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Parks Investment and Economic Vitality

How growing cities across the U.S. are investing in parks and open spaces to attract workers, businesses, and economic development opportunities.

Published September 19, 2024

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Executive Summary

Civic and and business leaders are investing in parks to respond to pressing economic challenges.

This study shows that civic and business leaders are increasingly prioritizing investment in green spaces to bolster economic vitality. City leaders are seeking opportunities to grow their tax base and retain and attract more businesses and residents. In the post-pandemic era when employers offer geographic mobility, it is more important than ever that cities invest in place, specifically parks and open spaces, to attract and retain a diverse workforce.

Parks are powerful engines for economic development. Local public park and recreation agencies in the United States generate more than $201 billion in economic activity and support almost 1.1 million jobs that boosted labor income by more than $63 billion from their operations and capital spending in 2021.1 Parks contribute to population growth and economic vitality by boosting quality of life and making cities more attractive places to live and work. Investing in parks to close gaps toward equitable access to parks is vital to a city’s attractiveness among peer cities competing for residents and businesses.

Trust for Public Land (TPL), as part of the organization’s focus on advancing park equity to ensure healthy, livable communities, engaged HR&A Advisors to research how community investment in parks, open spaces, and associated quality-of-life benefits contribute toward achieving economic development goals in cities in the U.S. This report dives into five case study cities—Atlanta, Georgia; Boise, Idaho; Boston, Massachusetts; Minneapolis, Minnesota; and Plano, Texas—to show how cities can leverage investments in parks to catalyze economic growth, drive greater economic mobility, and create wealth-building opportunities for communities.

The five case study cities studied in this report were selected based on their park investment and economic vitality indicators that exceed other cities. TPL and HR&A Advisors sought diversity in location, size, and economic drivers among the five case study cities. Researchers conducted interviews with a range of businesses and civic leaders in each selected city to better understand the motives and relationships driving these positive trends in park investment and economic vitality. The study showcases a strong correlation between park investment and economic vitality, recognizing a range of attributes contribute to a city’s economic health.

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Findings

Cities that invest in parks and open spaces attract a diverse workforce and, in turn, businesses, employment opportunities, and visionary real estate development that contribute to improved quality-of-life in cities.
Cities experiencing economic growth, regardless of size or location, are investing more in parks and open spaces. As of 2021, the park investment per acre in the five case study cities was up to seven times higher than the average among the 100 most populous U.S. cities.
Cities that invest in parks and open spaces attract and retain a diverse workforce. The five case study cities boast notable concentrations of highly-educated residents. Further, majority of the five case study cities experienced greater growth in total prime working age labor forces (aged 25 to 54) than the national average.
Growing, diverse workforces attract companies to start and expand their businesses in these cities. The job growth rate between 2011 and 2021 in each of the five case study cities was on par, or higher than, the national average. Plano, Boise, and Atlanta show exceptionally high growth rates for young companies (five years or younger), indicating a draw for entrepreneurs and startups.
The concentration of businesses and growing residential population generates real estate market activity, spurring private investment to build and redevelop housing and commercial space. Between 2011 and 2021, housing and office development outpaced the nation overall in four out of the five case study cities—a sign the real estate community anticipates continued growth.
Targeted investments and strategies to promote inclusivity and mitigate displacement are critical to ensure equitable growth in cities. Cities’ ability to maintain equitable access to economic growth and mobility varies across the five case study cities. Boise, Boston, Minneapolis, and Plano have all become more racially diverse as populations grow.

Case Study Cities

The five case study cities share a focus on increasing park investments but vary in size, location, and history of economic growth.

Case Studies

 

  • Boise leverages its iconic, natural open spaces and growing parkland to attract talent, businesses, and new development to the city.
    Boise has a growing and well-maintained park system, attributed to continued public investment and private donations to parks.
    Boise has seen significant growth in the number of startups, indicating the city’s growing popularity as a business and career-development location.

    Young talent and families are attracted to Boise for its expansive natural open spaces, economic mobility, walkable downtown, and affordability, which remains compelling despite recent rises in housing costs. As Boise experiences rapid economic and population growth, civic leaders are investing more in the city’s urban park features to support the growing population. Property owners and developers—individually or in partnership with the City and other civic organizations—have built a more urban, walkable, mixed-use downtown featuring neighborhood parks, dog parks, and pocket parks. They are investing directly in the development and activation of parks and open spaces to serve not only commercial tenants but also the larger neighborhood.

  • Plano invests heavily in enhancing and maintaining its existing park system to bolster its attractiveness as a business location for national and international firms.
    Plano has increased its park investment since 2011 with a focus on park enhancements and maintenance.
    Plano has been a popular business location since the 1980s and continues to attract both national and international firms.

    Plano’s economic growth has historically been and continues to be anchored by its successful business attraction strategies. As major domestic and international companies continue to relocate to and expand in Plano, developers have sought to redevelop 1980s suburban business parks into mixed-use districts. These redeveloped districts help sustain the city’s competitive edge as an employment hub while introducing additional residential and commercial uses to the city. The City of Plano views this redevelopment trend as an important opportunity to meet citywide parks and open space goals. Thus, Plano’s Economic Development and Parks and Recreation agencies work alongside the business community to incorporate park and open space plans into real estate projects, exemplified by the Texas Research Quarter development project.

  • Minneapolis’ public, private, and philanthropic entities are united in support of parks and green spaces, which are central to the city’s identity.
    Parks are a part of Minneapolis’ identity, as reflected in the 2.5X Park Investment per resident compared to the 100 most populous U.S. cities.
    Minneapolis has a diverse and steady economy that has continued to grow, often faring better than national trends during downturns.

