How urbanization transformed societies

Published on 10/16/2025 by Ron Gadd
How urbanization transformed societies

From Villages to Metropolises: The Pace of Change

The world’s demographic map looks radically different than it did a century ago. In 1950, just over 30 % of humanity lived in cities; by 2020 that share had climbed to roughly 56 % — according to the United Nations’ World Urbanization Prospects (2023). The shift isn’t uniform, though. While Europe and North America have long been urbanized, the bulk of the recent surge is happening in the Global South. Countries like Nigeria, India, and Brazil are adding millions of city‑dwelling residents each year, a trend highlighted in the World Resources Institute’s report on “Current Urbanization in the Global South.

What drives that speed? A mix of push and pull forces: rural poverty, climate‑related displacement, and the lure of jobs, education, and services that cities promise. In many developing regions, the migration is pro‑poor in the sense that it offers the lowest‑income households a pathway out of agrarian stagnation—provided the city can supply basic infrastructure. The Overseas Development Institute notes that “pro‑poor urbanization will require labour‑intensive growth, supported by labour protection, flexible land‑use regulation and investments in basic services.

The numbers are staggering:

  • Asia now hosts over half of the global urban population, with China and India each harboring more than 600 million urban residents.
  • Sub‑Saharan Africa is urbanizing fastest in absolute terms; the UN projects that its urban share will rise from 43 % (2020) to 60 % by 2050.
  • Latin America is already over 80 % urban, but the region still grapples with informal settlements that grew alongside formal expansion.

These macro‑level trends set the stage for deeper transformations in how societies work, live, and think.


How Cities Reshaped Work and the Economy

When people crowd into cities, the economic engine shifts from agriculture to industry and services. The classic “urban wage premium”—the observation that city workers earn more than their rural counterparts—still holds in many contexts, though the gap varies widely. In China, for example, urban workers earned roughly 2.5 times the average rural income in 2019, according to World Bank data.

A few mechanisms explain why:

  • Agglomeration economies – Proximity enables firms to share suppliers, talent pools, and knowledge spillovers.
  • Labor market segmentation – Cities attract both high‑skill, high‑pay jobs (tech, finance) and a surge in low‑skill, labor‑intensive positions (construction, retail).
  • Entrepreneurial ecosystems – Urban centers provide the networks, financing, and customer base that help startups scale quickly.

The result? A re‑configuration of social stratification. While many migrants climb the income ladder, a growing share ends up in precarious informal work. The International Labour Organization estimates that over 60 % of urban workers in developing countries are employed in the informal sector, lacking contracts, social security, or legal protections.

Key economic outcomes of rapid urbanization include:*

  • Higher GDP per capita – Cities often generate a disproportionate share of national output; in the United States, the top 10 % of metro areas account for about 40 % of GDP.
  • Shift to service‑oriented economies – Retail, finance, health, and education become dominant, reducing the share of manufacturing in many advanced economies.
  • Innovation hotspots – Places like Bangalore, São Paulo, and Nairobi have become global nodes for tech and fintech, leveraging dense talent pools.

These economic shifts also ripple into public policy. Governments are forced to rethink taxation, labor law, and social safety nets to accommodate a workforce that no longer fits the traditional “rural‑farm” model.


Living Spaces: Housing, Infrastructure, and Inequality

If cities are engines of growth, they’re also pressure cookers for housing. The rapid influx of residents often outpaces the supply of formal, affordable dwellings. The outcome is a sprawling patchwork of formal neighborhoods, high‑rise apartments, and informal settlements (slums).

According to the United Nations, roughly 1 billion people worldwide now live in slums—about a third of the urban population. In Brazil’s favelas, for instance, residents built homes on steep hillsides without proper sanitation, while in Nairobi’s Kibera, dense shacks share limited water points.

Three interlocking challenges dominate the urban housing debate:

  • Affordability – Median home prices in many global cities now exceed five times the average annual household income.
  • Infrastructure gaps – Access to clean water, reliable electricity, and public transit lags behind population growth, especially in rapidly expanding African cities.
  • Land‑use rigidity – Zoning laws that restrict mixed‑use development can exacerbate segregation and limit the supply of affordable units.

Urban planners and policymakers are experimenting with solutions:

  • Inclusionary zoning – Requiring a percentage of new developments to be set aside for low‑income households.
  • Transit‑oriented development (TOD) – Aligning housing with high‑capacity public transport corridors to reduce commuting costs and emissions.
  • Incremental housing – Supporting residents to improve informal dwellings gradually, as seen in the “self‑help” housing projects in parts of India.

These approaches acknowledge that housing isn’t just a shelter issue; it’s a social equity lever. When cities succeed in delivering decent, affordable homes, they also reduce crime, improve health outcomes, and foster stronger community ties.


