<p>    The author reports on changes in Hiroshima since 1985, especially in recent years, by analyzing population flow data (migration, commuting, and trade area surveys), improvements to the transportation network, and recent development trends in several facilities. Changes in Hiroshima as a regional capital city were also considered. <BR>    The population of Hiroshima has increased by 13.6 percent over many years since 1985. It has increased particularly rapidly in the suburban wards, where many residences have been constructed on hillsides. In terms of migration, inflow from peripheral prefectures and outflow to large metropolitan areas (around Tokyo and Osaka), have declined significantly. <BR>    In terms of commerce, the centrality in the CBD (Haccho-bori, Kamiya-cho) has declined remarkably since 2004. Suburban shopping centers have lured customers away from the CBD, and competition between the CBD and the suburbs has been replaced with competition between various suburban shopping centers themselves. Suburbanization has progressed on many levels. <BR>    In the CBD, some office buildings have been reconstructed into condominiums to deal with the prevalence of vacant offices. It seems the need for office space has grown stagnant in Hiroshima. High-rise condominiums are increasing in the redevelopment area in front of Hiroshima Station. Although some office buildings are being constructed there, the accumulation of business functions is unremarkable. <BR>    Moreover, the position of Hiroshima as a regional capital city has waned as a result of the combination and reorganization of the branch offices located in the city. While over-centralization has been progressing in Tokyo, the position of Hiroshima as a “branch office economic city” has been reduced, likely because Hiroshima is located relatively close to Tokyo and Osaka. In contrast, Fukuoka, which is farther away from both Tokyo and Osaka, has been expanding in recent years. <BR>    Many new hotels are being constructed in Hiroshima recently. It can be assumed that business trips to Hiroshima have been increasing due to the combination and reorganization of branch offices. Moreover, a large number of tourists come to Hiroshima from all over the world, most of them to see Hiroshima's two UNESCO world heritage sites (the Atomic Bomb Dome and Miyajima). Because of these activities, the characteristics of Hiroshima are changing. <BR>    Whether Hiroshima is able to maintain its position as a regional capital city requires further observation.</p>