THE CAUSES
Generally, there are three main categories of the causes of gentrification: supply-side factors, demand-side factors, public policy. The supply-side factors refer to the prices of inner city housing where outsiders become desirable to buy and convert these places into higher value uses. Demand-side factors focus on the demographics of an area including employment and cultural shifts that explain why people move into gentrifying neighborhoods. Lastly, public policies divide into: tax incentives, federal policies, economic developments, rehabilitation of public housing. Public policies explain the government policies that cause housing values to fall into the hands and pockets of a city that drive high income individuals/families to purchase homes in low income neighborhoods.
THE EFFECTS
The effects of gentrification may be seen positively and/or negatively by the three main groups affected: the ones who leave the gentrifying neighborhood, new residents (gentrifiers), people who have never lived there. Lower income residents, the ones who usually leave the gentrified areas, are involuntarily displaced and are forced out by increased rent rates. The lives of these lower income residents eventually become harder than it previously was. The gentrifiers, or new residents, usually alter city services. Because rent increases, city services and tax revenues are also increased. Gentrification can the ones who have never lived there by reductions of affordable housing, etc.
PROS
|
CONS
|