The Inversion of the Land Gradient in the Inner City of Haifa, Israel

Abstract

While suburbanization and decentralization are familiar concepts in urban economics, there is a possibility that land gradients will not simply flatten over time, but actually invert themselves. This would mean that the traditional CBD or downtown ceases to act as the pinnacle or nucleus of the land/housing pricing function within the metropolitan area. Such a possibility has been noted in the theoretical literature and has been demonstrated empirically in a few cases. Such an urban ‘‘inversion’’ is shown to have occurred in Haifa, Israel. Beginning in the 1960s, the stock of privately-owned cars grew in Israel at one of the most rapid rates ever seen in any industrial country, with relatively little growth in transportation infrastructure.