The growth machine in the European suburb: Land-value capture and the use of anti-segregation discourse in Kontula, Helsinki

Abstract

In the United States, growth machine theory has served as a key framework for understanding the mechanisms of local urban politics. It maintains that coalitions of local elites work together to intensify land use, enabling them to benefit from increased exchange values. Yet, such growth coalitions have never been decisively identified in European cities, and the theory’s continued relevance within contemporary urban governance remains contested. This article contributes to this debate by providing empirical evidence of how growth machine dynamics can unfold in a European suburban setting. Whereas the theory has traditionally been applied to inner-city or greenfield developments, this study provides new insights by extending its application to the context of suburban regeneration. It draws on the case of Kontula, a socially and economically challenged suburb in Helsinki undergoing urban renewal. The research findings demonstrate how the municipality and local real estate owners form a coalition with a shared interest in capturing land value through the sale of building rights. Importantly, Kontula’s context as a challenged suburb enables this coalition to pursue its growth agenda through the strategic use of an anti-segregation narrative. By framing demographic change and social mixing as inherently beneficial, anti-segregation serves to promote ‘value-free growth’, all while masking the possible adverse effects from retail displacement and the loss of Kontula’s unique cultural fabric. The article argues that the coalition’s intended land-use intensification risks exacerbating social inequalities, further alienating vulnerable groups who find belonging in the multinational community of small businesses within Kontula’s shopping centre.