Manhattan Skyline, originally uploaded by plemeljr
Big Media Matt has something to say about Urban Pricing due to Demand:
But in general, central cities are substantially more expensive per square foot than are suburbs and especially far-flung exurbs. Which reveals, of course, that there’s lots of demand for urban space.
And on top of that demand, there are lots of practices that (a) artificially reduce the supply of urban space, and (b) subsidize suburbs at the expense of cities.
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But you can’t point to the lower prices of sprawl and count that as evidence that people don’t want to live in cities. Urban areas are expensive because people like to live in them and given that high demand we ought to shift policies in such a way as to allow more of them to be built.
The success of the suburbs, and of suburban developers, starts and ends with their acute ability to shift costs off their balance sheets and onto the public at large. From infrastructure (streets, utilities, etc) to municipal tax credits, the subsidization of suburbanization requires additional research and study especially if you want to become a suburban developer.