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Author | Raquel C. Pico
You are born, you grow up, and when it comes time to pursue a career, you move to the big city to make the most of all your talents. In broad terms, this is the storyline of many films, novels, and series, becoming almost a staple of fiction.
It works so well because the audience knows it perfectly. For centuries, cities have been drawing people away from rural areas and, now also from small towns and municipalities that lie somewhere between rural and urban areas. They have become talent-attracting cities, which reinforces their status as major urban centers and explains why, despite declining birth rates, they continue to gain residents. Urban growth is closely intertwined with the arrival of this population.
The phenomenon is what Jesús Fernández-Villaverde, Howard Marks Presidential Professor of Economics at the University of Pennsylvania, calls “sponge cities.” This is not about sponge cities in the environmental sense (the more common use of the term), which strategically use vegetation to address the challenges of climate change, but rather a demographic process running parallel to population decline. In this context, people in a country concentrate in the main cities, which act as magnets.
The reasons behind these talent-attracting cities
The expert gives three clear reasons to explain the phenomenon. One is leisure. Areas that lose population also lose these kinds of services, which are especially valued by younger people. This leads some to prefer living in a place with amenities rather than staying in their hometowns, which have lost them. In fact, this phenomenon is frequently mentioned when discussing the so-called “emptied Spain” (the population loss in inland and rural Spain): when the bar—a meeting point for residents that provides social interaction as well as other tangible services—disappears, the village fades away.
Another factor is services. Talent-attracting cities are also where hospitals, universities, and other educational centers, as well as major stores, are located. Even in rural areas that have managed to maintain quality healthcare, the main hospital for serious medical issues will be in an urban setting. And something as mundane as a well-stocked supermarket is increasingly hard to find in some rural areas, which have paradoxically become food deserts.
And finally, the other major factor is talent. The largest talent-attracting cities are where most jobs are concentrated, something not even the rise of remote work has been able to stop. “Yes, you can work remotely in some jobs, but there are fewer of those positions than you think,” writes Fernández-Villaverde. This is why major cities around the world become magnets, as people have to move there if they want to pursue their careers.
These are the places that have drawn industry and where major companies are headquartered. Even most of the key public employment centers tend to be concentrated in these cities.
In a way, this “draining” of population is part of the essence of urban growth and has been so for decades.
A battle between cities
There is even a global competition underway. Cities are competing with one another to attract talent. When making decisions about urban planning, strategy, or public policy, they are beginning to consider what will make them more relevant in the international market. Positioning themselves among the most attractive and livable cities acts as a lever to draw not only talent from the national market but also from around the world.
In recent years, medium-sized cities have learned to leverage these factors, offering a better quality of life as an added draw that allows them to generate economic growth by attracting global talent. They usually focus on two key strategies: becoming a talent magnet and using technology to establish themselves as smart cities, strengthening the local economy.
Some talent-attracting cities
This is why examples of cities that attract population, and talent can be found everywhere. Examples of sponge cities can be seen across the globe. In Japan, the Tokyo prefecture is the only one showing population growth, while the rest of the country is losing residents at varying rates.
In Spain, much has been written about the depopulation of the country’s interior toward the coast. Coastal and more urban areas function as magnets, with their cities attracting residents and talent. These are where the job opportunities are, and urban attractions serve as a beacon.
There is, however, a notable exception: the capital, Madrid, is located in the middle of the Iberian Peninsula and is undoubtedly one of the country’s main population-attracting cities. In the spring of 2025, the city surpassed 3.5 million residents, the highest number in its history, according to official data from the city council (the metropolitan area population is much higher). Both internal and international migration (from other Spanish cities and from abroad) show an upward trend.
This is an example of a pattern that can also be observed with Paris and France or London and the United Kingdom, to name just a couple more major cities.
Photo | Alex Block
