Can our cities get bigger (and remain liveable)?

The issue of decentralisation could be back on the table given the elevated significance of the three regionally-based independents*. I’ve previously argued (here and here) that there are big questions about the viability of decentralisation on a large scale, so today I want to look at whether or not our major cities can cope with more growth.

There was quite a bit of interest in the 60s and 70s around the idea of an efficient city size. The assumption that a point was reached where diseconomies of scale set in was part of the rationale for the failed decentralisation push of the Whitlam era.

There’s a better appreciation today that cities make structural adjustments in response to growth and may generate new economic advantages. There’s wide acceptance of the idea that productivity increases (modestly) as city size/density increases.

Australia’s major cities are certainly not bursting at the seams, notwithstanding residents’ concerns about issues like traffic congestion and housing affordability. Sydney is actually only the 80th largest city by population in the world and Melbourne the 87th. Many of the larger cities dwarf ours – Tokyo, for example, has more than nine times as many residents as Sydney. Read the rest of this entry »