Urban Decline Redux: The dark cloud of urban decay is back, reminding us of when cities lost people and money. Despite efforts to revitalize central areas, the recent urban decline may appear perplexing. However, there are several reasons for this.
The COVID-19 pandemic, which changed how people worked, is the main reason for this return. Downtown offices have lost people due to remote and hybrid work. Due to lease breaches, office occupancy rates have significantly declined. Post-pandemic, downtowns are grappling with the reality of office space usage reducing by 50%. Due to this, lunchtime crowds in busy business areas are shrinking, retail sales are declining, and fewer individuals are using public transportation. As of early 2023, only 65% of pre-pandemic train users in NYC are using it now.
As a student of urban government problems, I know how the pandemic has exacerbated long-standing urban issues amidst tight budgets.
When a city’s budget shrinks and demand for city services increases, it creates a problematic scenario resembling “Donut City 2.0.” Out-migration occurs when people and businesses relocate from the city center to the suburbs. This is what it’s called. It’s important to note that this urban decline differs from the 1960s. While old issues such as economic restructuring, racial conflicts, changing customer tastes, and an inefficient government persist, their effects are now intertwined with newer problems.
After the 2007 financial crisis, towns nationwide protected their funds. Due to issues in the housing and stock markets, towns need help to meet their financial obligations. Cities like Chicago and Memphis cut budgets to save money in a lasting way. Dallas and Portland faced pension payment challenges. Towns prioritize debt reduction and financial stability over services and infrastructure.
The post-recession restructuring is now colliding with the pandemic’s impact on business. Conflict details vary by location, but trends are evident. The key trend is the increasing demand for city services. Since 2020, federal pandemic recovery funds have temporarily addressed this need. When funds run out, towns must provide more services without additional money.
There are various types of these services, but a few examples highlight the scale of the problems. As per HUD, the number of homeless people in the U.S. has been increasing since 2016. In 2022, after the pandemic, the number rose to nearly 600,000, a 50,000 increase in six years. The demand for law enforcement services has increased significantly. According to World Bank data, crime rates in the U.S. began rising in 2014. During the pandemic, this worsened. Crime rates in the U.S. have decreased, but people still feel unsafe. Due to this, local police need help finding hires.
There’s something interesting to note in this story about San Jose, California. San Jose’s tech industry is thriving, with a population of one million, making it an atypical example of a declining city. But despite the city’s success, Donut City 2.0 is causing stress. Only 44% of San Jose residents have returned to office work, below the national average. PayPal, Roku, Western Digital, and X (formerly Twitter) have laid off many San Jose workers, increasing pressure on business occupancy rates.
San Jose’s problems are common and impact everyone’s income. Having fewer people in businesses can affect various aspects. People save less due to this. San Jose relied on Google’s growth plans and BART connection to boost its economy. The empty offices and reduced BART usage have raised doubts about these plans.
ALSO READ: Rare Bacterial Infection Strikes San Jose Woman: Amputation to Save Life
San Jose’s budget is in a tough spot. The city has a $1.2 billion budget and receives funds from various sources. Business taxes remain significant at 6% or $70 million of total income. Most money comes from land and sales taxes, accounting for 32% and 23% of earnings. Due to its diverse income opportunities, San Jose is less affected by the business decline. However, the city’s finances could be more stable, and minor budget adjustments can cause significant impacts.
San Jose has had problems since before the plague. In 2011, the city owed seniors $3 billion more than its assets. Afterward, the city and labor groups fought. Despite a settlement and San Jose’s progress in meeting pension responsibilities, late and insufficient payments continue to strain the city’s budget.
This money worry has appeared in various ways. During the recession, San Jose reduced its staff like other towns. There needs to be more money to compensate for these cuts. The city needs more funds to fill around 860 vacant positions. The staff shortage exacerbates other issues, such as homelessness. Homelessness is a significant issue in San Jose and other California cities like San Francisco. Homeless individuals will receive city assistance through therapy programs and affordable housing, costing $116 million in 2023. Despite efforts, San Jose’s homeless population increased from 4,350 in 2017 to 6,340 in spring 2023.
The city’s 2023-2024 budget focused on aiding the increasing homeless population. San Jose’s new mayor, Matt Mahan, moved affordable housing funds to address immediate needs. Still, many believe more money is needed to solve homelessness.
There are few chances of getting more money. Raising taxes on land or sales without negative consequences.
Our Reader’s Queries
What is urban decay?
Urban decay, also referred to as urban rot, urban death, or urban blight, is a sociological phenomenon where a once thriving city or a specific area within a city deteriorates and becomes dilapidated. This process can occur due to various factors such as economic decline, population loss, and neglect. As a result, the infrastructure, buildings, and overall quality of life in the affected area can significantly decline.
Where did urban decay come from?
In 1996, Urban Decay was born out of a chance meeting between Zomnir, a marketing professional, and Sandy Lerner, a tech entrepreneur and makeup enthusiast. Frustrated with the lack of unique options in the market, the two women set out to create something different. They were tired of the same old pink and red lipsticks that seemed to dominate the industry, and they were determined to shake things up. Thus, Urban Decay was born, offering a fresh and innovative take on makeup that quickly gained a loyal following.