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The economics of redevelopment and the shape of socialist cities

October 19, 2010 By Stephen Smith

Earlier today I read an article by Daniel Garst about Bejing’s awkward population distribution that reminded me of a journal article about the general shape of socialist cities that I read a while back. Garst talks about Beijing being a “circus tent” when it comes to density, with population density increasing as you travel away from the city center, in contrast to the “pyramid” style of most cities, with high densities in the center and lower densities around the periphery (see chart for a visual representation).

This immediately made me think of an article by Alain Bertraud and Bertrand Renaud called “Socialist Cities without Land Markets,” where they describe exactly this phenomenon, and explain it as a failure of administrative urban planning. Here’s an excerpt:

Gross population density by distance from city center in Moscow and Paris

As their economy and their population grow, cities expand through the progressive addition of concentric rings, similar to the growth of trees in successive seasons. New rings are added to the periphery as the city grows. With each ring, land use reflects the combined effects of demography, technology, and the economy at the time when the ring was developed. Wile this organic incremental growth is common to all cities, in a market city changing land prices exert their pressure simultaneously in all areas of the city, not just at the periphery. Land prices exert a powerful influence to recycle already developed land in the inner rings when the type and intensity of the existing use is too different from the land’s optimum economic use. Thus, changing land values bring a built-in urban dynamism as ceaseless variations in land prices put a constant pressure on the current uses of land and trigger changes to new activities and/or densities.

Under the administrative-command economy, the absence of land prices eliminated the main incentive to redevelop built-up areas by removing site value considerations from the investment decisions since the nationalization of land in 1917 [in the Soviet Union]. Without price signals to reveal the opportunity cost of land in alternative uses, it was administratively simpler to respond to current land demand pressure by developing at the periphery than to redevelop well-located areas with obsolete land uses. While the city expanded outward, land use in already developed areas remained unchanged and there was very little land recycling. This process explains the persistence and uniformity of housing types in successive rings around Moscow, with each type being usually named according to the period when it was built. Thus, driving from the center of Moscow, one passes through rings of Stalin, Khrushchev, and then Brezhnev flats.

This socialist land allocation process leads to land that differs from market economies. This land use has three features that imply urban inefficiency on a very large scale, which we will describe in turn. First, the population density gradient has a perverse slope that rises as one moves away from the city center. Second, very large industrial areas occupied by land-intensive, obsolescent industries in prime areas of the city. Third, households are concentrated in the periphery. Residential densities are increasing toward the periphery while “historically” low densities are found in central areas. This pattern tends to increase community requirements, transport costs, and pollution because it requires higher energy expenditures. At the same time the effects of this type of urban planning are not compensated by the provision of better amenities such as large housing unit sizes of a better environment that is the normal trade-off for increasing commuting distance in a market economy.

In Beijing, these ” ‘historically’ low densities” are the one-story hutong/siheyuan neighborhoods. Because they were not gradually redeveloped during China’s heavily communist period, their densities are woefully inadequate for China’s growth, and thus the city is presented with the dilemma that Garst describes – how to rationalize development without destroying the city’s historical character? His solution seems to be creating self-contained “edge cities,” but that makes you wonder why bother developing Beijing at all if you’re going to create neighborhoods that are inaccessible to the traditional core anyway. The only way edge cities have worked is with intense automobile connectivity, which Garst doesn’t want, either.

Unfortunately for Garst, who calls redevelopment of the hutong neighborhoods “not really a practical solution,” it’s likely to be the only way to make Beijing workable. Of course the market city trajectory is preferably – gradual redevelopment, so that the architectural loss is not so immediate and some vestiges of the past can be preserved in graceful ways. But just because Beijing did not have this luxury doesn’t mean it should remain a hostage to its original form, forever doomed by long commutes and low mobility.

I should note that I’d also be very interested to see the population gradient for a few US metro areas. Although I’m sure it’s not as warped as Moscow’s, I’d bet that it’s not quite as steep as other market cities. Obviously America is not a socialist country and its land use policy is significantly more market-oriented than the USSR’s, but I suspect that NIMBY and anti-density forces hamper this organic redevelopment to the degree that it would be visible in a density gradient. Anybody know where I could find a few?

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Filed Under: Economics, housing, planning, Zoning Tagged With: Beijing, density, Moscow, Stephen Smith

About Stephen Smith

I graduated Spring 2010 from Georgetown undergrad, with an entirely unrelated and highly regrettable major that might have made a little more sense if I actually wanted to become an international trade lawyer, but which alas seems good for little else.

