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How low income neighborhoods change: Entry, exit, and enhancement

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  • Ellen, Ingrid Gould
  • O'Regan, Katherine M.
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    Abstract

    This paper examines whether the economic gains experienced by low-income neighborhoods in the 1990s followed patterns of classic gentrification (as frequently assumed) -- that is, through the in migration of higher income white, households, and out migration (or displacement) of the original lower income, usually minority residents, spurring racial transition in the process. Using the internal Census version of the American Housing Survey, we find no evidence of heightened displacement, even among the most vulnerable, original residents. While the entrance of higher income homeowners was an important source of income gains, so too was the selective exit of lower income homeowners. Original residents also experienced differential gains in income and reported greater increases in their satisfaction with their neighborhood than found in other low-income neighborhoods. Finally, gaining neighborhoods were able to avoid the losses of white households that non-gaining low income tracts experienced, and were thereby more racially stable rather than less.

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    File URL: http://www.sciencedirect.com/science/article/B6V89-51WD0F1-2/2/fff43554af82d23a39b87e7d5a808825
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    Bibliographic Info

    Article provided by Elsevier in its journal Regional Science and Urban Economics.

    Volume (Year): 41 (2011)
    Issue (Month): 2 (March)
    Pages: 89-97

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    Handle: RePEc:eee:regeco:v:41:y:2011:i:2:p:89-97

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    Web page: http://www.elsevier.com/locate/regec

    Related research

    Keywords: Neighborhood change Gentrification Displacement;

    References

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    1. Terra McKinnish & Randall Walsh & T. Kirk White, 2008. "Who Gentrifies Low Income Neighborhoods?," Working Papers 08-02, Center for Economic Studies, U.S. Census Bureau.
    2. M S Fogarty, 1977. "Predicting neighborhood decline within a large central city: an application of discriminant analysis," Environment and Planning A, Pion Ltd, London, vol. 9(5), pages 579-584, May.
    3. Rosenthal, Stuart S., 2008. "Old homes, externalities, and poor neighborhoods. A model of urban decline and renewal," Journal of Urban Economics, Elsevier, vol. 63(3), pages 816-840, May.
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