Culture on the Move: Social Networks and Identity

Urbanization does more than reshape skylines; it rewires the social fabric. The dense, heterogeneous environment of a city creates new forms of interaction that differ dramatically from the tight‑knit, kin‑based networks typical of rural life.

Key cultural shifts include:*

  • Diverse social circles – Residents regularly encounter people of different ethnicities, religions, and socioeconomic backgrounds, fostering pluralistic attitudes. Studies in metropolitan France and the United States link higher levels of intergroup contact with reduced prejudice.
  • Changing family structures – Nuclear families become more common as extended relatives stay in the countryside. This can increase individual autonomy but also places caregiving burdens on women who must balance work and family.
  • Rise of “urban cultures” – Music, fashion, food, and art scenes evolve around city life. Hip‑hop in New York, K‑pop in Seoul, and street food markets in Jakarta illustrate how urban spaces incubate cultural innovation.

Digital connectivity amplifies these trends. While the physical proximity of a city encourages spontaneous encounters, smartphones and social media extend those networks globally. A freelancer in Lagos can collaborate with a client in Berlin in real time, blurring the line between local and global labor markets.

However, urban life can also generate social fragmentation. The anonymity of large cities sometimes leads to weaker community ties, a phenomenon sociologists label “urban alienation.” To counteract this, many municipalities invest in public squares, community centers, and participatory budgeting processes that invite residents to shape their neighborhoods.


The Ripple Effects: Health, Environment, and Governance

The transformation of societies through urbanization isn’t confined to economics or culture; it also reshapes health outcomes, environmental pressures, and the way governments operate.

Health

Cities offer better access to hospitals, clinics, and specialized care, which can improve life expectancy. For example, life expectancy in Shanghai rose from around 68 years in the 1970s to over 83 years today, reflecting improved medical infrastructure.

  • Air quality – The World Health Organization estimates that 4.2 million premature deaths per year are linked to ambient air pollution, a problem especially acute in megacities like Delhi and Mexico City.
  • Non‑communicable diseases – Sedentary jobs, processed food availability, and stress contribute to rising rates of diabetes and cardiovascular disease.
  • Mental health – Urban living correlates with higher incidences of anxiety and depression, prompting some cities to launch “green prescription” programs encouraging park visits.

Environment

Urbanization is a double‑edged sword for sustainability. On one hand, denser development can reduce per‑capita energy use and preserve surrounding natural habitats. On the other, rapid, unplanned growth can devastate ecosystems. The WRI report on the Global South notes that many regions are “urbanizing rapidly and leaving an increasing number of people behind,” a warning that environmental justice must be part of the conversation.

Key environmental challenges include:

  • Urban heat islands – Concrete and asphalt absorb heat, pushing city temperatures several degrees above surrounding rural areas.
  • Stormwater management – Impermeable surfaces increase runoff, leading to flooding in low‑lying neighborhoods.
  • Resource consumption – Cities consume about 78 % of global electricity and generate a disproportionate share of waste.

Cities are responding with ambitious climate action plans: Copenhagen aims to be carbon neutral by 2025, while Nairobi’s “Smart City” initiative invests in renewable energy and efficient public transport.

Governance

The sheer scale of urban populations forces governments to innovate. Traditional top‑down bureaucracies often struggle with the speed of change, leading to the rise of e‑governance platforms that allow residents to report potholes, request services, or vote on budget allocations via mobile apps.

Participatory governance also takes shape through community councils, neighborhood associations, and public‑private partnerships that co‑design infrastructure projects. In Medellín, Colombia, the “social urbanism” model combined cable cars, libraries, and parks to reconnect marginalized barrios with the city core, dramatically reducing crime rates and improving social mobility.

These governance experiments underscore a crucial lesson: the success of urbanization hinges not just on physical construction but on inclusive, adaptive policy frameworks that keep pace with demographic realities.


Looking Ahead: What Urbanization Means for the Next Generation

If the past century taught us that cities are engines of transformation, the next few decades will test whether they can also be engines of equity and resilience. Projections suggest that by 2050, nearly 68 % of the world’s population will live in urban areas, with the bulk of growth still occurring in low‑ and middle‑income countries.

Key questions for planners, policymakers, and citizens:*

  • Can we deliver affordable, decent housing at scale, or will slums continue to expand?
  • Will labor‑intensive, pro‑poor growth keep pace with the influx of migrants, or will unemployment surge?
  • How will cities balance economic dynamism with the urgent need to cut emissions and protect public health?

Answers will depend on coordinated action across sectors:

  • Investing in resilient infrastructure that can handle climate shocks while supporting inclusive mobility.
  • Strengthening labor protections for informal workers, ensuring that the urban wage premium reaches the most vulnerable.
  • Embedding community voice in planning processes, so that the cultural richness of diverse neighborhoods is preserved rather than erased.

The story of urbanization is still being written. By learning from past successes—and missteps—we can shape cities that not only fuel economic growth but also nurture healthier, more equitable societies for generations to come.

Sources