On January 1, 1931, Parma became a city with a population of 13,899. Whereas the incorporation of the village of Parma was met with much optimism, the newly established city of Parma faced the uncertainty of the Great Depression which had almost entirely stopped its growth. Money was scarce, tax income was limited, and some began to talk of annexation of both the city and school district to Cleveland. Both annexation issues, however, were soundly defeated as Parma voters overwhelmingly voted against them and silenced proponents of annexation.
Not long after this, Parma was once again solvent due in large part to the newly created Gallagher Act, a 1936 Ohio law that aided cities threatened with bankruptcy and the determination of Parma's Auditor, Sam Nowlin.
By 1941, a building boom appeared to be underway in Parma just as the United States was about to enter World War II. After World War II, Parma once again began to experience tremendous growth as young families began moving from Cleveland into the suburbs. Between 1950 and 1960, Parma's population soared from 28,897 to 82,845. By 1956, Parma was unchallenged as the fastest growing city in the United States. The population peaked in 1970 at 100,216. In 2016, Parma's population had declined to 81,601, though it remains one of the Cleveland area's top three destinations young adults (aged 22 to 34) are increasingly choosing as a place to live, along with Lakewood and downtown Cleveland and in 2016 was recognized by Businessweek as one of the best places to raise kids in Ohio.
