BidRent Theory IB SL BidRent Theory In order
Bid-Rent Theory IB SL
Bid-Rent Theory • In order to have a good understanding of the way urban areas are likely to grow, it is important to have an understanding of Bidrent theory. • The diagram shows what various land-users are prepared and able to pay for good access to the CBD
Analysis • It can be seen that commerce (in particular large department stores/chain stores) is willing to pay the greatest rent to be located in the CBD. • The CBD is very valuable for them because it is traditionally the most accessible location for a large population. • This large population is essential for department stores, which require a considerable turnover. • As a result, they are willing and able to pay a very high land rent value. • They maximise the potential of their site by building many stories.
Analysis • They are willing to pay declines rapidly. • Industry is, however, willing to pay to be on the outskirts of the CBD. • There is more land available for their factories, but they still have many of the benefits of the CBD, such as a market place and good communications. • As you move further out, so the land is less attractive to industry and the householder is able to purchase land. • The further you go from the CBD, the cheaper the land. • This is why inner city areas are very densely populated (terraces, flats and high rises), whilst the suburbs and rural areas are sparsely populated (semi and detached houses with gardens).
• This bid-rent theory explains one pattern of urban land-use that is also identified by Burgess' concentric ring model. • The pattern is never as simple in reality. Today, out-oftown shopping centres and industrial sites have influenced the pattern.
Activity 1 1. What do you think the main reasons are behind this theory? Explain 2. Why can the Bid-Rent theory be seen as good for both human and physical reasons? 3. What could be considered as disadvantages for both people and businesses?
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