Urban Job Density Insights
Urban Job Density Insights
June 2019
                                Chad Shearer
                               Jennifer S. Vey
                                  Joanne Kim
Contents
Introduction                                                           4
An economic driver 7
A civic enabler 7
Findings 14
 3. Jobs in dense metro areas grew far denser than expected, while     18
 most metro areas fell short of their potential job density increase   ..........
Case studies 27
Indianapolis 28
Baltimore 31
Conclusion 34
References 35
Endnotes 39
Acknowledgments                                                        44
                                                                                                             Oklahoma City, Oklahoma
Introduction
But we also know that preferences for urbanism      density not only promotes economic and social
are not universal, nor are the revitalization       benefits but also addresses urgent fiscal and
benefits such preferences generate equally          environmental challenges facing many U.S. cities
shared. Indeed, suburban sprawl—and                 and metropolitan regions today.
the associated problems of fiscal waste,
environmental degradation, and spatial mismatch     Hence this report, which aims to help leaders
between workers and jobs—remains pervasive.         understand how, and how much, changing
At the same time, many of the areas that are        demands for place are influencing the clustering
dense with businesses and jobs are falling short    of jobs both across and within metropolitan
of their potential. Some—like the “edge” and        areas. The findings suggest a need for them to
“edgeless” cities described by Joel Garreau and     embrace policies and investment strategies that
Robert Lang—have wide streets, large setbacks,      advance more concentrated growth patterns,
surface parking, and other design elements          while also supporting transformative placemaking
that stifle walkability, transit efficiency, and    solutions that help such dense places become
human interaction.4 Others may be suffering         vibrant communities where businesses and
from decades of disinvestment and decline, with     workers thrive.
human capital, physical, and economic assets
that are undervalued by both the private and        The report proceeds by first exploring density’s
public sectors. Meanwhile, rapidly rising rents     important role in the economic growth, civic
in some very strong market areas threaten the       health and participation, and environmental
ability of existing businesses and residents to     sustainability of metropolitan areas. It then
remain in—and help shape the trajectory of—the      defines the methods used to explore job density
communities they helped to build.                   trends in metropolitan America before describing
                                                    how they played out over the period from 2004
These trends are providing an urgency, and          to 2015, a decade of dramatic economic change.
an opportunity, for local and regional leaders      To this end, it traces the shifting distribution of
nationwide to embrace and advance new               jobs in America’s large metro areas during this
approaches for supporting concentrations of         time, examines the influence of various industry
economic activity that produce better outcomes      sectors on those patterns, and explores the
for more people in more places. Strengthened        different types of communities within regions
by policies that encourage investment in existing   where the clustering of employment increased
development areas rather than low density           or declined. In doing so, this analysis provides
locales and greenfield sites, such concentrations   greater insight into how the relationship between
do not equate to economically dynamic               place and economy continues to evolve, and what
communities—but they seem increasingly              this might mean for cities and regions seeking to
requisite for creating them. When coupled           harness these trends to drive more equitable and
with good design and programming driven by          sustainable economic growth in the digital age.
the vision and values of local stakeholders,
Density also improves governance by easing fiscal     metro areas tend to experience lower levels
pressures on municipalities and improving the         of air pollution.23 Denser urban development
quality of local services. Extensive studies on the   also tends to consume less land, preserving
costs of different types of development patterns      wetlands, forests, and open spaces that help
have found that denser and more compact               control flooding, purify wastewater, and regulate
development can reduce the fiscal burden              climate.24
of providing and maintaining infrastructure
and public services while improving revenue           Density promotes better human health outcomes
streams.17 More concentrated economic activity        for some of the same reasons it is better for
encourages more intensive use of existing             the environment. Because densely developed
infrastructure such as transit, roads, and water      places are better at mitigating air pollution, they
lines and sewer lines, and also lowers the fixed      tend to better for people with cardiovascular
and variable costs of new infrastructure and          or respiratory illnesses.25 Density also creates
public services when they are required.18 In fact,    safer development patterns that promote more
research has found that denser development            everyday physical activity than sprawling car-
is associated with 38% less upfront cost for          centric development patterns. Living in a denser
infrastructure than low-density sprawl on             place can encourage people to spend more
average.19 Furthermore, police and ambulance          time walking, bicycling, jogging, and running—
response times are not only faster in high-           activities that lower the risks of obesity, high
density towns compared to low-density areas,          blood pressure, and diabetes.26 People in denser
but also cheaper, shaving costs by about 10% on       areas also tend to have lower risk of dying in a
average.20                                            car crash than those living or working in more
                                                      sprawling areas due to reduced driving and lower
A promoter of environmental and                       speed limits.27
physical health
                                                                              ***
Finally, more concentrated land use is vital to
combatting the consumption of land and burning        Many policymakers and practitioners have
of fossil fuels associated with climate change,       recognized and embraced density’s role in
while yielding concomitant benefits to humans’        shaping dynamic and inclusive communities.
overall health and wellbeing.                         For decades, planners, community development
                                                      groups, and other place-focused organizations
Density mitigates the harmful environmental           have promoted policies and practices that foster
impacts of economic activity by conserving            more concentrated patterns of economic and
energy, reducing air pollution, and preserving        residential development. Yet for all their positive
the ecosystem and natural resources.21 Densely        impacts, the findings here indicate that cities and
developed neighborhoods tend to consume               regions could be doing more to advance such
less energy than low-density neighborhoods            patterns—while doubling down on placemaking
because people travel less by car, reducing           investments that can transform dense areas into
demand for fuel, and live and work in larger, more    social, sustainable places that spur creativity, job
energy efficient buildings.22 As a result, denser     creation, and widespread prosperity.
Additionally, in some cases the Census Bureau          of jobs in metro areas. Perceived density is
has incomplete data or cannot determine                different from the standard measure of density.
the location of jobs for multi-establishment           Standard job density is calculated by dividing
firms.36 This issue is especially prevalent in         the total number of jobs by the total land area
the government, public administration, and             of a metro area, revealing the average amount
administrative services sectors and for the entire     of land around each job. Perceived job density
state of Wisconsin.37                                  instead measures the job density of the place in
                                                       which the average job is located, revealing the
Due to these data limitations, this analysis           average number of jobs in the vicinity of each job.
covers only private, non-administrative                Therefore, perceived job density provides a better
sectors of the economy for areas outside of            approximation of how dense a metro area feels
the District of Columbia, Massachusetts, and           and how compactly its jobs are concentrated.
