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You're absolutely right about this, and it is something we have and are considering everyday. I will be honest and say, at the moment, we do not have a perfect

You're absolutely right about this, and it is something we have and are considering everyday. I will be honest and say, at the moment, we do not have a perfect solution yet. One of the things we looked into before starting the company was a paper that mentioned the Portland project, which showed that gentrification and displacement are not always synonymous. There, the neighborhood was completely gentrified, but the locals benefited greatly, because many of their home prices increased in value, and many owned local businesses that benefited from the influx with affluent people. One of our goals is to see how we can use our data and business to make gentrification more like the Portland project. One idea has been to provide our data and analytics to city governments for free, so they can act faster in regards to setting up affordable housing. In the meantime, our customers will be buying the homes, so someone has to act as the seller. If a local resident was the owner of the property, then hopefully, they benefit from the sale (we recommend our customers offer the "listing price" and not negotiate at all). If they are the renter, then current California laws should provide them a lot of protection. It's not perfect of course, but we are looking for better alternatives.

erichurkman 7y ago
> There, the neighborhood was completely gentrified, but the locals benefited greatly, because many of their home prices increased in value But they lose mobility as their family needs change. New kids and need a larger home? You can sell yours, but the differential between a 2br and 4br is now outside your price range due to gentrified prices. Also, it depends heavily on tax laws. Long time California home owners are protected from tax increases under Proposition 13, but many localities lack these protections, so ultimately higher taxes price you out.
- loftyai 7y ago
  You have a very valid point here. Our hope is that we can help them find new homes as well. Most of the homes selected by our algorithm tend to be very affordable, so a larger segment of the market can take advantage of appreciating home price. The goal is to make sure that not only existing wealthy people can benefit from rising home values.
nabnob 7y ago
In many of these poor areas being gentrified, people don't own their homes and they rent because they're poor and don't have the credit to buy a home. That's why gentrification is a problem - landlords increase rent because the area has higher demand, and effectively price people out of their homes.

erichurkman 7y ago

> There, the neighborhood was completely gentrified, but the locals benefited greatly, because many of their home prices increased in value But they lose mobility as their family needs change. New kids and need a larger home? You can sell yours, but the differential between a 2br and 4br is now outside your price range due to gentrified prices. Also, it depends heavily on tax laws. Long time California home owners are protected from tax increases under Proposition 13, but many localities lack these protections, so ultimately higher taxes price you out.

loftyai 7y ago
You have a very valid point here. Our hope is that we can help them find new homes as well. Most of the homes selected by our algorithm tend to be very affordable, so a larger segment of the market can take advantage of appreciating home price. The goal is to make sure that not only existing wealthy people can benefit from rising home values.

nabnob 7y ago

In many of these poor areas being gentrified, people don't own their homes and they rent because they're poor and don't have the credit to buy a home. That's why gentrification is a problem - landlords increase rent because the area has higher demand, and effectively price people out of their homes.