I still do most of the tweeting for Market Urbanism

Stephen had previously written on urbanism at Forbes.com. Articles Profile; Reason Magazine, and Next City

Comments

  1. Alon Levy says

    October 19, 2010 at 5:31 am

    Jane Jacobs viewed the ideal city as somewhere between the Paris and Moscow models. She didn’t think of either Paris or Moscow as a model, but she explained that in a thriving city, even a mixed-use one, the population density would peak just outside the central commercial districts rather than in them. She presents Downtown Brooklyn’s Paris-style density gradient as a negative, saying that it indicates there isn’t much dense development outside the local CBD; she contrasts it with Downtown Manhattan, where the population density does not peak in any CBD.

    You can try to come up with your own density gradient figures by looking at the Census Factfinder’s data on density per census tract. Overall the Rust Belt tends to have spikier development than the Sunbelt, but it could be that the Sunbelt’s distribution is more Parisian and just has a fatter tail.

  2. Jim says

    October 19, 2010 at 7:47 am

    Stephen, it doesn’t use the same metric but you might be interested in this post comparing the density profiles of US cities: http://wealoneonearth.blogspot.com/2010/10/portrait-of-city-as-squiggly-line.html

    I’m a little surprised at how ‘pyramidal’ the density profile of Paris looks in Bertaud’s chart, given the long-standing restrictions on development in its centre and accompanying concerns over ‘museumification’.

  3. John McDonnell says

    October 19, 2010 at 10:05 pm

    This actually makes me think of the way New York City has built public housing projects. They build super-high density projects in the least desirable places, like the east river or the rockaways. This is because they perversely chose land on the basis of cheapness, rather than optimality of an area for living. In Russia, they chose their development based on where there wasn’t already much development. That’s actually the same as in Moscow, really: if you only care about the price of the land rather than the rent you could make, then the outskirts is always cheaper.

  4. John McDonnell says

    October 19, 2010 at 10:05 pm

    This actually makes me think of the way New York City has built public housing projects. They build super-high density projects in the least desirable places, like the east river or the rockaways. This is because they perversely chose land on the basis of cheapness, rather than optimality of an area for living. In Russia, they chose their development based on where there wasn’t already much development. That’s actually the same as in Moscow, really: if you only care about the price of the land rather than the rent you could make, then the outskirts is always cheaper.

  5. Anonymous says

    October 24, 2010 at 7:25 pm

    ” … but I suspect that NIMBY and anti-density forces [in U.S. cities] hamper this organic redevelopment to the degree that it would be visible in a density gradient.”

    Absolutely.

    But, I would be curious as to where Market Urbanism comes down on historic preservation, as it’s often in the details that things get complicated and where broad-brush ideals meet our values.

    I would see preservation of historic buildings that might not be “efficient” in a similar light as preservation of open spaces near cities – space that would on the market be “efficiently” developed, but which society chooses to preserve because of their values (recreation, views, habitat). A livable city needs AMENITY which is a public good and thereby by market theory ought to be publicly provided. After all, our best cities that attract investment and educated people have open spaces nearby where we can bike, hike, and enjoy nature; I think all but the surliest Manhattanite would agree. The same may go for historic architecture. In the same way as we would not develop Boston’s Emerald Necklace, we may not wish to destroy Back Bay.

    As we go to pricing the value of public goods, too, we get into the thorny issue of time value of money. What is the value to the Chinese, three generations or more hence, of being able to see what these hutongs looked like?

    If the premise of public goods provision is accepted, then it becomes a question of how to preserve – methods such as the sale of air rights / transfer of density between historic buildings and nearby infill sites allow for the recouping of private value in the land; prioritization of what gets saved may be based on historic surveys and identified methodology, not simply the sentiment of an appointed commission; etc.

    Sadly, there was a time when the public sector sought to destroy historic value – by using urban renewal to destroy central neighborhoods, and then ploughing highways thru remaining neighborhoods and along waterfront.

  6. John Bailo says

    October 30, 2010 at 2:58 pm

    None of this takes into account technological changes. Cities are obsolete when viewed in the context of the Web and Internet. I can take my netbook to a public park in Kent, WA and connect to business clouds in Philadelphia.

  7. johnhaskell says

    May 16, 2016 at 4:18 am

    “Good Lord, Moscow has a power plant right across the river from the Kremlin. We would never do that!” – New Yorker from a city where there was a power plant right next to the UN until a few years ago

Trackbacks

  1. Yglesias » Socialist Cities says:
    October 19, 2010 at 8:32 pm

    […] Bertaud and Bertrand Renaud in “Socialist Cities without Land Markets” (that’s via Stephen Smith): How does the spatial dynamics of the socialist city compare with that of the market […]

  2. On Favored Quarters, Off-Center Skyscraper Districts, and Poverty | liveimmigration.com says:
    October 19, 2011 at 5:56 am

