What is gentrification?

Perhaps you've heard the word gentrification mentioned in the news, in the industry you're working in, or maybe even in some political context. Well, gentrification is happening more and more in the world around us, so it's important to understand what people are talking about when they rattle off this word.

Gentrification is the process of a low income and sometimes crime-ridden urban area transforming into a more upscale and affluent area. Gentrification is usually initiated by affluent residents and businesses moving into an area. That is accompanied by the renovation and reconstruction of buildings, parks, and other local amenities. It involves both economic and demographic change, into change in the overall makeup of the people who live in the area.

As the area improves and becomes more desirable, property values, rents, and the cost of living will also become more expensive. Gentrification can result in displacing residents who may have lived in the area their entire life, but all of a sudden are unable to afford the higher cost of living, forcing them to move.

Gentrification is somewhat of a controversial subject. In most cases, the areas that experience gentrification are initially low income minority communities, and as the area improves and prices increase, it's the more educated and affluent residents that tend to benefit from the change, because these residents are the ones who can actually afford to stay. It's the less educated, lower-income households that are negatively impacted by gentrification, and this isn't just the renter either. Homeowners may own their property outright but see such a big increase in property taxes they can no longer afford to live in the area.

Gentrification does not occur in every urban city, and it usually doesn't happen in the poorest, most dangerous neighborhoods either. Typically there needs to be some kind of cultural opportunity in order for gentrification to occur.

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