 2013; Radywyl and Biggs 2013).
Successful tactical urbanism uses an incremental, beta-testing approach. Projects are completed without investing large amounts of capital or jumping through bureaucratic hurdles that exist as legacy structures. This also means a greater variety of people can participate democratizing this process and perhaps generating a greater diversity of ideas. As Davidson (2013, p. 3) explains, tactical urbanism can be “very generative, allowing players to pilot projects on a small-scale, minimizing risk and cost.” Consistent with Darwinian Theory, this method expands the diversity of the genetic pool to maximize the chances for a beneficial mutation.
Tactical urbanism encourages citizens to take back their right to access the city. Tactical urbanism is perhaps most powerful when it helps stakeholders think in new ways about old problems. For example, the Open Street Movement is a widely popular government-sanctioned idea that emerged in Bogota, Columbia. City streets are closed for art festivals, biking, or other social gatherings that welcome people into the heart of the city on the weekend (Tactical Urbanism 2012). But revealing different uses for a city street is different than finding new affordable places to live because homes depend on obdurate infrastructure of water, power, sewer, and other public services.
But the methods of tactical urbanism, if modified and expanded over a longer time horizon, could work in the area of housing. For example, Portland, Oregon’s Dignity Camp emerged in 2000 as a grassroots protest by a group of homeless people who set up a “tent city” in an act of civil disobedience. Tired of being hassled by police, forced to relocate regularly, and often losing what few possessions they had in the process, they illegally set up a camp on unused public grounds. They garnered significant media attention and eventually got permission to permanently locate their community on public land that the city zoned as a transitional campsite. This experiment has evolved from “Dignity Camp” to “Dignity Village,” which is now a non-profit organization. The transition did not occur overnight. Dignity Village needed to develop social structures to support them, such as the social norms and self-governing rules shared by the 60 residents. They also needed to develop more permanent dwelling structures, like small individual homes and shared communal facilities, as well as the public utilities to support them. But this successful experiment has become a model replicated by other cities and countries beset by the problems of homelessness and housing affordability (Heben 2014).
The Method of Tactical Urbanism as Natural Selection
Successful tactical interventions seek to question taken-for-granted assumptions about how public space is used and who gets to use it. In this manner, tactical urbanists challenge current beliefs, behaviors, practices, and regulations (i.e., the socially constructed legacy structures) to creatively disrupt the current system and drive change. In the case of homes, some adaptations would be needed. We might use their approach to challenge where homes are located, the materials used to build the home, the size of a home, and so forth. But we would still need to examine the fit between the home and the social and obdurate legacy structures to consider how successful ideas are integrated. The goal is to catalyze long term change in the physical environment or policies (Lydon and Garcia 2015), which includes changes to integrate with marketing infrastructure (Layton 2015).
Tactical urbanism originally emerged as a response by citizens who were frustrated by legacy structures. Even the simplest of interventions in public spaces often faces significant legacy hurdles within local and state governments. Thus, advocates of tactical urbanism tryout small unsanctioned interventions and ask for forgiveness later. This is a boundary that obviously must be carefully crossed.
In Figure 1, we layout the process of tactical urbanism (see the micro level processes). The process first involves local people identifying a problem. For instance, the homeless group was the local group who questioned Portland’s right to ban their access to the city. Using low cost and often temporary materials, a small-scale solution is tried out. In this case, Dignity Camp was quickly set up using tents and campers. Urban tacticians expect to fail, and good solutions occur iteratively as they learn and refine. They try to generate many ideas but only select and develop those solutions that prove most effective. Dignity Camp, for example, had to move several times as the city enforced new zoning rules. But a key tool in the urban tactician’s toolbox is the use of publicity and media to build public support and exert pressure on those decision makers enforcing (and potentially trapped by) legacy structures (Davidson 2013). In this case, each time the City Council forced the camp to relocate, the homeless group generated pubic sympathy by having media document their long procession of shopping carts as they slowly moved to yet another site. Ideally, these experiments are carefully scrutinized, and the successful ones are promoted beyond their locale. For example, researchers and filmmakers have widely documented Dignity Village, which has helped this “good mutation” spread to new cities.
