Cities have huge positive agglomeration externalities, bigger cities have more than smaller cities. (many reasons are not intuitively obvious or the effect size seems smaller than it is, saying this generates usually torrent of on the spot counterarguments).
People and firms move into cities because they become more productive there. Inefficient zoning and urban planning creates negative externalities that cause friction and limits the growth of cities (negatives outweigh positives when urban planning fails).
The solution is zoning more housing in cities, better urban planning and public infrastructure. This includes fighting against NIMBY's somehow. If you zone and build enough housing, housing prices and rents decrease. People who already own property, don't like it.
This is urban planning, urban economics problem.
Cities have huge positive agglomeration externalities, bigger cities have more than smaller cities. (many reasons are not intuitively obvious or the effect size seems smaller than it is, saying this generates usually torrent of on the spot counterarguments).
People and firms move into cities because they become more productive there. Inefficient zoning and urban planning creates negative externalities that cause friction and limits the growth of cities (negatives outweigh positives when urban planning fails).
The solution is zoning more housing in cities, better urban planning and public infrastructure. This includes fighting against NIMBY's somehow. If you zone and build enough housing, housing prices and rents decrease. People who already own property, don't like it.