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?
In: 1
Gentrification generally leads to increased rents as competition for available housing increases. One indicator of gentrification is hip new eating spots – restaurants need customers, and it costs a lot to open a restaurant – those who open them tend to be well aware of demographic changes happening in and around a neighborhood. So if you start to see new trendy restaurants open in a seemingly depressed area, that’s a pretty good sign that the neighborhood is gentrifying and more and more people will seek to live there. More people chasing the same amount of housing drives up rent, all else being equal. It’s simple supply and demand.
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