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

Question

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

Answer 1

The restaurants don’t per se, it’s just a sign of gentrification.

As the restaurants move on, so do the coffee shops. Old, dilapidated buildings are overhauled and renovated making the neighborhood nicer.

Nicer neighborhoods attract more affluent residents. More residents means more demand for living space.

Limited living space means rents go up.