This is a young adult book, and isn’t explicitly set in Newford, but very well could be. There are two teenagers as the protagonists: TJ – whose parents lost all their money, and had to move to the city to get new jobs, meaning they gave up the farm, and the horse that TJ loved, and Elizabeth – who runs away from her family when they decide to move.
I should mention that Elizabeth is a Little (a lot like a Borrower), and the reason her parents move is that TJ sees them, which always means the Littles have to flee. Elizabeth thinks that’s a crock, and sticks around. She and TJ become friends.
But Elizabeth does miss her family, and when the girls find out there’s an author who seems to know an awful lot about the Littles, and therefore might be able to help her find them, they decide to seek her out. Unfortunately, due to certain events, that means the girls get separated in the City.
What follows is both girls learning a little bit about growing up and moving on. It’s a nice story. The fantasy elements are almost incidental, but just give it a really nice frame. Definitely a fun read.