In urban areas, what typically occupies the most desirable locations?

In urban areas, the most desirable locations are typically occupied by the most productive use. This concept relates to how land is utilized in a way that generates the highest economic return. Areas that are considered prime for development or investment are often those that can accommodate businesses, commercial activities, or high-density housing that serves a large number of people.

Most productive use takes into account factors such as accessibility, visibility, and the overall demand for space in a particular location. In urban settings, this usually translates into areas that accommodate commercial retail spaces or mixed-use developments, where services, shops, and offices can thrive—these generate significant economic activity.

While affordable housing is important for providing necessary shelter, it does not usually occupy the most desirable locations primarily because those areas are typically prioritized for higher-return developments. Public transportation hubs are crucial for connectivity but they serve as a support structure rather than a primary use of the land itself. Thus, the answer that highlights the most productive use aligns with the economic principles governing urban land value and desirability.