World Urban Areas Strong Association Between Lower Density & Higher Incomes

The latest Demographia world urban area population estimates confirm the strong association between lower urban population densities and higher incomes (gross domestic product per capita on a purchasing power parity basis).

A linear regression analysis indicated a 0.300 “R2,” for 138 geographies (nations and separate territories), using the population density of urban areas (urban agglomerations, or urban footprints) with 500,000 or more population. This is significant at the 99% confidence level. The analysis included all of the 740 world’s urban areas with more than 500,000 population.

The data shows an association such that each percentage point increase urban density is associated with a nearly 0.8 percentage point decline in gross domestic product per capita. The data is illustrated in charts on pages 88 and 89 of the following recently report, released today.

Demographia World Urban Areas: Population & Density

Current population estimates and population projections were also released for all urban areas expected to have a population of 2,000,000 or more in 2030:

Demographia World Urban Areas: 2025 & 2030 Population Projections