You always hear people complain about gentrification and how the neighborhood is unaffordable. Who are the people who push for gentrification and what do they benefit from it?
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Property owners. Land owners. Developers. A run down area in a large city is ripe for gentrification. Big money comes in and buys all the runs down apartments, buildings, and land. They fix it up or buy and hold as poor people are pushed out by the slowly increasing rents and cost of living. I bought a condo in a crappy area about 7 years ago. Drug deals went down, high crime etc, purchased it for 1/2 of what a comparable condo goes for just a mile or two away. Well now gentrification is setting in and the property values have skyrocketed. Developers came in bought everything in that area and now the costs have increased.
Gentrification happens when people show up to an area with low housing costs to purchase a house and improve it. They now have a house that they might not have been able to afford someplace else. Once that starts to happen it makes the values raise a little bit more and it becomes a little bit nicer. People start moving there who couldn’t afford houses elsewhere but would have not gone there if the neighborhood still had problems.
Now the area becomes trendy and people will pay more for the houses there and the initial people who bought houses for the gentrification might not be able to afford buying a house there now. The first gentrifiers move out and now the neighborhood has a bunch of people who don’t appreciate what the community used to be like. The people who had lived there from before the gentrification are looked down on us being a lower class and no longer feel like they fit in. It’s likely many of them were renting and now their landlords sell the house they were in and there are fewer places around that they can afford.
People who own the property get to sell it to wealthy developers for buckets of money, then the developers pay construction companies buckets of money to build cheap cookie-cutter condo buildings, then they’re sold to young professionals for buckets of money. The cities also make out well through all the permits and regulation fees they throw at the project, and through the increase in overall area property value.
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