Are there factories besides apartments in Houston? Does it make economic sense to open up a factory besides your apartment?.
I live in a totally different market. Chicago (and other rust belt cities) are *way* older, and more geographically constrained than a newer city like Houston. Geographically, the city of Houston is heeee-uge, and if I remember correctly, was also able to annex a few suburbs.
Having fairly heavy industrial and residential is not unheard of even in Chicago, in neighborhoods without a lot of clout (i.e, immigrant neighborhoods, poor people). I live in a a pretty working class, immigrant heavy hood, but my local alderman has enough juice to keep our open spaces for commerical or residential development (or parks). If there was nothing, the proximity to major streets or highway 90/94, plus the cost of real estate, could certainly drive undesirable developments into residential neighborhoods.
Do you drive much in Houston? I wouldn't exactly call it the pinacle of urban development in the US either.