Why and how do the existence of hip and trendy restaurants cause rents to rise up?

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I saw this meme which as an attack on these trendy burger joints, you know the one. The gentrified ones, “we do things a little different here”, 11 dollars for mac and cheese, repurposed furniture for chairs and tables, motivational words on the walls etc. and its followed by “If you see this on your street expect your rent to rise up”

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I dont get it. How does it make rent go up?

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6 Answers

Anonymous 0 Comments

Such businesses attract wealthier clientele who are willing to pay $18 for a burger instead of $10. Such people want to live in areas with businesses they patronize are located, causing more wealthy people to look at such areas. increased demand raises rents. Developers rehabbing units to rent/sell to such potential new residents increases prices. New development in the area will skew toward the higher end/luxury market and set new price ceilings against which other units get benchmarked.

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