Who's Your City?

1. Place matters more than ever in our globalized economy

Despite all the hype over globalization and the "flat world," place is actually more important to the global economy than ever before.

The rise of mega-regions. Contrary to predictions that technology would make location irrelevant, economic activity is increasingly concentrating in a small number of mega-regions. These areas, like the Boston-New York-Washington corridor or Greater Tokyo, account for a disproportionate share of global innovation, talent, and economic output.

The power of clustering. The clustering of talented people and companies in these mega-regions creates a virtuous cycle of innovation and growth. When creative people work in close proximity, ideas flow more freely, productivity increases, and new businesses emerge more readily. This clustering effect gives certain locations a significant competitive advantage in the global economy.

Key mega-regions:

• Boston-New York-Washington corridor
• Greater Tokyo
• Northern California/Silicon Valley
• London-Cambridge
• Amsterdam-Brussels-Antwerp

2. The world is spiky, not flat, with mega-regions as key economic units

The world gets spikier and spikier the farther you climb up the ladder of economic development, from producing basic goods to undertaking significant new innovations.

Economic concentration. Using data on population density, economic activity, and innovation, the author demonstrates that the world economy is highly concentrated in a relatively small number of locations. These "spikes" on the global economic landscape are becoming taller and more pronounced over time.

Mega-regions as economic engines. The world's 40 largest mega-regions, while home to only 18% of the global population, generate two-thirds of global economic activity and 86% of patented innovations. These areas are the true drivers of the world economy, often transcending national borders.

Characteristics of leading mega-regions:

• High concentration of talent and human capital
• Robust innovation ecosystems
• Strong connections to global markets
• Diverse economic base
• High quality of life amenities

3. The clustering force drives innovation and economic growth

People are drawn to places that reinforce and reflect aspects of who we are and who we want to become.

The power of proximity. When talented and creative people cluster together, they become more productive and innovative. This clustering effect creates a positive feedback loop, attracting more talent and resources to the area.

Personality and place. Different personality types tend to cluster in different locations. Open and creative personalities are drawn to dynamic urban centers, while more conscientious types may prefer more stable, traditional communities. This sorting reinforces the distinctive character and economic strengths of different regions.

Factors driving the clustering force:

• Knowledge spillovers and idea exchange
• Specialized labor markets
• Access to venture capital and other resources
• Cultural amenities and quality of life
• Network effects and social connections

4. Where you live shapes your career opportunities and financial prospects

As places become more specialized, not just in the jobs and careers they offer but also in the kinds of people they attract and cater to, our odds of meeting that special someone become significantly better in some places than in others.

Geographic specialization of work. Many industries and job types are becoming increasingly concentrated in specific locations. For example, finance in New York and London, technology in Silicon Valley, or entertainment in Los Angeles.

Real estate and wealth creation. Where you live can significantly impact your long-term financial prospects, particularly through real estate appreciation. Some "superstar cities" have seen dramatic increases in property values, while other areas have stagnated.

Examples of geographic job concentration:

• Finance: New York, London, Hong Kong
• Technology: Silicon Valley, Seattle, Austin
• Entertainment: Los Angeles, Nashville
• Aerospace: Seattle, Toulouse
• Biotechnology: Boston, San Diego

5. Location profoundly impacts your personal happiness and well-being

Place forms the third leg in the triangle of our well-being, alongside our personal relationships and our work.

The Place and Happiness Survey. The author's research demonstrates that where we live is a key factor in our overall life satisfaction, on par with our relationships and work. Different aspects of place contribute to happiness, including physical beauty, social connections, and cultural amenities.

The importance of fit. Finding a place that aligns with your personality, values, and lifestyle preferences is crucial for personal fulfillment. Some people thrive on the energy of big cities, while others prefer the quieter pace of smaller communities.

Key factors influencing place-based happiness:

• Physical beauty and outdoor amenities
• Social connections and sense of community
• Cultural offerings and stimulation
• Economic opportunities
• Quality of basic services (education, healthcare, etc.)
• Openness and tolerance

6. Communities specialize to fit different life stages and personality types

Places that rank high in aesthetics and openness do something that is powerful and unique: they level the playing field for all their residents, even in a city like New Orleans, which is both racially and socioeconomically divided.

Life stage specialization. Different types of communities cater to people at various life stages, from young singles to families with children to empty-nesters and retirees. The author provides rankings of the best places for each life stage based on factors like job opportunities, schools, and amenities.

