As top investment Realtors in Echo Park and Silver Lake for over 10 years, BRE Investment is constantly around and involved in discussions of gentrification. These are usually very emotionally charged conversations, and while most people are quick to give their opinion, most are very slow to properly define it. So here's what we found online. After reading it, we'd love for you to weigh in on this controversial topic. Right now, more than ever before, gentrification is so intertwined with real estate activity in the area.
Gentrification is a process of renovation and revival of deteriorated urban neighborhoods by means of influx of more affluent residents, which results in increased property values and the displacing of lower-income families and small businesses. This is a common and controversial topic in urban planning. Gentrification may be viewed as a "correction" of blockbusting and urban flight, as many gentrified neighborhoods of the present were once affluent neighborhoods of the past.
Gentrification is typically the result of increased interest in a certain environment. Early "gentrifiers" may belong to low-income artists or boheme communities, which increase the attractiveness and flair of a certain quarter. Further steps are increased investments in a community and the related infrastructure by real estate development businesses, local government, or community activists and resulting economic development, increased attraction of business and lower crime rates. In addition to these potential benefits, gentrification can lead to population migration.
In a community undergoing gentrification, the average income increases. Poorer pre-gentrification residents who are unable to pay increased rents or property taxes may find it necessary to relocate.