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Rent is only steep because the supply far outstrips the demand for these neighborhoods. The government heavily subsidizes the incentives that make low density so economically attractive, skewing the construction and real estate industries towards those ends, even with the high demand. It's much cheaper to deliver services such as utilities and police/fire protection to high density areas, but low density areas pay the same rates and taxes. It gets even worse when predatory, independent suburban cities cherry-pick (thru zoning regulations) affluent households, offering them lower taxes and supposedly better services, which in turn further hollows out the urban areas, exacerbating existing problems.

Industry took place at the center of the city alongside professional jobs. It's only relatively recently that it's been economical to locate distribution & light industrial jobs in dedicated, industrial zoned areas, now that workers have been conditioned to agree to subsidize the costs of cheap land. Further, local governments agree to extend infrastructure to these places almost exclusively for the benefit of these corporations.

http://en.wikipedia.org/wiki/Tragedy_of_the_commons




Industry took place at the center of the city alongside professional jobs. It's only relatively recently that it's been economical to locate distribution & light industrial jobs in dedicated, industrial zoned areas,

We put industry in dedicated areas because living next to a factory that runs 24/7 is unpleasant.




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