Urban Land Use Models QUIZGEKO 2 PDF

Urban Land Use Models Bid Rent Curves and the Peak Land value Intersection Topic 2: Lecture 2 What is a Bid Rent Curve? Bid rent theory is a way of understanding how the price and demand for land in a city will change as the distance from the CBD increases. Bid = How...

Urban Land Use Models Bid Rent Curves and the Peak Land value Intersection Topic 2: Lecture 2 What is a Bid Rent Curve? Bid rent theory is a way of understanding how the price and demand for land in a city will change as the distance from the CBD increases. Bid = How much demand is there for property by certain sectors/activities within a city Rent = How much will the ‘bidders’ be willing to pay to own/access and use the property The ‘curve’ (line on the graph) tells us the relationship between the distance from the CBD and the Rent Bid value  Elements of a Bid Rent Curve Retail Manufacturing Rent per acre ($) CBD Distance from CBD (A) (B) (C) Manufacturing Residential Land Value Surface of Cities Source: https://www.townandcountryplanninginfo.com/2020/08/land-use-and-land-value-theory-of.html  Bid rent curves give rise to concentric circles of land use based on the amount that people will pay for the land. For business, this value is based on the profits that are obtainable from maintaining a business on that land. The centre of the town, will have the highest number of customers so it is profitable for retail activities. Manufacturing will pay slightly less for the land as they are only interested in the accessibility for workers, 'goods in' and 'goods out’. Residential land use will take the surrounding land.  Limitations of Bid Rent Curve Model The model has been challenged by many contemporary urban geographers. Firstly, the model does not work well with cities outside the United States, in particular with those developed under different historical contexts. Even in the United States, because of changes such as advancement in transportation and information technology and transformation in global economy, cities are no longer organized with clear "zones" It assumes an even, unchanging landscape Physical features - land may restrict growth of certain sectors Decentralization of shops, manufacturing industry, and entertainment Many new housing estates were built on the edges of cities It does not address local urban politics and forces of globalization Urban regeneration and gentrification - more expensive property can be found in 'low class' housing areas  CBD ‘Circus Tent’ Land Value Surface represents highest land value = peak If we presume that city growth spreads from a of the tent central core on a level plain, then in terms of commercial location the centre of the city should be a major focus of high land values. The reason for this is that as the city develops and expands, the transportation and infrastructure network of the urban area expands radially. Therefore, all locations at equal distances from the centre are equally accessible to the centre of the city. As a consequence, the centre of the city is the area of minimum aggregate travel cost for the whole urban area, and commercial activities requiring the largest hinterland possible, either as a labour source or as a market, will desire to be closer to the centre. Source: Vectorstock.com/895796  The Peak Land Value Intersection (PLVI) The PLVI is an extension of bid rent A PLVI identifies the specific location within the core where land prices are highest. The peak-land value intersection (PLVI) is the point of highest land value in the central business district the point of mimimum aggregate travel costs for the whole urban area. the best place for businesses to locate Source: Waugh (2000)  Circus tent land value surface – multiple peaks As a city grows and expands, outlying business centres will be established, and the major arteries connecting these business centres with each other and with a central business district will become ribbons of commercial and business development. Outlying smaller business centres will be evident on these ribbons of development. The land-value pattern should reflect varying accessibilities to these different centres in the hierarchy. This particular situation is suggested in the following diagram: the land-value surface is reflected as a circus tent, the highest point being at the CBD, with the ridge lines being the urban arteries of relatively greater land value and the intersections giving rise to local peaks Multiple peaks of high land value Source: Waugh (2000, p.426, fig 15.18)