Rents in Megacities Can't Go Up Forever - Bloomberg View
...Some activities, such as dentistry and cement production, don’t cluster geographically very much, for obvious reasons. In contrast, finance (New York and London), information technology (the Bay Area), and entertainment (Hollywood and New York) are the most clustered. For whatever reasons, it makes sense to have many of the top decision-makers in one place....
...looking forward, the supercreators of the next generation just aren’t that rich yet, and they may prefer to experiment with their new ideas in lower-rent environments, if only because that will make it easier to hire other people...
...Part of the vitality of the current megacities is that they have had cheaper areas on their fringes, such as Brooklyn in New York or Oakland or East Palo Alto in California, but increasingly those areas are cheap no more....
...The importance of the megacities is hardly going away. But neither do we face a future where the expense of living in these cities simply will rise without limit.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment