Everyone lives in a neighborhood, and what’s in it—or missing from it—can often be explained by the economics of agglomeration. This theory explores how businesses, industries, institutions, knowledge, capital, and people cluster in specific areas within a broader economic system.

First introduced by Walter Christaller (1933) and August Losch (1940), this idea has grown through research and practice. More recently, scholars like Harvard’s Michael Porter and Nobel laureate Paul Krugman have modernized the concept since the mid-1990s.

Think of places like Silicon Valley in California, the Innovation District in Boston, or Avalon in Alpharetta, GA. Even regional malls and vibrant downtowns reflect this clustering effect. These developments form and thrive thanks to the principles of agglomeration.

At Hoffman Strategy Group, this theory is central to our work. Whether we’re modeling the economic potential of each acre in a master-planned community or creating urban-style density in suburban markets, we apply these ideas to help real estate owners, developers, investors, and cities unlock real financial value in projects of all sizes.

Hoffman Strategy Group sees a growing trend toward mixed-use developments in both suburban and urban core areas, moving away from the traditional concentric zone model of the 1920s. This shift envisions neighborhoods functioning like "full-service" hubs, inspired by concepts such as the 15-minute city or the 20-minute neighborhood. While these ideas are already well-established in parts of Europe, Asia, and cities like New York, our focus is on bringing this vision to life in suburban and urban areas.

We approach this transformation like solving a puzzle, where each neighborhood is a unique piece. By leveraging the economics of agglomeration, we connect these pieces to uncover opportunities for thriving, interconnected communities.

Picture neighborhoods as local coffee shops—each with its unique vibe but thriving by being part of a larger network that shares ideas, energy, and resources. This synergy not only creates vibrant places to live and work but also drives smarter, more impactful decisions.

Our strategy isn’t just about data; it’s a vision for designing dynamic, resilient neighborhoods that meet today’s needs while building for a sustainable future.