Lecture 4 - Urban Economics Flashcards
Capitalization and Globalization became what?
a society of consumers
Example of agglomeration?
the amount of coffee shops needed if Amazon came into a city
what needs to be fluid?
Flows, so no barriers to trade
What are cities shifting to?
Industrial to creative class
What are Canadian cities increasing in demand?
knowledge, creativity and formal qualifications
Sectoral composition is shifting to?
service producing industries
What are the features of economic transition?
- manufacturing base has decline, moved to China
- shift towards knowledge and innovative activity
- creative and cultural economic activities have become more important (eg Amazon, Microsoft)
What negative impact has innovation, knowledge based economic development created?
increase divide between professional, managerial, technical, scientific workers and lower-wage, routinized service workers
Price of houses and land vary over what?
time and geography
What determines land value?
conditions in the city and what is happening globally, type of house
What shape value of location?
Social and economic relationships of complex urban systems
What is the first law of geography?
everything is related to everything else, but near things are more related than distant things
Value characteristics of location are determined by two sets of attributes
Proximity: the physical closeness to locations of importance
Accessibility: the ease of getting from one place to another
What land is most valuable?
proximity and accessibility to downtown, highest per-unit land prices are in the city centre and fall towards the periphery
what has caused growing airport locations importance?
growing business-related travel, sub-centres have developed around major airports
What other land has also increased?
suburban downtown, firms move for lower rents and to locate closer to suburban labour force
What is bid rent?
the amount of money that a particular parcel of land could expect to receive. synonymous with land value (bid-rent curves depict rent/distance trade-off the would make householders indifferent to location)
what is prime value intersection (PVI)?
point in the city with the greater degree of access. point where all other land values are determined. Burrard and Georgia - Central Business District (CBD)
What are the external factors affecting land value?
- easier for foreign investors to buy real estate due to globalization of financial markets
- immigration increase has expanded the demand for land and housing
- recent immigrants tend to have higher permanent incomes, which increased their housing consumption
What is Coal Harbour unoccupancy percentage
30 percent
How many empty homes in Vancouver?
25,000, 8 percent of city’s total housing stock
how much is the empty home tax?
1 percent of property value
How much revenue did the city get for empty home tax?
38 million
what does global capitalism create?
great weather for some and exploits others
What are the top 3 areas with empty homes?
Coal Harbour, West End, Yale town
Base rent for urban uses is set by?
the least attractive land that has to be used for housing
from commuting perspective, least attractive are?
at the periphery of the city
land prices near the centre are?
driven up by people who want to reduce their commute costs
higher income households tend to want?
larger lots, drawn to periphery by lower land costs
lower income households need to?
reduce commute costs, tend to occupy more expensive inner-city land at higher densities
growth of suburbs is a function of?
increasing incomes and the preference for large homes
average Canadian commute time is?
1 hour
Where are millennials moving
suburbs because of larger homes
what is gentrification?
emergence of “new middle class” of highly educated workers who reject the suburban lifestyle
most population growth is still in?
the suburbs
what permits suburban development
transportation improvements
what is key for future land use
retrofit suburbs
