The map below shows the price of land in the New York metropolitan area (via Matt Yglesias) from this fascinating New York Fed study. The premium for land in central Manhattan is nothing less than extraordinary. Land prices rise and fall logarithmically according to their distance from midtown, notes to the study: “A parcel located five miles from the Empire State Building commands a price that is about twice as high as the price of a parcel ten miles away.”

The map is “a reminder that, among other things, people living in expensive houses in Manhattan and the convenient parts of Brooklyn and Queens aren’t just experiencing ‘high housing costs’ or a ‘high cost of living,’” writes Yglesias, “they’re specifically purchasing a commodity — space with easy access to the core business districts of America’s largest city — that the market puts a very high price on.”

It’s a commodity that reflects two underlying price premiums. The first is an amenity premium – the price people pay to be around great restaurants, museums, theatre and culture as Harvard’s Ed Glaeser and others have shown. The second is a productivity premium, for the economic leverage that comes with such central locations.  As the University of Chicago economist Robert Lucas famously put it: “What can people be paying Manhattan or downtown Chicago rents for, if not for being near other people?”  It’s this underlying productivity effect that generates higher incomes, which in turn lead to higher prices.

The end result is a geography organized around economic spikes which, like central Manhattan, show us that even in the era of far-flung globalization, location remains economically more important than ever before.

There’s a great post by Edward Glaeser (in the Economix blog of the New York Times), titled “New York, New York: America’s Resilient City.”

In it, he describes how New York has managed to avoid the decay that has afflicted many large older cities, and, after a brief downturn in the 1970’s, came roaring back as arguably the most influential single city in the world.

His explanation? In a word – “smart people.”

“New York still has an amazing concentration of talent. That talent is more effective because all those smart people are connected because of the city’s extreme population density levels. Historically, human capital — the education and skills of a work force — predicts which cities are able to reinvent themselves and which ones are not. Those people who are continuing to pay high prices for Manhattan real estate are implicitly betting that New York’s human capital will continue to come up with new ways of reinventing the city. “

Glaeser continues, describing why dense cities succeed…

“They thrive by enabling us to connect with each other, which then promotes learning and innovation. The current downturn will only increase the returns to being smart, and you get smart by hanging around smart people. As long as New York continues to attract and connect those people, the city will continue to thrive.”

Now here’s what every city planner wants to know. Is this replicable? Can this success be engineered or encouraged, and are the effects measurable in 10 years, 20 years, a lifetime?

Does anyone have successful examples of campaigns and projects to replicate this resilient infrastructure? Or perhaps, examples of some cautionary unsuccessful attempts?

Best wishes to everyone for a creative and fruitful New Year!

Was anyone in Montréal this weekend? How about New York?

In both places, the code of the streets was the rule of law as autonomous zones were established where people could appreciate their city from the perspective of the pedestrian. Montréal is in fact a recognized world capital of design, participating as a design capital in UNESCO’s Creative Cities Network and so this weekend’s 6th annual Under Pressure International Graffiti Festival probably wasn’t much of a surprise to residents of la belle province. Young artists from all over the continent and beyond converged on MTL from Friday to Sunday, taking aerosol art and hiphop culture to the next level. It actually baffles me as to why the festival is not included in Montréal’s City of Design profile – it’s the arts- and design-related event that my peers look most forward to in that city, and it attracts an incredible amount of talent from outside of the region. It seemed like all of Ottawa was there or trying to get there this weekend.

Getting fully behind an idea like this seems like very simple and obvious ways for municipalities to engage not only young people, but the types of creative people that contribute to that great intangible – the “vibe” of a city. The emergence of the arts as recapitulated by hiphop culture – taking the idea of the G.O.B.S. (Gallery, Opera, Ballet, Symphony) and putting them on the street via Graffiti, Emceeing, B-Boying and DJing – has galvanized whole new ideas about the role of art in the city, and perhaps its ushered new conceptions of beauty itself. It has certainly brought us a new semiotics of the streets. Acknowledging that this change has taken place makes a municipal administration more relevant to its young contingent.

Case and Point: In New York this weekend, Mayor Bloomberg and Jeanette Sadik-Kahn, his transportation commissioner, launched the Summer Streets initiative. Quoting this New York Times article:

On a path that extended from the Brooklyn Bridge north to Park Avenue and the Upper East Side, thousands of people filled the streets, taking part in activities like street-side tai chi or salsa dancing. Others simply enjoyed the chance to stroll in normally car-clogged streets. In a city where walkers, cyclists, and motorists must share limited space, having a major thoroughfare through Manhattan free of cars created a giddy sort of excitement.

An interesting move on the part of the city of New York to be sure. In Toronto, this is a monthly event over in the historical district of Kensington Market, but it’s nice to see New York getting on board. To get the event moving on the right foot, Mayor Bloomberg and Comissioner Sadik-Kahn coordinated with a special guest. Can anyone guess who?

Click here to watch Mayor Bloomberg, Commissioner Sadik-Kahn and Jay-Z launch the Summer Streets Initiative

That’s right. The Jigga-Man.

Now let’s look past the fact that the mayor’s speech sounded like a passage pulled directly out of one of Richard’s books about the Creative Class, or the obvious discomfort that we all felt hearing Bloomberg make those scripted jokes about Jay, or how awkward Jay-Z actually was on the mic (for once in his life). There’s something bigger to be said here: The administration of New York City, in considering how best to communicate that the streets are for the people, looked to hiphop culture’s – and indeed New York’s – brightest star to emblemize that idea. They are making very strong statements about the culture of the street and of the city – in fact, other than the scale and location of the operation, their statement is almost the most innovative thing about the idea.

Now if the city could hire these kids to ride through various neighborhoods of New York from weekend to weekend, puttin’ it down and giving workshops, THAT would be some innovation. Word.

Was anyone in New York to see how this initiative went? How about Montréal – anyone make it out to Under Pressure? How are you being innovative on your streets in your city? What ideas do you have about what street culture means?

I’m really interested in your opinions!

And now, as always, some music.

R.I.P. Bernie Mac and Isaac Hayes