Gentrification, a term reportedly coined by urban sociologist Ruth Glass. It refers to the revitalization of poor and working-class communities, transforming them into new areas. The upgrade is typically unrecognizable and associated with modern upper-class neighborhoods.

Broken and outdated things have been fixed, so what’s the problem?

Let’s take into account a more profound question. Who is affected most by gentrification? On the surface, it transforms old communities and makes them new again. But, what does it do for the people indigenous to the communities?

Historically, gentrification has served as a one-sided upgrade. The results leave those on the receiving end, often displaced.

Reasons for the displacement include increased rents and taxes. These two reasons alone cause immediate adverse effects for the elderly of the communities and low income families. They are often living on fixed incomes, making it harder to support the new financial burdens.

Soon, the original families of the communities are replaced with individuals that may not know the roots and culture of the area before.

The reality is that if an area is being considered for any extensive efforts of rehab, it is an area that is in dire need. There is a present struggle, adequate housing concern, that has manifested a blighted and uninviting community. But, the flip side of that reality is that it was a community filled with life, thriving and beautiful at one point.

How can new life be breathed into an area without stripping it of the influential culture and history on which it was built?

Neighborhood revitalization. 

An even more important question is, “how is revitalization different from gentrification?

At the roots, they are the same – it’s the act of going in and making an area better. There is one very different defining point. Revitalizing a community is making it better and preserving the things that make the community in the first place. It is the act of getting the community involved, so they will feel more responsible and connected.

Revitalization adds new life into an area without erasing what makes it unique in the first place. Community regeneration is most effective when the community is empowered. Connecting with community leaders is critical to making this happen. Those who are supporting and seeking economic and artistic changes are vital in the lasting effects. These are the individuals who are in the community day to day, who know what the community needs and who will influence the future of it’s neighborhoods. It is important that real estate developers and investors seek guidance from community leaders and work closely with them to create a plan that benefits everyone.

In summary, how can investors contribute to the revitalization of a community without gentrifying it?

  1. Working closely with community leaders to create a vision for the development
  2. Hold community meetings and hear feedback from the residents who will be directly impacted by the redevelopment
  3. Create quality, inclusive and affordably priced housing for a range of different income levels

Studies have shown that adequate, affordable, and safe housing changes the environment. It is much more pleasing than one consisting of housing insecurity. Investors using their capital for impact stand to receive a greater return on investment. Of course, there is the financial aspect. There is also the positive revelation that your efforts are going into embracing the community.