Before the pandemic, the signs were everywhere that America’s big cities were facing an uncertain future. Dinner table conversations were beginning to reflect what we saw happening right before our eyes: worrying levels of crime, garbage on the street, spiking homelessness and unaffordable housing all fraying the social fabric of our flagship cities.
This across-the-board decline in quality of life, nonsensical public policy and high taxation in large cities pushed some people to reconsider life as urban dwellers. Countless people whispered to their friends about how life had become more miserable in cities. Still, leaving was probably off the table. After all, big cities were home to the best-paying jobs, and who could possibly imagine living somewhere else and doing well?
Without warning, the pandemic changed everything. COVID-19 is making life in major populated areas more miserable than ever. At the same time, major corporations began to normalize remote work, and some even boldly proclaimed that their employees could work from home forever. The tides have turned in a matter of months with devastating economic consequences for our major cities.
Suddenly, the leafy green, picket-fenced suburbs that millions of us ran away from for a cosmopolitan city life are back in demand. People stuck in cities see their lives upended by a pandemic, civil unrest and local governments asleep at the wheel. Politics aside, our urban areas are confronting challenges that we haven’t seen in a very long time. It’s igniting an exodus of people and capital that may be difficult, if not impossible, to reverse.
First, people who had the ability left for the pandemic and settled elsewhere. They’re staying put as they encounter better schools, easier social distancing and larger homes where they can work with ease. As alarming as this trend may be for cities, some say that it’s temporary, or that new people will take their place after the pandemic.
I believe that the outward movement of business is a far more worrying trend. Ominously, corporate America is waking up to discover that having a presence in cities such as New York doesn’t make much economic sense anymore. A chain store in Manhattan might have less foot traffic than a location in the suburbs where the rent is much cheaper.
The economics of doing business in an urban setting are upside down and don’t look like they’re going to improve anytime soon. Consider this: If big business is having trouble making the rent, you only can imagine the bludgeoning we’re seeing for small companies in major cities. Many simply will not survive into next year.
Politically, some people will relish the opportunity to dance on the graves of our large cities as they face extraordinary difficulties. In reality, the decline of our major cities is terrible news for all Americans. In a sense, whether we live in big cities or not, we all identify with the closest urban area and enjoy what they have to offer. I do not like the idea of going back to where we were 30 years ago, where the economic center of gravity was in the suburbs.
Coast to coast, America’s cities staged an incredible comeback in recent decades, making our country a much better place. As a Millennial, I saw urban living go mainstream, and millions of people rush to enjoy the lifestyle we missed growing up in the suburbs. I only hope future generations will have the same opportunities I had to live a fulfilling urban life.
It’s going to be hard work to stem the tide of human and capital flight to the suburbs. Changing the trendlines will require a renewed focus on the basics of good governance and sound public policy. Prioritizing commonsense economics, ensuring higher levels of public safety and cleaning up trash might be game-changers for our national urban economy.
Perhaps, then, we can galvanize a future where we don’t make the same mistakes we made in the past and abandon our urban centers. Big, beautiful cities are an essential part of American life and our national economy.
David Grasso is the executive director of GenBiz, a non-profit dedicated to helping young Americans achieve financial freedom through entrepreneurship. David is also the host of Bold Business on Bold TV, an online television show that spotlights entrepreneurs and their entrepreneurial journey.