Where do I stand on Gentrification?

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Where do I stand on Gentrification?

• IB Geography II

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Gentrification What is it?

• Gentrification is the process of renewal and
  reinvestment of capital into inner-city areas.
• In economic terms, it means the value and cost of
  neighborhood housing and property is higher.
• Gentrification accompanies the influx of
  middle-class or affluent people into
  deteriorating areas that often displaces poorer
  residents.

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The Monopoly Analogy

• One way to think about gentrification is to play
  the game of Monopoly.
• In the game, the goal is to be the wealthiest
  player through buying, renting, and selling
  property.
• In every game there are winners and losers, just
  like real life!
• While homeowners want the value of their home to
  increase, when this happens, so does the property
  tax.
• So, when gentrification drives up property
  values, some people (usually those on fixed
  incomes, or with low paying jobs) cant afford
  their homes anymore.

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Is it good or bad?

• Some consider it a positive sign of reinvestment
  in a neighborhood
• Yay!!! A new Starbucks on the corner!

• Others resent the changes in population and
  character.
• The local mom and pop coffee shop lost business
  after they put a new Starbucks on the corner.

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Where do I stand on Gentrification? Activity

• In this exercise, consider how different people
  from different communities look at the question
  of gentrification.
• Step 1 Take 3 minutes to read the Scenario
  handed to you. Based on the scenario, decide if
  you would be for or against gentrification and
  give a reason why.

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Where do I stand on Gentrification? Activity

• Step 2 Get in groups (each group will have a
  member representing each of the 6 scenarios). In
  your groups, complete the following activities
• 1. Each group member will explain who they are
  and give a brief synopsis of their situation and
  say where they stand on gentrification and why.

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Where do I stand on Gentrification? Activity

• 2. Discuss the following questions within your
  group
• Prior to getting your scenario card or hearing
  from other scenarios, what was your view of
  gentrification?
• What personal experiences do you have that shape
  your view of gentrification?
• How did hearing each scenario change/alter/modify
  your view of gentrification?
• Why is it important that we understand the
  perspective of others when we formulate public
  policy?

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Why does Gentrification Happen?

• Reason 1
• The local government usually welcomes development
  because investment generates taxes.
• As value of a property increase, so do taxes.
• Taxes are used to provide basic city services
  (road maintenance, police/fire protection,
  teacher salaries, water, health, etc)

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Why does Gentrification Happen?

• Reason 2
• Many young professionals who once moved to the
  suburbs now hope to stay closer to the urban
  core.
• They look for neighborhoods that are close to
  transportation, cheap, where you can find cool
  architectural characteristics, old buildings,
  etc.
• Also, many retired suburbanites are moving back
  to the city because they no longer need the large
  home and want to be closer to cultural
  opportunities in the city.

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Why does Gentrification Happen?

• Reason 3
• American society and its economic culture
  encourage change.
• Unlike many cultures, we do not settle in
  communities with families and stay there for
  generations. Many American families will move 3
  and 4 times and live far away from relatives.
• This mobility fuels real estate, banking, and
  home improvement industries that profit from
  gentrification taking place.

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What factors contribute to a neighborhoods
gentrification?

• Access to urban centers view proximity to
  transportation networks.
• Low housing costs
• Interesting architecture and building detail
• Large numbers of rental units

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How Can You Measure Gentrification?

• Look at property value and tax rate changes
  between each census
• Review turnover rates in rental units
• Income level of residents (new and long-term)
• Ethnic and racial mix of residents (new and
  long-term, stable or not?)
• The kinds of businesses that move into or out of
  the neighborhood
• The kinds of work that exists in the neighborhood
  (factory jobs versus service jobs)
• The kinds of cars parked on the street
• The kinds of community organizations in the
  neighborhood

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What are some of the advantages of
Gentrification?

• Housing values increase for homeowners
• Increase tax revenues for city services
• Reinvestment is made in infrastructure, roads,
  water mains, local schools
• Business expansion
• Renovation and upgrading of existing homes
• Development of job opportunities

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What are some of the disadvantages of
Gentrification?

• Higher income investors displace lower income
  residents
• Disrupts community institutions rooted in
  neighborhoods
• Forces some people to move away from community
• Can increase racial and economic conflict (often
  times its minority groups being displaced)

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What can be done about the disadvantages brought
on by Gentrification?

• Provide tax relief for long term home owners
• Promote mixed income housing development
• Support neighborhood organizations rooted in
  local history and ethnic traditions
• Establish Community Land Trusts (CLTs) a
  non-profit organization that seeks to own and
  preserve areas that benefit the whole community
  as opposed to private land owners. (Ex public
  parks)

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What have we learned?

• Gentrification is a complex phenomenon that
  happens in many cities of the United States,
  especially in low-income neighborhoods
• Gentrification leads to many low income residents
  to leave their neighborhoods due to increasing
  property taxes
• Gentrification offers both advantages and
  disadvantages for investors and residents
• There are strategies to moderate gentrification
  to assist those vulnerable to displacement.