PSYC FPX 3540 Assessment 2 Negatives of Gentrification
The risk to the original residents’ homes and communities extends to their businesses as well, as corporate real estate is frequently exposed to the same sharp hikes in rent (Rinn et al., 2022). Even when rent control is in place and businesses stay successful, local businesses frequently struggle to compete with national shops that move in, eventually forcing them away. The clash of interests between those who want to keep their community and those who want to change it causes chronic tension (Overton & Lowry, 2019). The resultant tension can have a variety of negative effects on health since chronic stress is known to be harmful to well-being.
A total of twenty-three metropolitan cities’ suburbs had single-family loans totaling over $1.5 trillion between 1993 and 2000, whereas gentrified areas saw $35.3 billion in loans. Capital commitments from homebuyers in cities increased at a rate more than double that of suburbs. This suggests a strong revival of capital investment in metropolitan centers, coupled with rising class segregation.
Evidence suggests that gentrified districts endure increased segregation and exclusion, with minority purchasers encountering visible discrimination in affluent white suburbs. If new luxury apartments are created in regions with a high concentration of working-class households and older residences, realtor management methods and borrower selection can change. Gentrification could ultimately stabilize falling property prices by reconnecting lenders with long-neglected areas, but it frequently comes at the expense of worsening inequities during the transition (Wilhelmsson et al., 2021).
Positives of Gentrification
Gentrification is commonly meant to improve or restore an area, rather than destroy it. Residents could profit from more career prospects as a result of economic regeneration and professional progression within the community (Cláudia Jardim Santos et al., 2024). Some believe that the increase in economic opportunities could reconcile the cultural displacement that commonly comes with gentrification. Economic gains can have a significant impact (PSYC FPX 3540 Assessment 2) on the entire town, perhaps helping the original residents who remain.
Furthermore, gentrification usually attracts individuals with disposable wealth, which could help company owners who choose to stay (Danenberg, 2024). While the mixing of diverse social groups could result in the loss of the neighborhood’s original identity, there is hope that it will eventually encourage collaboration and lead to the establishment of a new, integrated community.
The Reality of Gentrification
The cultural identity of a community commonly disappears, even though some of the surviving people could become wealthier. Gentrification typically strengthens the present community; rather, it creates a new one, removing individuals who no longer feel like they belong. The notions of in-group and out-group dynamics contribute to an understanding of why gentrification is problematic. According to McLeod (2019), people tend to regard others outside their group negatively to improve their self-image. This frequently leads to a “us vs. them” mindset, reinforcing the divide between long-time inhabitants and newcomers.
While safeguarding cultural assets can seem to be a reasonable goal, the necessary planning and societal awareness are frequently absent. Racism and exclusion have characterized gentrification throughout its history. Although social hybridization, which brings disparate groups together to establish a new, integrated society, can be beneficial when done right, it seldom works as planned. Even while proponents of gentrification emphasize the economic benefits that could be brought to an area, it is clear that these changes could not help existing residents, who could think there was no reason for their community to change in the first place.
Upper- and middle-class neighborhoods, which are primarily white, must discover new methods to contribute to neighborhood development while preserving and recognizing current culture. Long-term residents’ voices should be heard the most in conversations about reforms and laws, ensuring that they play an active role in defining their community’s future. Current inhabitants should never be viewed as an issue or, worse, made to feel insignificant.
Biases are sometimes expressed by newcomers who see older residents as “those people” who are too dangerous to live with peacefully. This mentality contributes to conflict and tension. Unfortunately, when it comes to gentrification and neighborhood changes, people with the least influence and financial means bear most of the displacement burden. Addressing inequality in power is fundamental for creating truly inclusive and equitable communities.