Review of evolution of value in city land, economic rent factors of attraction and repulsion. - Value by proximity and by accessibility. - Reactions of utilities. - Scope of individual inquiry. - Problem always complex, change a law of life. - While conditions change, values will change. - The study of principles should reduce errors in judgment to a minimum.

In reviewing the evolution of value in urban land, the first step is to conceive of the naked site apart from the buildings, having only the qualities of location and extension and without value until there is competition for land. Intrinsic value is the capitalization of the economic or ground rent, provided the buildings are suitable to the location. Exchange value consists of intrinsic value modified by future prospects. Ground rent is the residuum after deducting from gross rents all operating charges, taxes, insurance, repairs, rent collecting, and interest on the capital invested in the building. Ground rent is a premium paid solely for location and all rents are based on utility. Utilities in cities tend constantly toward specialization and complexity, business being broadly divided into distribution, administration and production, and then indefinitely subdivided; and residences being divided into as many classes as there are social grades.

Insofar as land is suitable for a single purpose only, its value is proportionate to the degree to which it serves that purpose and the amount which such utility can afford to pay for it When land is suitable for a number of purposes, one utility competes against another and the land goes to the highest utilization.

The total value of a city's site is broadly based on population and wealth, the physical city being the reflex of the total social activities of its inhabitants. Whatever the type of city, growth consists of movement away from the point of origin and is of two kinds: central, or in all directions, and axial, or along the watercourses, railroads and turnpikes which form the framework of cities. Modern rapid transit stimulates axial growth, producing star-shaped cities, whose modification in shape comes chiefly from topographical faults.

The factors distributing values over the city's area by attracting or repulsing various utilities, are, in the case of residences, absence of nuisances, good approach, favorable transportation facilities, moderate elevation and parks; in the case of retail shops, passing street traffic, with a tendency towards proximity to their customers' residences; in the case of retail wholesalers and light manufacturing, proximity to the retail stores which are their customers; in the case of heavy wholesaling or manufacturing, proximity to transportation; and in the case of public or semi-public buildings, for historical reasons, proximity to the old business centre; the land that is finally left being filled in with mingled cheap utilities, parasites of the stronger utilities, which give a low earning power to land otherwise valueless.

New Orleans. Business section. Figures represent value of corners, for lot of average width and depth, in dollars per front foot.

New Orleans. Business section. Figures represent value of corners, for lot of average width and depth, in dollars per front foot.

Value by proximity responds to central growth, diminishing in proportion to distance from various centres, while value from accessibility responds to axial growth, diminishing in proportion to absence of transportation facilities. Change occurs not only at the circumference but throughout the whole area of a city, outward growth being due both to pressure from the centre and to aggregation at the edges. All buildings within a city react upon each other, superior and inferior utilities displacing each other in turn. Whatever the size or shape of a city and however great the complexity of its utilities, the order of dependence of one upon another is based on simple principles, all residences seeking attractive surroundings and all business seeking its customers.