Lecture 5.docx

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10 Feb 2013
Inner City vs. Suburban Densities
Differences in design, density and accessibility are evident in
High density downtown offices and low density suburban office parks
High density inner-city residential use and low density suburban single-
detached lots
High density downtown shopping centres (ex. Eaton Centre) and low density
suburban shopping centres
Land Value and Land Use
Accessibility of Land Use > Land Value (Cost) > Land Use
The Logic of Bid-rent/ Trade off models
Sites (land) vary in level of accessibility generally downtown is most
Therefore they vary in value and cost
Because all land use (office, retail, industrial, recreational, residential,
educational, etc.) potentially benefit from accessibility they will bid against
each other for accessible sites (this is the Bid Rent Concept)
But the land users vary in the level of economic return they can get from the
site; therefore they also vary in their ability to pay for occupying the site.
Those most able to gain economically from the site occupy the site. (in main
their decision the land users are “trading off” accessibility , which can give
return but is costly and land area which cannot be afforded in large volume
in high accessible sites)
A spatial sorting of land users results according to accessibility, economic
return of land users, and ability to pay.. Office and retail at the core,
residential on the periphery.
Distribution of land-uses according to the Bid-Rent Model (ability to pay rent vs.
High to low- office/retail, industry, high density residential, medium density
residential, low density residential, urban fringe activities, agriculture
Bid-rent/Tradeoff models-observations
What kind of models are they?
o An economic interpretation of where we
find land uses
o Economic models . but many other factors
have influence: political, heritage, cultural,
Contrast a typical suburban mall with the Eaton
Centre Downtown
Apparent contradiction in the model “ poor occupy
“best” land? Lower income individuals live in
downtown. How can they afford to be there?
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