In the United States, suburbs are defined as areas in urban use that surround a city. Incorporated places with their own governments fill much of this land. The size of the suburban area around cities varies, in part because of differences in when each city stopped annexing adjacent land. The suburban areas around cities have always been diverse in population and in economic activities, despite a common reputation for being residential and middle‐class. Their population diversity is increasing, in part because immigrants are more likely to move directly to the suburbs. Diversity in economic activities and in residential property values among the suburban municipalities of a given city creates substantial differences in the ability to fund local services.