Editor: David Reiss
Brooklyn Law School

October 16, 2015

Friday’s Government Reports

By Serenna McCloud

  • The Federal Reserve Bank of Philadelphia has released a Discussion paper Gentrification and Residential Mobility in Philadelphia the study uses consumer credit data to study the economic effects of gentrification on existing lower income residents.   The study finds the following:  “[R]esidents in gentrifying neighborhoods have slightly higher mobility rates than those in nongentrifying neighborhoods, but they do not have a higher risk of moving to a lower-income neighborhood. Moreover, gentrification is associated with some positive changes in the financial health of residents as measured by individuals’ credit scores. However, when more vulnerable residents (low-score, longer-term residents, or residents without mortgages) move from gentrifying neighborhoods, they are more likely to move to lower-income neighborhoods and neighborhoods with lower values on quality-of-life indicators. The results reveal the nuances of mobility in gentrifying neighborhoods and demonstrate how the positive and negative consequences of gentrification are unevenly distributed.”
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