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

Get top-rated, practical training

Wastewater pouring out from a pipe.

Alabama: Trump Terminates Settlements for Black Communities Harmed By Raw Sewage

Trump deemed the landmark civil rights agreement “illegal DEI and environmental justice policy.”

April 13, 2025 - Inside Climate News

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.

April 16, 2025 - Diana Ionescu

Black and white photos of camp made up of small 'earthquake shacks' in Dolores Park in 1906 after the San Francisco earthquake.

The 120 Year Old Tiny Home Villages That Sheltered San Francisco’s Earthquake Refugees

More than a century ago, San Francisco mobilized to house thousands of residents displaced by the 1906 earthquake. Could their strategy offer a model for the present?

April 15, 2025 - Charles F. Bloszies

Calvary Street bridge over freeway in Indianapolis, Indiana.

Indy Neighborhood Group Builds Temporary Multi-Use Path

Community members, aided in part by funding from the city, repurposed a vehicle lane to create a protected bike and pedestrian path for the summer season.

1 hour ago - Smart Cities Dive

Holland Tunnel, vehicular tunnel under Hudson River that connects New York City neighborhood of SoHo in Lower Manhattan to east with Jersey City in New Jersey.

Congestion Pricing Drops Holland Tunnel Delays by 65 Percent

New York City’s contentious tolling program has yielded improved traffic and roughly $100 million in revenue for the MTA.

3 hours ago - Curbed

People walking up and down stairs in New York City subway station.

In Both Crashes and Crime, Public Transportation is Far Safer than Driving

Contrary to popular assumptions, public transportation has far lower crash and crime rates than automobile travel. For safer communities, improve and encourage transit travel.

April 18 - Scientific American