Wisconsin. This means the analysis excludes six
of the nation’s largest 100 metropolitan areas:        To see how these two measures can lead to
Boston; Madison, Wis.; Milwaukee; Springfield,         different indications of job density in a metro
Mass.; Washington; and Worcester, Mass.                area, consider the three examples in Figure
Additionally, the Massachusetts portion of the         1. Each of these hypothetical metro areas is
Providence, R.I. metro area and the Wisconsin          nine square miles and each contains nine jobs.
portions of the Chicago and Minneapolis-St. Paul       Therefore, all three have the same standard
metro areas are excluded from the analysis.            job density of one job per square mile. Jobs
                                                       are concentrated differently in each example,
Measuring job density                                  however. In the first example, jobs are spread
                                                       evenly, giving this metro area the same standard
All the findings on job density in the report          and perceived job density. In the second example,
refer to the weighted or “perceived” density           some parts of the metro area contain more
 Figure 1. Perceived job density indicates the number of jobs around a typical job
 Three examples of standard versus perceived job density in a metro area
          1 mi
 1 mi
 Metro areas’ perceived density tends to be quite a bit greater than their standard density, and
 better reflects the concentration of their jobs across space. Taken together, the 94 metro areas
 in this study had a perceived density of 25,994 jobs per square mile in 2015, which is 147 times
 greater than their collective standard density of 177 jobs per square mile. Among individual metro
 areas, this ratio was largest in Boise, Idaho, where perceived density of 4,743 jobs per square mile
 was nearly 240 times greater than its standard density of 20 jobs per square mile. The ratio was
 lowest in Cape Coral, Fla., where perceived density of 1,694 jobs per square mile was only about
 six-and-a-half times greater than its standard density of 262 jobs per square mile. These ratios
 indicate that the mountainous Boise metro area covers a lot of land but that its jobs are relatively
 concentrated, whereas Cape Coral’s jobs are spread more evenly across its land area.
 Comparing metro areas’ perceived density also reveals more about the relative concentration of
 their jobs than standard density does. For example, Figure 2 shows that the New York metro area
 has a standard density of 1,103 jobs per square mile—the highest of any metro area and about 7%
 greater than the metro area with the next highest standard density: Los Angeles. However, New
 York’s perceived density of 138,541 jobs per square mile is almost 700% greater than Los Angeles
 metro area’s perceived density of 17,386 jobs per square mile. This difference in perceived density
 is a truer reflection of how jobs are concentrated in each of these metro areas: New York’s jobs
 are highly concentrated. The Los Angeles has a similar number of jobs per square mile as New
 York, but its jobs are more spread out across its land area. Similarly, San Francisco and Miami have
 similar standard job densities, but San Francisco’s perceived job density is 600% greater than
 Figure
 Miami’s. 3
 Figure 2. Every metro area’s perceived density is greater than its standard density
 Standard versus perceived density of large metro areas, 2015
                                              160,000
                                                                                                                                 New York, N.Y.
                                              140,000
                                              120,000
                       Jobs per square mile
   Perceived density
100,000
                                              80,000
                                                                                                   San Francisco, Calif.
                                              60,000                              Chicago, Ill.
                                              40,000         All 94
                                                        metro areas
                                                                                                                           Los Angeles, Calif.
                                              20,000                                                   Miami, Fla.
                                                   0
                                                        0             200   400              600            800               1,000              1,200
                                                                                    Standard density
                                                                                    Jobs per square mile
jobs than others, which makes its perceived job       Calculating expected trends
density greater than its standard job density. In
the third example, all the jobs are concentrated      This report explores whether metro areas’ job
in just one part of the metro area, giving it a       density is increasing or decreasing, by how much,
perceived job density nine-times greater than its     and why. A metro area’s job density can change
standard job density.                                 because of job growth, changes in the distribution
                                                      of its jobs across sectors, and because of
In this analysis, perceived job density is measured   shifts in the distribution of sectors’ jobs across
for all the Census block groups in each metro         space. Among the reasons why job density can
area using the LODES jobs data described above        change, shifts in the distribution of jobs across
and the authors’ calculations of block-group land     space are most interesting because they reveal
area.38 The perceived job density of a metro          where economic activity is gravitating: toward
area is found by (1) calculating the standard job     more- or less-dense parts of a metro area. Local
density of each block group, (2) weighting the        policymakers have considerable influence on
block group by its share of the metro area’s jobs,    these spatial shifts and should have an interest in
(3) multiplying each block group’s standard job       ensuring that spatial shifts increase density given
density by its job weight, and (4) summing the        its inherent benefits.39
weighted job density of all block areas in the
metro area. The same formula can be used to find      We can measure spatial shifts in the distribution
the perceived job density of any given industry       of jobs across a metro area and analyze their
sector or sub-area (e.g., a county). A similar        effects on its job density by comparing the
formula will yield the sector’s contribution to a     “actual” trend in job density to a counterfactual
metro area’s total perceived job density. In the      or “expected” trend. The actual trend in job
findings that follow, the perceived job density       density refers to observed changes in a metro
of metropolitan America—that is, all 94 metro         area’s perceived job density.40 The expected
areas together—is found by weighting each block       trend refers to how a metro area’s job density
group’s job density with its share of total jobs      would have changed if job growth in each
in all 94 metro areas’ jobs (instead of its share     industry sector had been distributed according
of its metro area’s jobs) and then summing the        to each block group’s starting share of the metro
weighted job density of all block groups. This        area’s jobs in that sector.41 In other words, the
same approach is used to find the collective          expected change reveals how a metro area’s job
perceived density of other groups of metro areas.     density would have changed due to job growth
alone, independent of shifts in the distribution of     altogether for an overall job growth rate of 78%.
