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From the Eviction Lab: Gentrification is Not Causing Evictions

The Eviction Lab has a new study published in the Social Forces Journal.

The Role of Gentrification in the Eviction Crisis

The study took a look at the thought that we have heard quite a few times over the past few years that the gentrification that happens in a neighborhood causes people to be evicted. We have often heard that because of the real estate investors and others that go into a neighborhood and start updating and modernizing houses, the long-term residents get pushed out as the wealthier new neighbors move in.

But the study found that this was not the case, yes it happens but not at crisis levels. The study found that the crisis levels of evictions are happening in low-income neighborhoods that are not being gentrified.. The researchers took a look at evictions in 72 metro areas over a 16-year span to a total of six million cases. According to the email they sent out today, they found that “nine out of every ten evictions occurred outside of gentrifying neighborhoods, mostly in low-income areas.”

Eviction rate over time
Eviction Lab Chart shared via email in regards to eviction rate over time by gentrification class.

They can’t quite figure out why this is the case at least that seemed to be the feel of the email. They found that when a neighborhood gentrifies when you and your fellow real estate investors and home renovators move in and start fixing up a neighborhood, the supply of housing goes up. With increased supply, fewer people get displaced and fewer people get evicted.

Ask any veteran real estate agent, realtor, or economist and they can probably tell you why this is happening. Gentrification starts with one project. Someone goes and buys up that vacant abandoned house or multi-family unit and new people move in. Other properties on the block make renovations. The neighborhood starts looking more favorable and more vacant properties are renovated. Someone builds new housing, it’s an up-and-coming neighborhood.

We saw this happen in the Hyde Park areas here in Kansas City a few years ago. There were lots of run-down and vacant houses in Hyde Park. There was a plan that may or may not have started with the building of Home Depot in Midtown, but it did create a tax incentive for renovations on properties. Homeowners starting to make repairs. Long Vacant properties started to be fixed up. Multi-family units were restored, houses were restored, and wealthier people moved in. Not so much that a bunch of people were evicted to make this happen. It was gradual over time. Now look at it, a thriving, desirable place to live.

The email shared that “evictions in low-income neighborhoods are not an isolated event but a permanent fixture and therefore they deserve attention and aid. ” We can tell you why that is, but sadly no one will listen.

They encouraged us to share this info “with our neighbors, friends, and community, and let us know if you have any questions or feedback. (info@evictionlab.org).”

They also have a Blog About it: Gentrification’s Role in the Eviction Crisis written by Peter Hepburn, Renee Louis, and Matthew Desmond.

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