How Can Cities Manage the Post-Growth Transition?

While cities are growing, it's comparatively easy to keep a healthy balance sheet. But for cities like Charlotte, managing the transition from a growth economy to economic sustainability is a treacherous one. Aaron Renn delivers a cautionary tale.

1 minute read

July 19, 2013, 10:00 AM PDT

By Jonathan Nettler @nettsj


"Rapidly growing cities benefit from scale economics. As a city grows, it spreads the fixed costs of providing services across more units, thus lowering unit costs and enabling taxes to stay low," explains Renn. "The real question is what happens when the growth cycle ends and unit costs either flatline or start going up. Can the city find sustainability demographically, economically and fiscally without growth as a fuel?"

"This is the mark of a great city," he continues. "A London or a New York can sustain and reinvent itself across growth cycles. Too many places, particularly our Rust Belt cities, have not met this challenge. When the economy shifted and growth ended, they went into a decline that has not yet abated."

"Rather than making today's Sun Belt boomtowns smug, this should serve as a cautionary tale. Even the most prosperous and seemingly invincible cities can be undone when trends shift and growth fades."

Monday, July 15, 2013 in Governing

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

June 4, 2025 - Diana Ionescu

Metrorail train pulling into newly opened subterranean station in Washington, D.C. with crowd on platform taking photos.

Congressman Proposes Bill to Rename DC Metro “Trump Train”

The Make Autorail Great Again Act would withhold federal funding to the system until the Washington Metropolitan Area Transit Authority (WMATA), rebrands as the Washington Metropolitan Authority for Greater Access (WMAGA).

June 2, 2025 - The Hill

White and yellow DART light rail train in Dallas, Texas with brick building in background.

DARTSpace Platform Streamlines Dallas TOD Application Process

The Dallas transit agency hopes a shorter permitting timeline will boost transit-oriented development around rail stations.

May 28, 2025 - Mass Transit

Aerial view of large complex of apartment buildings surrounded by fall foliage trees in suburban Dallas, Texas.

Renters Now Outnumber Homeowners in Over 200 US Suburbs

High housing costs in city centers and the new-found flexibility offered by remote work are pushing more renters to suburban areas.

June 6 - Point2

Yellow single-seat Japanese electric vehicle drivign down road.

The Tiny, Adorable $7,000 Car Turning Japan Onto EVs

The single seat Mibot charges from a regular plug as quickly as an iPad, and is about half the price of an average EV.

June 6 - PC Magazine

Worker in hard hat stands in front of oil pipeline under construction with yellow heavy equipment.

Supreme Court Ruling in Pipeline Case Guts Federal Environmental Law

The decision limits the scope of a federal law that mandates extensive environmental impact reviews of energy, infrastructure, and transportation projects.

June 5 - NPR

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.