jobs across space.                                      If these new manufacturing and services jobs
                                                        were distributed across Metropolis X according to
To see how a comparison of expected and actual          each subarea’s share of total jobs in each sector
job density trends can reveal the effects of spatial    in year one, Metropolis X could have expected to
shifts in the distribution of jobs, consider the        see its perceived job density increase by 66%. In
example in Figure 3. This hypothetical metro area       the example, however, new jobs are actually more
called Metropolis X started off with five jobs in       concentrated than expected: New manufacturing
the manufacturing sector and four jobs in the           jobs located in just two subareas instead of
services sector for a total of nine jobs in year one.   five and new services jobs located in just one
From year one to year two, Metropolis X doubled         subarea instead of two. As a result, Metropolis
its number of manufacturing jobs and added              X’s perceived job density actually increased by
50% more services jobs, adding seven new jobs           115%.42
 Figure 3. Comparing expected and actual trends reveals why job density has changed
 An example of expected and actual changes in job density in a metro area
Existing service job New service job Existing manufacturing job New manufacturing job
          1 mi
   1 mi
  Yr1. Actual job concentration      Yr2. Expected job concentration     Yr2. Actual job concentration
    Standard density: 1 job/mi2        Standard density: 1.78 jobs/mi2   Standard density: 1.78 jobs/mi2
  Perceived density: 2.33 jobs/mi2    Perceived density: 3.88 jobs/mi2    Perceived density: 5 jobs/mi2
“Our look within metros revealed that almost every large metro area
exhibited both job densification and job sprawl across its counties, yielding a
polycentric pattern of development not described in previous studies.”
1. Overall job density within metro                          Suburban and exurban areas then shed their jobs
areas increased from 2004 to 2015,                           faster than denser urban areas over the course
driven primarily by four metro areas                         of the Great Recession from 2007 to 2009, which
                                                             caused the average job density of the largest
A worker in the average job in metropolitan                  metro areas to increase more than 10% over
America would perceive the area around her                   those two years. Job density increased steadily
place of work to have many more jobs in 2015                 over the course of the economic recovery from
than in 2004. In fact, the job density of the                2009 to 2015 as denser urban areas added jobs
94 large metropolitan areas increased from                   faster than their less-dense counterparts.
an average of 20,068 jobs per square mile in
2004 to 25,994 jobs per square mile in 2015—an               These overall job density trends are heavily
increase of 5,926 jobs per square mile, or nearly            influenced by just a few of the nation’s largest
30%. This increase in job density outpaced                   and densest metro areas, however. The metro
overall job growth during this period, indicating            areas of New York, Chicago, San Francisco, and
that not only did most metro areas have more                 Seattle account for almost 90% of the increase
jobs in 2015 than in 2004 but also that jobs                 in job density seen among all 94 large metro
became more concentrated in denser parts of                  areas from 2004 to 2015. The outsized influence
metro areas.                                                 of these four metro areas stems from their size,
                                                             density, and growth. Together, they comprise
Figure 4 shows that job density among all 94                 about 20% of private, non-administrative jobs in
metro areas taken together increased modestly in             metropolitan America and a slightly larger share
the early part of this period (from 2004 through             of its job growth during this period. Their job
2007) as low-density suburban and exurban                    density increased from an average of 65,813 to
areas added jobs faster than denser urban areas.             92,000 jobs per square mile, or by 40%.
 Figure    4
 Figure 4. Metropolitan America’s job density increased due to trends in extremely
 dense metro areas
 Change in the job density of large metro areas since 2004
           Large metro areas (94)          Extremely dense metro areas (4)     All other large metro areas (90)
   50%
40%
30%
20%
10%
    0%
     2004      2005     2006        2007     2008     2009     2010     2011   2012      2013     2014      2015
Job density trends in the rest of metropolitan        to 2015, trends varied greatly among individual
America were more modest on average. Excluding        metro areas. Only 48 of 94 large metro areas
these four extremely dense metro areas, the           posted increases in job density, but most of
other 90 large metro areas saw a collective           those gains were fairly large. Fourteen (14)
increase in job density of about 9%, building from    metro areas posted increases in job density
an average of 8,917 jobs per square mile in 2004      that exceeded the 94-metro area average, led
to 9,735 jobs per square mile in 2015. However,       by San Francisco, Honolulu, Oxnard, Calif., San
these metro areas also show considerable              Jose, Calif., Charlotte, N.C., Albany, N.Y., New
variation in the direction and extent of changes      York, and Nashville.43 Another 20 metro areas
in job density during this period, as the following   saw job density increases of 10 to 30%, including
findings show.                                        large metro areas such as Seattle, Philadelphia,
                                                      Chicago, and Atlanta as well as smaller metro
2. Only half of large metro areas                     areas such as Greenville, S.C., Boise, Idaho, and
experienced an increase in job                        Richmond, Va.
density, while the others sprawled
                                                      In the other 46 metro areas, most declines in
Despite the notable increase in job density in        job density were relatively modest: 20 metro
metropolitan America as a whole from 2004             areas saw declines of less than 10% and another
 Figure 5. Faster-growing metro areas tended to see larger increases in job density
 Change in job density across 94 of the nation’s largest metro areas, 2004 to 2015
                                                                                         Increase
                                                                                         > 30%
                                                                                         10% - 30%
                                                                                         0% - 10%
                                                                                         Decrease
                                                                                         0% - 10%
                                                                                         10% - 30%
                                                                                         > 30%
 Figure 6. Faster job growth was associated with larger increases in job density
 Figure    6 between change in jobs and job density among 94 large metro areas from
 Relationship
 2004 to 2015
                             50%
  Change in number of jobs
40%
30%
20%
10%
0%
                             -10%
                                 -60%   -40%   -20%         0%           20%         40%          60%         80%
13 saw declines of 10% to 20%. However, six                       while slower job growth was associated with job
metro areas saw declines ranging from 30% to                      sprawl.
54%: Scranton, Pa., Cape Coral, Fla., New Haven,
Conn., Rochester, N.Y., Sacramento, Calif., and                   There are notable exceptions to these trends,
Youngstown, Ohio.                                                 however. For example, Cape Coral increased its
                                                                  number of private, non-administrative jobs by
Metro areas that achieved faster job growth                       24% from 2004 to 2015—the 10th fastest rate
tended to see larger increases in perceived job                   of job growth of these 94 metro areas during
density. This would not necessarily be assumed:                   this period—but its job density actually declined
While job growth would naturally lead to an                       31% as new and existing jobs spread out to
increase in standard density (more jobs, same                     less-dense and undeveloped parts of the metro
land area) it would not necessarily increase                      area. Cleveland, on the other hand, saw a 2%
perceived density if, for instance, new jobs locate               decline, on net, in its number of private, non-
in low-density areas. But in fact, of the 36 metros               administrative jobs but a 30% increase in its job
that saw above-average job growth, 28 (78%)                       density because its health care jobs became more
also saw their perceived job density increase.                    concentrated in already-dense parts of the metro
On the other hand, 38 (66%) of the 58 metro                       area. Similarly, Oxnard, Calif. saw job growth of
areas that saw below-average job growth saw                       just 6% but increased its job density by 51% due
job density decline. In short, faster job growth                  in large part to the increasing concentration of its
was associated with increasing job concentration                  manufacturing and wholesale jobs.