Although originally tactical urbanism was a plan for grass roots community organizing, more recently, governments and businesses are using the approach to break through calcified practices and beliefs that are also part of their legacy structure (Lydon and Garcia 2015). As Davidson (2013, p. 52) finds, “tactical urbanism can serve as a creative way for government to publicly source innovation while minimizing risk.” Thus, working at the meso level, the government becomes an innovation spotter. Radywyl and Biggs (2013, p. 162) argue that even unwieldy, large bureaucracies can employ these “agile strategies to reconfigure large urban environments.” They allow policy makers to plan and design in a people-focused manner and ensure that the public has input into the temporary reconfiguration before any expensive capital works occur.
Some city governments, operating at the meso level, are temporarily lifting zoning requirements in experimental areas of the city to open opportunities for businesses to innovate free from some of these legacy codes. For example, micro apartments are springing up and being evaluated to see if they better meet the housing needs of modern urbanites (Friedlander 2015). Obviously, this is a plan that requires significant investment in infrastructure for the city even as a trial case. But significant investment is not always required. For example, pop-up retailing can be a tool for urban renewal where entrepreneurs try out new retailing models within abandoned or dilapidated sites using existing infrastructure (see www.renewnewcastle.org). This could be a particularly potent urban renewal tool if cities encourage groups of would-be entrepreneurs to create a pop-up retail district by building new social structures and infrastructure to support them (e.g., tax free holidays, pedestrian walk areas, partnerships with tourism bureaus, low interest loans, short term insurance, public toilets, amenities, and so forth.)
Creative and Collective Disruption
However, we challenge and extend Layton’s MAS framework. Layton (2015) argues individuals, groups, and entities interact competing for individual advantage. As these actors struggle within a given action field to establish local dominance, their actions impact the structure, function, and outcomes of the marketing system. We argue that, as well as “jostling for individual advantage” (2015, p. 311), participants may also work together to enhance collective well-being. Actors may adopt a narrow, self-interested perspective in some settings, but they are also willing to initiate “reciprocal cooperation in the hopes that others will return their trust” in order to manage collective resources (Ostrom et al. 1999, p. 279).
Much of the immediate power of tactical urbanism arises when the community experiences the tangible idea. This first-hand experience of an idea that has been brought to life may galvanize the public support that is so crucial for greater financial investment and long term changes in legacy structures. The experimental iterative approach of tactical urbanism also allows various stakeholders to adjust to, and “experiment with the space, define activities, share knowledge and expertise, find mechanisms for consolidating practices, and learn to self-organize,” and ultimately build new system institutions or structures to support the initiative (Radywyl and Biggs 2013, p. 164).
It is at the meso level (see Figure 1) that many tactical urban projects succeed or fail. Tactical urbanism is particularly effective at highlighting unmet needs, such as homelessness or housing affordability, and suggesting potential local solutions (Marshall, Duval, and Main 2016). However, the long term success of a given project depends on efforts at many different levels across government, the private sector, the non-profit sector, and civic activists and leaders (Davidson 2013). At the meso level, these diverse stakeholders must be brought together to agree and work on a specific solution to the identified problem. However, tactical, trial interventions represent a key opportunity for reconciling knowledge controversies that tend to arise with a diverse set of stakeholders (Marshall, Duval, and Main 2016). Moreover, project visibility combined with small successes can legitimize a project, which can then be parlayed into greater support from a wider variety of organizations, institutions, politicians, and citizens (Marshall, Duval, and Main 2016). Learning, success, and capital (political, economic, and social) can then be leveraged into developing a permanent solution.
For example, the city of Christchurch, following the recent earthquakes, sanctioned the building of a community gathering place made out of salvaged materials called the Pallet Pavilion. The non-profit organization, Gap Filler, working at the micro level, led the project but worked to build community support, at the meso level, across stakeholders spanning government, businesses, and local citizens. This trial project was well-received by the community leading the city to endorse the structure for continued use and even expand to other vacant sites in the city. But experiencing the collective space was an important step for energizing the public will to crowd fund the sum of $82,000 to finance the structure to last beyond its initial one year lifespan (Tactical Urbanism 2014). These changes at the meso level occurred over months and years involving significant shifts in legacy structures. For example, the fire service had to develop a fire plan for the wooden structure, organizers had to negotiate with the local council to license the site, and they had to organize power and water for users. Eventually a formal trust was developed to manage empty spaces across the city and facilitate temporary uses by helping users navigate bureaucratic hurdles (Creative Spaces 2017).
