Census Note 3: Downtown Rebound
Fannie Mae Foundation and Brookings
Institution Center on Urban and Metropolitan Policy Census
Note 03 (May 2001)*
Downtown Rebound
Rebecca R. Sohmer and Robert E. Lang
Fannie
Mae Foundation
Overview
"[Houston's] downtown business area is made up almost
entirely of high-rise office buildings and large department
stores, with a few smaller restaurants to refuel the denizens
of both, but nobody lives there..." (Sale 1975, p. 52).
Kirkpatrick Sale's 1975 description of downtown Houston aptly
described what was happening to most American downtowns in
the 1970s and 1980s. But downtown Houston 2000 is a different
story. Houston's downtown population rose 69 percent in the
1990s-the most for any city in our sample.
"Downtown is Back" seemed to be a common observation
throughout the 1990s. It turns out that this was more than
wishful thinking. Among this sample of 24 cities, 18
downtowns saw increases in their downtown populations.
In a lot of ways, the story of downtown is a counter trend
of what is happening in the rest of urban America. While most
central cities are losing population relative to their
metropolitan statistical areas (MSAs), most downtowns are
gaining a larger share of MSA population. While cities such
as Charlotte and Phoenix are booming, their downtowns are
getting weaker. Race and immigration play a different role in
downtowns as well. Compared to cities' overall population
changes, the downtown population gain is less weighted toward
blacks and Hispanics. Increases in white residents led the
resurgence in downtown living-in stark contrast to the
general decline in city white population.
The actual numbers of downtown growth are relatively small.
The trend of downtown living is still more of a trickle than
a rush. Nevertheless, the downtown population gain is
important because it may be the harbinger of future
central-city growth. If people continue to move downtown,
neighboring areas may experience spillover effects. The
stronger downtown gets, the more likely it is that the
surrounding central-city neighborhoods will strengthen as
well. .
Methods
Because the U.S. Bureau of the Census does not officially
define "downtown," a standardized definition was unavailable.
What constitutes "downtown" varies from city to city.
Depending on the city, a downtown can be several square
miles, or it can be several square blocks. But downtowns do
have some things in common. They contain the 100 percent
corner (place of maximum rent for commercial office space)
and are their city's central business district. The downtown
is often the oldest, most established part of a city.
Building on research conducted by Fannie Mae Foundation and
The Brookings Institution, researchers at the University of
Pennsylvania are in the process of trying to define downtown
boundaries in cities throughout the country. The researchers
determined downtown census tracts through interviews with
city organizations and municipal government leaders and by
examining historic maps of each city's downtown.
The downtowns surveyed vary by region and size. The
University of Pennsylvania mapped boundaries for more than 30
downtowns using 1990 census numbers. The 24 downtowns in this
study are derived from that list. The list was reduced from
34 to 24 because some cities (such as Dallas, Minneapolis,
and Pittsburgh) changed their 2000 census tracts, making it
impossible to accurately track population. Other cities were
eliminated to round out the regional representation of these
downtowns.
Findings
Downtowns Vary
Like census tracts themselves, downtowns vary widely in
population size and geographic area (table 1). San Antonio is
the geographically largest downtown at 5.5 square miles,
while the downtowns in Norfolk, Cincinnati, and Lexington are
each just 0.8 square miles. Boston had the largest downtown
population in 2000, with almost 80,000, while Norfolk had
just under 3,000.
Most downtowns are getting denser, while a few are losing
density (table 2). The most densely populated downtowns are
Baltimore and Philadelphia, but the downtowns that had the
highest density percentage gains are Seattle, Chicago, and
Houston.
More Winners than Losers
Three-fourths of the downtowns gained population. Only six
downtowns were smaller in 2000. Overall, downtowns are
winners in the population game. Each downtown falls into one
of four scenarios (table 3):
-
Downtown Population Up; City Population Up.
Twelve of the 24 downtowns fall into this scenario. The
city as a whole is gaining population and downtown is
growing as well. In addition, most of the downtowns in
the category are outpacing the city's growth rate.
Houston, Seattle, Chicago, and Denver's downtowns are
growing anywhere from 2.5 times as quickly (Denver) to
12 times as quickly (Chicago) as their cities. Only
Colorado Springs and Des Moines' downtowns are growing
at a slower rate than their cities.
-
Downtown Population Up; City Population Down.
Six downtowns are in this category. This is the most
interesting group. These downtowns are the surprise
heroes of their cities. While downtown population is
up, the city is losing people. Even in an environment
where city population is slumping, these downtowns are
managing to attract new populations. While the city of
Cleveland saw a 5 percent population loss in the 1990s,
its downtown population grew by a third.
-
Downtown Population Down; City Population Up.
Four downtowns are in this group. This scenario and the
one following were familiar stories to the metropolitan
America of the postwar years. It appears that the tide
has turned. The scenario of a downtown losing
population despite increases in the city overall is no
longer the dominant pattern. Here the surprise is that
downtowns in these fast-growing cities are losing
population. The city of Phoenix grew by 34 percent, yet
its downtown lost 9 percent of its residents. Possibly,
people are leaving downtown in these cities to be
closer to employment centers that are in the areas'
burgeoning suburbs.