3. Jobs in dense metro areas grew                      This gap between expected and actual job
far denser than expected, while                        density trends began to grow after the Great
most metro areas fell short of their                   Recession began in late 2007. Up until 2007,
potential job density increase                         jobs in metropolitan America had been growing
                                                       denser but slightly less-dense-than-expected
Across metropolitan America as a whole, job            because the nation’s pre-recession boom
density increased more from 2004 to 2015               disproportionately favored less-dense suburban
than job growth alone would have predicted. If         and exurban parts of metro areas. But these
each metro area’s annual job growth had been           less-dense parts then shed jobs faster than the
distributed according to the spatial distribution      rest of metropolitan America over the course of
of its jobs in the prior year for the whole of         the recession from 2007 to 2009. Meanwhile,
this period, metropolitan America could have           denser urban areas were more resilient, retaining
expected its job density to increase 18% from          or even adding more jobs. This shift in the
2004 to 2015, as shown in Figure 7. Instead,           balance of the distribution of jobs from less-
metropolitan America actually saw an increase in       dense to denser parts of metro areas created
job density of 30%—an increase that is more than       a gap between expected and actual job density
50% greater-than-expected. That metropolitan           trends starting in 2008 that grew even larger in
America’s actual job density trends outpaced           2009. As the economic recovery set in and less-
those expected from job growth alone indicates         dense suburban areas began to add jobs in 2010,
that job growth disproportionately favored             that gap shrank slightly. But once the nation’s
already-dense parts of metro areas during this         economic expansion strengthened in 2013, job
period.
 Figure
 Figure    7
        7. Metropolitan America’s job density increased more than its job growth trends
 would predict
 Expected versus actual change in job density of large metro areas since 2004
                                            Expected       Actual
  35%
30%
25%
20%
15%
10%
5%
   0%
    2004     2005    2006    2007    2008      2009     2010    2011    2012    2013     2014    2015
density again increased more than job growth        In the other 75 large metro areas, actual changes
alone would predict and continued to grow           in job density fell short of expected changes,
through at least 2015.                              suggesting new jobs generally spread to less-
                                                    dense parts of these regions. For example,
Once again, though, these trends were influenced    private, non-administrative jobs in Tucson,
by a relatively small group of metro areas.         Ariz. and Grand Rapids, Mich. grew by 2%
Indeed, only 19 of 94 large metro areas posted      and 6%, respectively. Yet if these modest job
actual increases in job density that were greater   gains had accrued in proportion to where jobs
than those expected from job growth alone, as       were already located in each metro area, each
shown in Figure 8. Some of these 19 metro areas     could have expected to see increases in job
are the nation’s largest and densest metro areas,   density of 12%. Instead, new and existing jobs
such as New York, Chicago, San Francisco, and       migrated to less dense parts of each metro area,
Seattle, which had an outsized impact on both       which lowered Tucson’s job density by 25%
expected and actual change in job density. Job      and Grand Rapid’s by 28%. Other metro areas
growth in the downtowns and central urban           such as Austin, Charlotte, and Provo, Utah saw
counties of these metro areas accounted for         faster-than-average job growth but still saw job
almost all their greater-than-expected increases    density increase less than expected as their jobs
in job density, patterns that will be further       spread out. In Austin, for example, private, non-
explored in the following findings. These 19        administrative jobs grew by 55%. If these new
metro areas also include smaller and less-dense     jobs had accrued according to where Austin’s
but relatively fast-growing metro areas, such as    existing jobs were located, Austin could have
Nashville, Indianapolis, and Las Vegas.             expected its job density to increase 54%. Instead,
                                                    Austin’s job density increased just 40%.
Figure    8 large metro areas’ job density increased less than their job growth
Figure 8. Most
 would predict
 Expected versus actual change in job density, 2004 to 2015
 4. Most sectors of the economy saw                     driven by a rather narrow set of metro areas,
 large but not widespread increases                     as shown in Figure 11. For example, jobs in the
 in job density                                         knowledge-intensive information sector saw a
                                                        60% increase in density across all 94 metros
 The growth and changing distribution of jobs in        taken together, but this was driven largely by the
 individual industry sectors played a significant       increasing concentration of information jobs in
 role in the job density trends in metropolitan         the especially large and dense metro areas of
 America as a whole and in individual metro             San Francisco, New York, and Seattle. Indeed,
 areas. In the 94 metro areas as a whole, density       the information sector’s job density increased
 around the average job increased from 2004 to          in just 33 (35%) of metro areas, a group which
 2015 in every sector except manufacturing and          also included fast-growing tech hot spots such
 logistics. Moreover, most sectors’ job density         as Austin, Greenville, S.C., Indianapolis, and
 increased by more than would be expected from          Nashville, Tenn. Moreover, in almost all these
 job growth alone, as shown in Figure 10. These         metro areas those increases were greater-than-
 large and greater-than-expected increases in job       expected, indicating that in the metro areas
 density indicate that new jobs in most sectors         where the information sector is adding jobs, it is
 disproportionately located in denser areas during      disproportionately adding them to already-dense
 this period, which could suggest an increasing         parts of the metro area. Retail is another sector
 preference for density throughout most of the          where greater-than-expected increases in density
 economy.                                               across all metro areas taken together were in fact
                                                        driven by increases in only a few individual metro
 In most sectors, the job density increases seen        areas, such as New York, Seattle, and Honolulu.
 across metropolitan America as a whole were
 Figure 9. The job density of most sectors increased more than their growth alone would
 predict
Figure   10
 Expected versus actual change in job density around jobs by sector, 2004 to 2015
                                          Expected              Actual
  70%
  60%
  50%
  40%
  30%
  20%
   10%
    0%
  -10%
  -20%
  -30%
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  Note: Agriculture and mining are not shown due to their small number of jobs but count toward the total.
