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Gentrification

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Research Plan
I. Title: Research plan to an area in UK which has potential to become gentrified.
II. Investigators
Kaie-Liis Asu
III. Introduction and goal of the Project
This research will be concentrating on using gentrification indicators as a framework to examine and analyse changes to predict the gentrification within community neighbourhoods, to find a solution for an investment company to find an area, which has a potential to become gentrified. The objectives of this programme is to establish and point out the factors influencing gentrification within any town in the world, in this case in United Kingdom, that may be going through gentrification process – changes that result when wealthier people acquire or rent property in low income and working class communities (Grant, 2003). The research needs to be carried out to establish what factors cause gentrification, to examine demographic shifts, how to control gentrification etc...There are two wider areas with main issues that we need to be concentrating, when researching gentrification:
Production-supply of 'gentrifiable' property; the workings of housing and land markets; spatial flows of capital and the 'rent-gap'; role of public and private finance; 'uneven development' (Slater, 2000).
Consumption- The characteristics of the 'pool of gentrifiers'; 'new middle-class' ideology; consumer demand and consumption practices; (counter) cultural politics; the roles of race, gender and sexuality; education, occupational change and household composition (Slater, 2000).
This section brought out the objectives of this paper, next I am giving a brief overview on the background and significance of gentrification.
IV. Background and Significance
In economic terms gentrification means that the value and cost of neighbourhood housing is higher. This change encourages some people to invest in homes, condominiums, apartments and businesses, while it forces others to leave (Shea, et.al. 2002).Many studies have been conducted on this particular area, identifying the effects of gentrification on property industry. In the gentrification of Darien Street (1977-1982), the average rent increased 488% - from $85 - $500 per month (Lang, 1982). In Atlanta the changes in property market can coincide directly from property tax increases (Reid, Adelman, 2003). Many of the older, long-term residents and low or middle-income renters find themselves squeezed out of their homes because of higher property taxes and rents. Not all the effects are strictly only negative or positive, but we have to look at them as the negative effects may be positive for some other group of people and positive effect may be negative for other group of people (Kennedy, Leonard, 2011). Some consider it a positive sign of reinvestment in a neighbourhood while others resent the changes in population and character. Some are happy to see a Starbucks on the corner, while others see a local coffee shop losing customers and retail space. Recent studies has showed, that while researching gentrification impacts, we have to go very deep, as gentrification has effects that you might not see in the first places, such as health problems, caused by limited access to healthy food choices, bicycle and walking baths etc...But there are also strategies to fight with those effects (Anon., n. d). Controlling or improving gentrification areas is not the easiest task, but it is definitely not impossible. There are 4 key areas to control gentrification in one particular area – keeping families in their homes, revitalize neighbourhoods, create long-term sustainability for affordable housing and create safe and healthy living environment (Hartley, 2009). Local crime, riots, poor local administration and unforeseen catastrophic events are factors that are necessary to research, while investing in gentrified area [MacDonald et al., 1987; Clark and Allison, 1999; McCluskey and Rausser, 2001].
This section gave a brief overview of the background and significance of gentrification. Next I am going to explain the methods that can be used to research data to find the potential area.
V. Research Methods
Production issues will be researched using quantitative analyses. The main focus is on measuring 'how much is happening to how many people'. The main tools are large scale surveys analysed using statistical techniques. Quantitative measurable indicators relevant to the pre-determined hypotheses are identified and combined into questionnaires. In large-scale research projects teams are composed of a number of skilled research designers and analysts assisted by teams of local enumerators (Mayoux, 2005).
Consumption issues will be researched using qualitative analyses. There are different sampling methods are combined: different purposive sampling techniques, identification of key informants and also 'random encounters'. Questions are broad and open-ended and change and develop over time to fill in a 'jigsaw' of differing accounts of 'reality', unravelling which may be said to be generally 'true' and which are specific and subjective and why. Typically requires long-term immersion of a skilled researcher in the field who engages in a reflexive process of data collection and analysis (Mayoux, 2001).
Analyzing gentrification in urban neighbourhoods requires a combination of both quantitative and qualitative methodological approaches. Gentrification is a complex reordering of urban space, with changes occurring from the scale of one city property to a metropolitan region, certain data may not be accessible at the precise scale needed. There may be problems applying decennial census data to changes taking place in periods of time shorter than ten years. As a result, many studies on gentrification employ anecdotal evidence in lieu of empirical information (Kennedy and Leonard, 2001) (Veloso, n. d).
In this section I gave an overview what methodology should be used. Next two sections will be concentrating on the indicators that are making an area potentially gentrified, a timeline for the investors for investing and an example how to spot a potential area that becomes gentrified.

