Contemporary Fantasy sometimes called Modern Fantasy is not all that new, but there are many new authors. Currently I read Kim Harrison, Jim Butcher, Neil Gaiman, Tim Powers, and Mario Acevedo. I love the genre and would like to know of other authors. Here is the Wiki definition of Contemporary or Modern Fantasy - http://en.wikipedia.org/wiki/Modern_fantasy
I like Mercedes Lackey anything, but the SERRAted Edge series (Elves who race cars) and the Bedlam Bards series are both urban fantasies.
Simon Green (of deathstalker and Hawk&Fisher fame) has an urban fantsay series, The Nightside, which is kindof like a cross between The Dresden Files and Neverwhere. Terry Brooks' Word and the Void series is really good too.
I like the Kelley Armstrong stuff, I read the serated edge stuff as well a long time ago, and does Shadowrun count?