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Inside The City: The Competitive Bidding For Land
Inside The City: The Competitive Bidding For Land
For its effective operation, the city requires close spatial association of its
functions and people. As long as these functions were few and the population small,
pedestrian movement and pack-animal haulage were sufficient for the effective
integration of the urban community. With the addition of large – scale
manufacturing and the accelerated urbanization of the economy during the 19 th
century, however, functions and populations – and therefore city area-grew beyond
the interaction capabilities of pedestrian movement alone. Increasingly efficient and
costly, mass –transit systems were installed. Even with their introduction, however,
only land within walking distance of mass –transit routes or terminals could
successfully be incorporated into the expanding urban structure.
Within the city, parcels of land were allocated among alternate potential users
on the basis of the relative ability of those users to outbid their competitors for a
chosen site. There was, in gross generalization, a continuous open auction in land in
which users would locate, relocate, or be displaced in accordance with “rent-paying”
ability. The attractiveness of a parcel, and therefore the price that it could command,
was a function of its accessibility. Ideally, the most desirable and efficient location
for all of the functions and the people of a city would be at a single point at which
the maximum possible interchange could be achieved. Such total coalescence
(union, combination) of activity is obviously impossible.
The open land auction (sale by bidding) should yield two separate although
related, distance-decay patterns, one related to land values and the other to
population density ( as distance increases away from the CBD, population density
decreases). If one views the land value surface of the central city as a topographic
map (12.21), with hills representing high valuation and depressions showing low
prices, a series of peaks (mountain top), ridges (a long narrow hill top) and valleys
(low lying land along river) would reflect the differentials in accessibility marked by
the pattern of mass-transit lines, their intersections, and the un served interstitial
areas (interstate) Dominating these local variations, however, there is an overall
decline of valuations (appraisal of cost) with increasing distance away from the peak
value intersection, the most accessible and costly parcel of the CBD. As would be
expected in a distance-decay pattern, the drop in valuation is precipitous (acting too
quickly) within a short linear (relating straight line) distance from that point, and
then the valuation declines at a lesser rate to the margins of that build up area.
With one important variation, the population density pattern of the central
city shows a comparable distance decay arrangement, as suggested by figure 12.22.
The exception is the tendency to form a hollow at the center, the CBD, which
represents the inability of all but the most costly apartments houses to compete for
space against alternative occupants desiring supremely accessible parcels. Yet
accessibility is attractive to a number of residential users and brings its penalty in
high land prices. The result is the high density residential occupancy of parcels near
the center of the city – by those who are too poor to afford a long – distance
journey to work; are consigned (entrust) by their poverty to the high density,
obsolescent (becoming obsolete) slum tenements (urban apartment bldg.) near the
heart of the inner city; or are self-selected occupants of the high density, high rent
apartments made necessary by the price of land. Other urbanites (city dweller) if
financially able, may opt to trade off higher commuting costs for lower-priced land
and may reside on larger parcels away from high accessibility, high congestion
locations. Residential density declines with increasing distance from the city center
as this option is exercised.
As a city grows in population, the peak densities no longer increase, and the
pattern of population distribution becomes more uniform. Secondary centers begin
to compete with CBD for customers and industry, and the residential areas become
less associated with the city center and more dependent on high-speed
transportation arteries. Peak densities in the inner city decline, and peripheral areas
increase in population concentration.
LAND VALUE
Is the value of piece of property including both the value of the land itself as
well as any improvements that have been made to it. This is not to be confused with
site value, which is reasonable value of the land assuming that there are no leases,
mortgages or anything else present that would otherwise change the site’s value.
Land values increase when demand for land exceeds the supply of available land or
if a particular piece of land has intrinsic value (the difference between the price per
share for which an option maybe purchased or sold and the market value of the
asset) greater than neighboring areas (eq. oil can be found on the land)
Property owners use land value to determine how much to charge other
parties for its use. For example, an individual who rents out several acres of
farmland to ranchers for grazing cattle will determine an amount to charge by
looking at the market value of the land compared to land taxes and capitalization
rate.
Land value may be determined by real estate appraisals conducted by third
parties. An appraiser’s assessment can be crucial to a lender’s decisions on offering
to finance a prospective buyer or refinancing for a property holder. Appraisal of the
land can include a comparison of its condition to similar real estate. This is not the
same as comparative market analysis, wherein the prices of recently sold similar
properties are compared. The position and location of the land can have a direct
influence on its value. For example, a remote parcel of land may have limited value
because it does not have access to amenities, utilities, transportation or other
resources that could make the property useful. The value of the land might increase
if the property is located near a popular destination such as a city, entertainment
venue, or services that are in demand.
