Urban

1
Urban Regional Economics

• Dr. Jim Burton
• Marketing Real Estate
• Richards College of Business

2
Overview

• Urban Growth Factors
• Economic Base Analysis
• Real Estate Demand
• Urban Area Structure
• Why Urban Areas Exist
• Different Types of Urban Areas
• Where do Cities Locate
• Theories of Urban Growth
• Rent Theory

3
Urban Growth Factors

• Transportation
• Educational facilities
• Environment
• Natural resources
• Climate
• Labor force
• Leadership

4
Economic Base Analysis

• Basic businesses exporters
• Non-basic businesses produce goods services
  for consumption within the area
• Examples

5
Real Estate Demand

• Short-run demand
• Competitive survey
• Industrial structure
• Recent trends
• Forecast future
• Long-run demand
• Forecast future
• Regional trends
• Potential new firms

6
Why Urban Areas Exist

• Savings in Social Costs
• Internal Economies of Scale
• External Economies of Scale
• Labor Specialization
• Greater Consumer Choice
• Fostering Innovation
• Costs of Urbanization

7
Different Types of Urban Areas

• Primary Community has economic base
• Secondary Community depends on primary community

8
Where do Cities Locate

• Shores of Oceans/Lakes
• Near Mouths of Rivers
• Confluence of Rivers
• At Obstructions on Rivers
• At River Crossings
• At Mountain Breaks
• Transportation Intersections

9
Theories of Urban Growth

• Von Thunen (1826) - Location
• Hurd (1903) - Least Resistance
• Burgess (1925) Concentric circle
• Hoyt (1930) - Sector Theory
• Babcock (1932) - Jumping Sectors
• Harris Ullman (1945) - Multiple Nuclei,
  clusters of similar land uses

10
Rent Theory

• Highest Best Use
• Most Accessible Site has Highest Rent
• Most Traffic - pedestrian, auto, public
  transportation
• Public facilities
• Highest Rents get Best Sites