  Source: Brookings analysis of Census LEHD Origin-Destination Employment Statistics
 So how dense had these sectors grown by 2015? As shown in Figure 9, sectors that provide or
 depend on advanced businesses services, such as financial services, information, professional
 services, and corporate headquarters, were the densest sectors in 2015. These sectors, along
 with the education sector, all employ larger numbers of highly educated workers. In this analysis,
 a sector’s level of job density is determined by two factors: The first is the spatial concentration
 of jobs in that sector, and the second is the nearby concentrations of other sectors’ jobs. These
 advanced business service sectors have high job density not only because jobs in each sector are
 highly concentrated together, but also because they tend to locate close to lots of jobs in other
 sectors. For example, information jobs by themselves had a density of 19,529 jobs per square mile in
 2015, but the perceived density around information jobs was 69,497 jobs per square mile including
 co-located jobs in other sectors. In other words, information jobs are themselves responsible for
 just 28% of their perceived job density. Corporate headquarters jobs are responsible for just 16% of
 job density in that sector.
 In contrast, sectors that tend to cater to consumers, or that consist of facilities that need large
 tracts of land, tend to have lower job densities. For example, the health care, local services,
 hospitality, and retail sectors have among the lowest job densities, in part because these sectors
 locate closer to households in less-dense neighborhoods and suburbs. Like the denser sectors
 discussed above, much of these sectors’ perceived density comes not from their own jobs but from
 nearby jobs in other sectors, with the exception of health care. Health care jobs are responsible
 for nearly 60% of that sector’s job density, indicating that health care jobs—at hospitals or large
 health complexes, for example—represent the majority of the jobs in the areas where they are
 located. Wholesale, logistics, and manufacturing jobs have lower job densities because they tend
 to comprise large one-story facilities such as warehouses, airports, and factories that often require
 lots of land and separation from other land uses.
 Figure 10. Jobs in advanced services sectors are located in the densest parts of metro
 areas on average
 Figure
 Job       9 by sector in 2015
     density
80,000
70,000
                        60,000
  Jobs per squaremile
50,000
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30,000
20,000
10,000
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 Note: Agriculture and mining are not shown due to their small number of jobs but count toward the total.
 Source: Brookings analysis of Census LEHD Origin-Destination Employment Statistics
Notably, a few sectors did post job density            the food service and hotel industries. These
increases across about half of individual metro        trends appear to confirm findings by the
areas. The density around jobs in the arts             International Downtown Association and others
and entertainment sector rose in 56 of 94              that concentration and proximity are playing an
large metro areas (60%). The density around            important role in the location decisions of firms
corporate headquarters jobs rose in 50 (53%)           in these sectors.45 Additionally, health care, real
of large metro areas.44 Additionally, half of          estate, construction, finance, and education all
large metro areas also saw increases in the            saw increasing job density in close to half of large
density of jobs in hospitality, which comprises        metro areas.
 Figure 11. Most sectors’ job density increases were driven by a minority of metro areas
 Figure     11 metro areas that saw an increase in job density by sector from 2004 to 2015
 Share of large
                  Total
   Arts/entertainment
        Headquarters
            Real estate
           Health care
            Hospitality
         Construction
               Finance
             Education
               Utilities
           Professional
             Wholesale
                 Retail
           Information
        Local services
              Logistics
        Manufacturing
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
 Note: Agriculture and mining are not shown due to their small number of jobs but count toward the total.
 Source: Brookings analysis of Census LEHD Origin-Destination Employment Statistics
5. Core urban counties experienced                    saw increases in job density of 13% and 1%,
large increases in job density, while                 respectively. Exurban counties collectively saw
suburban counties saw more modest                     job density decline by 18%. Actual job trends fell
gains                                                 short of expected trends in these suburban and
                                                      exurban counties, suggesting that job growth in
Job density trends not only varied among              suburban and exurban counties spread out to
individual metro areas, but also within them. The     less-dense parts of these areas.
highly urbanized “core” counties within individual
metro areas tended to see much larger increases       Once again, these job densification trends do not
in job density from 2004 to 2015 than less-           play out the same way in every metro area. For
urbanized—and, typically, less-dense—suburban         instance, although core urban counties posted a
or exurban counties.46 As with the preceding          large increase in job density when all large metro
findings, increases in job density in individual      areas are taken together, only 73% of large metro
counties were not widespread, suggesting,             areas that contain core urban counties saw the
again, that many of metropolitan America’s job        job density of those counties increase during the
densification trends during this period were          study period, as shown in Figure 13.49 Only about
driven in large part by a small set of metro areas.   half of metro areas that host suburban counties
                                                      saw job density increase in those counties
Within metropolitan America as a whole, core          while just 21% of metro areas saw job density
urban counties—defined as counties where at           increase in their exurban counties. In short, the
least 95% of residents lived in an urbanized area     direction and extent of job density trends varied
in 2000—collectively saw job density increase         greatly within metro areas and among similarly
from an average of 35,388 jobs per square mile        urbanized counties across metro areas.
in 2004 to 41,879 jobs per square mile in 2015, or
by 35% (Figure 12). These core urban counties’        This analysis therefore reveals a more nuanced
increase in job density was considerably greater-     pattern of job growth in metro areas than
than-expected, suggesting that job growth in          previous job sprawl studies have found. From
these core counties tended to concentrate in          2004 to 2015, jobs in most large metro areas
already-dense areas—including downtowns—within        both densified and sprawled: Almost every metro
them. This aligns with findings by Smart Growth       area in this study had at least one county where
America and others that growing numbers of            jobs grew denser and almost every metro area
business leaders are starting, expanding, or          also had at least one county in which job density
moving their firms to downtown locations in           declined. Moreover, the pattern of job growth
order to attract and retain educated workers, to      within different counties in the same metro
be closer to their customers, and to collaborate      area mattered just as much—if not more—to a
with other firms and institutions.47 Christopher      metro area’s overall job density trends than the
Leinberger, Michael Rodriguez, Tracy Loh and          distribution of its job growth between core urban
others, have also documented the rapid rise of        counties, peripheral suburban, and exurban
dense and walkable communities in these areas.48      counties.
