Chapter 15 Urban and Regional Economics

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Chapter 15Urban and Regional Economics

• This Chapter examines factors influencing the
  national demand for real estate and those factors
  which determine the location of cities. The
  growth and decline of regions and cities as
  determined by the location of people as well as
  the reasons why people live where they do and
  their tendency to cluster in urban areas are
  examined. The geographic form of a city and the
  life cycle of a neighborhood are of particular
  interest.

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Economic Factors Influencing the Growth and
Decline of Cities

• Community growth factors - What causes
  cities/regions to grow?---Comparative advantage
• Transportation facilities
• Education facilities
• Factors of the created environment
• Natural resources
• Climate
• Labor force
• Leadership

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Economic Base

• Export activities
• Population-serving activities

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Location of People

• People live where economic activity exists

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Analyzing Local Real Estate Demand

• Analysis of short-run demand
• Analysis of long-run demand

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Models of Urban Growth Patterns

• Concentric-circle growth (Fig. 3.1)
• Axial growth (fig. 3.2)
• Sector growth (Fig. 3.3)
• Multiple-nuclei growth (Fig 3.4)

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The Importance of Public Facilities in the Growth
Process

• Transportation (Fig. 3.5)
• Water and sewer (Fig. 3.6 3.7)

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Urban Form A Synthesis

• Commercial Growth
• Tends to occur near transportation nodes
• Commercial subcenters have been created by
  transportation improvements.
• Industrial Growth
• Tends to occur along major highways railroads
• Most new plants are located at the periphery of
  an urban area
• Many new facilities are located in industrial
  parks, where transportation and other necessary
  public facilities are available.

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(cont..)

• Residential Growth
• Influenced by the location of public facilities.
• Commuting access id important.

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The Dynamics of Neighborhood Change

• What is a neighborhood?
• Neighborhood change life cycle
• Gestation, youth and maturity
• Incipient decline
• Clear decline
• Accelerating decline and abandonment.
• Neighborhood stabilization and rehabilitation.

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Neighborhood Impacts

• Filtering
• Gentrification
• The first people who attempt to renovate
  deteriorated dwellings usually are young, middle
  income individuals or families who cant afford
  more affluent neighborhoods. These pioneers
  want to live in town and are willing to spend the
  time and energy necessary to rebuild a
  neighborhood.