-
Downtown Population Down; City Population Down.
In cities losing population, it is not surprising to
see their downtowns also losing population. However,
Cincinnati and St. Louis-the only two downtowns in this
category-are both outpacing their respective cities in
losing people.

The downtowns on this list are gaining a bigger share of
their MSAs' population, while their respective cities are
losing. Although the raw number of people moving into
downtown is relatively small, those numbers are registering a
percent increase in the downtowns' share of MSA population
(tables 4 and 5). All but three downtowns either improved or
maintained their standing in the MSA. Seattle again tops the
list-it increased its share of the overall MSA population by
0.3 percent. Meanwhile, only two cities as a whole increased
their share of MSA population: Charlotte and San Antonio
(both of which lost downtown population during the 1990s).
The rest of the cities fared poorly. Downtown's relative
importance is growing despite the weakening importance of the
cities they are in.
Downtown's Racial Composition
Comparing 1990's downtowns with 2000's is complicated by
the fact that the U. S. Census Bureau adjusted race
categories for the 2000 census-separating Asian and Hawaiian
or Pacific Islander and adding a category for two or more
races (table 6).
Grouping the 24 downtowns together, there are 7.5 percent
more whites living downtown than there were in 1990. There
are 4.8 percent more Hispanics living downtown, and 6 percent
more blacks. This contrasts sharply with city data. There are
10.5 percent fewer whites living in those 24 cities in 2000
than in 1990. Meanwhile, 43 percent more Hispanics and 2.4
percent more blacks lived in the same 24 cities.
In 2000, the group of 24 downtowns was 54.9 percent white;
21.2 percent black; 13.4 percent Hispanic; 8 percent Asian;
0.6 American Indian, Hawaiian, or Other; and 1.8 percent was
of more than one race. Compared with 1990, there were small
percentage increases in the Asian and Hispanic populations
and small decreases in the white and black populations
(white, 57.2 percent; black, 22.1 percent; Hispanic, 14.4
percent; Asians and Pacific Islanders, 5.4 percent; and
American Indians or other, 0.6 percent).
In individual downtowns, whites gained more of a percentage
share of the population in 7 of 24 downtowns in 2000.
Eighteen downtowns have a greater percentage of Hispanics,
and 11 downtowns have a higher percentage of blacks.
Why Is Downtown on the Rebound?
Several trends are helping downtown's new period of growth.
The population of empty nesters will continue to grow as baby
boomers age. Without children, empty nesters often change
their lifestyles in a way that favors downtown. Besides
having more leisure time to dine out and take part in
cultural activities (museums, concerts), empty nesters often
choose to downsize their housing-trading in the lawn care and
upkeep of a large home for the convenience of living in a
downtown condominium. If even a modest portion of
empty-nester households trades suburban homes for urban ones,
downtown populations will continue to grow. The other
emerging population that is probably aiding downtown's
comeback are young professionals in their 20s and 30s who
have yet to start families. This group-often consumers of
downtown-friendly amenities such as coffeehouses and
nightclubs-are frequently in the market for low-maintenance,
urbane housing convenient to work and amenities.
Downtowns throughout the country are capitalizing on their
historic character. Downtowns offer a niche market for those
seeking a "sense of place" (Sohmer and Lang 1999; Sohmer
1999). For example, downtown San Diego gained residents in
part because it offers an alternative to rapidly expanding
(and often monotonous) suburban developments that dominate
the region. Perhaps Charlotte and Phoenix lost downtown
population in part because their downtowns do not offer
enough to distinguish themselves from their suburbs. The
unique history of downtown areas in combination with their
central location and proximity to mass transit, work, and
amenities offers potential for the growth of the 1990s to
continue into the next decade.
*About the Census Notes Series
The Fannie Mae Foundation's Census Notes series provides
timely analyses of Census 2000 data to stimulate discussion
and further research. Although Census Notes are reviewed
internally and on an informal basis externally, they have not
been subject to the formal process of external peer review
that is used for the Foundation's research publications.
Therefore, they should be viewed as works in progress and
their findings should be considered preliminary.
References
Birch, Eugenie L. 2000. The Rise in Downtown Living: A
Deeper Look,Part II. Paper presented at the Annual Conference
of the Association of Collegiate Schools of Planning,
November 4, 2000, Atlanta, GA.
Sale, Kirkpatrick. 1975. Power Shift: The Rise of the
Sourthern Rim and Its Challenge to the Eastern
Establishment. New York: Random House.
Sohmer, Rebecca. 1999. Downtown Housing as
an Urban Redevelopment Tool: Hype or Hope? Housing
Policy Debate 10(2):477-505.
Sohmer, Rebecca, and Robert E. Lang. 1999. Life at the
Center: The Rise of Downtown Housing. Housing Facts and
Findings 1(1):3-5.
U.S. Bureau of the Census. 2001. Accessed at http://www.census.gov in March 2001.