The 30th webinar of the SDG Local Solutions series, was held on September 24, 2025, highlighted the urgent need for more inclusive, equitable, and sustainable urban neighborhoods. As cities worldwide face numerous challenges: deep social inequalities, rising housing costs, informal settlements, and the impacts of climate change. To move closer to the Sustainable Development Goals (SDGs), local governments are experimenting with strategies that not only address physical infrastructure but also prioritize community engagement, equity, and resilience.
In this session, two cities – Chicago (United States) and Montevideo (Uruguay) – presented their experiences. These cases highlight the power of cities to reimagine urban development when equity, participation, and innovation are placed at the center of local action
The video recording of the event is available on our YouTube channel – in English, Spanish, and French.
Case study: Chicago, United States
The problem
Chicago is a global, diverse city, but one marked by significant inequalities. Life expectancy between neighborhoods can differ by more than 16 years. Conventional Transit-Oriented Development (TOD) has often worsened inequities, displacing low-income communities while fueling gentrification. Residents in marginalized areas face reduced access to housing, jobs, and services, alongside higher rates of obesity and mortality.
The solution
Chicago introduced Equitable Transit-Oriented Development (ETOD), a model designed to ensure that investments in transit infrastructure also deliver social equity. ETOD integrates affordable housing, community ownership, and access to jobs into transit corridors. The strategy relies on public-private-civic partnerships and deep community engagement to safeguard affordability and guarantee local benefits.
The results
- Economic impact: retail sales up to 88% higher, property values up to 40% higher, and 75,000 new jobs created in four years.
- Social equity: 20% of affordable housing units placed in high-income areas; households saving up to $10,000 annually in transportation costs.
- Health benefits: 15% reduction in all-cause mortality and three times lower obesity rates in ETOD areas.
- Environmental impact: 78% reduction in emissions, with localized temperature drops of 1.8–2.3 °C.
- Developer incentives: savings of $30,000 per housing unit through reduced parking requirements.
Case study: Montevideo, Uruguay
The problem
Montevideo, a city of 1.5 million people, is marked by strong urban segregation and informality, with 345 informal settlements (37,000 housing units). Many neighborhoods suffer from precarious housing, limited infrastructure, high levels of violence, and increasing climate risks such as flooding. Residents often experience a crisis of trust in public institutions and limited access to inclusive public spaces.
The solution
The city designed a neighborhood-centered habitat policy based on proximity, participation, and territorial transformation. Instead of isolated interventions, Montevideo adopted a portfolio approach, combining housing with services, culture, infrastructure, and active co-creation with residents.
Key initiatives included:
- Upgrading settlements with streets, sanitation, lighting, drainage, and climate adaptation infrastructure.
- Establishing public land portfolios for social housing, especially through cooperatives.
- Co-designed public spaces, neighborhood festivals, and participatory “listening tables”.
- Targeted projects in neighborhoods such as Piedras Blancas (a fragmented, high-risk area) and Casabó (5,000 households without sanitation, addressed through house-to-house sewer connections).
The results
- 60 settlements prioritized, with interventions in four critical areas.
- In Casabó, over 5,000 households connected to sanitation systems, supported by community labor and real-time public data commitments.
- New public spaces, health and food programs, and employment training opportunities improved local inclusion.
- Initiatives strengthened trust in local government, reduced environmental risks, and generated incremental but lasting transformations.
Lessons learned
Several key lessons emerge from both Chicago and Montevideo:
- Equity must be central: infrastructure projects must address inequalities, not reinforce them.
- Neighborhood as the unit of change: focusing on the local scale enables integrated, multi-dimensional solutions.
- Participation builds trust: co-creation with communities ensures legitimacy and long-term impact.
- Public-private-community alliances are powerful: diverse actors bring resources, accountability, and innovation.
- Climate and health co-benefits matter: projects that integrate environmental resilience and health outcomes create broader societal value.
Conclusion
The cases from the cities of Chicago and Montevideo demonstrate that inclusive and equitable approaches to urban development are not only possible but also transformative. Equitable Transit-Oriented Development in Chicago shows how transit investment can create jobs, reduce emissions, and improve health when equity is at the core. Montevideo’s neighborhood-centered strategy proves that even in contexts of high informality and mistrust, local governments can drive meaningful change through proximity, participation, and territorial focus.
Together, these experiences underline a central message: cities that put equity and participation at the heart of urban transformation can accelerate progress toward the SDGs, while making neighborhoods healthier, more resilient, and more inclusive.