The article conceptualizes the “creative localities” and problematizes their role in the transformation of the urban environment basing on the materials of an empirical study. Creative localities are defined as new self-organizing forms of social space characterized by a certain localization and specific social interaction that trigger creative processes. Based on the results of an empirical study using qualitative interviews with representatives of creative localities, the essential characteristics of creative localities as a social phenomenon are clarified, the potential for their impact on urban environment changes both in physical and social terms is revealed, the conditions and risks for the successful development of the urban creative environment and the manifestation of youth subjectivity are analyzed. The conclusion is drawn about the dominant importance of self-organization and grassroots initiatives for the formation and development of creative localities. It has been revealed that the very emergence of creative localities depends on the ability of active actors to assemble a micro- group of like-minded people capable of supporting a creative idea, and their further development depends on the effectiveness of “cross-” interaction between various creative communities and achieving a balance between external support (from the government and business) and non-interference in the creative process.