The Cost of Urbanization

JULY 30, 2026

Glowing city lights, fine dining, and Instagram-worthy architecture. Downtowns exist in nearly all cities worldwide. In America, they have become a sign of wealth and elitism. Only those in a higher tax bracket can afford the eighty-dollar steaks and expensive wine. In larger cities, these downtowns are tourist hubs, generating millions of dollars in revenue yearly. 

Downtowns may have originated from one of the first city architecture designs. Building began at the southernmost point and rose towards higher ground, causing most commercial and residential growth to be concentrated in what would now be known as downtowns. These buildings were located closer to religious institutions, thus associating themselves with the nobility. 

America’s downtowns gained prominence as the Industrial Revolution spurred a wave of urbanization. Commercial sites grew, heavily increasing city populations. The illustrious and successful downtown represented the idealistic “American Dream.” It pushed the idea that anyone can ascend the social hierarchy, completely ignoring class divisions.

Urbanization as a whole has led to wider wealth gaps and a lack of resources for impoverished residents of large cities, such as downtowns. The city lacks affordable housing, healthcare, and other resources, creating much poorer areas known as slums. Slums are heavily congested and lack proper support for residents. People of color tended to live in these slums due to preexisting racial caste systems embedded into society.  Economic instability becomes a recurring cycle that could take generations to break out of due to a lack of sufficient opportunities and support, as well as class divisions enforced by the downtowns. 

A common misconception is that urbanization always leads to economic growth. However, research conducted by the World Resources Institute suggests otherwise. They found incomes in rapidly growing cities remain fairly stagnant, barely keeping up with the increasing price of housing and necessities. Without economic growth, proper services are not provided to all residents - most heavily affecting those already in a lower income bracket. 

Besides a widening wealth gap, rapid urbanization has been at the cost of the environment. Natural resources, such as clean water and soil, are contaminated and unusable. For instance, Cape Town, South Africa, currently faces a massive water drought. Public officials published what they called a “Day Zero” countdown. On “Day Zero,” water reservoirs would be depleted, leading to taps across the city being closed off. Extremely high levels of air pollution are found in highly urbanized cities. Poorer residents often face the brunt of the impact as power plants and work sites tend to be built in lower-income areas. These residents often lack proper health services, leading to long-term unresolved health issues. 

As commercial areas grow, downtowns require a large number of workers. In order to keep up with customer demand, these cities often push for unethical work practices. A prime example is Dubai. 

In 2022, 22 million tourists visited the ultra-modern city of Dubai. These numbers represent the United Arab Emirates’ shift toward tourism. Middle Eastern nations, such as Dubai, have implemented the Kafala system. Through this system, foreign workers are able to be hired by employers. The system increases labor; however, it also creates a power imbalance in which the employer is able to control the worker’s residence, their activities, and where they go. Aofie Woods, writer in the STAND Newsroom, is wary of how “The imbalance of power leaves migrant workers vulnerable to exploitation and modern slavery, as control over migrants’ legal status is placed in the hands of employers, rather than the state.” The implementation of this system has ranked the UAE seventh in the world for modern slavery. Sixty-nine Dubai workers were interviewed in 2020. Almost every single worker stated their employer withheld their passport. Out of those interviewed, two-thirds of them said they were often not paid on time and struggled to buy new clothes. Workers were also forced to work in extreme conditions, such as 40-degree Celsius heat. These employees often return home with serious health issues due to negligent and abusive practices.

Gender and race also intersect with the kafala system present in the UAE. In 2013, a Norwegian woman was raped by her colleague while working in Dubai. When she reported this crime to Dubai officials, she was sentenced for alcohol consumption, premarital sex, and perjury. A few years later, an Irish woman attempted to commit suicide due to severe domestic violence. However, she was also arrested and charged for a suicide attempt and alcohol consumption. Many women like these are forced into domestic servitude and lower pay. Additionally, the monthly salary for employees is often dependent on race. Employers have even stated a bedroom is not needed for Black workers. 

Dubai is not the only country implementing highly unethical labor practices. Many other rapidly urbanized cities are putting product demand over workers’ safety. While downtowns began as city centers, they quickly became highly divided areas. In heavily urbanized areas, these divides are deeply rooted and leave many residents victims of unethical practices and without sufficient resources. 

Schwarzer, Mitchell. “Downtown: A Short History of American Urban Exceptionalism.” Places Journal, Feb. 2016, https://doi.org/10.22269/160216. Accessed 18 July 2026. 

“The Dark Side of Dubai: The Ethical Price of Luxury Tourism | STAND.” Stand.Ie, 2025, https://stand.ie/stand-newsroom/dark-side-dubai-ethical-price-luxury-tourism-0. Accessed 18 July 2026.

Nations, United. “Urbanization: Expanding Opportunities, but Deeper Divides | Nations Unies.” United Nations, 2020, https://www.un.org/fr/desa/urbanization-expanding-opportunities-deeper-divides. Accessed 18 July 2026.

Mahendra, Anjali, et al. “The Realities of Current Urbanization in the Global South | Seven Transformations for More Equitable and Sustainable Cities.” Publications.Wri.Org, Jan. 2022, https://publications.wri.org/transformations-equitable-sustainable-cities/current-urbanization-global-south-realities#2.1-urbanization-shifting-to-low-and-middle-income-countries. Accessed 18 July 2026.