POPULATION DENSITY
Philippine population density increases from 308 to 337 persons per square
kilometer. With a total land area of approximately 300,000 square kilometers, the
population density of the Philippines in 2015 was posted at 337 persons per square
km. This represents an increase of 29 persons per square Km (9.4 persent) from the
population density of 308 person per square KM in 2010. In 2000, there were 255
persons residing in every square Km. of land.
ZONING
Generalized models – simplified graphic summaries f urban growth and land use
patterns were proposed during the 1920s and 1930s. While such models generalize
what admittedly is a tremendous degree of variation in cities, they also help us
understand some regularities in urban shape. More recently, urban geographers
have begun to employ models that help us better understand a decentralized city.
The common starting point of the classic models is the distinctive central business
district founds in every older central city. The core of this area displays intensive
land use development: tall buildings, many stores and offices, and crowded streets.
Framing the core is a fringe area of warehousing, transportation terminals, and light
industries ( as long as they require few raw materials and pollute very little). Just
beyond the urban core, residential land uses begin.
Burgess model or concentric zone model – urban land use model Ernest
Burgess gave a model to define how different social groups are located in a
metropolitan area. Burgess model is one of the well known and widely studied model
in urban planning. Social groups based on the socio-economic status of households
and distance from central area or downtown. This model is known as the
concentric zone model because the different locations were defined in the form of
rings around the core urban area around which city grew. Burgess Model is
another name for this model (given after the name of Ernest Burgess).
Concentric Zone Model or CCD model was developed between 1925 and 1929 based
on the study of American cities. Chicago city was studied for which Burgess provided
empirical evidence. Urban geography and human geography covers number of such
models which were introduced in last few centuries. This was one of the many
models such as Hoyt Model or Sector Model, Multiple Nuclei Model, Central Place
Theory etc studied under settlement geography
Various researchers and scholars have debated over the number of zones
(concentric circles) in the Burgess concentric zone model. Some consider them to be
five whereas some consider 6 zones to explain this urban land use model. The
center is the oldest part of the city around which the city expands over time, and the
newest development comes on the edges. Some people also refer this model as
concentric circle theory because of the arrangements in form of circles. These circles
are often referred to as rings by a few. Related: Primate City & Primacy |
Relationship between city sizes
Zone I (Central Business District)
This is the center (innermost zone) where the central business district is
located and has highest land value. The zone has tertiary activities and earns
maximum economic returns. Another feature is the accessibility of the area because
of the convergence and passing of transport networks through this part from
surrounding and even far places in the city. This part has tall buildings and
noticeably high density to maximize the returns from land. Commercial activity
taking place in the area results in negligible residential activity in this zone.
The mixed residential and commercial use characterizes this zone. This is
located adjacent and around the CBD and is continuously changing, i.e. transition
takes place. Another feature is the range of activities taking place like mixed land
use, car parking, cafe, old buildings. This zone of transition is considered to “decay”
because of a large number of old structures as the buildings in transition zone were
earlier used for factories and tenement housing blocks. This zone had a high
population density when industrial activities were at their peak. Those residing in
this zone were of the poorest segment and had the lowest housing condition.
This area is occupied for residential purpose and also known as “inner city” or
“inner suburbs.” It consisted of houses built to accommodate factory workers but
had better condition than the transition zone. This area has a mix of new and old
development and generally requires orderly redevelopment. People living in this zone
are second generation immigrants as many moves out of the transition zone to this
zone whenever affordable. This zone is nearest to the working area with modest
living conditions, and this resulted in reduced commuting cost. Another interesting
feature includes the large rental housing occupied by single workers.
This zone had bigger houses and new development occupied by the middle
class. Many of the homes are detached, and unlike single occupants of inner
suburbs, families resided in these homes. Better facilities are available to the
residents like parks, open spaces, shops, large gardens but this comes at an
increased commuting cost. This zone has a large area of residential land. People
living in this outer ring look for better quality of life.
This is the peripheral area and farthest from the CBD, this resulted in highest
commuting cost when compared with other zones. Significant commuting cost gave
the name “commuter zone” to this part. People living in this part were high-income
groups which could afford large houses, could pay commuting charges, had access
to different transportation mode, enjoy modern facilities like shopping malls. Low
rise development, large gardens, less population density are some of the
characteristics of this zone. This zone offered the highest quality of life and facilities
but at a cost of higher commuting cost.
The Burgess model takes into account the positive correlation between
economic status and distance from downtown. This is sometimes also referred to as
concentric zone model or simply concentric model or concentric theory. This
considers, better the economic status more the distance from the central area. The
central area has high density, and the availability of land is scarce. Because of this
more affluent segment of the society reside away from the city center where they
can build large houses. Burgess described the changing spatial patterns of
residential areas as a process of “invasion” and “succession”. As the city grew and
developed over time, the CBD would exert pressure on the surrounding zone (the
zone of transition). Outward expansion of the CBD would invade nearby residential
neighborhoods causing them to expand outward. The process continues with each
successive neighborhood moving further from the CBD. His work included the study
of bid rent curves according to which the land with the highest rent was occupied
with economic activities of highest returns. Zone of transitions are important part of
the burgess model as they are very active and change of people & activities takes
place constantly.
