Easy to imagine vascular dementia rates being higher due to air pollution, would be interesting to see if rates of non-vascular dementia, such as Alzheimer's are also higher.
It's equally easy to imagine that people who have a brain chemistry that makes them value things like quicker access to transport or a faster pace of life that makes them want to live in the centre of a city are also more susceptible to dementia though. This research has highlighted an interesting correlation that's worth studying, it's not necessarily showing that pollution is the cause.
According to the press-release, a difference in distance of only 50m from a high-traffic road creates an observable 7% difference in dementia risk.
I'd say it's very easy to both live in a city centre and live 50m away from a major road.