The purpose of the paper is to examine the effect of the Arctic Hectare program on the development of Russian cities in the Arctic region. In particular, the study analyzes the role of the program in changing the borders of settlements and the possibility of their regulation. The research employs a qualitative approach, including the collection of data from government documents, research literature, and electronic resources associated with urban development, regional development, and the Arctic Hectare program. Data analysis shows that most Arctic cities continue to compress: with preserved infrastructure, entire houses and areas of settlements go empty. In contrast, the Gulf of Ob shows an increase in settlements, as its mining areas actively expand. The area demonstrates a principle characteristic of circumpolar urban development, e.g., a fractal system of settlement growth with the development of the next branch of the city tree. The restart of empty suburbs outside the zone of active mining is attributed to the stage program of Arctic Hectare. As a result, the authors identify two concepts of urban planning: one that emphasizes development along outbound highways, and another that assumes the development of satellite cities. In the near future, the familiar urban landscape may change, as its outskirts may be supplemented by low-rise development. A large share of applicants use the Arctic Hectare to solve the housing problem. It becomes clear that the suburbs are a realistic way of habitation in the Arctic region. The researchers argue that the sustainability theory can allow pre-dicting urban development in the territory based on adaptive cycles.