Expected Actual
40%
30%
20%
10%
0%
-10%
  -20%
               Total             Core urban       Mature suburban   Emerging suburban   Exurban counties
                                  counties            counties           counties       (Less than 25%
                                (95 to 100%        (75% to 95%         (25 to 75%          urbanized)
                                 urbanized)          urbanized)        urbanized)
Figure 13
  Figure 13. Job density trends varied even among similar types of counties in large
  metro areas
  Share of metro areas that saw an increase in job density from 2004 to 2015
Total
Exurban counties
 Job density appears to have continued to rise in metropolitan America in more recent years, as
 shown in Figure 14. Although historical employment data for Census block groups are available
 only through 2015, county-level job growth trends suggest that job density increased more than 4
 percent across all 94 metro areas taken together from 2015 to 2018.50 Although the four especially
 large and extremely dense metro areas of New York, Chicago, San Francisco, and Seattle continued
 to fuel a large part of these increases, job density actually increased at a faster rate among the
 other 90 metro areas. Furthermore, increases in more recent years appear far more pervasive
 than in earlier years: Eighty-seven (87) of 94 metro areas (or 93%) would have seen an increase in
 job density from 2015 to 2018 based on their county-level job growth trends. Core urban counties
 were again responsible for much of the overall rise in metropolitan America’s job density, although
 job growth in suburban and exurban counties outpaced job growth in urban counties during this
 period.
 Figure 14
 Figure 14. County-level job growth trends suggest job density has continued to rise
 Projected job density trends for more recent years
           Large metro areas (94)   Extremely dense metro areas (4)       All other large metro areas (90)
                                                Projected
   50%
   45%
   40%
   35%
   30%
   25%
   20%
    15%
   10%
    5%
    0%
     2004 2005 2006 2007 2008 2009 2010            2011     2012   2013   2014   2015   2016   2017   2018
 Source: Brookings analysis of Census LEHD Origin-Destination Employment Statistics and Census
 Quarterly Workforce Indicators
 Figure 15. Indianapolis increased its job density more than its job growth alone would
 predict
 Figure
 Change in15Indianopolis’s job density since 2004
                                            Expected        Actual
    50%
40%
30%
20%
10%
0%
-10%
   -20%
      2004     2005     2006    2007    2008    2009     2010    2011    2012    2013    2014    2015
  Figure 16. Most of Indianapolis’s sectors increased their job density substantially
Figure    16
  Change in job density of Indianapolis by sector, 2004 to 2015
Expected Actual
100%
80%
60%
40%
20%
0%
-20%
  -40%
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  Note: Agriculture and mining are not shown due to their small number of jobs but count toward the total.
  Source: Brookings analysis of Census LEHD Origin-Destination Employment Statistics
 shed manufacturing jobs during and after                                  share of job growth from 2004 to 2015 was
 the recession. The metro area sustained a                                 in line with its share of jobs, its job growth
 disproportionate share of its manufacturing job                           disproportionately concentrated in the downtown
 losses in less-dense parts of the metro area,                             and other dense parts of the county. This
 which effectively increased the density of the                            increased its job density by 46%, accounting for
 manufacturing jobs that remained in parts of the                          97% of the region’s increase in job density during
 metro area that were already dense.                                       this period. The rest of the increase came from
                                                                           the metro area’s two mature suburban counties,
 Job growth patterns in Marion County played                               Hamilton—driven by the densification of jobs
 a major role in the metro area’s densification                            in the city of Carmel—and Johnson. Together,
 during this period. The county is Indianapolis’s                          these two mature suburban counties increased
 only core urban county and hosts about                                    their job density by 32%. Job density declined in
 two-thirds of the metro area’s private, non-                              Indianapolis’s emerging suburban and exurban
 administrative jobs. Although Marion County’s                             counties.
 Figure 17. Indianapolis’s largest job density increases were in its downtown and nearby
 suburbs
                                                     Hamilton                                                         Hamilton
                                                     County                                                           County
                                                                                         Carmel
                          Carmel
   Hendricks                                                    Hendricks
   County            Marion County                                                  Marion County
                                                                County
                            Downtown                                                       Downtown
                                     s                                                                s
                                  ile                                                              ile
                                m                                                                 m
                              3                                                               3
                                                                                                                  s
                                                 s
                                                                                                               ile
                                              ile
                                                                                                           m
                                          m
                                                                                                          10
                                         10
                    Johnson                                                        Johnson
                    County                                                         County
    Extremely high density (more than 30,000 jobs per sq mi)      Increase of more than 1,000 jobs per sq mi
    Very high density (7,000 to 30,000 jobs per sq mi)            Increase of 250 to 1,000 jobs per sq mi
    High density (1,500 to 7,000 jobs per sq mi)                  Increase of 0 to 250 jobs per sq mi
    Moderate density (400 to 1,500 jobs per sq mi)                Decrease of 0 to 100 jobs per sq mi
    Low density (100 to 400 jobs per sq mi)                       Decrease of 100 to 600 jobs per sq mi
    Very low density (less than 100 jobs per sq mi)               Decrease of more than 600 jobs per sq mi
    Parks                                                         Parks
 Figure 17A. In 2004, Indianapolis’s densest                    Figure 17B. Indianapolis’s largest increases in
 areas were its downtown and the areas just                     density from 2004 to 2015 were in and around
 north and southwest of downtown. There                         its downtown. Other areas that saw increases
 were some pockets of high job density along                    in job density included the southern part of
 the Indianapolis Beltway (I-465), such as the                  Hamilton County around the city of Carmel and
 northern part of Marion County and the city                    the eastern portion of Hendricks County. The
 of Carmel in the southwestern part of the                      largest decreases in density are actually just
 Hamilton County.                                               outside the downtown area, especially in West
                                                                Indianapolis.
