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  • A $6 Billion City to Shield Lagos, U.S. Residential Solar Collapse, Car Ban in London, Amsterdam's Housing Woes

A $6 Billion City to Shield Lagos, U.S. Residential Solar Collapse, Car Ban in London, Amsterdam's Housing Woes

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Editorial Staff
June 23, 2025

 

Explore the latest news and trends shaping the future of urban development.

You Should Know

  • Iran’s parliament has backed a proposal to close the Strait of Hormuz, the vital shipping channel through which approximately 20% of the world’s daily oil supply flows.

  • Construction input prices jumped at a 6% annualized rate in May, driven by increases in key materials like steel and aluminum. Economists warn that newly implemented and upcoming tariffs could further inflate prices and and pressure contractors.

  • Tesla finally launched its robotaxi service yesterday, offering driverless Model Y rides in an invite-only pilot program in Austin. The company is operating about ten vehicles within a geofenced area and charging a flat fare of $4.20.

Worth Watching

Nigeria Is Building a New Coastal City to Shield Lagos

Eko Atlantic is one of the most ambitious urban development projects in Africa. Built entirely on reclaimed land, the new city is designed to expand Lagos’s urban footprint and provide critical protection against rising sea levels. Inspired by Manhattan’s skyscraper districts, the $6 billion project is reshaping the future of Lagos—Africa’s largest city, with a population of over 9 million.

The project began in 2008, following years of environmental devastation that saw Lagos lose up to 14 meters of beachfront annually. The engineering effort has been monumental—more than 95 million cubic meters of sand were dredged from the ocean floor to raise and stabilize the seabed. A signature feature of the development is the “Great Wall of Lagos,” an 8.5-kilometer sea wall designed to protect the coastline from storm surges that have proven deadly in the past.

Eko Atlantic is being built to address two critical challenges: the strain on housing and infrastructure caused by Lagos’s rapid population growth, and the erosion threatening the city’s future. It is designed to accommodate over 300,000 residents and support 250,000 daily commuters with high-density housing and modern infrastructure.

The city’s road infrastructure is extensive, featuring a grand eight-lane commercial spine—Eko Boulevard—modeled after global landmarks like the Champs-Élysées and designed to anchor a major financial district. To date, 14 new bridges have been completed, supporting 42 lanes and spanning five million square meters.

Eko Atlantic operates independently from Lagos’s often overstretched public utilities, with its own power, water, sewage, and waste management systems. High-speed fiber-optic internet is integrated into the city’s core infrastructure, and all utilities are routed underground for greater resilience and efficiency. Additionally, 30,000 trees are slated to be planted throughout the city.

Core infrastructure for Phases 1 and 2—roads, lighting, drainage, bridges, and broadband—is largely complete. High-rise construction is well underway. The luxury Eko Pearl Towers are already occupied, and major corporations such as MTN Nigeria and FirstBank are establishing their headquarters—FirstBank’s will be Nigeria’s tallest building at 40 stories.

Other early entrants include the Dangote Group, the U.S. Embassy, and a growing number of developments like Azuri Towers, Oak Towers, and A&A Towers. These landmark projects are helping establish Eko Atlantic as Nigeria’s new epicenter of business and luxury real estate.

With development expected to continue through 2040, Eko Atlantic is positioning Lagos for a more resilient, sustainable, and globally competitive future.

Residential Solar Faces Collapse in the U.S.

The U.S. residential solar market is facing a sharp decline. Installations fell by 31% in 2024, a sharp reversal for a sector that once enjoyed rapid year-over-year growth. At the same time, several of the industry's largest players—SunPower, Sunnova, and Mosaic Solar—have filed for bankruptcy, underscoring the severity of the crisis.

The latest blow comes from a proposed federal bill, the “One Big Beautiful Bill Act,” which curtails long-standing tax incentives. The bill phases out the 25D tax credit—currently covering 30% of system costs for homeowners—180 days after passage. It also reduces the 48E investment tax credit from 60% in 2026 to 20% in 2027, eliminating it entirely by 2028. Notably, residential solar leases would no longer qualify for the 48E credit.

These changes come as interest rates rise, California slashes net metering credits by over 75%, and tariffs on solar hardware—including aluminum and imported modules—increase. The combined effect has driven up system costs, eroding the value proposition of long-term energy savings.

While residential solar struggles, utility-scale and commercial solar projects continue to grow in the U.S. Most of the new solar capacity added in 2023 and 2024 came from the utility-scale segment, not rooftops. The U.S. installed 50 GW of new solar capacity in 2024—the largest amount added in a single year by any energy technology in over two decades. Utility-scale and distributed solar together accounted for roughly 66% of all new power capacity added that year.

