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Actually no, gentrification causes existing homeowners to increase their property values. It literally gives the existing community the opportunity to move up t

Actually no, gentrification causes existing homeowners to increase their property values. It literally gives the existing community the opportunity to move up the economic ladder.

britch 8y ago
Yes and NYC is known for the many home owners and lack of renters. Sounds like it'd be good for landlords, I'm not sure about the person living paycheck to paycheck to make rent.
pwagland 8y ago
_Only_ if the existing community is _also_ the existing landowners. This is not always the case, often you have a large renting population. These renters only see there costs go up, not their assets.
AngryData 8y ago
With that in mind, NYC is probably the worst possible place for that since almost nobody owns their own property there, it is mostly all rented out by multi-millionaires.
snowwrestler 8y ago
Increasing property value shows up on the balance sheet and the only way to access it is to sell the property and leave, or take on debt. Increasing property values also mean increasing property taxes, which show up in expenses and are due every year whether or not you have the money to pay them. Does taking out a home equity line to pay your taxes sound like a good idea to you? Me neither, and that's why rising property values are often not welcomed by residents who are not already financially well-off. This does not even get into the impact on renters, who might face being evicted so a property owner can sell, or rents rising faster than their wages.
maxsilver 8y ago
> Actually no, gentrification causes existing homeowners to increase their property values. Property values are not necessarily wealth. It is entirely possible to gentrify existing homeowners out of their homes despite increasing their property values -- this moves homeowners down the economic ladder. Yes, selling their house technically puts fresh cash in their pocket, but only by drastically increasing their cost of living and by making them search for new housing (which by definition will have to be somewhere cheaper than their current neighborhood, since by definition they can no longer afford their current one). All of this is usually a large net loss in total wealth, despite the sale of their property. Owning a gentrifying home gives you the illusion of wealth building, but if you live in that home, it's really just lifestyle inflation until you sell out. None of the above is a hypothetical, either. That is an accurate description of how real-world Gentrification usually plays out in Midwestern/Flyover USA today.

Actually no, gentrification causes existing homeowners to increase their property values. It literally gives the existing community the opportunity to move up the economic ladder.

britch 8y ago

Yes and NYC is known for the many home owners and lack of renters. Sounds like it'd be good for landlords, I'm not sure about the person living paycheck to paycheck to make rent.

pwagland 8y ago

_Only_ if the existing community is _also_ the existing landowners. This is not always the case, often you have a large renting population. These renters only see there costs go up, not their assets.

AngryData 8y ago

With that in mind, NYC is probably the worst possible place for that since almost nobody owns their own property there, it is mostly all rented out by multi-millionaires.

snowwrestler 8y ago

Increasing property value shows up on the balance sheet and the only way to access it is to sell the property and leave, or take on debt. Increasing property values also mean increasing property taxes, which show up in expenses and are due every year whether or not you have the money to pay them. Does taking out a home equity line to pay your taxes sound like a good idea to you? Me neither, and that's why rising property values are often not welcomed by residents who are not already financially well-off. This does not even get into the impact on renters, who might face being evicted so a property owner can sell, or rents rising faster than their wages.

maxsilver 8y ago

> Actually no, gentrification causes existing homeowners to increase their property values. Property values are not necessarily wealth. It is entirely possible to gentrify existing homeowners out of their homes despite increasing their property values -- this moves homeowners down the economic ladder. Yes, selling their house technically puts fresh cash in their pocket, but only by drastically increasing their cost of living and by making them search for new housing (which by definition will have to be somewhere cheaper than their current neighborhood, since by definition they can no longer afford their current one). All of this is usually a large net loss in total wealth, despite the sale of their property. Owning a gentrifying home gives you the illusion of wealth building, but if you live in that home, it's really just lifestyle inflation until you sell out. None of the above is a hypothetical, either. That is an accurate description of how real-world Gentrification usually plays out in Midwestern/Flyover USA today.