Several major sectors shifted the distribution of      Other sectors posted changes in job density
their jobs to less-dense parts of Baltimore during     that are notable for either their size or role in
                                                       Baltimore’s overall job density trends. Health
 Figure 18. Baltimore’s job density declined slightly despite an expected increase
Figure
 Change 18
         in Baltimore’s perceived job density since 2004
Expected Actual
50%
40%
30%
20%
10%
0%
-10%
  -20%
     2004     2005    2006     2007    2008     2009    2010     2011     2012     2013    2014     2015
 care jobs grew denser during this period,              Baltimore’s changing job density from 2004 to
 thanks in large part to the growth of health care      2015 is different from most other large metro
 institutions in Baltimore’s urban core, such as        areas in two ways. First, the density of its core
 Johns Hopkins Hospital. However, the education         urban area, Baltimore City, declined and was the
 sector—Baltimore’s densest sector in 2004—saw          largest contributor to the decline seen across
 its density decline despite an expected increase,      the metro area overall.51 Second, Baltimore City’s
 as private schools and colleges in less-dense          declining job density was not driven purely by the
 suburban areas added jobs faster than those in         recession or by job losses. Instead, the declines
 the core. These trends also heavily influenced the     are a result of job growth spreading out from
 metro area’s overall job density trends.               Baltimore’s highly dense downtown to less-dense
                                                        adjacent districts along its waterfront during the
                                                        Great Recession and early years of the economic
                                                        recovery.
  Figure 19. Most of Baltimore’s industry sectors saw their job density decline
Figure
  Change 19
          in job density of Baltimore by sector, 2004 to 2015
Expected Actual
60%
40%
20%
0%
-20%
  -40%
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  Note: Agriculture and mining are not shown due to their small number of jobs but count toward the total.
  Source: Brookings analysis of Census LEHD Origin-Destination Employment Statistics
 Figure 20. Baltimore’s jobs spread along its waterfront and to its north and southwest
 suburbs
                                 Towson                                                       Towson
   Howard                                                       Howard
   County               Baltimore City                          County               Baltimore City
Downtown Downtown
                                     iles                                                         iles
                                 3m                                                            3m
                                                   les                                                          les
                                                 mi                                                           mi
                                            10                                                           10
                      Anne Arundel                                                 Anne Arundel
                      County                                                       County
    Extremely high density (more than 30,000 jobs per sq mi)     Increase of more than 1,000 jobs per sq mi
    Very high density (7,000 to 30,000 jobs per sq mi)           Increase of 250 to 1,000 jobs per sq mi
    High density (1,500 to 7,000 jobs per sq mi)                 Increase of 0 to 250 jobs per sq mi
    Moderate density (400 to 1,500 jobs per sq mi)               Decrease of 0 to 100 jobs per sq mi
    Low density (100 to 400 jobs per sq mi)                      Decrease of 100 to 600 jobs per sq mi
    Very low density (less than 100 jobs per sq mi)              Decrease of more than 600 jobs per sq mi
    Parks                                                        Parks
 Figure 20A. Baltimore’s extremely dense                       Figure 20B. Harbor East and the waterfront
 areas, as of 2004, were its downtown and the                  areas in the city of Baltimore have seen some
 areas just east of downtown, where the Johns                  of the metro’s largest increases in job density
 Hopkins University School of Medicine and                     from 2004 to 2015. However, areas just west
 hospital complex is located. There were some                  and north of Downtown Baltimore have seen
 pockets of high job density along the Baltimore               some of the metro area’s greatest decreases in
 Outer Beltway (I-695), such as the suburb of                  density. Other areas that saw large increases in
 Towson, the county seat of Baltimore County,                  density were the areas along I-95 to the south
 and areas around the suburb of Columbia in the                and around BWI airport as well as the suburb
 southeastern part of the Howard County.                       of Hunt Valley, north of Towson, in Baltimore
                                                               County.
 Source: Brookings analysis of Census LEHD Origin-Destination Employment Statistics
In all, this report provides evidence that, on        Exploring such questions can begin to tell us
the whole, jobs in metropolitan America—              whether the design and development of our
and particularly jobs in certain sectors—are          communities are keeping pace with the changing
densifying. But it also shows that individual         needs of firms and workers, help us better
metro areas could be doing far more to prioritize     understand the positive outcomes that smarter
and support such trends by investing in existing      growth can yield, and point to the kinds of
areas of concentrated development. This               transformative placemaking efforts that can help
represents a missed opportunity: Density offers       to achieve them.
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                                                          9. Daniel Immergluck, “Job proximity and the
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                                                          How residence and race affect the employment
     4. Joel Garreau, Edge City: Life on the New          of welfare recipients,” Housing Policy Debate
     Frontier, Anchor Books (1991); Robert Lang,          (2002).
     Edgeless cities: Exploring the elusive metropolis,
     Brookings (2003).                                    10. Martin Andersson and Per Thulin, “Does
                                                          spatial employment density spur inter-firm job
     5. Gilles Duranton and Diego Puga, “Micro-           switching?” (2013); Pierpaolo Parrotta and Dario
     foundations of urban agglomeration economies,”       Pozzoli, “The effect of learning by hiring on
     Handbook of Regional and Urban Economics             productivity,” The RAND Journal of Economics
     (2004); Antonio Ciccone and Robert Hall,             (2012).
     “Productivity and the density of economic
     activity,” The American Economic Review 86           11. Kristy Buzard and others, “The agglomeration
     (1996); Stuart Rosenthal and William Strange,        of American R&D labs,” Journal of Urban
     “Evidence on the nature and sources of               Economics (2017); Brian Knudson and others,
     agglomeration economies” (2004); Gerald Carlino      “Density and creativity in U.S. regions,” Annals of
     and others, “What explains the quantity and          the Association of American Geographers (2008);
     quality of local inventive activity?” Brookings-     Emil Malizia and Yasuyuki Motoyama, “Vibrant
     Wharton Papers on Urban Affairs (2009);              centers as locations for high-growth firms: and
     Jaison R. Abel and others, “Productivity and the     analysis of thirty U.S. metropolitan areas,” The
     density of human capital,” Journal of Regional       Professional Geographer (2019); Gerald Carlino
     Science (2012); Shima Hamidi and others, “The        and others, “What explains the quantity and
     relationship between regional compactness and        quality of local inventive activity?” (2009); Nate
     regional innovation capacity: Empirical evidence     Wessel and others, “Are workers attracted to
     from a national study,” Technological Forecasting    social interaction opportunities? A study of face-
     & Social Change (2019).                              to-face contact opportunities by occupation and
                                                          industry.” The Professional Geographer (2018).
17. Robert Burchell, “Economic and fiscal costs of   24. Kaid Benfield and others, Once there were
sprawl,” The Urban Lawyer (1997); Brad Wyche,        greenfields (1999); Vittorio Gargiulo and others,
“The fiscal impact of sprawl in South Carolina,”     “Urban sprawl and the environment” (2012).