VI. Indicators and Timeline There are three types of indicators leading, primary and secondary. Leading indicators are the ones to predict the area that has a potential to become gentrified.
Leading indicator is e.g. to ease the access to the place – to boost infrastructure (road, rail and bus service). Infrastructure has a major role attracting new buyers and boosting house prices. Also high rate of renters indicates that the demand for rented property is rising due to inflow of middle-class, who has to compete against each other to secure the tenancy. Increasing congestion in the metropolitan area makes these locations even more attractive.
Primary indicators show that gentrification may already have begun. Move from rental tenure to homeownership, arrival of individuals or households interested in urban amenities, increase in business intended for high-income people (Wisniewski, 2002).
Secondary indicators can show the potential of a certain area to become gentrified, but there has to be more research to put into it. Secondary indicators are such as change in occupancy rate, change in racial composition and change in income (Kennedy and Leonard, 2001).
Also during the process of finding an area which becomes gentrified there needs to be gentrification level measured and understood the dynamics of gentrification. Some of the information can be found by reviewing census information. Some change indicators to look for are property values and tax rate changes between each census, review of turnover rates in rental units, income level of residents (new and long-term), ethnic and racial mix of residents, the kinds of work that exists in the neighbourhood (e.g. factory jobs vs. Service jobs).
Furthermore, archival primary source material from local newspapers, planning documents, community-based land-use policy documents and other sources are used to assess a variety of factors that either promote or limit gentrification. Documents produced by different development agencies and planning departments articulate land use, housing, and other policies that shape the particular area on research; this thesis focuses specifically on the role these policies have played in contributing to or mitigating against the more serious negative consequences of gentrification. Each of these sources is representative of different individuals and groups, yet also reveal the degree of collaboration between community members of the city being researched and city agencies to formulate policy that reflects the concerns of residents (Veloso, n. d). 1.) Finding an area that has potential to be gentrified – first investment in research 2.) When the area has found then start buying houses with cheap prices, this has to be done, before the area becomes gentrified, as the prices go up then – second research 3.) To ease the access to the place – third investment 4.) To restore historic buildings to get architectural value higher – fourth investment. 5.) To increase metropolitan conjugation – fifth investment. 6.) When the area become gentrified sell or rent the houses with much higher price – than they were bought – profits.

VII. Examples of areas that are becoming gentrified 1. Racial Trends in SECA, East Hills and Grand Rapids from 1990-2000.

Picture (Wisniewski, 2002). The table above , shows clearly, which of those are becoming gentrified and which one not. SECA and East Hills are becoming gentrified, because the proportion of white people is increasing, while on Grand Rapids the proportion of white people is decreasing and is not becoming gentrified, yet. The last sections gave an overview of indicators, a timeline and an example. Next and last section will give the summary and outcomes of this research.
VIII. Summary, outcomes
Different considerations can be intertwined with the fact that the middle-classes may demand inner-city housing as they see it as a good investment. This can be a key motive for gentrification, and as Caroline Mills correctly asserted, "Investment potential is clearly a consideration both for 'producers' and for 'consumers'" (Mills, 1988). A person's own home is usually their principal financial asset, and gentrification occurs in an economic climate where commodity values can change rapidly and opportunities for profit present themselves at regular intervals. As a result of this research programme, the investment company gets full knowledge on gentrification process on their particular area. The report will gather a lot of data to find the area with potential to become gentrified and then follow the indicators to make the profit. The most important one for the investment company is to gain control over public and private property assets that can be taken out of the market. To achieve and maintain mixed income neighbourhoods, our attention must now be focused on creating the tools that will sustain low income housing in neighbourhoods with increasing property values (Wisniewski, 2002).
Word count: 1690
APPENDIX 1
Interview Questions (Veloso, n. d).
General Questions (for all interview subjects):
1. Is gentrification occurring today in the particular area and, if so, how has the area changed since You saw the first signs of gentrification?
2. What factors do you believe limit the extent of gentrification (land use policy, neighborhood perceptions, etc.)?
3. What factors influenced developers’ and homebuyers’ decisions to invest?
4. What measures are being taken to minimize the displacement of current residents that may result from new investment?
Additional questions for planners, developers:
1. What factors influenced developers’ investment locations and have those factors changed in regard to the chosen UK area.
2.Has the availability of financing changed for developers, homeowners, and buyers? How does the legacy of redlining there contribute to contemporary development practices?
3. Are you aware of cancelled projects in the chosen UK area? What is your sense of future development potential there as the housing market subsides?

