Why Urban Design Needs Economics

For successful urban design proposals, it is important to understand the factors that contribute outside of a good design. Economic viability is one aspect often gets overlooked. By using the economic assessment toolkit, this creates a better overall understanding of the project to maximise the chance of a successful proposal.

Introduction

One of urban design’s main focuses is to design places for people. This requires a good understanding of the activities, daily routines, and interactions which take place. Many urban designers and theorists, such as Jane Jacobs and Jan Gehl, highlight the importance of human activities which define places. Much of this analysis of human behaviour can come from economics and social sciences.

In his lecture, Oswell (2023) introduces an economic assessment toolkit that can be applied to any project. The toolkit in Figure 1 outlines six domains which should be considered within a project proposal.

Demographics

Demographics considers the population of the proposed site. This includes the community makeup, age, ethnicity, and gender. Who the project is aimed at must be determined as well – will it apply to the current population or a new demographic.

An example is Age Friendly Manchester. Manchester has a small older population amidst a growing younger population. Social and economic factors can lead to inequalities amongst this population, such as 36% of older residents are income deprived (Age Friendly Manchester, 2017). The programme aims to create an age-friendly city prioritising age-friendly neighbourhoods, services and age equality. Specifically, neighbourhood interventions include suitable housing and transport, outdoor facilities, and community gardens.

Income and wealth

This focuses on the local average earnings of the population. Income can influence the consumption of goods and services which impacts the outcome of developments in particular sites.

Gentrification occurs when developments in low-income areas displace its low-income population for higher-income groups. Some positives include increased property values and revival of declining areas. It also increases opportunities for new businesses which generates more revenue. However, the risks are loss of affordable housing, commercial and cultural displacement (Rérat, 2010). It is important to minimise the risks of gentrification to benefit both the new and existing groups.

Culture and Heritage

Culture and heritage involve understanding the history of the area, the local traditions, and key values. It looks at opportunities for historical preservation, revival and generation of new cultures.

An example is the redevelopment of Bilbao, Spain. Following deindustrialisation and economic decline in the 1980s, Bilbao revived the city through redeveloping infrastructure and transport. It created a strong cultural identity through buildings such as the Guggenheim Museum and the historical Old Quarter. This has generated income through tourism and culture (Gospodini, 2004, p. 235). It also pays homage to past industrial activity, for example the Euskalduna Conference Centre is designed to resemble a ship under construction. The site was formerly a shipyard (Euskalduna Bilbao, 2024).

Site and Location

This domain explores the site characteristics from a development perspective. This can include SWOT analysis, economic opportunities and constraints related to the site.

The High Line in New York City is an example of effective site development. This abandoned elevated railway track was transformed into a public park. The wild plants growing on the disused track formed the inspiration that saved it from being demolished. It now generates roughly $65million per year in tax revenue and led to $2billion of new developments in the neighbourhood (Plunz, 2017).

Resources

Resources includes capital and revenue resources which can deliver products and support the longer-term interventions. This incorporates business and design to ensure there is enough financial support from the community for the future. It is important to determine where these resources come from – are they new or existing?

Market Potential

This determines how the social and economic uplift is delivered. The level and nature of the risks associated must also be identified beforehand.

The housing market is an example of how urban design can generate social and economic improvement. Better housing facilities and neighbourhood design creates a more attractive area to live in. This generates economic opportunities for businesses and a better quality of life for residents.

References:

Age Friendly Manchester (2017), Manchester: a great place to grow older. Available at: https://www.manchester.gov.uk/download/downloads/id/11899/manchester_a_great_place_to_grow_older_2017-2020.pdf

Euskalduna Bilbao (2024), The Building. Available at: https://www.euskaldunabilbao.com/en/euskalduna-conference-centre/the-building/

Gospodini, A. (2004), Urban Morphology and Place Identity in European Cities: Built Heritage and Innovative Design, Journal of Urban Design, 9(2), pp 225-248.

High Line (2024), History. Available at: https://www.thehighline.org/history/

Oswell, D. (2023), ‘Economic Viability in Urban Design’ [Lecture]. TCP8090: Principles of Urban Design. Newcastle University. 19 October.

Plunz, R. (2017), The High Line, Landscape Performance Series, Landscape Architecture Foundation. Available at: https://doi.org/10.31353/cs1250

Rérat, P., Söderström, O., Piguet, E. (2010), New forms of gentrification: issues and debates, Population, Space and Place, 16(5), pp. 335-343. DOI: https://doi.org/10.1002/psp.585

Image references:

Pozzoni Architecture (n.d.), Village 135. Available at: https://www.pozzoni.co.uk/projects/village-135

Guggenheim Bilbao (2024), Guggenheim Museum. Available at: https://www.guggenheim-bilbao.eus/en/the-building

Baan, I (n.d.), The High Line. Available at: https://www.thehighline.org/photos/by-photographer/iwan-baan/