Housing Notes

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Gentrification
the process of neighborhood change that results in the replacement of lower income residents with higher income ones. Revitalization
The process of enhancing the physical, commercial and social components of neighborhoods and the future prospects of its residents through private sector and/or public sector efforts. Physical components include upgrading of housing stock and streetscapes. •Commercial components include the creation of viable businesses and services in the community. • Social components include increasing employment and reductions in crime. Reinvestment

The flow of capital into a neighborhood primarily to upgrade physical components of the neighborhood, although reinvestment can also be made in human capacity. Characteristics of Communities Targeted for Gentrification

Fiscal problems
Crime
Neglect
Low Income
Failing schools
Aging
Segregated
Contributing Factors
1.Rapid Job Growth
-During the gentrification wave of the late ‘70s and early ‘80s, researchers argued that center city job growth was a key ingredient for gentrification in inner city areas - Rapid job growth continues to be a key factor, but it no longer appears that such growth must be concentrated in the heart of downtown to trigger gentrification. More recent experience in some places suggests that job growth along a city’s periphery can be a strong a factor in the gentrification process. 2. Tight Housing Markets

-Housing market dynamics appear to play a critical role in producing gentrification. -Constrained supply
-Relative affordability
-Lucrative investment potential in high risk neighborhoods
-Large rent gap
3. Preference for City Amenities
-Certain demographic groups traditionally have preferred to live in urban neighborhoods with easy access to amenities, including vibrant culture and street life, ethnic and racial diversity, distinctive and often historic architectural styles, and close proximity to downtown entertainment and cultural venues. -The presence of these amenities helps to identify which city neighborhoods are most likely to gentrify. 4. Increased Traffic Congestion and Lengthening Commutes

-Frustrations with increasing traffic congestion and long commuting times were expressed as factors contributing to gentrification. As metropolitan populations rise and infrastructure ages, commutes (and therefore hours away from home) lengthen, congestion increases, and overall quality of life declines. 5. Targeted Public Sector Policies

-While economic forces seem to drive gentrification, government policies of the past or present can either facilitate or impede gentrification. Cities use a range of policy levers to revitalize neighborhoods or accomplish other goals, including direct investments, tax expenditures, and zoning regulations. 6. Tax Incentives

-These include tax credits and abatements for new city homebuyers, tax -Credits for historical preservation, below market land sales, and land bank purchases (i.e. first-time homebuyer tax credit which appears to have been a factor in a large number of recent home purchases). -Public Housing Revitalization: Another direct policy lever that may have the indirect effect of increasing gentrification is the federal HOPE VI public housing revitalization program. -Consequences of Other Federal Policies: Anti discrimination policy and NSP -Local Economic Development Tools: Cities utilize other economic development tools to spark revitalization, such as the construction of transit facilities, convention centers, and the disposition of city-owned property. Characteristics of Communities After Gentrification has begun •Significant Shift in Demographic makeup

Restore fiscal health
Public safety improvements
Housing stock quality improved
Improvement in the commercial corridor
Ethnic diversity
Consequences of Gentrification
1.First Stage
Newcomers buy and rehab vacant units, causing little displacement and...
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