Jan. 16, 2025
When we think about urban planning, we usually think about big cities like New York or San Francisco. But what about all those smaller U.S. cities that also have walkable downtowns and a scale that many people find attractive?
These places — municipalities of between 25,000 and 150,000 people, often at the center of a metropolitan region with fewer than a million people — are an important part of how the country can grow sustainably over the next century. From 2010 to 2022, the number of U.S. residents living in these types of communities grew from 78.5 million to 89.5 million, according to the American Community Survey. This 14 percent increase is nearly double the 7.7 percent uptick in the U.S. population overall and is comparable to the increase in larger cities.
I've spent a lot of my career as a planner in small cities, and this growth doesn't surprise me. During the COVID-19 pandemic — when workers were freed from office spaces but connected by broad internet access, regional airports, and highways — people flocked from larger metropolitan areas to smaller communities. A smaller scale often allows people to walk to a local store, library, or restaurant, access natural spaces readily, and simply feel connected to their home.
Looking abroad to learn about home
Other countries have a longer history of planning for small cities. After World War II, the United Kingdom began the New Towns program to address their postwar housing shortage. The new Labour government has returned to this strategy, seeking to create New Towns — with a million new homes — while protecting green belts.
However, European countries with a history of strong central planning are not always the best guides for U.S. planners. I've found it more helpful to look at places where development boomed after the automobile became prevalent. Iceland shares a lot of characteristics with the U.S. Much of the country's growth occurred after their 1944 independence and was centered on driving rather than walking or transit. Their planning is often done at the local level.
As the director of planning and development in Portland, Maine, from 2012 to 2019, I saw a significant increase in commerce with Icelandic companies. Since cities in Iceland and Maine are similar in size, I wondered what lessons we could learn from our peer planners. I was fortunate to receive a travel grant to study this issue as part of my work in MIT's Department of Urban Studies & Planning. In May 2024, I spent 10 days in Iceland studying what U.S. planners can learn from Icelandic cities.
There are no large cities in Iceland. Reykjavík, the capital, has a population of just under 140,000, comparable to the 200th largest city in the U.S. The next biggest city, Kópavogur, has a population of just under 40,000, while their northern hub of Akureyri has fewer than 20,000 residents.
But Icelandic cities are growing rapidly, with Reykjavík's population increasing 15.7 percent since 2010. Even Akureyri, far from the international airport and capital, grew by 12.7 percent. These thriving small cities can show U.S. planners how our small cities can respond to — and even spur — growth. Icelandic cities are doing interesting and innovative planning in transportation, placemaking, and infrastructure.
Planning sustainable transit and housing
One example of planning for sustainable growth is Betri Samgöngur. Translated as "Transport for the Capital Area," it's a joint effort by the national government and six municipalities to ensure two-thirds of their population is within just a five-minute walk of transit by 2040. They signed a transport treaty, recently updated, that seeks to construct an ambitious bus rapid transit (BRT) system named Borgarlínan ("City Line").
The first Borgarlínan is moving into construction in the next few years. It will connect Kópavogur from the south to downtown Reykjavík over a new BRT bridge across the harbor, then continue east. Ambitious transit-oriented development is planned for both ends of the line.
A new neighborhood, Keldur, is planned for the eastern end of the service on state-controlled land. According to Thorsteinn Hermannsson, director of development for Transport for the Capital Area, Keldur will become home to 13,000 residents and 8,000 jobs. The plan, selected after an international competition, includes three BRT stations surrounded by three- to five-story buildings. Parking will be limited to the periphery, other than for loading and those with disabilities.
Kópavogur is also planning for growth. The Kársnes district, between city hall and the bays, includes single-family homes inland and underdeveloped waterfront land. The Sky Lagoon geothermal spa opened on the water in 2021, spurring visits to the area. City planners see an opportunity to create much-needed year-round housing in the district's underdeveloped edges.
Kársnes harbor was one of the sites explored in the Nordic Built Cities challenge in 2015. The winning plan recommended development focused on transit and water, with new open spaces and housing for 4,550 residents.
Planners there say the plan seeks to preserve the raw, close nature of the oceanfront, increase walkability and access to new BRT, provide public spaces, and create a diverse and interesting built appearance. The plan also includes preparations for climate change and preserving the existing marina. So far, development has started on 13 parcels.
In Kársnes, the neighborhood scale is planned to be taller than that of surrounding neighborhoods and other new developments. Growing sustainably, especially when you aim to keep housing affordable and transit accessible, sometimes means peeking up above the existing skyline.
Committing to bold action
While Iceland might seem remote, its challenges likely hit close to home. Its approach offers lessons for small U.S. cities looking to grow sustainably. To work, bold ideas backed by implementation, like improved transit service and density to match, are needed.
Communities will need to commit to more transit and safety on roadways for everyone. To provide affordability and make transit viable, cities may have to allow more height and density, even if it doesn't exactly match the existing fabric.
The future for small cities in America can be bright if they are planned well. Small city planners should think big.