Concentric zone model is one of the simplest model available. This model
accounts for the economic forces which drive development and the study of patterns
present at the time of the study. But with the evolution and passage of time urban
areas grew more complex and this model cannot define the development of existing
cities. Some of the limitations and criticism include:
Hoyt Model or Sector Model (1939) of Urban Land Use by Homer Hoyt
Urban areas have always been an area of research and caught the attention
of scholars and academicians. Homer Hoyt gave sector model which is also known as
Hoyt model in 1939 explains how cities grew. As we witness the population growth it
is becoming more and more essential to understand how cities work. Studies on
patterns of urban growth, settlement geography, and land use are of great interest
to the concerned people. Various theories and models have been proposed which
attempts to explain how the growth took place and how different groups & activities
are arranged in an urban area. Different models about the growth of urban regions
include rank-size rule, primate city & primacy, central place theory, Multiple Nuclei
Model, Burgess Model.
CBD – Central Business District is placed at the center. Sectors and the partial rings
of land use/activities take place. This area is often known as downtown and has high
rise buildings. Inner city area or downtown area is a complex and dynamic organism.
It represents many layers of historic growth of many generations impact of cultural
and traditions of men who inhabited the city as tourists. The combinations of these
layers and the way they are held together in the city gives imageability, out of its
socio-cultural heritage. As the cities expands and modern technology and scientific
innovations transformed the style of living and also the structure of the city, open
spaces were being eaten up by built forms resulting in congested and unhealthy
environment.
Industry – Industries are represented in the form of a sector radiating out from the
center. These forms sector because of the presence of a transport linkage along
which the activities grew. Presence of railway line, river or road would attract similar
activity, and thus a continuous corridor or “sector” will develop.
Apart from the industries this area also serves as a residential area for lower class
workers. Living conditions are bad because of proximity to industries.
Low-income groups reside in this area. Narrow roads, high population density, small
houses with poor ventilation exist in this area. Roads are narrow and often connects
to the industries where most of the people in this sector work. Closeness to
industries reduces the travel cost and thus attracts industrial workers. Environmental
and living conditions are often inadequate because of the proximity to factories.
Middle-Class Residential
This area has middle income groups who can afford more substantial travel cost and
want better living conditions. The activities of people residing in this area consist of
different activities and not just the industrial work. It has more linkages with CBD
along with some linkages to industries. This area has the most significant residential
area.
This is the outermost and farthest area from the downtown. Wealthy and affluent
people live in this area. This area is clean, has less traffic, quiet and has large
houses. Corridor or spine extending from CBD to the edge has the best housing.
Ecological factors + economic rent concept to explain the land use pattern
Stress on the role of transport routes in affecting the spatial arrangement of
the city
Both the distance and direction of growth from the city center are considered
Brings location of industrial and environmental amenity values as
determinants in a residential place
Example: Sectors of high-class residential areas tend to grow towards higher
grounds, sites with a better view, more open space, the homes of influential
leaders within the community and existing outlying, smaller settlements.
Only Railway lines are considered for the growth of sectors and do not make
allowances for private cars.
It is a monocentric representation of cities; multiple business centers are not
accounted for in this model.
Physical features – physical features may restrict or direct growth along
specific wedges
No reference to out of town development
Multiple nuclei model of 1945 by C.D. Harris and Edward L. Ullman is based on
the argument that the cities have multiple growth points or “nuclei” around which
growth take place. This model was given in an article by them “The Nature of
Cities.” This is one of the widely adopted models which was applicable to modern
cities unlike older models studied under settlement geography
This model is based on the structure of Chicago just like the Burgess model or
Concentric zone model of 1925. It can be considered as an attempt to explain the
structure of the city taking into account the complexity and growth over time. Harris
and Ullman argued that a city might start with a single central business district
(CBD), but over the time the activities scatter and gets modified. The scattered
activities attract people from surrounding areas and act as smaller nuclei in itself.
These small nuclei gain importance and grow in size and start influencing the growth
of activities around them.
The need for this model was to provide a more realistic explanation of the
cities. The influence of cars on personal travel and greater movement of goods
offered opportunity in different places instead of concentrating all economic activities
in one place. People started optimizing their business for maximum profit by locating
at a different place and bringing down their rent with a slight increase in
transportation cost. Whereas some activities like industrial areas create pollution and
are thus preferred to be located away from residential areas. This model is
considered to be more suitable for cities which are large and expanding.