Experiments in tactical urbanism facilitate social and infrastructure integration by building social networks and raising capital that can be leveraged for other projects. In fact, Gap Filler expanded horizontally into neighborhoods reclaiming abandoned lots and repurposing salvaged materials with the guidance and support of the locals. Radywyl and Biggs (2013, p. 168) advocate for a culture of regulatory experimentation and people-focused tactical urbanism as “the combination of prototyping, iterative experimentation and institutional facilitation prove a critical combination for creating disruptions that can lead to permanent reconfigurations within urban systems, in a variety of contexts.” And Dotson (2016, p. 149) argues, and finds evidence in the case of housing, that “many of the obdurate barriers to urban design alternatives can be addressed by making more room for intelligent trial-and-error experimentation.”
Examples of the Creative Destruction of Legacy Structures
Here, we highlight how the “creative destruction” within four legacy structures could stimulate more innovations for affordable housing to demonstrate how such an approach might work. Other approaches to facilitate affordable housing, such as unlocking land or shared equity arrangements, may also be advantageous and should be addressed in future research (Mount 2015; Nanda and Parker 2015; Woetzel et al. 2014). Our focus, however, is on areas where innovation is inhibited by legacy arrangements. As Layton (2015) heeds, we need to be cautious of the risk these moments of change may entail. We explicate the framework of tactical urbanism as a method for testing which mutations are beneficial and might spread much like the process of natural selection. Nevertheless, some mutations are unsuccessful and should not spread, which we discuss at the end of the essay. Next, we explore housing experiments that are well underway.
Go Smaller—Challenging Minimum Space Codes
The 2012 International Residential Building Code has, until very recently, required dwellings to have one habitable room with a minimum floor area of 120 square feet. Good reasons existed for having minimum space requirement per person, such as historical overcrowding in poorly constructed tenements and risks from the spread of communicable diseases (Alexander 2005). But given the widespread availability of vaccines, people routinely congregate in small spaces such as when college students live in dorms or military personnel live in barracks.
This minimum size requirement restricts industry from building smaller homes—such as tiny homes that are less than 400 square feet, or repurposing existing materials—such as homes built from shipping containers or straw-bales (Iglesias 2014). Yet the demand for smaller houses is growing with the dramatic increase in the number of single person households and the decline nationally in the average household size (Infranca 2013; Vespa, Lewis, and Kreider 2013). Micro apartments may provide an innovative alternative for young adults beginning their career in urban areas with high rents (Iglesias 2014). Millennials in particular desire housing near jobs and amenities, such as entertainment, recreation, and transportation (Mooney and Kilpatrick 2013).
In New York, Seattle, Boston, Vancouver, and San Francisco, policy makers are relaxing minimum space requirements (Been, Gross, and Infranca 2014; Mooney and Kilpatrick 2013). My Micro NY is one such example of a micro apartment complex built to address inadequate and unaffordable urban housing and to accommodate the growing small household population. At the meso level, the project was the result of a design competition sponsored by the city, and was built through the cooperation of the Department of Housing Preservation and Development and a local developer. The city waived minimum space requirements of 400 square feet and this project is a “trial balloon” that contains 55 units ranging from 250 to 370 square feet. But what are the new unintended consequences of these creative moments of destruction? Potential challenges might include strain on public transportation, limited parking, or complaints of overcrowding by neighbors (Abarbanel et al. 2016).
More is Merrier—Challenging Density Codes
Maximum housing density and single use zoning codes inhibit innovation by restricting lot sizes, limiting the number of dwellings per lot, and enforcing requirements for space for parking. Even when secondary units are allowed, few are built because the permit process is difficult or expensive (Withers 2012). Off-street parking requirements pose another legacy obstacle (Chapple et al. 2011). These ordinances make it difficult for entrepreneurs to experiment with affordable housing alternatives in single-family zones. But consider the benefits afforded to baby boomers retiring if they could build an accessory dwelling unit (ADU) in their back yard for extra income while also providing badly needed affordable housing for millennials or others.
The creative destruction of zoning density requirements creates a space for innovation. Proponents of ADUs argue that they can reduce city sprawl by allowing infill housing. Also, aging in place remains a very strong desire of many seniors (Pynoos et al. 2008). ADUs could accommodate a live-in caregiver, which could enhance seniors’ quality of life, save money, and allow them to stay in their home (Antoninetti 2008). A supply of accessible and affordable housing is critical for aging in place (Joint Center for Housing Studies 2014).
