ATLANTA—Would you believe urban sprawl costs the American economy over $1 trillion ayear? That's according to a new study from the New ClimateEconomy—and Atlanta is a huge culprit.

That $1 trillion includes costs from greater spending oninfrastructure, public service delivery and transportation. Thestudy also finds that Americans living in sprawled communitiesdirectly bear an astounding $625 billion in extra costs.

“Smart growth is not anti-suburb,” says ToddLitman of the Victoria Transport Policy Institute, leadauthor of the Analysis of Public Policies that UnintentionallyEncourage and Subsidize Sprawl.“Instead, it ensures that diverse housing options are available andincentivizes households to choose the most resource-efficientoptions that meet their needs. We are now seeing growth in demandby Millennials and the elderly for affordable, compact housing inaccessible and multimodal neighborhoods.”