As mentioned previously, a city has a finite amount of land. As a result, this land is highly desirable, but can also be extremely expensive. Because of the cost of land within the city, especially in close proximity to desirable areas, those with lower incomes may be forced to seek housing outside the center of the city. This might happen, despite the fact that they now live far from their employment. This migration to the suburbs and rural areas is a huge cause of decentralization.
Morris argues that along with denying us the fulfillment of a healthy community life, sprawl is also a heavy economic burden since the economic aspects played as well an important role in the spread out of cities. By continuously developing land further and further
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However, once again there is a strong mismatch between the individual economic effects of sprawl, and those on society. The summarizing of this conflict is that, current low density sprawl development patterns are preferred because they are relatively cheaper for the developer and individual purchaser. Water and sewer infrastructure costs are one particular aspect of urban sprawl which can prove to be too expensive for local governments.
Oberio explained that development markets can be divided into land markets and floor space market. In the first case, the landowner sells their land to the developers and in the latter case, the developer rents floor space to the consumers. In a growing city the floor space market is a sellers’ market. There are relatively few developers, but many buyers. Thus the price paid for the floor space will tend to the maximum that the consumers can afford. In the case of the land markets, two scenarios
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There is the likelihood of action being taken and solutions implemented, without an accurate understanding of the impacts they may have, or how sustainable they may turn out to be. Compact city could be a good reference if some polices is implemented under certain criteria since compact city is a paradox with positive and negative impact on sustainability in different aspects. Policies and management are crucial to be implemented to make the compact city contribute to