Elder Cottages is an innovative manufacturer that makes small modular units as ADUs. Residents living in Elder Cottages are more satisfied, independent, and use fewer formal services than elders residing in more conventional housing (Altus et al. 2002). Similarly, Santa Cruz, California is one of the least affordable cities in the US, but the city has experimented with different approaches to encourage ADUs (Bernstein 2005). Santa Cruz pioneered ADUs for affordable housing by changing zoning and providing social support, including pre-approved designs and low interest loan programs (Been, Gross, and Infranca 2014). Santa Cruz has continued to change regulations, as ADUs become more acceptable in the city and socially constructed legacy structures begin to break down (York 2017).
Thus, experiments by cities and manufacturers are well underway and they are tackling head on some of the potential legacy barriers. Yet a framework is needed to ensure the various concerns of different housing actors are considered and successful experiments are shared for potential scaling up. What problems arise from housing infills, such as strain on existing infrastructure, changes in the character of the neighborhood, or reduction in property values? Thus, locally appropriate infrastructure integration may be necessary to enable the success of this experiment.
Let’s Get Moving—Challenging Fixed Housing
To circumvent building and zoning codes, some home builders erect their home on a trailer or repurpose existing vehicles like school buses. However, these approaches are not without regulatory challenges (Mutter 2013). To be legal, the builder must register the home with the Department of Motor Vehicles as a recreational vehicle, and the structure must be no larger than allowed by applicable state law (Murphy 2014; Tiny House Community 2015). Yet, the Department of Motor Vehicles is ill-equipped and does not evaluate the inhabitability or safety of these homes on wheels. Moreover, recreational vehicles are not intended for permanent living. This creates challenges for tiny home owners in finding permanent sites for these traveling homes once completed. For instance, zoning regulations must allow year round camping for owners of tiny home owners to site their homes. Even campgrounds often have restrictions on the total number of days vehicles are allowed to stay.
Mobile homes also evoke negative stigmas and stereotypes about the nature of the homes (e.g., cramped interiors and cheap materials) and those who live in them (Hart, Rhodes, and Morgan 2002). These options will not be appealing to some groups. Moreover, once mobile homes are sited they are infrequently moved because costs are prohibitive (Rowe 1998). Yet, in a world where disasters are happening with far greater frequency, a clear need exists for affordable homes that actually move. We evoke the name of “traveling homes” to creatively destroy the socially constructed negative associations with mobile homes and the assumptions that homes must be site-based. The Internal Displacement Monitoring Centre (2014) estimates that disasters displaced an average of 27 million people each year between 2008 and 2013. For example, 600,000 households were displaced by Hurricane Katrina with the storm damaging more than a million housing units in the Gulf Coast region (Plyer 2016). The 140,000 FEMA trailers available to Katrina victims continued and even exacerbated the negative stereotype associated with trailers given their links to health-related disorders (Patel and Hastak 2013).
Imagine the creative destruction of FEMA trailers and the replacement with hand-crafted, locally-made tiny homes. Tiny homes built on trailers are indeed traveling homes. Although they may be an expensive method for housing people for a short duration, properly constructed, they can provide affordable long-term accommodation. In fact, federal authorities failed to recognize the housing needs of those displaced by the Hurricanes Andrew, Katrina, and Ike. Housing needs lasted 18 to 24 months and beyond, which is well past the provision for temporary housing provided by disaster policy (Mitchell, Esnard, and Sapat 2012). Traveling or tiny homes could also provide a housing solution to groups in flux or transition, such as migrant workers or workers who come temporarily to a community attracted by a boom cycle in the local economy.
This example exemplifies both opportunities for innovation in the system but also the potential dangers that come from a lack of helpful oversight. One can imagine that some of the entrepreneurial builders entering this new market are unqualified and the uninspected homes may have risks to home dwellers. But these experiments can also fuel innovation such in the area of efficient composting toilets, rainwater collection, small scale solar power, and small scale furniture that serves multiple functions. This may reduce the constraints imposed by some obdurate legacy structures.
