Report Tracks Effects of Gentrification in Philadelphia
The Federal Reserve Bank of Philadelphia released a study lately on the effects of gentrification – the process by which an area or neighborhood becomes more upscale or affluent by an influx of middle- or upper class residents into what used to be poor areas. Since Philadelphia is the 12th-most gentrified city in the United States, it makes sense to study gentrification there, say experts. In Philadelphia, the signs of gentrification are rampant – many neighborhoods have seen home prices on the rise, new faces moving in, and an upswing in frou-frou bars and restaurants catering to a more upscale clientele.
Gentrification is changing the face of Philadelphia. (Photo: ALEJANDRO A. ALVAREZ / Staff Photographer Philly.com)
Usually, gentrification necessarily involves the displacement of lower-class residents by those with more money. That’s part of the definition. The Federal Reserve study found, however, that poorer residents aren’t necessarily being pushed out by gentrification in their neighborhoods. What study author Lei Ding found, however, is that rising prices often keep poorer citizens from moving into gentrified neighborhoods. So the ones who are there already tend to stay, but it is often difficult for poor residents to move in. As co-author Eileen Divringi put it, “As these neighborhoods get more and more expensive, it changes who can move into the neighborhoods.”
The study authors obtained data from 2002 – 2014 related to Philadelphia residents’ credit scores. It was randomized and anonymous. This data allowed researchers to study where people moved and what resultingly happened to their credit over time. They found that living in a gentrified neighborhood typically make residents’ credit scores rise by about 11 points. Residents who already had good credit typically saw the highest rises.
When residents considered economically-vulnerable left gentrified neighborhoods, they typically moved into worse areas, with more crime and fewer amenities.
