Order without Design: How Markets Shape Cities

Order without Design: How Markets Shape Cities by Alain Bertaud

Urban planners try to guide cities in certain directions.  Economists look at how markets respond and build cities. The two groups don't often talk, and they don't often speak the same language. This is a problem. Planners will often try to "encourage" something they seem desirable. If it is not economically desirable, developers will do just enough to meet the letter of the regulation, without really providing the benefit. An example is given of plazas in front of buildings in New York. One building built a nice plaza on their own. Then the city gave encouragement to others. They built plazas that were not functional and barely usable.

Housing is an area that cities struggle with. Regulations have been put in place to increase the quality of housing. This has in turn made housing more expensive. Then regulations were put in place to provide for subsidized housing. There is not nearly enough housing for those that want it, so only a lucky few win the lottery for the housing. Those that do get it are reluctant to leave, even if the housing is not longer appropriate for them. Some will illegally sublease their apartments in order to produce cash. Cities try to regulate themselves out of housing crisis that they have got themselves in by regulation. Trusting the markets would be a better use.

Transportation is also a struggle. If more space is available for transportation, travel times are reduced. However, the space allocated for spacing reduces space for the city and thus requires longer travel distances. Different means of transportation can move people at different rates. Different city profiles impact how efficiently they move. Mopeds often become popular in developing countries. They can move fast with little effort and take little space. Cars add comfort, but use significantly more space. Underground railroads create bonus space by moving the transportation underground.

Cities develop primarily in response to economic cues. Silicon Valley was not planned, but developed a vibrant innovative economy in part because cities did not get in the way. Attempts to legislate innovation have often failed. Restrictions on development and "incentives" result in less-economically desirable development. What is the best approach to produce a desirable city?