Growing Organic Families—Challenging Single-Family Zones
Zoning policies assume a traditional nuclear family and create single-family zones consistent with this socially constructed vision (Pollak 1994). People unrelated by blood, marriage, or adoption cannot live together in some single-family zones (Alexander 2005). Thus, the traditional family of parents and children is codified into law, even though the traditional family represents only 20.2% of American households in 2010, and one in eight households contain one or more unrelated members (Lofquist et al. 2012). Regulations sometimes exclude households composed of students, families with foster children, group homes for people with mental or physical disabilities, and elders and their live-in caretakers (Pollak and Gorman 1989).
The creative destruction of limiting housing to this traditional notion of family could open up new social arrangements. Families emerge for a variety of reasons from people seeking to share housing costs, looking for companionship, or mutually giving care and support (Liebig, Koenig, and Pynoos 2006). Rather than call these nontraditional families, we call these “organic families” in the sense that their members voluntarily select one another. Although these organic families could take advantage of the existing single-family housing stock and existing infrastructure, many current zoning policies pose restrictions (Pollak 1994). Neighbors often oppose shared housing arguing property values drop, noise and traffic problems rise, and “undesirable” people come into the neighborhood (Pynoos et al. 2008).
Currently, over 11 million single parent households exist in the US, which is more than triple the number in 1970 (Lofquist et al. 2012). Mothers head 8.3 million of these households (Lofquist et al. 2012). In 2011, the poverty rate was 9% for two-parent families and 22% for single-father families, compared to the 41% rate for single-mother families (Casey and Maldonado 2012). Co-housing enables single-parent families to share housing costs and even parental duties. One social media service is CoAbode, which is a nationwide support service for single mothers to find other mothers to share housing and potentially forge organic families (see http://www.coabode.com). In a similar vein, The Golden Girls Network was launched to facilitate seniors co-housing (www.goldengirlsnetwork.com). Are these beneficial mutations that should spread or do new problems arise? In the concluding section, we explore the potential of tactical urbanism as an approach that can help the housing system both adapt and evolve yet still be mindful of the attendant risks.
Final Reflections
In this essay, we examine the affordable housing crisis and question whether current housing policies support or impede the evolving needs of consumers, businesses, and the communities in which they live. We argue that the US housing market is replete with significant legacy structures, both socially constructed and obdurate, that impede innovation. We explore in depth how one of these legacy structures, single-use Euclidean zoning laws, were developed in response to social problems following World War II. We identify how these zoning policies create legacy structures that do not provide for 21st century affordable housing needs. In fact, these single-use zoning laws have had the unintentional consequences of exacerbating social problems related to social inequity and affordable housing.
The Housing Marketplace as a Marketing System
The US housing marketplace provides an example of how the formation, growth and change of marketing systems can be inhibited by historical legacies. Historical legacies are likely to be most consequential for hybrid systems where multiple, specialized, and interconnected markets compete for their own strategic interests. This would include any marketplace where numerous public and private entities are interconnected such as healthcare, transportation, and education.
Layton’s (2015) Mechanism, Action, Structure (MAS) provides a framework for identifying the causal processes that underlies the formation, growth, and adaptive change within systems. While we are sympathetic to this Darwinian perspective on systemic change, we seek to highlight the challenges to rethinking the beliefs, behaviors, norms, values, and social practices within a system where specific legacies support the status quo. For this reason, we argue that Darwinian change at times needs to be accompanied with moments of tactical creative destruction. We also challenge and extend Layton’s MAS framework. We argue that in these moments of creative destruction participants may work together to enhance collective well-being rather than compete for individual advantage.
Tactical Urbanism as a Possible Solution
We suggest the techniques of tactical urbanism as one potential approach for identifying innovative solutions to the affordable housing crisis. Tactical urbanism enables small cases of disruption to legacy elements without initiating overall destructive change. We argue the short-term, low-cost, neighborhood appropriate approach enables stakeholders to work incrementally beta-testing real world projects. This approach enables stakeholders to learn from these experiments and adapt the housing system to be more responsive to a wider spectrum of housing needs, especially those households who lack access to affordable housing. This is a strength of the tactical urbanism philosophy. Through such an approach, it may be possible to garner wider community support for change in both the built housing environment as well as housing policy to support a diversity of housing needs. Thus, we argue that both social and infrastructure integration at the meso level will be necessary to support these micro experiments.
