Real Estate Investment Consulting

by Noah Winkler

Understanding Gentrification

Gentrification is derived from the word "gentry," which historically referred to people of an elevated social status. In the United Kingdom, the term "landed gentry" originally described landowners who could live off of the rental income from their properties. 

Numerous cities around the world experience the phenomenon of gentrification, which can have a direct impact on housing market dynamics. In most major cities, some neighborhoods that were previously less than desirable have morphed into vibrant districts with plush condominiums and offices, new coffee shops and restaurants, expensive retail storefronts, and various entertainment choices.

Young families welcome the opportunity to buy reasonably priced homes in a safe community with sound infrastructure, and a wide choice of amenities and services. Local municipalities and governments also benefit from collecting higher taxes on rising property values and increased economic activity.

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