Business Environment Profiles - United States
Published: 21 July 2025
Urban population
280 Million people
0.4 %
This driver measures the number of individuals within the United States living in urban municipalities. The United States Census Bureau identifies two different types of urban areas: areas with at least 50,000 or more residents or clustered areas containing at least 2,500 people but less than 50,000. Data for the total US urban population is sourced from the World Bank, World Development Indicators.
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The US urban population is estimated to reach 279.9 million people in 2025, representing a modest increase of 0.2% from the previous year. The rate of urban population growth has continued its gradual deceleration, in line with recent years. Urban population growth remains positive, but the incremental gains in the urban share are limited due to the general saturation of urban municipalities. Urban areas continue to maintain a dominant proportion of the total US population, but the pace of expansion is slow as the urban migration trend matures.
From 2020 to 2025, the US urban population increased from 275.2 million to an estimated 279.9 million, translating to a cumulative growth of 1.7%. The annual percentage change during this time has consistently remained below 1.0%, with the highest rate occurring in 2022 at 0.6% and the lowest in 2024 and 2025 at 0.2%. This subdued growth is a departure from the more robust gains of earlier decades when annual urban population growth often exceeded 1.0%. Contributing factors to the recent slowdown include the achievement of near-saturation in several major urban centers and the relative stabilization of migration patterns. While the dominance of the urban population over rural areas means national demographic balances are unaffected by these changes, other trends have also played a role. Persistent immigration and ongoing shifts in economic activity toward the service sector, a sector heavily concentrated in urban municipalities, supported continued urban growth. However, these positive influences have been tempered by opposing trends such as the increasing attractiveness of suburban and rural areas, driven by lower taxes, affordable housing, and technology-enabled remote work options, which have moderated net urban inflows.
Over the past five years, the incremental, steady growth in US urban population reflects a maturing urbanization process. The impact of macro factors such as employment concentrations, industry shifts, and migration patterns has continued, but none have dramatically altered the slow upward trend in urban population. The stability in the balance between urban and rural population shares during this period highlights the inertia in national demographic change, even as some urban municipalities approach carrying capacity and growth continues to decelerate.
The urban population is projected to reach 280.3 million in 2026, increasing by 0.1% from the pre...
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