Cities Grow More than Suburbs, First Time in 100 Years

For the first time in a century, most of America's largest cities are growing at a faster rate than their surrounding suburbs as young adults seeking a foothold in the weak job market shun home-buying and stay put in bustling urban centers.

New 2011 census estimates released Thursday highlight the dramatic switch.

Driving the resurgence are young adults, who are delaying careers, marriage and having children amid persistently high unemployment. Burdened with college debt or toiling in temporary, lower-wage positions, they are spurning homeownership in the suburbs for shorter-term, no-strings-attached apartment living, public transit and proximity to potential jobs in larger cities.

While economists tend to believe the city boom is temporary, that is not stopping many city planning agencies and apartment developers from seeking to boost their appeal to the sizable demographic of 18-to-29-year olds. They make up roughly 1 in 6 Americans, and some sociologists are calling them "generation rent." The planners and developers are betting on young Americans' continued interest in urban living, sensing that some longer-term changes such as decreased reliance on cars may be afoot.

The last time growth in big cities surpassed that in outlying areas occurred prior to 1920, before the rise of mass-produced automobiles spurred expansion beyond city cores. (...)

"The recession hit suburban markets hard. What we're seeing now is young adults moving out from their parents' homes and starting to find jobs," Shepard said. "There's a bigger focus on building residences near transportation hubs, such as a train or subway station, because fewer people want to travel by car for an hour and a half for work anymore."

Katherine Newman, a sociologist and dean of arts and sciences at Johns Hopkins University who chronicled the financial struggles of young adults in a recent book, said they are emerging as a new generation of renters due to stricter mortgage requirements and mounting college debt. From 2009 to 2011, just 9 percent of 29- to 34-year-olds were approved for a first-time mortgage.

"Young adults simply can't amass the down payments needed and don't have the earnings," she said. "They will be renting for a very long time."

by Hope Yen and Kristen Wyatt, MSNBC |  Read more:
Photo: Kristen Wyatt