Declining populations in the New York City, Los Angeles, and Chicago regions

The biggest metropolitan areas in the United States are losing residents:

Source: William H. Frey

And what is behind this?

Each of these Chicago phenomena—declining immigration, revitalized downtowns coinciding with a middle-class exodus, and the specific decline of the black population—has spread from the heartland to America’s largest coastal metros…

First, immigration to both New York and Los Angeles has declined by 30 percent in the last five years. This could be for a variety of reasons, including the fear, and reality, of more restrictive immigration policies; richer and safer home countries; and a less affordable housing stock in these metros.

Second, higher-income residents bidding up the price of housing in both cities has accelerated the middle-class exodus. Earlier this decade, Los Angeles was the fastest growing county in all of southern California. But in 2018, it was the only major county in the region to shrink, even as its median home price set a new record. As more middle-class families leave the Los Angeles area for cheaper markets in the West and Southwest—their preferred destinations: Las Vegas, Phoenix, and Dallas—California’s population growth has slowed to its lowest rate in state history. This might have something to do with the recent tax law, which, in capping the state and local deductions, effectively raised the cost of living in these places for the upper-middle class. (The next few years will tell us more about whether high earners are fleeing high-tax metros for the South, as well.)

Third, the black population of both New York and Los Angeles peaked in the early 2000s and has since been in steady, and perhaps accelerating, decline. The political implications of the first Great Migration were immense, as blacks moving into northern cities forged an alliance with urban liberals and pushed the Democratic Party to prioritize civil rights in the middle of the 20th century. The political implications of the Reverse Great Migration could be equally ground-shaking, if blacks moving south redraw the political map for the second time in 100 years. The slow decline of America’s largest metros may also mark the beginning of a new political movement in the suburbs of the South and Southwest.

When it was just Chicago losing residents, it was easier to write it off as inevitable Rust Belt decline combined with particular issues that have dogged the city and region for decades. But, if New York and Los Angeles are also losing people, then this becomes more interesting as even the glitzy coastal cities are losing people to other parts of the United States and there are fewer new residents via immigration.

Is there evidence then that cities are losing steam compared to suburban areas? Not necessarily; Sun Belt cities are growing in population. At the same time the three biggest cities draw outsized attention in the United States (consider the relative anonymity of Houston which is approaching Chicago for third in population). Americans generally do not like what declining populations connote and particularly not in their largest locales.

Ultimately, the actual population figures which could fluctuate slightly from year to year might matter less than the perception that the biggest cities are floundering. Would they then put into place big plans to try to attract residents? Would second tier cities step up their efforts to toot their own (growing) horns?

Final note: Chicago’s long-standing quest to put itself in the same company as New York City might be looking up if both cities are losing residents.

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