Suburban Innovators: Refugees From Spendy Downtown Rents
|January 4, 2014||Posted by Staff under High Cost of Land|
This 2013 excerpt of Pacific Standard, Dec 30, is by Jim Russell.
For Organization for Economic Cooperation and Development countries, cutting the median age by two years (like the difference between the younger U.S. and older U.K.) implies about a 10% increase in new business formation.
If a country gets younger (e.g. via immigration), then entrepreneurial activity will increase, right? Wrong. Age also correlates with geographic mobility. Young adults with college degrees are the most likely to migrate. Immigration also correlates with entrepreneurial activity.
Cities of innovation also correlate with high domestic in-migration and immigration.
The inevitable consequence of high-priced downtown locations is that diversity is being driven from the central city to its remote peripheries – a trend that is reflected in metropolitan areas around the world. The suburbs is where immigrants, along with artists, students, freelance writers, and others are increasingly moving because they can’t afford the alpine rents of downtown.
The affordability, diversity, and the space and time to take risks have migrated from the city center to the suburban periphery or out of the region entirely.
Ed. Notes: It’s actually an old story: High location rents have always driven the creative out of downtowns and the neighborhoods they once made hip and popular, into affordable neighborhoods, such as now days the suburbs. Yet even if some suburbs are becoming hip and popular, that’s still no excuse for sprawl and the waste of land and energy it entails. It is possible to have both efficient land use and affordable locales. All we must do is geonomize.