Designing Thriving Cities

The Economic Value of Effective Urban Design and Planning

Katarina Blind
4 min readMay 25, 2023

Copenhagen, Denmark is known for its focus on walkability which has led to a city with a high quality of life and a thriving local economy. The city’s pedestrian-only shopping street, Strøget, is one of the longest in Europe and has become a hub of activity for tourists and locals alike. The street is lined with shops, restaurants, and cafes, and its wide, open spaces create a welcoming environment for pedestrians. This has led to increased sales and foot traffic for local businesses, showing how urban design can have a positive economic impact.

In Melbourne, Australia, the revitalization of the city’s laneways has led to increased economic activity and a vibrant street culture. These formerly neglected spaces have been transformed into thriving retail and hospitality destinations, attracting both locals and tourists alike. This has led to increased foot traffic and spending in the surrounding areas, helping to support local businesses and drive economic growth.

But urban design is not just about creating attractive transportation or productive local economies; it can also have a positive impact on public health, which in turn has economic benefits. The availability of public spaces and green areas has been linked to improved mental health and reduced healthcare costs. Paris, France has implemented several initiatives to promote urban greenery which have already been shown to improve the overall well-being of residents. This is an important factor of supporting public health and creating thriving economies.

3 ways of creating tangible economic impact through urban design

Strengthening local economies

Designing cities with the end users and business goal in mind can drastically improve experiences and economics outcomes. Pedestrian-only shopping streets are prime examples of that. By creating a car-free zone and prioritizing pedestrians, the streets become thriving hubs of activity for locals and tourists alike. This results in increased foot traffic and sales for local businesses, making it a prime example of the economic benefits of good urban design.

Good transportation is also critical to strengthening local economies. Cities with efficient and affordable public transportation systems can help connect people to jobs, education, and other economic opportunities. By reducing travel time and costs, public transportation can increase access to employment and improve economic mobility.

The positive cycle of neighborhood development

When neighborhoods are designed with service and experience in mind, they become more attractive to residents and visitors alike. This can lead to increased economic activity, as well as more investment and development. In turn, this creates a positive feedback loop, where the neighborhood becomes even more desirable over time.

Neighborhoods that are well-designed and livable attract talented individuals and businesses, further contributing to economic growth and development. Especially when bigger companies settle in one city or area, it creates a wave of new workers bringing economic opportunities through their productivity and especially spending in local economies.

Overall, strategic neighborhood development creates a virtuous cycle of investment, further strengthening the local economy.

From public spaces to public health

One of the positive impacts of public spaces is their ability to encourage non-motorized transport and physical activity. Cities that prioritize public spaces and pedestrian-friendly infrastructure tend to have more active populations, which can lead to a decrease in hypertension and cardiovascular diseases.

Public spaces also play a role in reducing pollution through carbon storage. Green spaces are effective at absorbing pollutants and improving air quality, which can lead to significant public health benefits.

In addition to physical health benefits, public spaces have been shown to improve mental, behavioral, and neurological disorders. Exposure to green spaces has been linked to lower levels of stress, anxiety, and depression, and has been shown to improve cognitive function and memory retention. The availability of safe and attractive public spaces can also encourage social interaction and community engagement, which can improve mental health and overall quality of life.

Macro level understanding and impact

An urban planning master’s student at Aalto University mentioned how

“the research and attention to many urban problems have changed [her] perspective on solving problems”.

Designing thriving cities requires a multidisciplinary approach that overlaps with various fields, including service design, civil engineering, city planning, humanities, architecture, and economics. Adopting a holistic approach to urban design and planning provides a more macro understanding of the urban environment, allowing us to see beyond individual buildings and consider the bigger picture.

As we continue to face urbanization challenges, the need for designing thriving cities becomes more critical than ever. The impact of well-designed cities extends far beyond the immediate environment, having positive impacts on the economy, health, and well-being of residents. Therefore, the integration of urban design and planning is essential to creating sustainable and thriving cities that meet the needs of everyone, including current and future generations.

References: https://katarina-blind.notion.site/Designing-Thriving-Cities-1b62631fb77144c6a0bc936fee2176bd

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