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I would say that the first reason would be that the new Jerusalem will be of an enormous size that will accommodate all the redeemed from throughout history -- a square of 12,000 stadia (approximately 1,400 miles) on each side. The second reason would be that all the inhabitants of the city will have the sanctification that was begun within them when they accepted the forgiveness available only through faith in Christ and received the indwelling Holy Spirit, completed and at its full fruition for eternity, living in the harmony and love that God intended for humanity at creation. The third reason would be the abiding, eternal, visible presence of God Himself (the glorified Christ) in the city. The fourth reason would be that those outside the city's walls will be only the unredeemed who were unwilling to seek the forgiveness of their multitude of sins that was offered through faith in Christ. (Revelation 21:8 describes those individuals and their sins as "the cowardly [i.e., those who were deterred from faith by fear of the persecution that they would face], the unbelieving, the vile, the murderers, the sexually immoral, those who practice magic arts, the idolaters, and all liars.") (See the further elaboration on this that can be found at https://biblehub.com/revelation/21-8.htm) (Revelation 21 describes their ultimate fate as consignment to the fiery lake of burning sulfur, which is called "the second death", and which (unlike the first death) will last for eternity.)
From the description of the Holy City, Revelation 21:19-27, it seems it will be the ideal future place for the redeemed to live in. But there are misconceptions about the city that show this is not the future residence for the saved. The city is the dwelling place of God, Revelation 21:2-3. In fact, Revelation 21:24, shows the people of the nations as well as their kings will come to embrace its light and honor God and the Lamb with honor and glory which they bring. One will see a constant stream of worshipers coming to the holy city, the future capital of the world. These worshipers come from the new earth, the new creation, Revelation 21:1. The new earth is the place where the redeemed will live. John was invited by an angel to see the bride which turned out to be the holy Jerusalem, Revelation 21:9-10. This is in contrast with the city of the great harlot, Babylon the great, that is destroyed, making the way for the marriage of the Lamb to the restored nation of Israel. This is her city, especially as noted by the gates with the names of the twelve tribes of Israel, and the twelve apostles of the Lamb written in the foundations of the city. John also saw the city descending out of heaven from God, Revelation 21:2, 10. This city will eventually land on the earth, in the center of Israel. The usual explanation is that the city measures to be about 12,000 stadia or about 1,400 miles on each side, which would make it enormous. But this is not what it may be. A simple little word is omitted from the translation from Greek to English. The literal translation of the middle of Revelation 21:16 is, “...And he measured the city with the reed at twelve thousand stadia…” The word “at,” which in Greek is “epi,” has the possible meaning of “over” or “above,” as used in Luke 23:38 for the inscription over Jesus while He was on the cross. It then can mean this city was 1,400 miles above the earth. Ezekiel 48:30-34 gives the measurement of one side of the city as 4,500 cubits, or about 1.46 miles. Ezekiel 48:35 says the total distance around the city is 18,000 cubits or 5.84 miles. With the description of it being a perfect cube, “its length, breadth, and height are equal,” it makes sense. The “great, high wall” of Revelation 21:12, at 144 cubits or slightly over half a mile, is in the right proportion to the city, being about a third of the height of the city. Ezekiel 45:6 also measured the land for this city (5,000 x 25,000 cubits) at 1.6 x 8 miles which is ample for it to fit a city that measures 1.46 x 1.46 miles. The New Jerusalem is not heaven nor where the saved will live. This city is from heaven as God’s dwelling, the temple for all those on earth to worship at.
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