For decades, “going downtown” meant something special – probably from its very first use as a term to describe the lower tip of Manhattan, which was then New York City’s heart of business, commercial and residential life.
Downtown was literally “where it was at” – jobs, shopping, cultural attractions and all.
But then, beginning in post-World War II America, many downtowns lost their luster, as people were drawn to the suburbs thanks to cheap land and easy means to traveling to and fro.
In some places, downtowns and the areas immediately adjoining them became places of high crime, industrial decay, shopworn appearances and various socio-economic pathologies.
Things hit rock bottom in the late 1970s, as personified by the Times Square area of New York City. But since then, many downtowns have slowly come back from those near-death experiences, spurred by new types of residents with new and different priorities.
Dan Cort, author of the book Downtown Turnaround, describes it this way: “People – young ones especially – love historical buildings that reintroduce them to the past. They want to live where they can walk out of the house, work out, go to a café, and still walk to work.”
There are a number of cities where the downtown areas have come back in the big way over the past several decades. Everyone knows which ones they are: New York, Seattle, San Francisco, Minneapolis …
But what about the latest success stories? Which downtowns are those?
Recently, Realtor.com analyzed the 200 largest cities in the United States to determine which ones have the made the biggest turnaround since 2012. To determine the biggest successes, it studied the following factors:
- Downtown residential population growth
- Growth in the number of restaurants, bars, grocery stores and food trucks per capita
- Growth in the number of independent realtors per capita
- Growth in the number of jobs per capita
- Home price appreciation since 2012 (limited to cities where the 2012 median home price was $400,000 or lower)
- Price premium of purchasing a home in the downtown district compared with the median home price of the whole city
- Residential and commercial vacancy rates
Based on these criteria, Realtor.com’s list of the Top 10 cities where downtown is making a comeback are these:
- #1 Pittsburgh, PA
- #2 Indianapolis, IN
- #3 Oakland, CA
- #4 Detroit, MI
- #5 Columbus, OH
- #6 Austin, TX
- #7 Los Angeles, CA
- #8 Dallas, TX
- #9 Chicago, IL
- #10 Providence, RI
Some of these may surprise you. But it’s interesting to see some of the stats that are behind the rankings. For instance, look at what’s happened to median home prices in some of these downtown districts since 2012:
- Detroit: +150%
- Oakland: +111%
- Los Angeles: +63%
- Pittsburgh: +31%
And residential population growth has been particularly strong here:
- Pittsburgh: +32%
- Austin: +25%
- Dallas: +25%
- Chicago: +21%
In the coming years, it will be interesting to see if the downtown revitalization trend continues – and spreads to more large cities.
And what about America’s medium-sized cities, where downtown zones continue to struggle. If you’ve been to Midwestern cities like Kokomo, IN, Flint, MI or Lima, OH, those downtowns look particularly bleak. Can the sort of revitalization we see in the major urban centers be replicated there?
I have my doubts … but what is your opinion? Feel free to share your thoughts below.