Smaller Cities Struggle More as Gas Prices Soar

Spread-out urban design, not just high prices, drives economic pain in some metro areas

Apr. 17, 2026 at 3:13pm

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A geometric abstract illustration using simple shapes and primary colors to conceptually represent the economic strain of high gas prices on car-dependent urban areas.Rising fuel costs disproportionately burden residents of spread-out cities with limited transportation alternatives.Indianapolis Today

Gas prices have skyrocketed across the US as a result of the Iran war, but the surge is causing more economic pain in some cities than others. And it's not necessarily in the places where gas prices have risen the most, like Chicago or Los Angeles. Instead, it's in smaller, more spread-out cities, like Nashville or Indianapolis, where the urban design is centered around car transportation.

Why it matters

The economic impact of high gas prices is not evenly distributed across the country. Smaller, more car-dependent cities are disproportionately affected as residents have fewer transportation alternatives and must spend a larger portion of their budgets on fuel costs.

The details

Cities are designed around the transportation options they have, and the transportation choices people make result from city design. Smaller, more spread-out cities like Indianapolis and Nashville, which lack robust public transit systems, are hit harder by rising gas prices as residents have no choice but to drive longer distances for work, errands, and other daily needs.

  • Gas prices have skyrocketed across the US since the start of the Iran war in 2026.

The players

Indianapolis, Indiana

A smaller, more spread-out city that lacks robust public transit, making residents heavily reliant on personal vehicles and thus more vulnerable to the economic impacts of high gas prices.

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The takeaway

This story highlights how urban design and transportation infrastructure can amplify the economic effects of external shocks like fuel price spikes, underscoring the need for cities to invest in more sustainable and equitable mobility options to build resilience.