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1.7.2 Impacts of Urban Growth

Exam code: 2217
Written by: Ashika|Reviewed by: Caroline Carroll|Updated 2 July 2026

Impacts of Urban Growth

Impacts of Urban Growth

  • Urban areas offer a variety of opportunities to people and businesses

  • However, rapid and unplanned urbanisation creates a range of problems, including

    • Poor housing

    • Deprivation/inequality

    • Unemployment

    • Along with congestion, transport, crime, and poor environmental quality issues

  • The speed of development is greatest in LEDCs, e.g. Sao Paulo in Brazil, which grew from 7 million people to over 20 million in 40 years and is now the second-largest urban area in the Americas

Transport

  • The provision of roads and public transport tends to be poor in quality, size, and reliability

  • Rapid development leads to transport systems becoming easily overloaded and overcrowded

  • Urban congestion varies over the week, time of day, the weather, and the season

  • High numbers of vehicles create high levels of atmospheric pollution such as smog

  • As poor rural migrants arrive, there is a lack of affordable housing and demand is high

  • Transportation issues mean people will have to live closer to their employment

  • Temporary or informal settlements arise, adding to overcrowding and poor living conditions, so adding to already cramped/congested conditions around the city

Housing

  • Availability and affordability of housing cannot keep up with the rate at which the urban population is increasing in LEDCs

  • This leads to people building their own homes on any vacant land using scrap materials like cardboard, corrugated iron and plastic

  • They are unplanned and unregulated housing (informal settlements) with little sanitary facilities, freshwater or reliable energy supply

  • Usually on land not owned by them and found:

    • In areas of no economic value

    • On the urban edges or fringes

    • Along main roads or railways

    • Clinging onto the side of steep slopes

  • Depending on the country, these informal settlements are also called:

    • Favelas in Brazil

    • Shanty towns in the West Indies and Canada

    • Bustees on the Indian subcontinent

    • Skid row in the USA

    • Townships in South Africa

  • In LEDCs, about a quarter of urban inhabitants (1.6 billion) live in these impoverished slums and squatter settlements and by 2030 the UN estimates that 1 in 4 people on the planet will live in some form of informal settlement

  • Some cities have 'mega-slums', these are very large, overcrowded areas usually within megacities

    • The largest are found:

      • Nairobi, Kenya with a population of 1.5 million crowded into 3 sprawling slums of mud huts and tin shacks - Kibera being the largest of the 3

      • Neza, Mexico City, Mexico with a population of 1.1 million people 

      • Dharavi, Mumbai, India with 1 million people in a warren of narrow lanes, interconnected shacks and single room living spaces that double as factories

      • Orangi Town, Karachi, Pakistan with an estimated population of 2.4 million people across 8000 acres of concrete block homes with 8-10 people sharing two or three rooms

      • Khayelitsha in Cape Town, South Africa with a population of 400,000 in iron and wooden shacks

  • These unregulated housing present serious risks such as fire, flooding and landslides

  • These informal settlements typically suffer from:

    • Poor, overcrowded, small housing, built very close together using inadequate material and with uncertain electricity supplies

    • They have restricted access to water supplies

    • Little to no sanitation facilities and no solid waste disposal, which leads to a polluted and degraded local environment

    • There are inadequate health facilities which, along with poor living conditions, increase sickness and death rates

    • The population in the squatter settlements have insecure living conditions as they may be forcibly removed by landowners or other authorities

Issues of the informal economy

  • Megacities have rapidly growing populations and job creation cannot match the pace of growth

  • As a result, unemployment and underemployment are not unusual 

  • People will often work on street corners doing informal work like shining shoes, giving haircuts, taxing, selling water or food 

  • These jobs are often unskilled and labour-intensive and require little money to set up 

  • The informal economy leaves cities without revenue to provide adequate services as workers pay no taxes

  • It also makes wages and working conditions difficult to regulate

Deprivation and inequality

  • Deprivation is connected with poverty and occurs when a person’s well-being falls below an acceptable minimum standard

  • The minimum standard varies from country to country and applies to several different aspects of daily life

  • It is more than just not having enough money

Cycle of poverty

  • All cities have levels of inequality, but LEDCs are amongst the worst affected

  • Many low-income families are 'pulled' to informal settlements around towns and cities looking for a sense of 'belonging' with others in the same situation

  • For others without a strong social network or cities with recently arrived large populations, high levels of crime, begging and petty theft are more common

  • Overall, this creates urban poverty that degrades both the physical and social environment around that area

  • This makes it difficult for people to escape from poverty and they fall victim to the vicious 'cycle of poverty’ and urban poverty becomes ingrained within the city

  • Combined with a lack of suitable work, housing, water supply, sewerage, solid waste disposal and pollution, the quality of life for people in cities is low

cycle-of-poverty

Cycle of Poverty

  • Poverty and deprivation are passed on from one generation to the next

  • Children will tend to get less parental support and usually have to attend inadequate schools

  • They also tend to leave school early with few qualifications

  • Lack of qualifications means they cannot find well-paid employment and rely on social handouts

  • Children they have will be born into this cycle and so families remain ‘trapped’ and unable to improve their circumstances

  • This feeds into a lower quality of life

Impacts of urban growth on rural areas

  • Rise of the suburbanised village

  • Originally these were quiet, independent places with basic services and located near large urban areas

  • Also known as 'dormitory or commuter towns' and had a residential population that commuted to work

  • As people have moved out of the city - retirement, family or work reasons - these areas have changed

  • New, large, expensive housing estates with detached or semi-detached homes, some are gated communities

  • Urban style services increased - hence the change in name to 'suburbanised' village

  • The commuter belt means new roads and public transport links

  • New businesses such as pubs, restaurants, supermarkets and hotels have opened

  • Dilution of traditional country life