    […] distinct in America’s most auto-oriented cities. Interestingly, you can also find it in so-called “socialist cities” like Moscow and Bucharest, where the high suburban densities lead to highly inefficient intracity […]

  3. ?AR?CHITECT » In Moscow, a revolution for transportation says:
    October 25, 2011 at 2:13 pm

    […] is where his planning may be in error. As Market Urbanism and Alain Bertaud (check his analysis of Mumbai’s zoning system) have argued, the problem […]

  4. Density and wealth - Urban, city, town planning, land use, zoning, transportation and transit, environmental issues, urban design, community development, subdivisions, revitalization - Page 4 - City-Data Forum says:
    January 12, 2012 at 5:27 pm

    […] Edmonton's distribution looks more like Calgary than Victoria. I have visited both Victoria and Halifax. Victoria was surprisingly dense for a small West Coast city, at least near the core, but I expected Halifax to have a higher index given its age and its low density suburbs. I forgot weighted density is an average rather than a median. The median Paris resident might be at a higher density than the median New York resident, but the high density core of New York skews the average. I still don't think any other city, and definitely not Barcelona, would have a higher density gradient index, because I think in most non-North American cities, a denser urban core is correlated with denser suburbs, but we'll have to see actual numbers. I'm curious if you do get a place with a high index, perhaps higher than 3.5. Looking at the graph I looked, NYC had denser suburbs than just about all non-western US cities, looking at the density of the less dense 10-30 residents. I remember I took someone from the DC suburbs around Long Island and he was surprised how dense some of the housing was. A good portion of the lowest densities of the New York metro are taken by wealthy estate-size home, that are very small in population but use enormous amounts of land; helped by the income inequality of the metro. I'm envisioning as an extreme a metro area where the majority of people live in crowded tenements and the wealthy live on large palatial estates. Speaking of tenements, look at the extreme densities of Manhattan 100 years ago: New York (Manhattan) Wards: Population & Density 1800-1910 Today the densest neighborhood listed are close to a 1/4 of the density. London, Paris and NYC are I think, are the only 3 "megacities" built before mechanized transportation; a population above 3 million or so before subway or automobiles (I'm excluding streetcars). My definition might be a bit off, but I think they were much larger than the rest of cities worldwide in the late 19th century. So, why is London so much less dense? Around 1900, its densest neighborhoods were at levels of 60k/sq mile, maybe one somewhat higher. Perhaps London had a more decentralized job centers, so there was less incentive to cluster. NYC's neighborhoods might have especially dense because it was on an island. But even after subways were extended to outer boroughs, some sections were still built at very high densities. Just because two cities have the same weighted densities doesn't mean the density is distributed the same way. For example, in communism, cities got denser as you get away from the core: The economics of redevelopment and the shape of socialist cities | Market Urbanism […]

  5. Urban SPRAWL....which cities have it bad? - Urban, city, town planning, land use, zoning, transportation and transit, environmental issues, urban design, community development, subdivisions, revitalization - Page 29 - City-Data Forum says:
    October 27, 2012 at 9:36 am

    […] cities are that they have the densest development not in the center, but on the city outskirts: The economics of redevelopment and the shape of socialist cities | Market Urbanism Look at Paris vs Moscow! NYC follows the same pattern as Paris, but its density profile stays […]

  6. What Americans cities equal European cities public transportation? - Urban, city, town planning, land use, zoning, transportation and transit, environmental issues, urban design, community development, subdivisions, revitalization - Page 9 - City-Data For says:
    March 17, 2013 at 2:20 pm

    […] trips (or suburb to suburb), New York City comes out worst of all. Not sure about Moscow, but its layout concentrates people at high density at the periphery, the reverse of all 3 other […]

  7. Densest cities in a first world country - Page 8 - City-Data Forum says:
    July 8, 2013 at 10:02 pm

    […] or Barcelona, but unlike Paris, few people living at low densities. Has the bizzare pattern that it gets denser as you get away from the center. Tokyo doesn't reach very high densities, it just stays even at moderately high densities for a […]

  8. Random/uniform density throughout the city - Urban, city, town planning, land use, zoning, transportation and transit, environmental issues, urban design, community development, subdivisions, revitalization - City-Data Forum says:
    September 3, 2013 at 12:35 pm

    […] One of the most interesting short pieces on the subjects. In soviet russia, density increases as go away from the city center. The economics of redevelopment and the shape of socialist cities | Market Urbanism […]

  9. Suburbs around the world - Page 8 - City-Data Forum says:
    January 24, 2014 at 8:01 am

    […] for me. Anyway, here's a density comparison between Moscow and Paris nei posted in another thread: The economics of redevelopment and the shape of socialist cities | Market Urbanism Apparently, Moscow is denser in its periphery, contrary to Paris. Housing density map: […]

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