Reviewed by Bhavana | Updated on Nov 11, 2021



Gentrification is characterized as transforming a neighbourhood, from low to high value, contributing to a community. Gentrification is often seen as an urban growth phase in which a community or part of a town grows rapidly within a short period of time. This cycle is also characterized by high house prices and the relocation of former inhabitants of the neighbourhood.

Cons of Gentrification

Gentrification is a dynamic social issue which has both benefits and disadvantages. Young families welcome the opportunity to buy moderately-priced homes in a healthy community with sound infrastructure, and a large range of amenities and services.

Additionally, local municipalities and communities benefit from higher taxes on increasing land prices and increased economic activity. However, the original residents of the neighbourhoods are also displaced from the very community, which they helped create through rising rents and higher living costs.

What are the Gentrification Causes?

- Tight housing markets: The complexities of the housing market play a crucial role in triggering gentrification and can vary from one place to the next.

- Rapid job growth: Rapid job growth will promote gentrification both within the centre of a city and along its outskirts.

- Preference for city amenities: Some ethnic groups have historically tended to live in urban communities due to amenities, such as cultural centres, a plethora of interesting restaurants and shops, lively street life, and diversity among the population.

- Increased traffic congestion: When urban populations grow and infrastructure ages, the resulting increase in traffic congestion and commuting times will lead to gentrification, along with the consequent decline in quality of life.

- Targeted public-sector policies: Several cities are implementing revitalization policies, including tax incentives, affordable housing programs, and resources for local economic development that offer opportunities for middle- and high-income families to move into distressed neighbourhoods, or for original residents to upgrade home.

Related Terms

Recent Terms