Lecture 4 - Urban Economics

Question 1

Capitalization and Globalization became what?

Answer 1

a society of consumers

Question 2

Example of agglomeration?

Answer 2

the amount of coffee shops needed if Amazon came into a city

Question 3

what needs to be fluid?

Answer 3

Flows, so no barriers to trade

Question 4

What are cities shifting to?

Answer 4

Industrial to creative class

Question 5

What are Canadian cities increasing in demand?

Answer 5

knowledge, creativity and formal qualifications

Question 6

Sectoral composition is shifting to?

Answer 6

service producing industries

Question 7

What are the features of economic transition?

Answer 7

• 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)

Question 8

What negative impact has innovation, knowledge based economic development created?

Answer 8

increase divide between professional, managerial, technical, scientific workers and lower-wage, routinized service workers

Question 9

Price of houses and land vary over what?

Answer 9

time and geography

Question 10

What determines land value?

Answer 10

conditions in the city and what is happening globally, type of house

Question 11

What shape value of location?

Answer 11

Social and economic relationships of complex urban systems

Question 12

What is the first law of geography?

Answer 12

everything is related to everything else, but near things are more related than distant things

Question 13

Value characteristics of location are determined by two sets of attributes

Answer 13

Proximity: the physical closeness to locations of importance
Accessibility: the ease of getting from one place to another

Question 14

What land is most valuable?

Answer 14

proximity and accessibility to downtown, highest per-unit land prices are in the city centre and fall towards the periphery

Question 15

what has caused growing airport locations importance?

Answer 15

growing business-related travel, sub-centres have developed around major airports

Question 16

What other land has also increased?

Answer 16

suburban downtown, firms move for lower rents and to locate closer to suburban labour force

Question 17

What is bid rent?

Answer 17

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)

Question 18

what is prime value intersection (PVI)?

Answer 18

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)

Question 19

What are the external factors affecting land value?

Answer 19

• 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

Question 20

What is Coal Harbour unoccupancy percentage

Answer 20

30 percent

Question 21

How many empty homes in Vancouver?

Answer 21

25,000, 8 percent of city’s total housing stock

Question 22

how much is the empty home tax?

Answer 22

1 percent of property value

Question 23

How much revenue did the city get for empty home tax?

Answer 23

38 million

Question 24

what does global capitalism create?

Answer 24

great weather for some and exploits others

Question 25

What are the top 3 areas with empty homes?

Answer 25

Coal Harbour, West End, Yale town

Question 26

Base rent for urban uses is set by?

Answer 26

the least attractive land that has to be used for housing

Question 27

from commuting perspective, least attractive are?

Answer 27

at the periphery of the city

Question 28

land prices near the centre are?

Answer 28

driven up by people who want to reduce their commute costs

Question 29

higher income households tend to want?

Answer 29

larger lots, drawn to periphery by lower land costs

Question 30

lower income households need to?

Answer 30

reduce commute costs, tend to occupy more expensive inner-city land at higher densities

Question 31

growth of suburbs is a function of?

Answer 31

increasing incomes and the preference for large homes

Question 32

average Canadian commute time is?

Answer 32

1 hour

Question 33

Where are millennials moving

Answer 33

suburbs because of larger homes

Question 34

what is gentrification?

Answer 34

emergence of “new middle class” of highly educated workers who reject the suburban lifestyle

Question 35

most population growth is still in?

Answer 35

the suburbs

Question 36

what permits suburban development

Answer 36

transportation improvements

Question 37

what is key for future land use

Answer 37

retrofit suburbs