Why does gentrification occur? Is it a natural result of the housing approach, or there’s more to it? The answer is not that simple. People move into gentrifying neighborhoods due to a variety of reason, one of them being changing demographics.
More people become interested in moving towards the central city with time. There are more job opportunities in the central cities. High rises, financial businesses and high-tech employers are all based in the central city. So people with high paying jobs prefer staying in the city center to make use of the shorter commutes.
Similarly, sometimes, a rise in anti-suburban attitude also increases the demand for central city housing. People prefer older houses having the character which prompts them to move to the central city. The characteristics of the neighborhood also pave the way for gentrification. However, as wealthy homeowners move in, they work on their houses and improve the area’s aesthetics. The community becomes more appealing to new residents, and the process of gentrification begins as like-minded individuals are drawn to the site.
However, government policies cannot be completely absolved. It is these policies that affect housing values. As a result, incentives are created for high-income people to move to lower-income regions, triggering gentrification. One of the most significant reasons for this is tax incentives. Federal policies also encourage mortgage programs to lend more for properties in under-served areas. Public housing also plays a vital role in gentrification. It’s challenging to pinpoint a single cause of gentrification. More often than not, it’s a set of situations that initiate it.