This divergence reflects the structure of the market: residential solar is highly sensitive to interest rates and incentive changes, while utility-scale developers benefit from long-term contracts, economies of scale, and more stable financing conditions. The 48E tax credit also continues to benefit large-scale developers.

Outside of the U.S., the residential solar market looks brighter. Europe is expanding rapidly—Germany alone installed over 1 million new residential systems in 2023, driven by high energy prices and generous policies. In China, residential solar is booming under strong government support, with 2023 rooftop additions surpassing the entire installed solar base of many countries.

Car Ban Coming to London’s Most Vital Shopping Street

London’s Mayor, Sadiq Khan, has pledged to pedestrianize Oxford Street “as quickly as possible” after two-thirds of 6,600 consultation respondents supported banning traffic. The plan seeks to revive the street’s declining status as the UK’s premier retail destination.

Oxford Street is Europe’s busiest shopping street, drawing an estimated half a million visitors per day during peak times before the pandemic. Home to over 300 shops, it continues to generate around £3 billion in annual retail sales.

To address these challenges, the city will ban vehicles from a 0.7-mile stretch between Great Portland Street and Marble Arch. The pedestrianized zone will create space for street cafés, cultural events, and a more walkable public realm. The Khan administration emphasized the urgency of the project, noting that footfall is just 57% of what it was in 2006.

Pedestrianizing Oxford Street is expected to transform it into a more welcoming, vibrant, and enjoyable destination. By removing through traffic, the street will become safer, quieter, and more accessible for pedestrians, with reduced air pollution and less overcrowding. The redesign will create a high-quality public realm with more seating, clearer walkways, and better conditions for people with disabilities and reduced mobility.

The pedestrianization is also seen as a major economic and cultural opportunity. It is expected to attract more foot traffic, increase consumer spending, and strengthen Oxford Street as a world-class shopping destination. With space for outdoor events, performances, and pop-ups, the street can become a cultural and commercial hub.

The plan also supports wider regeneration goals through the proposed Mayoral Development Corporation, helping coordinate investment, planning, and long-term growth.

There is strong precedent for pedestrianizing popular streets. In New York City, the pedestrianization of Times Square began as a temporary measure in 2009 and is now permanent. The initiative led to retail sales increasing by over 25% in nearby stores, along with a rise in dwell time and social media engagement. Similarly, in Düsseldorf, the central portion of Königsallee was made car-free, resulting in increased property values and enhanced prestige.

Why Amsterdam Fails at Building New Homes

Amsterdam is facing one of the most severe housing crises in Europe. Although the city has set a target of building 7,500 new homes annually, it has surpassed that goal only once in the past 24 years. This year, just 4,000 homes are expected. The wait for social housing can stretch nearly 20 years, and the vacancy rate remains below 2%, underscoring the gap between supply and demand.

Building new housing in Amsterdam often feels like navigating a maze of zoning restrictions, environmental regulations, and bureaucratic hurdles—delaying construction and driving up costs. While the Netherlands has a national goal of constructing 100,000 homes annually through 2030, only 63,000 permits were issued per year between 2022 and 2024.

Zoning regulations are one of the largest barriers, particularly in Amsterdam’s historic canal belt, where strict rules limit building height, prohibit demolitions, and restrict dense infill. Most structures in the city center are capped at a few stories to preserve the historic skyline.

Other constraints include strict daylight and green-space requirements. New buildings must allow sufficient sunlight and provide access to parks, often requiring broad, low-rise designs that limit vertical growth. Environmental reviews add further complexity, including assessments of soil conditions, nitrogen emissions, and protected species.

The national nitrogen emissions crisis has further stalled development. Dutch courts have blocked more than 18,000 construction projects, placing around 244,000 housing units at risk. Developers must prove that their projects won’t emit harmful levels of nitrogen oxides or ammonia—a costly, time-intensive process often requiring redesigns or mitigation plans.

Developers also face affordability and sustainability mandates. Amsterdam enforces a 40-40-20 housing mix (social, mid-range, and market-rate units) and requires new buildings to be energy-neutral. Mid-range rentals now require permits tied to tenant income, adding more administrative burden.

The permitting process involves multiple levels of government, public comment periods, heritage assessments, and legal appeals—making it one of the most complex and time-consuming development environments in Europe.

Geography adds further difficulty. Amsterdam’s dense layout often requires demolishing existing structures or building on contested green space. Much of the city sits on soft, low-lying ground, requiring costly foundation work such as deep pile driving. Together, these regulatory and physical constraints make it increasingly difficult for Amsterdam to build its way out of the housing crisis.

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