Investment Management

December 20, 2024

Revitalizing America's cities: lessons in housing, safety, and growth

Revitalizing America's cities: lessons in housing, safety, and growth

American cities face unprecedented challenges as they recover from the pandemic's economic and social impacts. From homelessness and rising crime to the decline of downtown commercial spaces, the path to revitalization requires a holistic approach.

Cities can create vibrant, inclusive spaces that serve residents and businesses by tackling affordable housing, public safety, and economic growth. Denver, Colorado, offers valuable insights into how these strategies can be applied nationwide.

Tackling homelessness as a starting point

For many cities, homelessness is the most visible and urgent challenge in urban revitalization. Addressing this issue requires more than temporary solutions; it demands long-term, sustainable housing options.

Denver Mayor Mike Johnston identified homelessness as the priority when he stepped into office. "For us, the first step was around homelessness," Johnston explained, noting that Denver had one of the toughest homelessness situations in the country at the time. The city planned to move 1,000 people off the streets and into housing within a year. By providing dignified housing options like hotel conversions and tiny home villages, Denver exceeded its target, moving over 2,000 people into housing within the first year.

One key to Denver’s success was creating transitional housing that offered privacy and stability. "When the option was: Do you want to sleep on a gymnasium floor with 100 other people you don’t know in the dark, people would say no," said Johnston. "If you have an individual non-congregate shelter site where you have your own lock, your own door, your own access to shower...100 percent of the folks we offered that option took it." This strategy allowed Denver to clear encampments and ensure that areas remained closed to future camping.

Housing affordability for all income levels

Affordable housing is the backbone of successful city revitalization. Without it, cities risk becoming exclusive spaces where only the wealthy can thrive. Denver’s approach to housing focuses on what Mayor Johnston called the "entire ladder of housing," addressing everyone from those experiencing street homelessness to middle-income families.

Johnston’s administration has made significant investments in preserving and expanding affordable housing. "We’re about 45,000 units short over the next 10 years," he explained. To tackle this, Denver is proposing a $100 million-a-year tax revenue plan to build affordable rentals and ownership opportunities. This initiative aims to ensure that essential workers like teachers, firefighters, and nurses can afford to live in the city, preventing the loss of the city's diversity and vibrancy.

As Johnston emphasized, "You will really lose what you love about the city if teachers and nurses and firefighters and servers can’t live in the city anymore."

Enhancing public safety without over-policing

Public safety is another foundational element of urban revitalization. However, striking the right balance between visible police presence and community trust is crucial. Denver’s strategy demonstrates how cities can reduce crime while fostering a sense of security.

One of the key challenges in revitalizing downtown Denver was crime. Johnston described a moment when a CEO visiting downtown had her rental car broken into, which resulted in the company deciding against relocating to the city. "We don’t close that deal no matter how good the offer is," Johnston remarked, emphasizing the critical link between safety and economic growth.

To combat crime, Denver implemented a combination of police presence and community-based interventions. "We increased officers on the streets but also created a program called Denver Ambassadors—nonprofit partners with yellow vests—who walk up to people and ask, 'Do you need services?'" Johnston explained. This approach reduces the need for aggressive policing while still addressing safety concerns.

Additionally, Denver’s use of technology, such as license plate readers, has helped the city reduce auto theft by 30 percent and gun violence by 30 percent. These strategies have freed up police resources to focus on more proactive community engagement, further boosting public safety.

Placemaking and creating vibrant communities

A busy, active street is a safe street, and placemaking is critical to ensuring that urban areas feel vibrant and welcoming. Placemaking involves physical improvements, such as creating walkable areas, public spaces, restaurants, and retail, and also enhancing the overall atmosphere of an area to make it a desirable destination for both residents and visitors. Placemaking focuses on making urban areas feel lively, safe, and inviting. Denver’s investment in placemaking has focused on making downtown a destination people want to visit, live in, and stay in.

The revitalization of the 16th Street Mall is a prime example. As Johnston noted, "The grand reopening of the 16th Street Mall gives us an incredible chance to make a new first impression."  By transforming this area with restaurants, retail, and public spaces, Denver is creating a European-style downtown where people can walk, explore, and enjoy various activities.

Johnston also emphasized the importance of placemaking in different neighborhoods across the city, noting that successful revitalization often involves creating distinct, walkable urban districts that attract residents and visitors alike.

Leveraging commercial spaces for residential use

In many U.S. cities, the pandemic has underutilized commercial office spaces. Cities like Denver are exploring how to convert these spaces into residential or mixed-use developments, breathing new life into downtown areas. Johnston’s administration is working on a pilot project to turn office buildings into affordable housing.

"We’re open to different kinds of housing structures you can create with these floor plates," Johnston explained, noting that innovative solutions such as single-room occupancy (SRO) models could help provide housing for young professionals.

By converting commercial spaces into residential units, cities can increase housing stock while reducing the vacancy rates plaguing downtown areas in recent years.

Attracting talent and growing key industries

Economic growth is the lifeblood of revitalization efforts. Cities must attract and retain talent while fostering industries that align with their unique strengths. For Denver, one of the key sectors is tech, specifically artificial intelligence (AI).

"We just hosted the first-ever city convening of AI companies," Johnston noted, emphasizing the importance of aligning innovation with social good. By investing in industries like AI and expanding international trade through new direct flights, Denver is positioning itself as a hub for tech and innovation.

Attracting young talent is also a priority. Denver ranks second among U.S. cities where people under age 30 want to move. This fact is a testament to the city’s vibrant job market and commitment to creating opportunities for young professionals.

Enhancing public transit and urban connectivity

Public transportation is a critical component of urban revitalization, especially in cities where commuting by car has become unsustainable. Denver’s focus on improving public transit includes both expanding light rail access and making it more attractive to residents and visitors.

"We’re looking at ways to increase public transit use by making it free for certain populations," Johnston said, noting that programs like free transit for youth under 19 have already driven ridership increases. Additionally, the city is exploring express lines that could offer faster connections between key hubs and downtown.

Improving public transportation's convenience, safety, and reliability will be key to reducing traffic congestion and creating a more sustainable urban future.

Revitalization helps everyone

Revitalizing America’s cities requires bold, innovative strategies that address housing, public safety, and economic growth. Denver’s approach offers a blueprint for other cities to follow, focusing on tackling homelessness, creating affordable housing, fostering vibrant communities, and leveraging technology for safety and efficiency. As cities across the U.S. look to the future, these lessons can guide their efforts in creating inclusive, thriving urban spaces that serve everyone.

Need to find ways to add value to your downtown space? Reach out to W&D office experts today.

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