Bid-Rent Theory The price and demand for real estate changes as the distance from the CBD increases Price of land closer to CBD is higher Different land.

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Presentation transcript:

Bid-Rent Theory The price and demand for real estate changes as the distance from the CBD increases Price of land closer to CBD is higher Different land uses will compete for desirable pieces of property in order to maximize profits Accessibility increases the potential for more customers Trade-off between accessibility and cost of land Where have we seen a similar idea before? How does this relate to Concentric Zone Model?

If you were a city planner, what would you rather add to your city? A farmers market A library A Walgreens An auto manufacturing plant Multiplier Effect: the 'snowballing' of economic activity. Industry locates in an area This provides jobs Workers have money to spend (taxes) More shops open (taxes) Services improve (paid for by taxes) More jobs created

Can you have a Negative Multiplier? Negative Multiplier Effect - A phenomenon in which the loss of jobs in one economic sector leads to further job loss in other economic sectors So which would hurt more if it closed? A farmers market A library A Walgreens An auto manufacturing plant Fermi Lab

Peripheral Model / Urban Realm Chauncey Harris (Multiple Nuclei) Urban area consists of an inner city surrounded by large suburban residential and business areas tied together by a beltway

Urban Realms Model Term used to describe the spatial components of the modern metropolis where each realm is a separate economic, social and political entity that is linked together to form the large metropolitan framework Today’s outer cities (edge cities) are not satellites of the central city; they are shaping the metropolis CBD is losing dominance Ties loosened to central city but other suburbs as well

What is connected to what? City Urbanized Area Metropolitan Area A functional area A continuously built up area A legal entity Pop Density > 1000/sq mile) Area with at least 50,000 and adjacent counties with density of 25 people/ sq mile and 50% work in central city.

Examples?

Urban Hierarchy and Megalopolis

Density gradient