Coastal, sunny, and educated cities are most productive and valuable.
The article explores the value of cities by analyzing wages, housing costs, and local amenities in U.S. metropolitan areas. By using data on wages and housing costs, the researchers were able to estimate land rents, local productivity, and the total value of amenities. They found that differences in wages and housing costs are mainly due to productivity rather than quality of life. The most productive and valuable cities tend to be coastal, sunny, mild, educated, and large.