In this way our proposed form of adaptive change is different to previous macromarketing research that has examined destruction and change within marketing system. Rather than systemic change as a result of unexpected environmental destruction (e.g. Baker et al. 2014; Ozanne and Ozanne 2016; Phipps and Brace-Govan 2011; Saunders 2016), these are planned moments of creative destruction that are strategic within the marketplace’s evolution. This approach seeks to balance the hybrid interests of competing entities to continue to exist within these complex and interconnected marketplaces.
Nevertheless, wider system change is possible within the US housing marketplace (Dotson 2016). Although Euclidean zoning still dominates, alternatives exist and are gradually emerging. A shift in the 1980s-1990s, called New Urbanism, saw some contemporary urban planners advocating for a return to the older principles guiding traditional neighborhoods that are well-loved and built with people in mind—albeit these are still centrally planned projects (Kunstler 1994). These form-based codes use “physical form (rather than separation of uses) as the organizing principle for the code” (Form Based Code Institute, formbasedcodes.org/definition). Therefore, instead of separating zones into specific uses such as residential, work, shopping, or government, a template can be used that is “intended for local calibration to your town or neighborhood” (SmartCode, www.smartcodecentral.com/).
The principles that guide many of the tactical urbanism projects share some of the same assumptions as New Urbanism. “In brief, the principles of new urbanism include high density, mixed use neighborhoods; convenient public transit, bicycles paths and pedestrian-friendly street networks; strategically placed open spaces; and architecture designed to foster social interaction” (Song and Knaap 2003, p. 219). These principles are consistent with many tactical urban projects. However, although many cities have adopted the philosophy of New Urbanism in their policies and plans, development patterns in North American suburbs often remain single-use and car-dependent (Al-Hindi 2001). Moreover, New Urbanism does not necessarily embrace the participatory and grassroots ethos of tactical urbanism and works within more traditional established legacy processes. Some of the architectural features associated with New Urbanism have caught on, but in a piecemeal way (Grant 2002) and often “weak political commitment and market pressures frustrate planners’ desires to create accessible and open communities” (Grant 2009, p. 11).
Envisioning Problems and Opportunities
Tactical moments of creative destruction are also not without problems. For instance, some tactical urbanism projects aim to raise consciousness and do not necessarily result in social or system change. For instance, Boneyard Studio showcased a tiny-house community in Washington, D.C. to demonstrate creative urban infill, promote the benefits of tiny houses, and model what a tiny house community could look like (see www.boneyardstudios.org). Ironically, these houses were uninhabited because existing zoning prohibited people from living in them. Similarly, Uneven Growth, a project of the Museum of Modern Art (MOMA), elicited proposals from interdisciplinary teams to address the challenges caused by rapid and uneven growth in cities around the world. The resulting exhibition and online repository highlighted the challenges that will face the world’s megacities and provided innovative solutions to ensure they will remain habitable. But interesting ideas must be backed by capital and political will and confront the legacy structures in the system.
Finn (2014) similarly raises a number of cautionary flags. An overreliance on the DIY efforts of tactical urbanists may in fact cede responsibility for the public commons to individual or private interests, “an abdication of public responsibility for, and control over, decisions that affect the citizenry at large” (2014, p. 392). In addition, the efforts of tactical urbanists to improve the city environ in low-income and under-developed areas may in fact hasten gentrification and potentially exclude those who are most vulnerable and in need of urban improvement. From a housing context, Bermann and Marinaro (2014) argue that DIY approaches, working in isolation, may be unable to overcome the legacy forces necessary to provide affordable housing. To state it more bluntly, one could argue that the shanty towns and urban slums are also examples of tactical urbanism and people reclaiming the city for their use. But, in their examination of two temporary settlements outside of Rome, Bermann and Marinaro (2014, p. 411) suggest these “DIY responses are stopgap solutions unable to challenge, let alone undermine, larger forces in urban power dynamics such as racism, housing inequality and the privatization of the city.”
To scale up ideas and challenge legacy structures, moments of creative destruction may work best when a coalition of partners work together and operate at both the micro and meso level. These coalitions need to take into account the interest of both public and private entities. For instance, the New York City proposal, from MOMA’s Uneven Growth project, aims to provide permanent affordable housing for very low, low, and moderate-income households through the development of a hybrid tenure framework, a cooperative housing trust which is sponsored by the public sector and co-managed by public representatives, community, and cooperative members (Cohstra 2016).
