Research shows that the “donut effect” hollowing out central business districts since the pandemic continues to cause economic decline in the 12 largest American cities.

New research from Stanford University economist Nicholas Bloom indicates that the structure of some of the largest U.S. cities remains fundamentally changed since the Covid-19 pandemic. Bloom has dubbed this the “donut effect,” referring to “the hollowing out of big-city financial districts, the rising attraction of surrounding areas, and the impacts on local economies.”
Bloom and his team conclude that downtown economies are not, in fact, bouncing back after the pandemic. According to Bloom, the 12 largest U.S. cities have lost 8 percent of their downtown residents, with two-thirds of those households migrating to suburbs. There was also an attendant drop in the number in businesses in downtowns in major metro areas. “The reason, according to the study’s authors, is because of the staying power of working from home – particularly for high-skilled workers who made up the bulk of downtown exits during the pandemic.”
This means a sharp drop in tax revenue and economic activity for cities, where officials must make difficult decisions to accommodate lower budgets. For public transit agencies, changes in travel patterns have led to sometimes devastating cuts in budgets and service.
Bloom points to one potential benefit of the effect, provided that housing costs go down. “As essential workers and others with lower-paying, in-person jobs get priced out of the suburbs, they might be able to afford living again in the big cities where they need to be every day.”
The donut effect is notably absent or limited in small and medium-sized cities, where more jobs require in-person attendance and housing costs are lower.
FULL STORY: For major U.S. cities, the ‘donut effect’ persists

Trump Administration Could Effectively End Housing Voucher Program
Federal officials are eyeing major cuts to the Section 8 program that helps millions of low-income households pay rent.

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

Ken Jennings Launches Transit Web Series
The Jeopardy champ wants you to ride public transit.

Washington Legislature Passes Rent Increase Cap
A bill that caps rent increases at 7 percent plus inflation is headed to the governor’s desk.

From Planning to Action: How LA County Is Rethinking Climate Resilience
Chief Sustainability Officer Rita Kampalath outlines the County’s shift from planning to implementation in its climate resilience efforts, emphasizing cross-departmental coordination, updated recovery strategies, and the need for flexible funding.

New Mexico Aging Department Commits to Helping Seniors Age ‘In Place’ and ‘Autonomously’ in New Draft Plan
As New Mexico’s population of seniors continues to grow, the state’s aging department is proposing expanded initiatives to help seniors maintain their autonomy while also supporting family caregivers.
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.
Heyer Gruel & Associates PA
Ada County Highway District
Institute for Housing and Urban Development Studies (IHS)
City of Grandview
Harvard GSD Executive Education
Toledo-Lucas County Plan Commissions
Salt Lake City
NYU Wagner Graduate School of Public Service