Personality-place fit. Research shows that different personality types tend to cluster in certain locations. Finding a place that matches your personality can lead to greater happiness and success.

Examples of community types:

• Urban Mosaic: Diverse, mixed-use neighborhoods
• Hipster Haven: Trendy urban areas popular with young creatives
• Family Land: Suburban areas with good schools and family amenities
• Designer Digs: Upscale urban neighborhoods
• Boho-burb: Creative suburban communities
• Preservation-burg: Historic small towns

7. Strategically choosing where to live is as important as career and relationships

For most of human history, migration has been involuntary. People moved out of necessity—to avoid war, escape political or religious persecution, or find work. Even as recently as the 1950s and 1960s, most people—white-collar and blue-collar workers alike—moved to find jobs.

The mobility revolution. Today, an unprecedented number of people have the freedom to choose where they want to live. This choice is as important as decisions about career and relationships, yet many people give it less strategic thought.

The stakes are high. Where you choose to live can have a profound impact on your career prospects, financial well-being, personal relationships, and overall happiness. Making an informed decision is crucial.

Key considerations when choosing a place:

• Career and economic opportunities
• Cost of living and housing affordability
• Quality of life and amenities
• Cultural fit and social connections
• Long-term growth potential
• Climate and natural environment

8. The "Place Pyramid" framework helps evaluate potential locations

Finding a place that makes us happy has a powerful effect on our "activation." Such places encourage people to do more than they otherwise would, such as engage in more creative activities, invent new things, or start new companies—all things that are both personally fulfilling and economically productive.

The Place Pyramid. The author introduces a framework for evaluating potential locations, with five levels:

1. Opportunity (economic and career prospects)
2. Basic Services (education, healthcare, safety)
3. Leadership (quality of local governance)
4. Values (community culture and openness)
5. Aesthetics (physical beauty and quality of place)

Balancing priorities. The ideal place meets needs at all levels of the pyramid, but individuals must determine their own priorities and make trade-offs based on their unique circumstances and preferences.

Steps for using the Place Pyramid:

1. Assess your priorities for each level
2. Research potential locations using both quantitative and qualitative data
3. Visit places in person to get a feel for the community
4. Consider short-term and long-term implications of your choice
5. Re-evaluate periodically as your needs and circumstances change

9. Canadian cities excel at balancing urban vibrancy with family-friendliness

Canadian cities are different. Public schools are quite good, and there is much less of a differential between urban and suburban schools. Sure, many Canadian parents choose to send their kids to private or parochial schools, and they do so both in the suburbs as well as the city. But many Canadian parents are able to and prefer to stay in urban centres, because the streets are relatively safe and the schools are good.

Urban family-friendliness. Unlike many U.S. cities, Canadian urban centers like Toronto, Vancouver, and Montreal offer a high quality of life for families. This includes good public schools, safe neighborhoods, and diverse cultural amenities.

Balancing act. Canadian cities have managed to maintain vibrant urban cores while also providing the safety and services that families need. This allows for a greater mix of demographics and lifestyles within the city.

Advantages of Canadian urban centers:

• Strong public school systems
• Lower crime rates compared to U.S. counterparts
• Cultural diversity and amenities
• Walkable neighborhoods
• Good public transportation
• Mix of housing options for different family sizes and budgets

10. Empty-nesters and retirees are redefining community preferences

"When it comes to finding a place to live," the Wall Street Journal wrote in October 2006, "today's retirees are looking for something completely different."

Changing preferences. Baby boomers and retirees are increasingly seeking active, engaged lifestyles in their later years. Many are moving to urban areas or college towns that offer cultural amenities, lifelong learning opportunities, and intergenerational connections.

Impact on communities. The choices of this large demographic group are reshaping communities and real estate markets. Cities and developers are responding with new types of housing and amenities designed to appeal to active older adults.

Emerging trends for empty-nesters and retirees:

• Urban living: Moving to walkable city neighborhoods
• College towns: Seeking intellectual stimulation and cultural offerings
• Intergenerational communities: Desire for diverse social connections
• Active lifestyle communities: Focus on health, wellness, and recreation
• Flexible housing options: Balancing independence with future care needs
• Proximity to family: Choosing locations near children and grandchildren

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Last updated: August 20, 2024