Gentrification: Fact or Fiction?

source: https://www.bestcoastdevelopers.com/gentrification-fact-or-fiction-2/

Gentrification has been a “thing” since at least the Roman Empire. Derived from gentry, meaning ‘of gentle birth’ it refers to the landed gentry or gentlemen’s class. In 1964 British sociologist Ruth Glass coined the term gentrification to describe the more comfortable middle classes displacing lower income workers from their urban neighborhoods. Today’s familiar pattern of “gentrification” includes the initial waves of artists, gays and bohemian characters, followed by their friends and socio-cultural fans, investors and small businesses, and finally by Starbucks and mommies with strollers.
Gentrification is a topic rife with controversy and distinctions – It’s political, it’s an economic problem, it’s class warfare – or more generally, it’s a divisive issue people love to hate and one whose proponents are afraid to stand up for. The fact is, gentrification exists and will keep happening – so let’s find a way to embrace it while minimizing its negative impacts.
No matter your viewpoint, gentrification remains a hot topic nationwide and is particularly relevant on the Left Coast. Many local neighborhoods are changing dramatically as prices rise and buyers search for the next affordable place to call home. From the Mission in San Francisco to Highland Park in Los Angeles, neighborhoods all over the Left Coast are experiencing the transition know as gentrification. But I think it’s time to turn this controversial subject on its head. Perhaps the transitioning of neighborhoods is merely part of their life cycle, their evolution? New is exciting and trendy, older gets boring, oldest gets run down and cheap. Once land gets scarce, folks move to older areas and restore them to their former glory or better. It’s easy to see the many positive changes that happen when neighborhoods transition; lower crime rates, cleaner neighborhoods, restored architecture, better amenities and more engaged residents. The biggest negative is higher home prices once a neighborhood improves. But nicer things cost more, right?
The history of gentrification is mostly an urban story. American cities became unpopular during the 1960’s, as suburban culture took hold across America. The middle classes fled cities in search of the American dream with a house and white picket fence. However, by the late 1980’s, folks began moving back to colonize the blighted urban core. A variety of reasons led to this change; many grew tired of bedroom community lifestyle and yearned for city living near work, transit, culture and lively communities. Housing options increased in cities as the manufacturing base shrank, and commercial lofts became a trendy urban alternative to the single family home far from downtown. Metropolitan areas across the country are more vibrant and dynamic today thanks to the popularity of downtown redevelopment that followed the structural and social changes in the economy.
Generally, gentrification happened in areas with high quality construction, which fell out of favor and into disrepair. Pioneering groups moved out of their comfort zones and into areas where they were a minority. While gentrification is most often associated with whites moving into minority hoods, there are more instances where new ethnic groups moved together to form a community and enhanced a neighborhood in the process. Successive waves of immigrant groups have transformed communities across America and the end result was usually interesting and positive. The biggest complaint about gentrification has been the displacement of longtime residents by yuppies and hipsters with higher incomes. The facts don’t always support this argument. Several recent studies reveal that original residents, including minorities, or households with children or elderly homeowners, benefitted equally from the improved conditions and opportunities of “gentrified” neighborhoods. These areas often become more ethnically and economically diverse, which we think is a good thing. Utopia involves all races, ethnicities and classes living together in harmony, rather than segregated and separate.
Researchers from Columbia University, the Brookings Institution and respected economists have helped redefine gentrification as a neighborhood where the poverty level drops dramatically over time, to create a new socio-economic status for that community. San Francisco, New York City, Washington DC, Seattle, Chicago and Atlanta have all experienced their share of gentrification over the past 30 years. However, nationwide, statistics show that most neighborhoods’ income levels remain steady even after revitalization happens. In other words, actual “gentrification” is not as common as once believed.
When analyzed in detail over time, researchers have repeatedly found less displacement of residents than expected in improving areas. In fact, poorer residents of gentrifying areas actually moved less frequently than those of stable neighborhoods. Those most affected would be renters in units without price controls. Rent controlled leases are protected from drastic increases, and owners in California have tax rates fixed at purchase with only modest annual increases. Owners actually have an incentive to stay during gentrification, as their home quickly appreciates and they get richer. Complaints about gentrification seem to be more of a concern about rising home prices rather than displacement of current residents. This is related to home building restrictions, wages and increasing poverty levels, not “gentrification” as previously thought.
The middle class search for affordable housing is not a new phenomenon. As buyers move to less desirable areas based on price, additional value and demand are created in tandem, as revitalization occurs. Poorer residents can eventually be priced out or unable to move into the neighborhood. While rent control laws address these issues, their troubled design often creates more problems than they solve. I think a blended approach based on local needs works best; developers maintain a portion of their new units for below market rentals, along with passing sensible rent control laws and offering rent credits to those in need. Creating separate housing projects for poorer folks tends to marginalize those people and areas. Vibrant communities often have a mix of socio-economic levels together. Greater density, more mass transit and building affordable units will be necessary to solve our affordable housing shortage, not an esoteric discussion of the restorations of a small number of communities referred to as gentrification.
Bottom line: I want to see cleaner, safer neighborhoods with better buildings and public spaces, and housing options for everyone. This is our path to stronger, happier and more diverse communities. Check out the articles below for more insight on the topic. #gentrification
(reprinted from original article, LEFT Magazine, Sept. 2015)
Gentrification: Fact of Fiction – LEFT Magazine
The Myth of Gentrification – Slate Magazine
Gentrification: Pros and Cons – LA Weekly
Posted September 13, 2015