What is the essence of 'New' Urban Economics?

The essence of 'New' Urban Economics lies in integrating a time dimension into economic models related to housing. This approach recognizes that the timing of decisions and changes in the economic landscape can significantly impact housing markets and urban development. By considering the time aspect, 'New' Urban Economics provides a more nuanced understanding of how factors such as commuting patterns and transportation infrastructure influence residential choices and the dynamics of urban areas.

In this framework, spatial relationships within urban settings are examined, accounting for how time factors, like travel time and the timing of housing supply changes, can affect individuals' housing decisions. This comprehensive approach allows for a better appreciation of urban phenomena, such as variations in property values and the allocation of resources over time, ultimately leading to improved urban planning and policy-making decisions.