Tactician_mark
Joined 6 years ago
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Joined 6 years ago
It seems more likely that costs are higher in cities because there are valuable opportunities for skilled people who demand high salaries, simultaneously encouraging dense living to maximize access and increasing cost of living through the Baumol effect. High prices causing density, not the other way around.
That's just one area in Halifax, but the idea is that higher population densities require less infrastructure per person. Less road, power line, water/sewer pipe, etc. However, low density houses usually pay less in property taxes per unit area than high density, meaning that increased infrastructure cost is coupled with a considerable tax break.