Urban Gentrification

Urban gentrification, or gentrification, is the set of changes in an urban area that are associated with the movement of more affluent individuals into a lower-class area. Areas undergoing gentrification experience demographic shifts including an increase in the median income, a decline in proportion of racial minorities, and a reduction in household size.

In gentrified areas, there are more households with higher incomes. This results in increased real estate values which lead to higher associated rent, higher home prices, and higher property taxes. In addition, the amount of land used for industrial purposes can decline with redevelopment. This brings in more commercial and residential use. These changes also result in the transformation of a neighborhood’s character and culture.

Gentrification can be the result of urban reinvestment efforts by local governments or neighborhood groups. These groups direct money to invest in deteriorating city infrastructure, offer incentives for redevelopment, improve access to housing loans for low-income mortgage seekers, assist lending to first-time home purchasers, and improve rental properties.

On the whole, these efforts have been shown to reduce local property crime rates, increase property prices, and increase revenue to local governments from property taxes. There are frequently grassroots efforts made by existing residents that are meant to support or to oppose gentrification. This leads to community activism and participation, which is also a good thing.

Contact an Austin Realtor

For more information on the Austin real estate market and Austin neighborhoods, contact an experienced Austin realtor from The Carvajal Group at 512-419-7770.