The activities listed in the model can be considered as independent zones which
influences activities around them. These are also formed because of their
dependence on one another when such activities are located in proximity a “nuclei”
is said to be developed.
This provides a more practical application of the multiple nuclei model and is
an improvement over the Burgess model. It is difficult to find flat land for big cities,
and the terrain features affects the activities, development, and direction of growth
of an urban area.
Resources are evenly distributed within the city, no one enjoys privileges or
have exclusive access to resources.
People are distributed homogeneously and not concentrated in a particular area or pocket. This is
essential as an unevenly distributed population has a direct impact on markets.
Profit maximization –
A particular activity will locate itself where maximum profit can be earned. For
this, a different combination of rent, transportation costs, labor cost, proximity to
market may be tried, and the combination which yields the best result gives the final
location for the activity. This location also takes into account the restrictions over the
activity and the need to be separated from other non compatible activities such as
locating residential areas away from industrial, locating large industries with more
accessibility to reduce transportation cost and to ease the movement of goods.
Limitations and criticism of the Harris & Ullman’s Multiple Nuclei Model
Multiple nuclei model was considered much better than the previous simple
models which attempted to explain the structure of urban areas. However, this
model also had its limitations and could not be applied to many cities and did not
entirely explain the structure of urban areas. Formation of well-defined zones or
“nuclei” required the considerable size of the city as the small or new towns do not
have a very well defined location because of which they are usually
scattered. Another drawback is the limited activities which are considered in the
model along with the very rigid and specific boundaries of the activities. Some other
disadvantages include:
SOCIAL STATUS
The social status of an individual of a family is determined by income, education,
occupation, and home value. In the United States, high income, a college education,
a professional or managerial position, and high home value can mean an expensive
rented apartment as well as a large house with extensive grounds.
A good housing indicator of social status is persons per room. A low number of
persons per room tends to indicate high status. Low status characterize people with
low income jobs living in low value housing. There are many levels of status, and
people tend to filter out into neighborhoods where most of the heads of households
area of similar rank.
In most cities, people of similar social status are grouped in sectors whose points are
in the innermost urban residential areas. The pattern in Chicago Illustrated in figure
11.20. If the number of people within a given social group increases, they tend to
move away from central city along an arterial connecting them with the old
neighborhood. Major transport routes leading to the city center are the usual
migration routes from the center. Social status patterning agrees with sector theory.
FAMILY STATUS
As the distance from the origin of each sector increases, the average age of the
head of the household declines,or the size of the family increases, or both. Within a
particular sector – say, that of high status – older people whose children do not live
with them or young professionals without families tend to live close to the city
center. Between these are the older families wholived at the outskirts of the city in
an earlier oeriod. The young families seek space for child rearing, and people covet
more the accessibility to the cultural and business life of the city. Where inner city
life is unpleasant, there is a tendency for older people to migrate to the suburbs or
to retirement communities. Within the lower status sector, the same pattern tends to
emerge. Transients and single people are housed in the inner city, and families, if
they find it possible or desirable, live farther from the center. The arrangement that
emerges is a concentric (with common center line) circle patterning according to
family status.
ETHNICITY
Of the three patterns, family status has undergone the most widespread
change in recent years. Today, the suburbs house large numbers of singles and
childless couples, and areas near the central business district have become popular
for young professionals (see gentrification). Much of this is a result of changes in
family structure and the advent of the large numbers of new jobs for the
professionals in the suburbs and the CBD, but not in between
By: Amanda Briney
Updated January 23, 2020
Gentrification
The real estate market also changes when gentrification occurs because
increases in rents and home prices increase evictions. Once this happens rental units
are often switched to condominiums or luxury housing available for purchase. As real
estate changes, land use is also altered. Prior to gentrification these areas usually
consist of low-income housing and sometimes light industry. After, there is still
housing but it is usually high end, along with offices, retail, restaurants, and other
forms of entertainment.
Since Glass came up with the term, there have been numerous attempts to
explain why gentrification occurs. Some of the earliest attempts to explain it are
through the production- and consumption-side theories.
The rent-gap theory itself describes the inequality between the price of land
at its current use and the potential price a piece of land could attain under a “higher
and better use.” Using his theory, Smith argued that when the rent-gap was large
enough, developers would see the potential profit in redeveloping inner-city areas.
The profit attained by redevelopment in these areas closes the rent-gap, leading to
higher rents, leases, and mortgages. Thus, the increase in profits associated with
Smith’s theory leads to gentrification.
Over time, these urban pioneers help to redevelop and “fix-up” run down areas.
After doing so, prices go up and the lower income people present there are priced
out and replaced with middle and upper-income people. These people then demand
greater amenities and housing stock and businesses change to cater to them, again
raising prices. These rising prices then force out the remaining population of lower
income people and more middle and upper-income people are attracted,
perpetuating the cycle of gentrification.