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

courses user

As someone new to the planning field, Planetizen has been the perfect host guiding me into planning and our complex modern challenges. Corey D, Transportation Planner

As someone new to the planning field, Planetizen has been the perfect host guiding me into planning and our complex modern challenges.

Corey D, Transportation Planner

Ready to give your planning career a boost?

SunRail passenger train at platform in Poinciana, Florida.

Central Florida’s SunRail Plans Major Expansion

The expanded train line will connect more destinations to the international airport and other important destinations.

November 24, 2024 - Hoodline

View of dense apartment buildings on Seattle waterfront with high-rise buildings in background.

Seattle Legalizes Co-Living

A new state law requires all Washington cities to allow co-living facilities in areas zoned for multifamily housing.

December 1, 2024 - Smart Cities Dive

Rendering of proposed housing development on former Desert Pines golf course in East Las Vegas, Nevada.

Las Vegas Golf Course to Become Over 1,000 Units of Affordable Housing

The project is part of an initiative to build affordable housing on shuttered golf courses.

November 20, 2024 - KTNV

Car parked at EV charging station in parking lot in Carlsbad, California.

California Governor Vows to Protect EV Credits

If the federal government eliminates the tax credit for electric vehicles, the governor will need legislative support to restart a state-level incentive program.

December 1 - The Hill

View of dense apartment buildings on Seattle waterfront with high-rise buildings in background.

Seattle Legalizes Co-Living

A new state law requires all Washington cities to allow co-living facilities in areas zoned for multifamily housing.

December 1 - Smart Cities Dive

Times Square in New York City empty during the Covid-19 pandemic.

NYC Officials Announce Broadway Pedestrianization Project

Two blocks of the marquee street will become mostly car-free public spaces.

December 1 - StreetsBlog NYC

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.