    Shared pride, broad support, and aligned goals for the parks system are the underpinnings of Minneapolis’parks system. Strong public investment, through sales tax and a property tax levy as well as private investment through park dedication fees and special assessment districts, fund the development and maintenance of the park system. Philanthropic organizations in Minneapolis have an exceptionally successful history of raising funds to build inclusive and high-quality parks in the region. Notably, since 2016 and the launch of the 20-Year Neighborhood Park Plan (NPP20), racial and social equity has played a large role in determining what projects receive investment, which improved park access for Minneapolis residents and directed funds to various parts of the city.

  • Atlanta is investing in greenways and trails to create more vibrant and walkable downtown districts that will help sustain the city’s economic momentum.
    Atlanta has focused heavily on capital investment but is beginning to prioritize investment on parks maintenance.
    Atlanta is continuing to grow economically, attracting talent and businesses from diverse industries.

    Atlanta’s economic growth can be attributed to its concentration of employment and higher education opportunities that attract workers to the city. While the City of Atlanta has historically struggled to dedicate sufficient funds to parks and open spaces, the private sector has led investments in linear parks and greenways, understanding that walkability can increase foot traffic and draw workers, yielding economic benefits to the city. However, there is an ongoing need for consistent investment in park maintenance and targeted anti-displacement policies to maintain the city’s economic momentum while protecting long-term residents. Atlanta has deep experience in public-private collaboration, which it can build upon to ensure economic mobility is enjoyed equitably among residents as the city’s economy and park system grow.

  • Boston integrates privately owned public spaces and waterfront development to build on its famous park system and remain competitive.
    Boston builds on the legacy of its ‘Emerald Necklace’ by encouraging the creation of open spaces in new developments to ensure the continued expansion of a strong park system.
    Boston’s strong universities attract talent to the region, but the high quality of life the city offers, bolstered by its parks, keeps talent in Boston.

    Boston continues to expand and enhance its park system, particularly by incorporating privately owned public spaces (POPS) into its network of parks and open spaces. Private investment in POPS has created many parks and open spaces that would otherwise not exist. State requirements for preserving waterfront access have allowed Boston to not only provide prominent open spaces along the waterfront, but also protect against future climate change. Ultimately, in addition to creating open space, the City of Boston and the business community recognize the importance of operating and maintaining parks with ample programming that serves residents, workers, and visitors. Thoughtful planning and interesting programming bring nearby workers and visitors into POPS which enhances their role as drivers of economic development.

U.S. cities with growing economies, regardless of size or location, are investing more in parks and open spaces.

As of 2021, the park spending per acre in the five cities was at least 3 times higher than average among the 100 most populous U.S. cities.

Cities investing in parks and open spaces attract and retain high-skilled workforce at the highest rates in the nation.

The five case study cities boast notable concentrations of highly-educated residents and growing prime working age labor forces (aged 25 to 54). By comparison, among the 100 most populous cities, the 25 cities with the lowest park investment per acre in 2021 had a smaller share of adults with a four-year degree (37 percent) than the five case study cities. They also experienced slower growth of the total prime working age labor force (four percent) than four of the case study cities.

Implications

Civic leaders, real estate developers, and businesses must continue to invest in parks alongside local governments to provide the attractive quality of life that underpins economic vitality.

As central business districts struggle to stabilize, and as work becomes increasingly flexible and mobile, park system investment and stewardship are critical tools for cities to remain attractive and to grow healthy economies. This study explores five case study cities that are investing in parks and open spaces and simultaneously experiencing economic growth. Bolstered by vibrant parks and open spaces, these cities provide a thriving quality of life that attracts and retains a diverse workforce.

Civic leaders, real estate developers, and companies must invest in parks and open spaces to enjoy the range of benefits—economic vitality, community benefits, and fiscal health—that parks provide.

Cities can employ a range of tools to grow park investment and engage business leaders, including initiatives to shepherd philanthropy and sponsorship, value capture mechanisms, and development exactions and regulations. Each of these tools is an opportunity for private firms to support park departments and champions either through advocacy or direct contributions. In return, cities enjoy growing residential populations, workforces, and visitation; sustained attraction and retention of businesses, continued real estate development; and increased foot traffic and activation in the public spaces.

Conclusion

Across the country, cities are investing in parks to attract residents, businesses, and visionary real estate development. Cities seeking to catalyze and scale this economic growth should invest in parks and open spaces.
Increase public sector investment. Cities should continue to invest in their park systems in part for their important role in broader economic development goals. When facing budget pressure, parks department budgets are some of the first to get reduced and the last to recover funding. City park departments can advocate for public investment by speaking to the broader economic benefits that parks offer to cities.
Convene a coalition of public and private sector actors. Cities should engage the private sector and other partners to augment public funding. This can include philanthropic contributions, sponsorship, development exactions, special assessment districts, Tax Increment Financing, and other mechanisms.
Accompany population and economic growth with amenities that sustain momentum over the next economic cycle. As cities grow, they must continue to invest in the quality of life that attracts and supports residents, companies, and real estate development. In addition to parks, this includes affordable housing, public transit, and other social services and amenities.
Embrace a range of park types that meet different community needs. Parks take many forms, which meet different resident, visitor, and worker needs. Civic and business leaders should think creatively about how parks can support different goals, such as leveraging linear parks as multi-modal connections that encourage walking and cycling for healthier, safer communities.
Enact policies to promote inclusivity and mitigate displacement alongside investment in parks and other amenities. Cities should ensure marginalized communities are positioned to benefit from investments and are not disproportionately burdened. This includes protecting against both residential and commercial displacement near park investments.

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