April 21, 2013

Recession slows flight from urban business districts

City centers gain a greater share of employment as the shift to the suburbs declines.

By LORRAINE WOELLERT Bloomberg News

WASHINGTON - The deepest downturn since the Great Depression has interrupted a decades-long trend of jobs steadily moving to the suburbs and hollowing out urban business districts across the United States, a study finds.

City centers gained a greater share of employment than their outer rings between 2007 and 2010, according to a report Thursday from the Brookings Institution. It's not all good news. Big suburban job losses -- not large downtown gains -- drove the shift and metropolitan economies are more decentralized than they were in 2000.

What's heartening is that the shift to the suburbs slowed during the downturn, said Elizabeth Kneebone, author of the report and a fellow at the Brookings Metropolitan Policy Program in Washington. The report follows up on a 2009 study that found a continuous migration of jobs from downtown to the suburbs between 1998 and 2006.

"The recession stalled the trend but didn't reverse it," Kneebone said. "Absent policy changes as the economy starts to gain steam and regions are growing again, there's every reason to believe that trend will continue."

Urban revitalization and the notion of smart growth, which seeks to cluster housing and jobs near transit and entertainment, has had only limited success restoring downtowns.

Now, faced with tight budgets wrought by the housing collapse, some metropolitan leaders say they're redoubling efforts to nudge employers and workers toward locations that maximize the use of transit and existing infrastructure, cut pollution and improve quality of life.

"In the business of economic development we can't afford to take a scattershot approach anymore," said MarySue Barrett, president of Chicago's Metropolitan Planning Council. Putting jobs near housing and rail, and vice versa, reduces commuting times, cuts household expenses and lowers government costs, she said.

When Courtney Klein Johnson, 29, and her partner opened their new business incubator near downtown Phoenix last February, she leased space in a once-bankrupt building near a commuter rail line even though she was living 90 minutes away and it would have been easier to find an office near her house.

"Young companies are moving here -- it was important for us to be right in the heart of that activity," said Klein Johnson, co-founder of Seed Spot, which helps entrepreneurs start ventures that improve their communities. "The entrepreneurial vibe necessitates density -- density of ideas, people, culture. We have seven law firms and three banks surrounding our building. It's an accessible place for these startups to get connected."

It's not just where to put the jobs, it's where to put the workers. A coalition of San Francisco Bay-area governments wants to add transit and housing to Silicon Valley's sprawling office parks to create mini urban centers. Washington, D.C., once a void of boxy office buildings that emptied out at night to surrounding suburbs, is experiencing a revival, adding 1,100 new residents a month, according to Harriet Tregoning, director of the city's office of planning.

Construction, manufacturing and retail were among industries hardest hit by the housing downturn and subsequent recession and helped stall the jobs sprawl. The industries accounted for almost 60 percent of job losses between 2007 and 2010, Kneebone said. Half those losses occurred 10 miles or more from a downtown.

Chicago's Southland, once a thriving industrial center, had already been hammered by a manufacturing decline in the 1980s and 1990s when it was hit by the housing collapse and recession. Now, 42 municipal governments in the region have banded together to use federal housing, environmental and economic development grants to convince manufacturers a city location makes economic sense.

"In some ways the ideas that we should've been doing all along become relevant during tough times," Barrett said. "The core concepts are perhaps not new, but there's an urgency. We can't make unwise decisions because resources are so limited."

(Continued on page 2)

Were you interviewed for this story? If so, please fill out our accuracy form

Send question/comment to the editors




Further Discussion

Here at PressHerald.com we value our readers and are committed to growing our community by encouraging you to add to the discussion. To ensure conscientious dialogue we have implemented a strict no-bullying policy. To participate, you must follow our Terms of Use.

Questions about the article? Add them below and we’ll try to answer them or do a follow-up post as soon as we can. Technical problems? Email them to us with an exact description of the problem. Make sure to include:
  • Type of computer or mobile device your are using
  • Exact operating system and browser you are viewing the site on (TIP: You can easily determine your operating system here.)