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Patterns of urban land use reflect a compromise between forces which…
Patterns of urban land use reflect a compromise between forces which centralise and those which decentralise, with the balance between them shifting over time.
Assess the validity of this assertion based on contemporary patterns of urban development.
Patterns of Metropolitan Development (Gregory K. Ingram, 1997)
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5. Land Markets
Location theory shows that the declining density gradients are systematically related to underlying land-rent gradients. It predicts that the land-rent gradients will be less steep than the density gradients because capital is substituted for land in the production of housing
Like other prices in an economy, land
prices perform two roles:
In their allocative role, land prices indicate
the value of land to produc ers and signal how
land should be used.
In their distributive role, land rents and increases in land values produce returns to land-owners
6. Housing, Residential Location and Labour Markets
In both industrial and developing countries, the proportion of income spent on housing by households within a particular city is higher for low-income households than for high-income households
Low rent neighborhoods are often not necessarily effective location proxies for low income-households
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Conclusion
Development patterns in developing and industrial countries with market based economies exhibit similar patterns of decentralisation of both population and employment.
The largest metropolitan areas converging to similarly decentralised structures with multiple sub-centres, highly decentralised manufacturing employment and emerging specialisation of the CBD in service employment
Decentralisation of population and employment increases reliance on road-based transport for both passengers and freight
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Land markets are strong determinants of decentralisation, and cities without land markets exhibit quite different development patterns from cities with even poorly functioning land markets
In market-based cities, land rents are closely related to development densities.
Analyses of urban housing markets indicate that demand patterns are similar across cities in developing and industrial countries but that supply-side impediments vary widely - resulting in a range of ratios of housing prices to incomes.
Similarly, the provision of public sector infrastructure provision varies widely across cities.
The Polycentric Urban Region: Towards a research agenda (Kloosterman and Sako Musterd, 2000)
Polycentrism: "basically denoting the existance of multiple centres in one area, seems to have become one of the defining characteristics of the urban landscape in advanced economies
one of the most interesting features of modern urban landscapes is the tendency of economic activity to cluster in several centres of activity
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Monocentric:no longer applicable as they are based on the ideal-typical constriction of industrial cities with 19th century transport technology which is easily quantified
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New transport technologies enabled people and economic activities to move out creating huge suburbs and out of town locations for business
the deconcentration of economic activity undermined the commuting pattern "up the rent gradient" that characterised the monocentric model of people moving from the suburbs to the city centre
Assumed: the handling of goods was the dominant form of production and households would have just one member who commutes
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choosing an optimal residential location now involves taking into account 2 people - this has given a strong boost to cross-commuting and undermined the notion of monocentricity
commuting from home to work is no longer the sole reason commute - this trend has affected patterns of economic activity and of spatial mobility
Towards a property market paradigm of urban change (D'Arcy and Keogh, 1997)
The changing nature of production relationships in both manufacturing and services, combined with significant changes in communications and to a lesser extent transportation tech. have radically altered the economic fundamentals underpinning urban regions.
Conventional treatment of urban change adopted by economists and others is centered on an analysis or urban structure which is driven by changes in the location dynamics of industrial firms, the service sector and households, and their implied spatial requirements.
Forces of urban change are necessarily constrained by the existing built environment and mediated through a land and property market process which may be highly specific to the urban area in question .
Consequently, changes in the economic and spatial structure of urban regions are inevitably shaped by RE market dynamics .
Traditional approaches to the analysis of change in urban systems have focused on the changing determinants of the location decisions of firms and households and the implications these have for the economic and spatial structure of cities.
Space-access trade-off models have attempted to rationalise urban land use patterns in terms of location dynamics of firms and households under certain simplifying assumptions with regards to the location of employment centres, the structure of transport costs, and transportation tech.
Monocentric model yields a pattern of urban land use with service sector activities outbidding other users for central locations
Location dynamics are now primarily influenced by changing production and communication technologies in specific user groups and the importance of transport cost conditions have been reduced
Cities in Europe and other developed countries have followed a consistent pattern of urban development:
This trend is followed by decentralisation: the suburbanistion of population into the area immediately surround the core
goods handling industries, industrial production, and wholesale and retail distribution have moved outward to exurban locations since the late 1950s, largely as a result of changing transportation tech.
Upon inudustrialisation, urban development proceeds through the growth of high density ubran core, rural-urban migration, declining agricultural activity, and growing industrial employment
1970s - labour intensive 'routine' office functions also decentralised, although initially this tended to invole relatively short distances to satellite subcentres. Decentralisation of service activities continued throughout the 1980s and 1990s, with relocation occuring over greater distances, and for a wider range of functions, facilitated by significant advances in communication tech.
Cheshire (1995): indicates greater variation in the pattern of urban development during the 1980s. Pronounced trend away from decentralisation to relative recentralisation amoung some northern European FURs. Cheshire suggests 'cumulative causation' explanation in terms of FURs to create and build upon environments capable of attracting and retaining skilled residents.
Urban Economic Activity:
At its simplist - generates requirements for land and property which might be met by the existing stock of buildings or through new development. This is mediated through the property market process, which determines values, allocates spaces in buildings between competing uses, stimulates production of new space through development and redevelopment
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Important - is the existing stock physically capable of meeting current requirements? Existing space is the legacy of past development decisions, often reflecting fundamentally different historic circumstances, varying degrees of physical mismatch can be expected
Prevailing pattern of property rights is important . Stock of buildings can be seen as a stock of legal interests which serve a variety of use and investment objectives. In principal the mix of property rights should be easier to change than the physical stock of buildings, and represents an important short term or medium term adjustment mechanism in the property market.
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Received theory: trade establishes property prices which provide meaningful representations of value and property rights will be acquired by those who value them most highly. Therefore, existing property will be put to its most valuable use and held in a form which most closely meets the diverse requirements of users and investors.
When the value of new property, net of (re)development costs exceeds the existing value of a site, appropriate new development will occur, supplying additional use and investment rights into their segment of the market
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the complexity of the property market and the restricted availability of information creates a role for agents and advisors. Agent involvement varies across Europe - in highly developed markets, agents are involved in the majority of transactions, whereas in others, they tend to be involved in a small proportion
The property market translates pressure for economic change into RE capacity which will partly or fully support that change.