Every discipline and industry, as a part of society, forms the economic makeup of society. Not just in how they perform as an individual industry, but how they impact society as a whole.
The AEC (Architecture, Construction and Engineering) industry is incremental in shaping a city’s urban fabric and composition, quite literally. It physically manifests a city’s goal, ambitions, economic development, policies and the image it wants to present to the world.
An urban environment can thrive as long as the people inhabiting it are having their needs met. This could mean, at the least, viable employment opportunities, affordable housing, a standard quality of life, accessible urban spaces, and quality healthcare and education facilities.
This then leads to the economic development of urban areas. Architecture, along with providing a physical environment for the citizens to fulfil their needs, also contributes to the economic development of an urban area in various ways.
Urban economy
Urban economy refers to all activities about the economic systems and processes that occur within urban areas. It includes the housing market, business growth, infrastructure and job creation, media and technology. Interactions and transactions between these industries contribute to the economic health of the urban area.
What determines urban economic development
Government policies
Regulatory framework, tax policies and incentives all come under the legal structure governed by government bodies. These policies and frameworks heavily determine the economic development and growth of an urban area. The government bodies decide what businesses to promote, which sectors will benefit the urban area the most and design policies and offer incentives according to those decisions.
Innovation and Entrepreneurship
New businesses or innovations in existing sectors always bring in a new dynamic and promote economic development. They also engage the consumer into buying their product and create jobs.
Infrastructure
Quality infrastructure like roads, public transportation, service facilities like hospitals, walkable cities, and urban spaces are incremental to the growth of the urban economy. Quality roads and public transportation help people navigate the city with ease and accessibility. Healthcare facilities make sure that people receive professional care whenever there’s a need for it. Walkable city and urban spaces keep up the citizen’s morale and help them feel belong along with providing a space for recreational purposes.
Human Capital
The skills, education and abilities of the workforce play a crucial role in the economic development of an urban area. Every policy, tax incentive, and great infrastructure won’t be enough if the workforce is un-trained and suffers from societal issues that hinder their growth and ability to work and employ their skills.
How does architecture catalyse urban economic development
Land regulation, zoning policies and laws
Every city or urban area has its own set of land regulations, zoning laws and policies. Government agencies and bodies determine through research what the city needs to achieve maximum economic growth.
Zoning laws and regulations allot a certain percentage of land for specific purposes like commercial, residential, industrial and so on depending on the urban area’s needs. More land allotment and other tax benefits for commercial and industrial purposes incentivize businesses to establish their operations in those urban areas resulting in a dynamic urban economy.
Affordable housing
Housing is a universal right. Designing functional, aesthetic and affordable housing allows people to contribute better to the business and industry they are a part of.
Accessibility
The world is made up of diverse people with different needs and wants. It is imperative then that we design systems and structures that are accessible and help everyone navigate the world with ease.
Sustainability
Climate change is a real-life horror story unfolding in real-time. Buildings continue to have the largest carbon footprints among man-made structures and it has become vitally important that architecture starts designing structures that are climate and site conscious and don’t contribute to the ongoing climate crisis.
Incorporating sustainable practices and techniques reduces costs and energy consumption and makes for a resilient economy. Government agencies have also begun to offer economic benefits with subsidies, and lower operational costs as incentives. Properties that have Green certifications have also been known to have a higher value in the real estate market.
Public transit and urban planning
Urban planning is crucial to how a city or urban area functions. Urban planning determines and designs where each sector of society should be, the accessibility between the residential areas to people’s workplaces and creating a fine balance between the needs and wants of businesses and consumers.
Public transportations is the lifeline to an urban area. It helps people navigate the city at affordable prices efficiently. They are imperative to urban economic development and act as a great marker of whether an urban area has the economic growth and development it promises.
Designing innovative and functional mixed-use spaces
Land has become a hot commodity in today’s market and it has become essential that every square meter of land be functional and serve multiple purposes. Mixed-use spaces are a great solution to the lack of land area. Designing an innovative and functional space that caters to recreational, commercial and residential purposes is a great way to utilize the land. Transactions between these spaces then lead to economic growth while also fostering community interactions.
Architecture acts as a face, a physical manifestation of urban economic development. A layman might not have the time, resources or energy to keep up with parameters like the stock market, currency value or foreign policies to get a stock of the economy but they will see better hospitals, urban structures, and affordable housing and directly associate it with economic growth and development.
At the end of the day, architecture has to cater to the working and labour class, because they are the ones carrying the economy forward, whatever the capitalistic powers might have us believing. The buildings that create the most impact and influence are the ones that are accessible to all. Accessibility to all instinctually helps economic development, because it caters to all groups and classes.
They let people of all classes interact with the urban environment, creating a feeling of belonging among them when the power-hungry systems are bent on the segregation of classes. The feeling of belongingness eventually leads to working for the urban environment, rather than against it, resulting in urban economic development.
References:
Studysmarter.de. (2024). StudySmarter. [online] Available at: https://app.studysmarter.de/studyset/23098794/summary/72080514 [Accessed 18 Nov. 2024].
Imkarchitects.com. (2020). The Role of Architecture in Economic Development. [online] Available at: https://imkarchitects.com/onlineblogs/the-role-of-architecture-in-economic-development.php [Accessed 18 Nov. 2024].
Arnott, R. (2012). New Urban Economics and Residential Location. Elsevier eBooks, pp.111–119. doi:https://doi.org/10.1016/b978-0-08-047163-1.00668-8.
Arjun Satheesan (2023). A crossover between economics and architecture. [online] RTF | Rethinking The Future. Available at: https://www.re-thinkingthefuture.com/architectural-community/a9384-a-crossover-between-economics-and-architecture/#google_vignette [Accessed 18 Nov. 2024].