Other projects can be more carefully crafted with political ends in mind, engaging with government, and changing laws, or using social or infrastructure integration to create other supportive mechanisms to facilitate change. Tactical urbanists often miss the need to work with political and institutional bodies to formalize their interventions and implement long-term system change (Davidson 2013). Scaling vertically to work at the meso level with government and policy makers may be important to challenging legacy structures permanently (Radywyl and Biggs 2013).
Atlanta, a city described by the New York Times as “the epitome of suburban sprawl” (Fausset 2016), aims to convert 22 miles of unused railway beds into a biking and pedestrian loop. Submitted as an idea to city officials in 2001, the Atlanta BeltLine project illustrates the potential for tactical urbanism projects to resonate with policy officials and the community at large. Although only two miles are completed, 1.3 million people already walk the BeltLine every year and surrounding neighborhoods are increasingly desirable (Fausset 2016). Despite the success of this project in connecting mixed racial and socio-economic neighborhoods, fears exist that housing could once again become unaffordable if gentrification occurs. Thus, this process is best conceived of a push-pull process that must be continually scrutinized to encourage successes and guard against lost ground.
What might policy makers seeking to increase the supply of affordable housing learn from the micro experiments provided by tactical urbanists? Many aspects of tactical urbanism are central to the core ideals of urban planning, particularly the idea of democratic and participatory involvement (Finn 2014). Thus, policy makers should seek tools to engage tactical urbanists, encourage their input, facilitate their efforts, and harness their creativity. Tactical urbanists are place-based activists that can be part of a multi-stakeholder solution. Policy makers might support their efforts, at the meso level, through sponsoring projects, such as MOMA’s Uneven Growth or the New London Architecture’s competition to find solutions to London’s housing crisis (Mairs 2015). City officials might leverage additional resources from engaged citizens especially on initiatives that lack sufficient public funding and where policy makers are happy to accede to citizen-led efforts (Campo 2014). Monitoring the entrepreneurial activities of tactical urbanists is a creative means for policy makers to spot innovation while minimizing risk (Davidson 2013). Policy makers might also support or enable tactical urbanists’ experimentation through experimental and temporary regulations, which provide consumer protection while the innovative projects are allowed to proceed. The temporary nature means that both regulations and the innovation can be evaluated when the regulations expire so attendant risks can be identified and improved regulations put in place (Ranchordas 2015). For example, temporary regulations were set up to allow tiny homes to be sited on blighted urban land in Washington, DC.
What might marketers, seeking to increase the supply of affordable housing, gain from tactical urbanists’ attempts to challenge legacy structures in the housing system? First, when legacy structures are weakened a host of marketing opportunities arise to serve a diverse array of consumer housing needs. We have shown that when regulators relax zoning requirements it creates opportunities for marketers—from serving urban millennials with micro apartments, to meeting the housing needs of aging baby boomers with ADUs or tiny houses, or fostering organic families through social media. As tactical urbanists, regulators, and marketers work together, at multiple levels in the system, a transformation of the housing marketing system will begin as beliefs, values, behaviors and practices co-evolve to ultimately build new marketing system institutions (Layton 2015).
Conclusion
In conclusion, we highlight the importance of taking into account “the historical context or legacies that each community has inherited” (Layton 2015, p. 305). In this essay, we suggest that the US housing marketing system is based on many assumptions that are dated and inhibit market innovations. We argue that the US housing market represents a system severely disrupted and is not meeting the dynamic needs of many consumers, businesses, and the communities in which they live. We focus on how socially constructed and obdurate legacy structures have held this system in place and fostered an affordable housing crisis. Yet, this system is a dynamic one with the potential to respond to change and adapt (Layton 2015, Layton 2007; Layton and Grossbart 2006). Alternatives are explored to foster change and the co-evolution in the legacy structures of the housing system to meet these evolving needs (Layton 2015). We suggest four changes across housing size, density, mobility, and the meaning of family. Also, we identify potential opportunities and threats to the system from these changes. We propose how a modified tactical urbanism approach to change holds promise and may even be scalable, as well as some of its limitations. Through this approach, we hope stakeholders can work at multiple levels in the system to find novel solutions for alleviating the affordable housing crisis while also minimizing the risks associated with systemic change.
Footnotes
Declaration of Conflicting Interests
The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.
Funding
The author(s) received no financial support for the research, authorship, and/or publication of this article.
