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With predictions from the OECD that almost 70 per cent of the world's population will be living in urban areas by 2050, the researchers note most countries are already pursuing policies which encourage the building of dense cities. They found that, despite the drawbacks, densifying a typical city in the developed world is likely to have a positive effect overall.įor cities in developing countries, the costs and benefits of density are larger and the evidence is scarcer, so the overall effect of densification policies is less clear. The researchers pulled together a wide breadth of existing evidence (from 180 studies) and novel evidence on the economic effects of density and aggregated all the effects. The research reveals denser built cities also lead to traffic congestion, exposing residents to higher levels of pollution and, partially as a result, higher mortality rates. The study shows higher skilled workers benefit from higher wages but lower skilled workers, renters and first time buyers struggle with housing costs, making cities less affordable places for them to live. With space at a premium, housing is more expensive and there are increased levels of inequality. However, these advantages come at a cost. The new study, published in the Journal of Urban Economics, shows that dense cities have a range of benefits, including: higher productivity, more innovation, shorter commutes, better access to private services (such as restaurants), cheaper provision of public services, the preservation of green space and a lower carbon footprint.