An Assessment of the Economic Status of Ann Arbor, A City West of Detroit

The area surrounding Ann Arbor is characterized by excellent climate, land topography and environmental conditions. Owing to this, some places have emerged through the influence of rapid economic growth and development attained by Ann Arbor. Examples are Chelsea, Manchester, Milan, Saline, and Dexter. They share characteristics of cool climate with unique architectural buildings surrounded by nature. This includes colorful trees and vegetation cover as well as clean water bodies which makes the places ideal for nature walks, picknicks, holiday destinations and hosting general hospitality services like restaurants/hotels, accommodation, and tourism (Michigan Economic Development Corporation, pl).

Following this, the communities have taken advantage of the opportunities by establishing various businesses and offering goods or services targeting different customers.

Comparing the former and present economic activities of Ann Arbor, there is a considerable shift from dependence both on natural resources and industries. Considering the city started and relied mainly on industries processing farm produce, currently there are numerous companies based on technology.

Also, the economic activities have diversified further from the initial farming activities to service provision through learning institutions, healthcare provision, advanced transport provision, hospitality services and more diverse form of businesses. Consequently, there is more expansion to cater for the increasing population of inhabitants attracted by the numerous economic opportunities through employment and self-employment sectors.

Although there are great opportunities availed at Ann Arbor through available resources, some challenges are limiting further expansions and development within the city. They are characterized by physical limitations especially considering land as a natural resource.

Although the land was readily and easily available before and during the development period, this has however been a challenging factor lately. Considering the increasing city population, this is accompanied by the congestion of the available housing facilities, especially for businesses and settlement. There are more opportunities for increasing the industries and establishing more companies, but the space available is far too low compared to the high demand. Also, the increasing population requires expansion in all the facilities necessary for human settlement like the sewerage system, clean water for consumption and water purification or recycling systems (Shackman, p23). Owing to this, there is increased pressure on the already existing facilities which may be considered as utilization beyond the required capacity established for. As a result, there is an imbalance between the supply and demand which has been attributed to the limitation of the physical land for expanding the existing or setting up new facilities as per the increasing demand which limits the economic exploitation of potentials within Ann Arbor.

The land value at Ann Arbor varies depending on several factors like its proximity to the highway, a main road, nearness to facilities such as hospitals and higher learning institutions. Although the place is generally considered safe and secure characterized with low crime rates, high ranking estates are generally more expensive compared to moderate estates. Moreover, the distance between the land and the city’s central business district is a great determinant factor of price. The normal price of land ranges between $250,000 and $450,000 with an average of $350,000 (Berkshire Hathaway Home Services, p1). This price is comparable to other cities globally with size and development status equivalent to Ann Arbor. For example, considering a city like Peterborough in Ontario, Canada, the ranges are also dependent on the factors mentioned earlier like highways, main roads and nearness to institutions. The price of land in Peterborough ranges from $200,000 to $500,000 with an average of $350,000 which is comparable to the present city of case study (Plotfinder.net p2).