Gentrification is an issue that is plaguing many low-income neighborhoods across the country. Here is Boston we have seen this issue take hold of many neighborhoods in recent years -- the most current being East Boston. Although there is much concern about gentrification in East Boston and there are some select cases the may seem to support its occurence, the data seem to be drawing a different picture. It is thought that there are many indicators of the gentrification process, here we will examine the first two indicators: the balance of ownership and the property value change determine if the citizens of East Boston are perhaps jumping the gun with their concerns.
On the contrary. Typically a shift from home ownership would occur as properties are purchased and flipped for higher priced rental.
Vast majority of residents are renting their residences. This number has remained nearly unchanged since 1950.
Theorectially, this number should be increasing if gentrification is beginning.
Number of Housing Units
Owners vs. Renters
U.S. Census Bureau, 1950-2010 Decennial Census and 2011-2015 American Community Survey
As property values increase, rents seem relatively static.
in East Boston in 2015. As you can see in the map, property values have rapidly increased in the past few year. Although this does imply that East Boston is infact being gentrified, it seems the rent has yet to reflect that fully. This disparity indicates and oncoming spike in rent prices.
per household in East Boston compared to the Boston median of $55,777. This gap seems to be in line with difference in cost of living. As property value, and eventually rents, continue to increase we should expect an increase in the median income as gentrification occurs. This may result in the displacement of many lower income residents as the bottom line rises.