1. + Where do I stand on Gentrification? IB Geography II

2. + Gentrification… What is it? Gentrification is the process of renewal and reinvestment of capital into inner-city areas. In economic terms, it means the value and cost of neighborhood housing and property is higher. Gentrification accompanies the influx of middle-class or affluent people into deteriorating areas that often displaces poorer residents.

3. + The “Monopoly” Analogy One way to think about gentrification is to play the game of Monopoly. In the game, the goal is to be the wealthiest player through buying, renting, and selling property. In every game there are winners and losers, just like real life! While homeowners want the value of their home to increase, when this happens, so does the property tax. So, when gentrification drives up property values, some people (usually those on fixed incomes, or with low paying jobs) can’t afford their homes anymore or cannot afford higher rents.

4. + Is it good or bad? Some consider it a positive sign of reinvestment in a neighborhood Yay!!! A new Starbucks on the corner! Others resent the changes in population and character. The local mom and pop coffee shop lost business after they put a new Starbucks on the corner.

5. + Where do I stand on Gentrification? Activity In this exercise, consider how different people from different communities look at the question of gentrification. Step 1: Take 3 minutes to read the Scenario handed to you. Based on the scenario, decide if you would be for or against gentrification and give a reason why. Write your response on the back of your slip.

6. + Where do I stand on Gentrification? Activity Step 2: Get in groups (each group will have a member representing each of the 6 scenarios). In your groups, complete the following activities: 1. Each group member will explain who they are and give a brief synopsis of their situation and say where they stand on gentrification and why.

7. + Where do I stand on Gentrification? Activity 2. Discuss the following questions within your group: Prior to getting your scenario card or hearing from other scenarios, what was your opinion of gentrification? What personal experiences or personal opinions do you have that shape your view of gentrification? How did hearing each scenario change/alter/modify your view of gentrification? Do you think the government in Chicago considers all the perspectives on gentrification that you did in this activity before they make changes to neighborhoods? Why is it important that we understand the perspective of others when we formulate public policy?

8. + Why does Gentrification Happen? Reason #1 The local government usually welcomes development because investment generates taxes. As value of a property increase, so do taxes. Taxes are used to provide basic city services (road maintenance, police/fire protection, teacher salaries, water, health, etc)

9. + Why does Gentrification Happen? Reason #2 Many young professionals who once moved to the suburbs now hope to stay closer to the urban core. They look for neighborhoods that are close to transportation, cheap, where you can find cool architectural characteristics, old buildings, etc. Also, many retired suburbanites are moving back to the city because they no longer need the large home and want to be closer to cultural opportunities in the city.

10. + Why does Gentrification Happen? Reason #3 American society and its economic culture encourage change. Unlike many cultures, we do not settle in communities with families and stay there for generations. Many American families will move 3 and 4 times and live far away from relatives. (The average American only stays in one home for 7 years) This mobility fuels real estate, banking, and home improvement industries that profit from gentrification taking place.

11. + What are some of the advantages of Gentrification? Housing values increase for homeowners Increase tax revenues for city services Reinvestment is made in infrastructure, roads, water mains, local schools Business expansion Renovation and upgrading of existing homes Development of job opportunities

12. + What are some of the disadvantages of Gentrification? Higher income investors displace lower income residents Disrupts community institutions rooted in neighborhoods Forces some people to move away from community Can increase racial and economic conflict (often times it’s minority groups being displaced)