Exit and Voice in U.S. Settlement Change

Abstract

The prescriptions of top-down land use planners and the actions of the people who shape U.S. cities, consumers and developers, are at odds. In spite of various recent pronouncements that the “Smart Growth” movement has begun to reverse suburbanization trends, the opposite appears to be the case. Population data from the 2000 census and employment trend data from the Commerce Department's REIS (Regional Economic Information System) file corroborate the view that the decentralization of people and jobs continues. Falling transportation and communications costs strongly suggest that most people will continue to choose suburban low-density living.

The move to new communities in suburban and exurban areas has been accompanied by a parallel move to private communities. In the past 25 years, about 40 million Americans have moved into private communities. Over the same period, the suburbs have grown by approximately 55 million. In addition to the advantages associated with suburban and private community living, both offer more secure property rights. Governance arrangements in private communities must pass a market test; governance in newer communities is less likely to be hampered by established interest groups and lobbies. Both outcomes can be seen as institutional adaptations to the threat posed to property by an environmental movement working hard to implement top-down land use controls.