BIBLIOGRAPHY
Anon. (n. d). Health Effects of Gentrification. Centres for Disease Control and Prevention.
Clark, D. and T. Allison (1999). Spent nuclear fuel and residential property values: the influence of proximity, visual cues and public information*. Papers in Regional Science 78(4), pp. 403–421.
Cybriwsky, R. (1978). Social aspects of neighborhood change. Annals of the Association of American
Geographers, 68, pp. 17-33
Grant, B. (2003). PBS Documentaries with a point of view: What is Gentrification? Public Broadcasting Service.
Hartley, C. (2009). Transforming the Housing Crisis in Richmond. Richmond equitable development initiative.
Kennedy, M. and Leonard, P. (2001). Dealing with Neighborhood Change: A Primer on Gentrification and Policy Choices. The Brookings Institution Center on Urban and Metropolitan Policy and Policy Link.
Lang, M. (1982). Gentrification Amid Urban Decline. Massachusetts: Ballinger Publishing Company.
LeGates, R. T., & Hartman, C. (1986). The anatomy of displacement in the United States. In N. Smith &P. Williams (Eds.), Gentrification of the city, pp. 178-203, Sydney, Australia: Allen and Unwin.
MacDonald, D., Murdoch, J., and White, H. (1987). Uncertain hazards, insurance, and consumer choice: Evidence from housing markets. Land Economics 63(4), 361–371.
Marcuse, P. (1986). Abandonment, gentrification, and displacement: The linkages in New York City. In N. Smith & P. Williams (Eds.), Gentrification of the city, pp. 153-157. Sydney, Australia: Allen and Unwin.
Mayoux, L. (2005). Quantitative, Qualitative or Participatory? Which Method, for What and When? Doing Development Research. R. Potter and V. Desai eds ,London: Sage.
Mayoux, L. (2001). Qualitative Methods, London: EDIAIS.
McCluskey, J. and Rausser, G. (2001). Estimation of perceived riskiness and it’s effect on property valuation. Land Economics 77 (1), p. 42.
Mills, C. (1993). Myths and meanings of gentrification. In J. Duncan & D. Ley (Eds.), Place/Culture/
Representation, pp. 149-170, London: Routledge.
Munt, I. (1987). Economic restructuring, culture, and gentrification: a case study in Battersea, London, Environment and Planning A 19, pp. 1175-1197.
Reid, L. and Adelman, R. (2003). The Double-edged Sword of Gentrification in Atlanta. American Sociological Association.
Shea, B. et.al. (2002). Neighbourhood change: gentrification. The Centre for Urban Research and Learning (CURL) / Loyola University Chicago.
Slater, T. (2000). What is gentrification? King’s College, London.
Staley, W. (2010).[online], available at: http://americancity.org/columns/entry/2248/ , accessed on 25th November, 2011.
Veloso, B.(n. d). The first cycle of gentrification in West Oakland, ca: 1998-2008. [Online], available at: http://degentrification.wordpress.com/20/, accessed on 5th December, 2011.
Wisniewski, L. (2002). Gentrification in Grand Rapids. Gentrification Report. Michigan State University.
MAYOUX, L. (2005). Quantitative, Qualitative or Participatory? Which Method, for What and When? Doing Development Research. R. Potter and V. Desai eds , Sage.

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