Gentrification Pros And Cons

Every neighborhood is subject to change. These changes occur due to many reasons and factors like modernization, technological advancement, social forces etc. Due to these changes new cultures and way of living will be explored while some may be ignored. Gentrification is the process of increasing the rent and housing of a certain neighborhood which leads to displacement of the poor/low income families. Changes take place as people with similar interest and status form a community of higher social status. In this paper, I will discuss gentrification from a point of view that will allow us to see the advantages of it. Gentrification allows a community to be economically successful by expanding the local tax base. Because when property value

increases in a gentrifying neighborhood landlords have to pay higher property taxes and investors are attracted into investing on big businesses like condos, fine dine restaurants, high end stores which eventually leads to stronger tax base of that neighborhood. Thus, the stronger and more diverse the economy, the stronger the community becomes. Although some might argue that gentrification leads to displacement and is unfair to the part of the citizens, gentrification is actually a way to improve the living quality of a neighborhood.
Gentrification and property value
Properties are like prized possessions that are valuable to the owners but having to pay property taxes might be the least favorite responsibilities. But property taxes are crucial for funding schools, community parks, public libraries, roads, fire departments, police departments and other public services. In my opinion it is very important to understand the factors that can drive the property tax rates up and the importance of taxes in a neighborhood. “First wave
gentrifiers thus push for restrictions on development and because they’re more politically influential than the poor incumbents who came before them, they tend to succeed in their efforts.

Now that the amenity value of the neighborhood has improved in a durable way, restrictions on supply lead to big increases in housing prices” (Salam, 2014, p. 35). When a neighborhood under goes gentrification, the home prices skyrockets so then the owners have to pay high taxes which leads them to increase their rent. The good news is that the neighborhood will directly benefit from the expanded tax base as it is used in building better schools, parks, libraries, more convenient public transportations, which allows people to live a more luxurious life. Thus, by increasing land values, gentrification can financially benefit residents who own their homes. Not only does it benefit high status families, it also brings an opportunity in moving upward to low income people who manage to stay in gentrifying areas. “Lower-income children benefit significantly from living in more mixed-income neighborhoods; they tend to experience less violence and crime, attend better schools, and have better role models” (Litman, 2017, p. 2).

One of the common misconception about expanding the tax base is that we often confuse ourselves into thinking it as raising taxes. When a tax base expands, the businesses and members within the community share in the costs associated with running the community. “The larger the

tax base grows as a result of increased sales, the smaller the individual’s share of the tax burden becomes. This leaves more money in the pockets of community residents and business owners” (Nelson, 2016). Due to the expanded tax base, community gest a firm and consistent growth rate.
Gentrification and business
The strategy of gentrifying a community is associated with the renewal of homes of a neighborhood in order to attract audiences of similar interest and status.

Gentrification itself is a big business. With the money that the investors give in to the gentrifying neighborhood, they are able to build and bring in various chain stores and big companies. People in the neighborhood will then have a lot more choices. Besides the options that those companies provide, they also provide a better and more secure environment for the surrounding residents. The renewal of the city will allow residents to have a better living environment. The investors try their best to renovate the area and switch old buildings into condominiums or luxury housing for purchase, which means that people need to have certain amount of money in order to buy or rent those houses. First, the increase in chain stores provides middle and upper class people to have more choices among daily needs. Even though the chain stores will take away some of the culture experiences that only the local popshops can provide, the chain stores are still definitely better due to its convenience and the size of the company. One of the reasons that people choose big chain stores and not small shops is that people feel more comfortable and familiar with shopping in chain stores. Furthermore, not only the shops are replaced, but public utilities are also

improved.
Improved infrastructure
I agree with the belief that when neighborhoods change, some families do get pushed out and that the longtime residents of low-income neighborhoods don’t support gentrification exactly, but they do want the things it often brings like the grocery stores and other retail within walking distance, better transit connections, reduced crime and priority from the city/local government. Although some might argue that gentrification leads to displacement and is unfair to the part of the citizens, gentrification is actually a way to improve the living quality of a neighborhood. It also gives small creative opportunity like street art and graffiti. Author Romero (2018) explains in the article “Gentrification, for Better and Worse” how small street artists get opportunities for paid work. The growth of city space extends street artists’ creative playground, which advances the artists’ opportunities for paid work and exposure (Romero, 2018). In many economically depressed or low-income areas, old buildings often progressively become worse because of low tax base and lack of funding. Gentrification brings people to the community with a wide range of interests and skills. Therefore, some might argue that gentrification leads to displacement and is unfair to the part of the citizens, gentrification is actually a way to improve the living quality of a neighborhood.
Gentrification is a rising controversial topic that people have been debating about. It has many definitions and people tend to favor the one that suites their status or works in their favor. Some economists view this as a process of growth and betterment while others claim gentrification compels poor families to move out of the neighborhood. Rather than debating about what gentrification is, it is more crucial to learn the advantages of gentrification and make it work for both high status and low status families. I believe concentrated poverty is worse and harmful than the mixing of incomes in a neighborhood. The term “gentrification” has become a scary word when in reality the benefits are much more than its cost. As considered that gentrification is not going to end anytime soon or is an inevitable process, it will be wise to benefit and take advantages from these change rather than refusing to agree.