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Why do some towns and cities grow and expand, with associated housing costs rising, while others languish with an oversupply of housing?
The economic research institute Motu has just released the fourth and final paper in a series looking at the drivers of urban development, using census data for 132 towns and cities from 1976 to 2013. The data includes wages, rents and population size in each place.
Author Arthur Grimes, a former Reserve Bank Governor, says there is a difference between firms and businesses which want to be based in larger cities, while many residents are attracted to smaller places with less congestion and the lower costs of living.
