NLC’s State of the Cities Report underscores primary concerns for city leaders

Economic development, infrastructure, and housing rank as the primary priorities for mayors and their constituents across the nation, according to the 2024 National League of Cities State of the Cities Report.

This year’s report reveals how municipalities are faring in the post-COVID-19 environment, and how mayors are addressing their constituents’ concerns in the nation’s current financial landscape. While the main priorities have remained constant since the report’s first iteration in 2013, the ranking of priorities is unique every year.

“This comprehensive study, supported by data from annual mayoral speeches and a survey of mayors, offers an unparalleled window into the administrative heartbeat of our cities, towns and villages as we navigate through the complexities of the year 2024,” said Clarence Anthony, the CEO and executive director of NLC. 

Like previous years, and especially since the pandemic, economic and workforce development remains the first major discussion topic for mayors, who view economic competitiveness as critical to their communities’ success. NLC’s report reveals a sense of optimism amongst city leaders, with more than 80% having rated their city’s economic situation as acceptable to excellent. 

However, optimism seemingly falls short on the other noted priorities. Most notably, housing has risen to a top three consideration for the first time in the report’s history. According to survey data, 60% of mayors describe the state of housing in their cities as less than satisfactory, with over 41% labeling it as poor and nearly 18% as very poor. Only 26% consider the availability of housing in their community as acceptable. 

There are two chief housing concerns identified by mayors: the high cost of housing and limited supply. Inherently intertwined, housing prices and supply have created a cyclical problem that nearly 70% of mayors say they must continue to grapple with. 

Farhad Omeyr, the report’s author, credits this year’s reorganization of priorities to rising dissatisfaction among constituents. 

“Last year [housing] was ranked number four. This year it’s number three. It’s all because mayors who are in close contact with their communities are realizing that they can’t just get away with talking about the system,” Omeyr said. “This is a huge deal, because in last year’s report, I emphasized that housing needs to be higher up in the list of priorities because of the state of homelessness and housing issues that we have in this country.”

Outside of housing, infrastructure poses a major concern. As climate change continues to threaten critical projects, municipal leaders have placed infrastructure as the second most vital consideration in their communities. For many, the resiliency of water systems is an all too real worry. 

“Our water infrastructure, our water system, is over 60 years old, and it is failing,” Lisa Hicks-Gilbert, mayor of Elaine, Arkansas, said. “What I often tell the community is that our water system is held up by duct tape. We’re out of duct tape, and we don’t have the money… it keeps me up at night. The Elaine water tower, one of the smallest rural communities, is listed on the top 11 worst water towers in the country.”

As extreme weather events such as hurricanes, floods and heat waves become more frequent, they exacerbate the existing vulnerabilities of  public utilities. According to the report, flooding and extreme weather events are among the most common natural disasters threatening local infrastructure.

“Flint, Michigan was just one example,” Omeyr said. “In many cases, they don’t get on the news, but on a  daily basis we see crumbling water and sewer systems. What is exacerbating all of these problems is climate change. It puts extra pressure on systems that can’t withstand even normal pressure at this point.”

For coastal communities, the threat of failing water systems is especially palpable. 

“We have too much water. We have flooding, severe flooding, and we spent a significant amount of our budget trying to deal with it,” said Larisa Svechin, mayor of Sunny Isles Beach, Florida. “Recently, we were planning to upgrade an entire system, and what only a few years ago,was quoted at $6 million, was recently quoted at $40 million… we can’t afford that.”

Yet the State of the Cities report does not only show the difficulties mayors face. The findings additionally reveal the myriad of solutions and plans proposed by city leaders to effectively serve their communities. 

In the report, Omeyr points to the “Homeless Village”, launched by Little Rock, Arkansas, the prioritization of developing and using emerging technologies to secure critical infrastructure, and business incentivisation schemes enacted by municipalities across the country. The juxtaposition of problems and solutions outlined in the report paints an important picture of the country: one in which city leaders both acknowledge the challenges in their communities and seek to outline plans to address them. 

In the last year, NLC member cities have demonstrated a “strong commitment” to progress, with over 250 cities participating in the City Inclusive Entrepreneurship Network, the Southern Cities Economic Inclusion initiative as well as Good Jobs Great Cities initiative. According to the NLC, this extensive involvement underscores the steps cities are taking to address economic disparities and foster inclusive growth.

As the year progresses, the NLC, the primary advocacy organization for American municipalities, is looking to uncover how cities are planning to fund necessary projects. Funding is the next step to addressing the challenges outlined in the State of Cities report. 

“ARPA funding was a huge help to cities,” Omeyr said. “It’s just a shame that it had to be a one time thing. That’s basically what city fiscal officers are telling me at this point, it’s a shame. How cities are seeking funding for all these new, necessary projects is a million dollar question right now. There is no simple answer.”