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cities
Since the Industrial Revolution which dramatically increased employment opportunities, cities have been gaining population in comparison to their rural counterparts. At the time of 2017 American Community Survey (ACS), the Census Bureau found that while rural areas occupy 97% of the American landscape, only 3% of the total population live there.
However, the trend of suburbanization, which first began in the early 20th century and was further accelerated by favorable mortgage lending practices and the Interstate Highway System in the 1950’s, has emptied out the center city and shifted population into the city’s periphery. In 2017, HUD released the American Housing Survey and found that 53% of respondents identified themselves as living in a suburban neighborhood.
Why does this matter? Because our cities were designed for exponentially more people. Cities with rapid suburbanization often have a fraction of the population density they did at their peak. In El Paso, the current population density is 1/3 of what it was in the early 1900’s. Less people means empty houses and businesses, but it also means less people to maintain and pay for aging infrastructure. You may not realize it, but it costs a lot of money to provide basic services such as roadways and police and fire protection. And those fancy new suburbs? The large lots and single family detached dwellings do not generate enough revenue to cover the cost of services.
With rapid suburbanization taking off in full force between the 1950s until coming to a head in the early 2000s, a tidal wave of maintenance costs are coming due in the very near future. Do you know your City’s financial picture? Do you know the development patterns that are performing well for your city versus those that don’t? Do you have development regulations that generate positive net revenue so that you can continue to provide services at their current level?
If you are uncertain of your city’s financial future or want to see what data can reveal about your development pattern, contact us today to find out how we can help.