Tag Archives: gentrifying neighborhoods

Gentrification in NYC

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Manhattan-plaza

The NYU Furman Center released its annual State of New York City’s Housing and Neighborhoods (2015). This year’s report focused on gentrification:

“Gentrification” has become the accepted term to describe neighborhoods that start off predominantly occupied by households of relatively low socioeconomic status, and then experience an inflow of higher socioeconomic status households. The British sociologist Ruth Glass coined the term in 1964 to describe changes she encountered in formerly working-class London neighborhoods, and sociologists first began applying the term to New York City (and elsewhere) in the 1970s. Since entering the mainstream lexicon, the word “gentrification” is applied broadly and interchangeably to describe a range of neighborhood changes, including rising incomes, changing racial composition, shifting commercial activity, and displacement of original residents. (4)

The reports main findings are

  • While rents only increased modestly in the 1990s, they rose everywhere in the 2000s, most rapidly in the low-income neighborhoods surrounding central Manhattan.
  • Most neighborhoods in New York City regained the population they lost during the 1970s and 1980s, while the population in the average gentrifying neighborhood in 2010 was still 16 percent below its 1970 level.
  • One third of the housing units added in New York City from 2000 to 2010 were added in the city’s 15 gentrifying neighborhoods despite their accounting for only 26 percent of the city’s population.
  • Gentrifying neighborhoods experienced the fastest growth citywide in the number of college graduates, young adults, childless families, non-family households, and white residents between 1990 and 2010-2014. They saw increases in average household income while most other neighborhoods did not.
  • Rent burden has increased for households citywide since 2000, but particularly for low- and moderate-income households in gentrifying and non-gentrifying neighborhoods.
  • The share of recently available rental units affordable to low-income households declined sharply in gentrifying neighborhoods between 2000 and 2010-2014.
  • There was considerable variation among the SBAs [sub-borough areas] classified as gentrifying neighborhoods; for example, among the SBAs classified as gentrifying, the change in average household income between 2000 and 2010-2014 ranged from a decrease of 16 percent to an increase of 41 percent. (4)

The report provides a lot of facts for debates about gentrification that often reflect predetermined ideological viewpoints. The fact that jumped out to me was that a greater percentage of low-income households in non-gentrifying neighborhoods were rent burdened than in gentrifying neighborhoods. (14-15)

This highlights the fact that we face a very big supply problem in the NYC housing market — we need to build a lot more housing if we are going to make a serious dent in this problem. The De Blasio Administration is on board with this — the City Council needs to get on board too.

Lots more of interest in the Furman report — worth curling up with it on a rainy afternoon.

 

Gentrification & Socioeconomic Diversity

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Lisa Brewster

Lei Ding et al. have posted a Federal Reserve Bank of Philadelphia Working Paper, Gentrification and Residential Mobility in Philadelphia, to SSRN. The abstract reads,

Gentrification has provoked considerable debate and controversy about its effects on neighborhoods and the people residing in them. This paper draws on a unique large-scale consumer credit database to examine the mobility patterns of residents in gentrifying neighborhoods in the city of Philadelphia from 2002 to 2014. We find significant heterogeneity in the effects of gentrification across neighborhoods and subpopulations. Residents 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 residents’ financial health 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.
I am not in a position to fully evaluate the methodology of this paper in this post. At first glance, however, it appears to be a well-constructed and large study, tracking “the residential location and financial health of a random sample of more than 50,000 adults.” (1) At the same time, useful household characteristics like income and race were not available to the authors, so the study has some significant limitations.

Given the intensive debates that gentrification engenders in NYC and elsewhere, it is still helpful that the authors offer up some facts and grounded interpretation of those facts. The authors specifically find that “gentrification is associated with positive changes in residents’ financial health: Residents in gentrifying neighborhoods experience an average increase of 11 points in their credit scores, compared with those who are not residents.” (1) At the same time, their results “suggest that less advantaged residents generally gained less from gentrification than others, and those who were unable to remain in a gentrifying neighborhood had negative residential and financial outcomes in the gentrification process.” (2)

Those who decry gentrification as well as those who promote it (quietly, more often than not) will find support for their positions in this paper. But those who are trying to understand just what we are talking about when we talk about gentrification and its effects will be left with a more textured understanding of how the demographics of gentrifying neighborhoods change. If cities are serious about promoting socioeconomic diversity, they must understand what is happening when neighborhoods are in flux.