Gentrification - Can It Be Beneficial for All?

Frank Roessler is the founder of Ashcroft Capital, where he oversees investments in the multifamily housing market. As he and his staff renovate, rebrand, and tighten up operations at these properties, Frank Roessler plays a key role in increased economic investment into a community, a process sometimes referred to as “gentrification.” Commonly used in the derogatory sense, studies show that this “gentrification” process can actually benefit lower-income households in many ways. Below are a few highlights from recent research. 

A 2011 study discovered that lower-income residents do not appear to emigrate from gentrifying neighborhoods as dramatically as they did in the 1990s. Moreover, over the course of change, they tend to experience an increase in income. According to this study, these residents also report greater satisfaction with their neighborhoods as the change occurs. 

In another study, Chicago researchers discussed change in terms of numbers of neighborhood coffee shops. That is, they identified a gentrified or gentrifying community as one that saw a significant increase in this type of retailer. The study found that as the number of coffee shops went up, the number of violent crimes went down. This, in turn, poses a very real benefit for residents of all socio-economic backgrounds.

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