How does urban land rent typically change as distance from the central business district increases?

How does urban land rent typically change as distance from the central business district increases?

• A. Declines with distance from the CBD
• B. Increases with distance from the CBD
• C. Fluctuates randomly with distance
• D. Remains constant with distance

Answer: (A)

In the monocentric city model, land rent is driven by accessibility to the central business district. The CBD concentrates jobs, services, and markets, so land near the center can command a higher willingness to pay. As you move away, transportation costs rise and central demand diminishes, making high rents less attractive. This creates a bid-rent gradient that slopes downward with distance from the CBD: urban land rent declines as distance increases. Real cities can show deviations due to multiple centers or special sites, but the general pattern is a decreasing rent with distance.

In the monocentric city model, land rent is driven by accessibility to the central business district. The CBD concentrates jobs, services, and markets, so land near the center can command a higher willingness to pay. As you move away, transportation costs rise and central demand diminishes, making high rents less attractive. This creates a bid-rent gradient that slopes downward with distance from the CBD: urban land rent declines as distance increases. Real cities can show deviations due to multiple centers or special sites, but the general pattern is a decreasing rent with distance.