1. Gentrification – Economic Model
Allen C. Goodman 2015

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

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

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

5. 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.

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