BusinessDictionary.com defines gentrification as “the process of wealthier residents moving to an area, and the changes that occur due to the influx of wealth.” The website goes on to explain that the neighborhood begins to change when wealthier inhabitants move into an area that is already populated with lower-income residents.
Such change can trigger an urban renewal process, which makes the area look better, feel safer, have more amenities for residents, and produce more tax revenue for local jurisdictions. Still, these factors can be accompanied by a significant increase in rent, taxes, and other costs for residents.
Often gentrification makes it harder for existing residents to continue to afford to live in the neighborhood where they have resided for many years. Therefore, the term is often used in a negative connotation. However, there are both benefits and disadvantages to gentrification.
What are the pros and cons of gentrification? We will discuss them in our next post.
Written by Brett Poirier, a Research Assistant at RSG