Title: How Do Cities Grow?
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Content: Concentric circle growth starts with a central business district at the heart of the city. Everything grows up around this central hub of economic activity for the city. The concentric circle growth model is an application of bid-rent theory. Those who are able to pay the highest rents are located near the economic hub of the central business district. Real estate prices are lower as you move away from the central business district, but then people also need to consider transportation time and costs to get to work in the central business district. Although widespread car ownership led to the development of business activity outside of the central business district, the basic idea of this model still holds true in large urban areas. It is also important to note, however, that topography and geography can prohibit growth of the concentric circles in a given direction. For example, Chicago’s growth is limited to the east because of Lake Michigan. Mountains, oceans, and large rivers can also limit growth in a particular direction. The first zone in the concentric circle growth model is the city’s central business district.