URBAN regeneration megatrend
Wold Bank data shows a steady rise in the proportion of the world's population that live in urban centers, rising from 36.5% in 1970, to 41.1% in 1985, to 46.5% in 2000, to 53.8% in 2015. By 2030, this is likely to be more than two-thirds of the world's population. In the United States, while this growth flat-lined in from 1970 to 1990 as many cities experienced social problems and economic flight, urbanization has resumed its march such that by 2015, 81.6% of the population lived in urban areas.
The rapid urbanization and urban regeneration that is happening poses both challenges and opportunities. Contrary to the expectations of many, urban living can be much more efficient from a sustainability perspective, reducing per capita carbon emissions and lessening the impact on the environment. At the same time, dense populations can pose a challenge to infrastructure, particularly in older cities that were not designed for the volume of people living in them.
A higher proportion of people living in urban centers also attracts resources, stimulates innovation, and facilitates the development ofpeer-to-peer platforms. At the same time, this begets the potential to increase The Great Divides of Wealth, Health, and Technology, particularly increasing the divisions between rural and urban populations. Even within cities we are seeing the effect of an increasing wealth divide where cities essentially become accessible only to the wealthy to actually live in, with service providers having to live outside the city and commute in as the ratio of real estate cost to average wage escalates to seemingly unsustainable levels.
This urban regeneration provides opportunities to business, with dense markets, and increased flow of resources into cities, and opportunities to create innovation centers. At the same time, with increased abilities to communicate, and the easy access driven by close proximity, the development of peer-to-peer platforms allows the sharing economy to flourish and potentially disrupt more and more
How will Urban Regeneration impact your business?
Visit our Corporate Solutions tab to explore ways to prepare for the impact of urban regeneration and other megatrends that will impact your business over the coming years.