Gentrification does not always come from developers. Consider what is happening in some of the rougher parts of downtown San Jose: people are moving in to the

Gentrification does not always come from developers. Consider what is happening in some of the rougher parts of downtown San Jose: people are moving in to the existing houses and either renovating them or living in them as-is. Few developers are involved in most of these areas so far -- they are simply the last remaining "affordable" areas in the city, but not for long. Home values in those neighborhoods have appreciated about $100k per house over the past several years. This is also going to happen in Oakland, and it is probably happening already in some neighborhoods. The bottom line is that gentrification does not have to be driven by developers. When demand far outstrips supply as it does in the Bay Area today, the wealthy end up in direct competition with the poor over the same housing, and the wealthy will simply outbid the poor.