Private construction as a general indicator of urban development: The case of Israel

The paper argues that the extent to which a particular urban locality is able to attract private developers can be considered as a prominent indicator of its socioeconomic prosperity. A general model of factors determining the location of private construction across urban areas is suggested and tested using the 1992-1994 statistical data available for urban settlements in Israel. In addition, the effect of population size on private construction in urban areas is investigated. In the case of Israel, the highest per-capita rates of private construction are found in settlements of a particular size (70 000-80 000 residents). Based on this conclusion, a strategy of 'redirecting priorities' to developing the peripheral regions of the country is suggested. This strategy proposes the concentration of state and local financial resources on selected development settlements until they reach the above population threshold and become more attractive for private developers, followed by the sequential transfer of this support to other small urban localities in frontier areas. While the present analysis focused on urban settlements in Israel, the mode of analysis and its applications for planning policies may be useful for urban and regional planning elsewhere.