March 28, 2022 - 10:03am

The recent Census report about the mass migration away from America’s most celebrated centres — New York, Los Angeles, San Francisco, Chicago — may have come as shock to many urban boosters, but actually is simply a continuation of a long-running trend that extends for at least 70 years. These putative occupiers of the “commanding heights” lost more of their population than some of the perennial urban losers like Cleveland and St. Louis, while the sprawling sunbelt cities like Dallas and Houston saw large gains, as did such metros as Austin, Raleigh-Durham, Phoenix, and Jacksonville.

Consider that in 1950, the core cities accounted for nearly 24 percent of the U.S. population; today the share is under 15 percent. Between 2010 and 2020, the suburbs and exurbs of the major metropolitan areas accounted for about 90% of all US metropolitan growth; over that time  suburbs and exurbs of the major metropolitan areas gained 2.0 million net domestic migrants, while the urban core counties lost 2.7 million .

This was also true economically — despite some gains in big traditional cities, roughly 80 percent of all job growth has been in the suburbs. For the past decade, the leading job creating metros are largely away from the big coastal cities like New York, Chicago and Los Angeles and towards Austin, Salt Lake, Riverside-San Bernardino, Nashville, Phoenix and Raleigh-Cary.

These areas, in which offices tend to be spread out largely in suburbs, most people live in more spacious accommodations and rarely take transit, are ideal for an online or hybrid work model. But places like New York, San Francisco and Chicago are built around big central business districts, and the notion that people have to be in that geography to succeed. Yet despite attempts by some big employers like Goldman Sachs to frog march their employees,  McKinsey & Company reports that more than one-half of surveyed employees favour more flexible hybrid working models. More than one quarter of employees indicated that “they would consider switching employers if their organisation returned to fully on-site work.”

Online and hybrid work is not about to go away. Stanford economist Nicholas Bloom suggests that even after Covid has faded , remote workers will constitute at least 20% of the workforce, more than three times the pre-pandemic rate. Midtown New York offices are still barely 50% full — hybrid work has turned central business districts into anachronisms. To be sure some businesses will remain, but much of the workforce will be, for the most part, somewhere else.

If they seek to return to something of their previous glory, cities need to deal as well with the crumbling social infrastructure of cities, as evidenced by soaring crime rates, dysfunctional schools and a political climate that often embraces notions of post-capitalist governance not particularly competitive with the more market based, pro-business economies common in interior states or developing countries.

Big cities, even dense ones, need to be receptive to reality. Grandiose visions may be beloved by the urban-centric media, but the future cannot be secure by building to the clouds, but in confronting the gritty street-level realities now chasing even the urban-minded out of the country’s great cities.


Joel Kotkin is the Hobbs Presidential Fellow in Urban Futures at Chapman University and author, most recently, of The Coming of Neo-Feudalism: A Warning to the Global Middle Class (Encounter)

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