At Fourth Economy’s 2024 Fall retreat, we discussed how global and national trends reshape economic development and what that means for our clients and communities. Twice annually our team meets to map out where we are and where we’re headed. These moments allow us to dive deep into what’s exciting and necessary for our work—and prepare to tackle these challenges head-on.
We’ve identified four significant trends that will shape our communities in 2025 and beyond. We’re excited to explore these “Future Focused” scenarios for interesting work and share how understanding and preparing for these changes can create opportunities, resiliency, and growth in communities.
Each of these areas presents unique challenges and opens doors for innovative solutions. From designing senior-friendly communities to adapting to AI's influence, our team is developing insights and tools to help our clients and partners stay ahead of the curve.
Photo of York, PA, from the Fourth Economy library.
Downtown Collapse and Reinvention
Why It Matters
Across the country, downtowns are facing major disruptions. With the rise of remote work and the decline of brick-and-mortar retail, traditional downtown spaces are often left underutilized. Revitalizing these spaces is essential not only for economic activity but also for preserving the identity and vibrancy of our communities.
What We’re Looking At
We’re exploring how adaptive reuse and mixed-use development can breathe new life into downtowns by converting vacant buildings into a blend of housing, offices, and community spaces. Through placemaking initiatives, public art, and responsible hospitality, we envision these areas as inviting, community-centered hubs that attract residents and visitors alike. Our strategies include:
Revitalization through Mixed-Use Development: Converting empty retail spaces into diverse, dynamic areas where people can live, work, and play.
Public and Private Partnerships: Working with developers, municipalities, and local organizations to create sustainable plans that meet local needs.
Zoning and Policy Adjustments: Collaborating with cities to adapt zoning codes to support creative reuse and ensure future resilience.
Image from Wix.
Aging Population and Changing Demographics
Why It Matters
With populations aging, communities need to anticipate the shift in housing, healthcare, and social needs. Preparing for these changes is essential for creating accessible, intergenerational communities where residents can thrive at every life stage.
What We’re Looking At
Our team is developing strategies that promote “aging in place” by creating walkable, senior-friendly communities with easy access to resources. This includes housing diversity, such as accessory dwelling units (ADUs) and affordable senior housing, as well as healthcare infrastructure to meet increased demand. Our focus areas include:
Housing for All Generations: Supporting diverse housing options that allow seniors to stay within their communities, with low-maintenance, accessible options.
Reducing Social Isolation: Designing walkable spaces and accessible transportation options that encourage community interaction and improve quality of life.
Partnerships with Healthcare Systems: Partnering with healthcare providers to align care options with community-based housing and support systems, ensuring seniors have the resources they need nearby.
Image from Igor Omilaev via Unsplash.
AI Takeover
Why It Matters
Artificial Intelligence (AI) is reshaping industries, enhancing productivity, and potentially disrupting the workforce. Communities need to be ready to embrace AI while preparing their workforce to adapt to new technology-driven demands.
What We’re Looking At
We’re focused on helping communities understand how AI will impact local economies and which sectors will feel the effects first. This includes working with educational partners to offer upskilling programs, and using scenario modeling to help cities anticipate and prepare for shifts. Our areas of focus include:
Workforce Resilience: Developing programs with local educational institutions to support AI-related job transitions and prepare workers for new opportunities.
Scenario Planning: Providing customized impact assessments and planning tools that allow communities to map out future impacts and prepare for AI adoption.
Public Engagement: Collaborating with stakeholders to foster an inclusive approach to AI, ensuring that automation and AI adoption benefit the community without marginalizing workers.
Image from Levi Frey via Unsplash.
Influx of In-Migration
Why It Matters
Many regions are experiencing an influx of residents due to climate migration, remote work, and housing affordability. This trend reshapes community needs and resource distribution, requiring thoughtful, sustainable planning to accommodate growth.
What We’re Looking At
For regions seeing rapid population growth, we’re focusing on sustainable housing, infrastructure, and community development strategies. We help communities balance population growth with the quality of life by creating models that integrate local policies, housing, and amenities. Key areas include:
Sustainable Housing Solutions: Working with local governments to develop housing policies that meet demand without overburdening resources.
Transportation and Accessibility: Ensuring new residents have access to transit, healthcare, and community resources.
Quality of Life Enhancement: Focusing on placemaking and community engagement to help regions welcome newcomers while maintaining a cohesive community identity.
Keep an Eye Out!
Over the next several months, we’ll be sharing content on these important topics. We’d love to hear from you, too—let us know what challenges or promising practices your community is experiencing in these areas. We may even feature your story! Reach out to us at [email protected].