Ideas & historyInterpretation
Alain Bertaud's Order without Design explained: cities as labour markets and the planner's job
A former World Bank planner says cities are labour markets: read land prices, build transport, stop fixing densities. What it means for Spain.
In short
Order without Design: How Markets Shape Cities (MIT Press, 2018) is Alain Bertaud's case for bringing urban economics into planning. Cities exist because they are large labour markets, so planners should judge plans by how many jobs people can reach, watch land prices and densities, build transport and trunk infrastructure, and regulate only clear negative effects. For Spain, it supports building more densely on land already being developed, which the Bank of Spain estimates could add up to 1.2 million homes, and linking new housing to fast commuter transport.
Key points
- Alain Bertaud was the World Bank's principal urban planner from 1980 to 1999 and is a senior fellow at NYU's Marron Institute.
- His central claim is that cities are primarily labour markets, and their productivity depends on how many jobs people can reach in a reasonable commute.
- He criticises planners' fixed ideas of optimal density and the 'urban village', which fragments the labour market of a large city.
- He wants planners to provide infrastructure, monitor land prices and density, and intervene mainly to correct negative externalities.
- Critics say he underplays unpriced transport costs, which can justify some limits on sprawl as a second-best tool.
Alain Bertaud spent half a century planning cities, and his book argues that planners have been asking the wrong question. Order without Design: How Markets Shape Cities came out with MIT Press in 2018. Its pitch is that urban planning would serve people far better if it borrowed the tools of urban economics, and that a city's shape comes mostly from markets responding to infrastructure, whatever the master plan says. For radical centrism's housing debate in Spain, it is the most useful book on the reading list about what planners should actually do.
Who Bertaud is
Bertaud was born in 1939 and trained as an architect at the École des Beaux-Arts in Paris. In the early 1960s he worked as a draftsman in Chandigarh under Pierre Jeanneret, then as a resident planner in cities including Tlemcen, Sana'a, Port-au-Prince, San Salvador and Bangkok. From 1980 to 1999 he was the World Bank's principal urban planner, working on about 40 cities on four continents. He is now a senior fellow at NYU's Marron Institute of Urban Management. M. Nolan Gray, reviewing the book for City Journal in 2019, called him the Indiana Jones of urban planning and the book a magnum opus.
Cities are labour markets
The book's central idea fits in a sentence. Cities are primarily labour markets. People put up with noise, crowding and high costs because a big city gives them access to many employers, and employers access to many specialised workers. Bertaud made the point vividly at a talk at Ryerson University in Toronto in 2019, reported by Novae Res Urbis: everything we like about city life, the cafés, concerts and parks, depends on a labour market that works.
From there, the test for any plan is how many jobs people can reach within a reasonable commute. That makes transport central. Gray's review notes that Bertaud reframes mobility as a question of how to allocate scarce road and rail space so that commuting times fall. It also explains his scepticism of a fashionable planning ideal, the self-contained "urban village" where people live and work in the same neighbourhood. In the Toronto talk he argued that employers don't choose staff by their address and specialised workers don't pick jobs by proximity, so the urban village model fragments the labour market of a large city and makes little economic sense.
Planners versus economists
Bertaud describes two professions talking past each other. Planners are normative: they set goals like sustainable, liveable and resilient without quantitative indicators to measure them. Urban economists build models of how incomes, transport costs and land prices shape cities. He wants teams of both.
His sharpest criticism is aimed at regulation that fixes outcomes in advance. Planners often believe in optimal densities and enforce them through zoning, setbacks, floor-space limits, street widths, parking requirements and the like. When those rules hold density below demand, people end up in overcrowded legal units or informal housing. His most cited example, set out in the Wikipedia summary of his work, is Mumbai, where the permitted floor space index fell from 4.5 in 1964 to roughly 1 to 1.33 in most residential zones while the population grew from about 4 million to over 20 million. In Toronto he described how New York's rules on unit numbers and sizes produced flats too big and too expensive for the people who needed homes.
What he recommends follows directly. Remove regulatory barriers on densities and apartment sizes. Increase the supply of land by building new and faster transport. Simplify building permits and cut processing times. Allow different housing types to sit side by side. Planners should provide infrastructure, monitor market signals such as land prices and density gradients, and intervene mainly to correct clear negative externalities. In Gray's words, they should deliver the facts and explain the trade-offs, and leave the decision to voters.
What critics say
Gray thinks the book's blind spot is politics. Bertaud writes for professional planners who, in a city like New York, hold little power against a battle of special interests and neighbourhood opposition, so they also need a political strategy. A 2023 review on the Talking Transport blog praises the labour-market chapters and raises a deeper objection. Bertaud accepts that car users don't pay for road space, congestion or pollution. If those costs go unpriced, then limits such as urban growth boundaries can be a reasonable second-best response, and the reviewer finds the argument weakest in the mobility chapter.
What Spain can take from it
Bertaud's method fits Spain's problem well. The Bank of Spain's 2025 annual report, as Alimarket reported in June 2026, proposes raising building density on land already in the process of urban transformation in tight markets. Matching the average density of consolidated urban areas would add about 500,000 homes beyond current plans, and matching city-centre densities up to 1.2 million, across Madrid, Barcelona, Málaga, Valencia, Zaragoza and Seville. It is a Bertaud proposal in all but name: work with the density that land prices are asking for.
The radical-centre synthesis takes three pieces. From the left, the public role in transport and trunk infrastructure, which Bertaud himself stresses lets lower-income households live where homes are affordable and still reach most of the city. From the market-liberal tradition, his respect for what land prices and people's choices reveal, and his case against rules that fix densities and flat sizes from a desk. And from neither, his picture of the planner as an adviser armed with data, who judges every plan by the number of jobs people can reach and lays out the trade-offs for elected officials to decide. Our explainer on developable land applies the same idea to land servicing; the week's later pieces on zoning and transport take it further.
Questions and answers
What is Order without Design about?
It is a 2018 MIT Press book by the urban planner Alain Bertaud. It argues that applying urban economics to planning would make cities more productive and their residents better off, and that planners should work with markets instead of trying to design whole cities.
What does Bertaud mean by 'cities are labour markets'?
That people put up with crowded, expensive cities because they offer access to many jobs and many workers. A city works well when people can reach a large share of its jobs within a reasonable commute, so transport and housing location matter more than any master plan.
Is Bertaud against all planning?
No. He wants planners to build infrastructure and transport, gather data on land prices and densities, and act where there are clear negative externalities. He objects to regulations that try to redesign existing cities or fix densities and flat sizes.
How does Bertaud apply to Spain?
His ideas support allowing higher densities on land already being developed and linking new neighbourhoods to fast transport. The Bank of Spain's 2025 annual report makes a similar proposal, estimating up to 1.2 million extra homes in six large urban areas.
Sources
- Cities As Labor Markets (review of Order without Design). City Journal (M. Nolan Gray) (2019)
- Order without Design (report on Bertaud's talk at Ryerson University). Novae Res Urbis Toronto (Rachael Williams) (2019)
- Book Review: Order without Design. Talking Transport (2023)
- Alain Bertaud. Wikipedia (2026)
- El Banco de España pide cambiar los planes urbanísticos y densificar el suelo para sumar 1,2 M de viviendas. Alimarket (2026)