Business and Economic Review (2007); Smart
Growth America, “Building better budgets: A          25. Jonathan M. Samet and others, “Fine
national examination of the fiscal benefits of       particulate air pollution and mortality in 20 U.S.
smart growth development” (2013); Robert             cities, 1987-1994,” The New England Journal
W. Burchell and others, Cost of sprawl—2000          of Medicine (2000); Scott Weichenthal and
(2002); David Thompson, “Suburban sprawl:            others, “Traffic-related air pollution and acute
Exposing hidden costs, identifying innovations,”     changes in heart rate variability and respiratory
Sustainable Prosperity (2013).                       function in urban cyclists,” Environmental
28. 28. See, for example: Edward Glaeser and          36. The accuracy of employment location data
Matthew Kahn, “Decentralized employment               for multi-establishment firms depends in part on
and the transformation of the American city,”         the quality of data the Census Bureau receives
Brookings- Wharton Papers on Urban Affairs            from states and the data methods used year to
(2001); Edward Glaeser and Jesse Shapiro, “Is         year and Census Bureau researchers’ methods for
there a new urbanism? The growth of U.S. cities       assembling these data for publication. See: John
in the 1990s,” National Bureau of Economic            Abowd and others, “The LEHD infrastructure
Research Working Paper 8357 (2001); Steven            files and the creation of the Quarterly Workforce
Raphael and Michael Stoll, “Job sprawl and            Indicators” (2005); Kevin McKinney and others,
the suburbanization of poverty,” Brookings            “Total error and variability measures with
(2010); Elizabeth Kneebone, “Job sprawl stalls,”      integrated disclosure limitation for Quarterly
Brookings (2013); Joe Cortright, “Surging city        Workforce Indicators and LEHD Origin Destination
center job growth” (2015); Daniel Hertz, “City        Employment Statistics in OnThe Map” (2017);
center job growth continues strength; suburbs         Robert Manduca, “The US Census Longitudinal
rebounding from recession,” City Observatory          Employer-Household Dynamics datasets” (2018).
(2016).
                                                      37. Authors’ analysis of LODES data. Robert
29. The (LODES) database is available for             Manduca and Daniel Hertz have previously
download at: https://lehd.ces.census.gov/data/.       documented similar issues. See: Robert Manduca,
                                                      “The US Census Longitudinal Employer-
                                                      Household Dynamics datasets” (2018); Daniel
30. Lars Vilhuber and Kevin McKinney, “LEHD           Hertz, “City center job growth continues
infrastructure files in the Census RDC: Overview.”    strength” (2016).
U.S. Census Bureau (2014).
40. In this analysis, all observed changes in         44. The prevalence of increases in the density
perceived job density are due solely to job           of health care and education jobs stems in part
growth or decline in individual block groups. An      from the fixed, urban footprint of many the large
advantage of using analyzing block groups as          institutions that comprise these sectors and their
the unit of analysis is that their area does not      especially fast job growth during this period. TK
change. The LODES data are reported for 2010          Yet increases in the perceived density of jobs in
Census block groups for all years, even those         these sectors also fell short of what we would
prior to 2010. Therefore, block groups’ land area     have expected from their job growth alone,
is constant over the entire period of analysis.       indicating that jobs in these sectors are spreading
                                                      out to less dense parts of metro areas. This could
41. These expected trends are calculated using a      be due to the faster growth or emergence of
shift-share technique in which the rate of change     new health care facilities in suburban or exurban
in the number of jobs in a block group are held to    areas where hospitals and schools have room to
the equivalent rate of change for the metro area      spread out or may not be as proximate to jobs in
in each year. In a dynamic shift-share analysis,      other sectors.
changes in metro area job levels are measured
over each year rather than across all years in        45. See: Paul Levy and Lauren Gilchrist,
the period of analysis, making these findings less    “Downtown rebirth: documenting the live-work
sensitive to the choice of start and end years. The   dynamic in 21st Century U.S. cities,” International
analysis is done using two-digit NAICS sectors,       Downtown Association (2014); Bruce Katz and
which is the most granular disaggregation of          Julie Wagner. “The rise of innovation districts”
employment by industry available from LODES.          (2014); Richard Florida, “Startup city” (2014);
                                                      Smart Growth America, “Core values” (2015);
42. Note that the rate of change in the number        J.B. Wogan, “Why companies are moving back
of jobs and the rate of change in standard job        downtown,” Governing (2016).
density will always match. However, the rate of
change in perceived job density can be greater or     46. Finding 5 uses a county typology developed
less than the rate of job growth. In this example,    by Brookings expert Bill Frey that has been
       The Metropolitan Policy Program at Brookings would like to thank the Anne T. and Robert M. Bass
       Foundation for its generous support of this analysis, and the Metropolitan Council, a network of
       business, civic, and philanthropic leaders that provides both financial and intellectual support for the
       Program.
       The authors would like to thank the following colleagues for providing valuable insights and critiques
       on early versions of the analysis and report: Alan Berube; Amy Liu, Adie Tomer, Joe Cortright, Elissa
       Gertler, Tracy Loh, Christopher Leinberger, Nate Storing, the leadership and staff of the Project for
       Public Spaces and the National Main Street Center, and members of the Anne T. and Robert M. Bass
       Center on Transformative Placemaking advisory committee. The authors are grateful to Hanna Love
       and Kaitlyn Lundy for their excellent research support and assistance. The authors would also like
       to thank the following colleagues for valuable support in producing the report and contributing to
       outreach efforts: Julia Kraeger, David Lanham, Alec Friedhoff, Carly P. Anderson, Rachel Barker, Rowan
       Bishop, and Caroline Corona. Thanks to Luisa Zottis for layout and design.
       The Brookings Institution is a nonprofit organization devoted to independent research and policy
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Image credits
    The Metropolitan Policy Program at Brookings delivers research and solutions to help metropolitan
    leaders build an advanced economy that works for all. To learn more, visit brookings.edu/metro.
    The Anne T. and Robert M. Bass Center for Transformative Placemaking aims to inspire public, private,
    and civic sector leaders to make transformative place investments that generate widespread social
    and economic benefits. To learn more, visit brookings.edu/basscenter.
    Jennifer S. Vey
    Senior Fellow and Director of the Anne T. and Robert M. Bass Center on Transformative Placemaking
    Metropolitan Policy Program at Brookings
    [email protected]