City planners who want to drain those bothersome suburbs and doughnut cities and put people in walkable urban cores ignore economics and basic facts, says New City Journal in Australia. Jobs are not always in the core, plus jamming people together creates horrendous traffic jams, no matter how much the area is planned for walking and sustainability.
Platitudes like “we must locate people close to where they work”, or “we must locate jobs close to where people live”, have little basis in reality. They infringe another immovable law of economics, relating to economic rents or bid-rents. This mechanism determines how industries and firms are distributed. Put simply, a parcel of land will go to whichever use delivers the highest profits. Centrally located land (near major transport or infrastructure hubs) commands high prices, and goes to the most profitable uses.
Among other things, living in a redeveloped city core means rental and condo prices will be at nosebleed levels with only the well-off able to live in their sustainably designed downtown, with the little people commuting in from elsewhere.