Gentrification – Economic Model

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Presentation transcript:

Gentrification – Economic Model Allen C. Goodman 2015

Consider urban, neighborhood, individual – housing quantity Price, $ Urban Price, $ N’Hood Price, $ Individual P0 P1 Thousands Hundreds Individual

Neighborhood is cheaper People move in. Prices rise. Who benefits? Landlords Home-owners Who loses? Renters WHY?

Consider urban, neighborhood, individual – housing quantity Price, $ Urban Price, $ N’Hood Price, $ Individual D D S d P0 P1 Thousands Hundreds Individual

So … is Gentrification Bad? Not for asset owners. Even those who sell out. They get to move to Belleville like they always wanted to. For renters. Could be. They’ve been in “under-priced” units.

Thoughts This approach focuses on individuals. It does NOT treat the neighborhood as an entity. It DOES provide a framework for analysis.