Live/work as it is known today had generally begun with underutilized buildings in often neglected neighborhoods -- sometimes places where nobody was intended to live when they were built. Conversion of former industrial and commercial buildings to live/work use -- or new construction of live/work on land in such neighborhoods -- brings in new people who add life and vitality to what were often deserted places. With them come the need for services, from art supplies to cappuccinos, from dry cleaners to pediatricians. City governments have entire departments devoted to encouraging neighborhood revitalization; live/work often can accomplish this aim without governmental intervention.

In terms of employment and economic development, it is arguable that in a given 10,000 square foot building that might have employed ten people, the ten true live/work spaces that could go in it might employ more people, and each one might incubate a far larger business.