W h a t d id King of the Hill te a c h u s ?• Role of real estate agents The desirability of ethnic neighborhoods• Effects on renters and homeowners Challenges of relocation
F ir s t t h in g s f ir s t• What is gentrification? Formal definition: upgrading of housing stock over time• A change in the character of a neighborhood But, how do we define "character"
How d o n e ig h b o r h o o d s c ha ng e ?• Investments in housing increases the value of homes This increases the value of surrounding homes• Homes in the neighborhood are now investment opportunities Increase in taxes and rents
Why do neighborhoods change?• Poor, but elite, people look for cheep houses in a specific kind of environment They will work to create the kind of environment they want to live in• Bohemians, hipsters, ect.
T y p ic a l g e n t r if ic a t io n p ro c e s s An old neighborhood has lots of old housing stock Hipsters and bohemians like the style of the housing and the low prices, so they buy houses and move in Firms that cater to these groups move to the new neighborhood: cafes, restaurants, ect. The neighborhood becomes nicer and prices increase. First the original residents are forced out, and then the original gentrifiers
Wh a t w a s P e g g y s R o le ?• Real estate agents as gatekeepers Redlining• Reverse redlining?
W h y d id t h e h ip s t e r s m o v e ?• A reaction against suburbanization The search of authenticity• A unique culture
W h y d id E n r iq u e h a ve to m o ve ?• Improvements in neighborhood quality lead to increased taxes and rents• Even if he was a homeowner, increased property taxes and increased code enforcement might have forced him to leave
W h y is r e lo c a t io n s o h a rd ?• Disruption of support and social networks Language and cultural barriers• Usually leads to more expensive housing elsewhere
W h y d o c it ie s lik e g e n t r if ic a t io n ?• Increased tax revenues Perceived decline in crime• A vital part of urban redevelopment plans Attracts the "Creative Class"
B u t w h a t a re th e c o s ts ?• Former residents have to build new lives elsewhere "Starbucksification" of once unique neighborhoods• Reenforced segregation - both by class and race
T h e e t h ic a l is s u e o f g e n t r if ic a t io n• Who is really right here? Shouldnt people be able to choose to live where ever they want?• But what about the effects?