Gentrification

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Gentrification
Urbanization policies and designs have undergone changes over the years some of which have been able to remedy the social problems in urban centers. On the other hand, some have been to the detriment of the low-income earners suffering from unemployment and instability when it comes to income capabilities. After the end of the Second World War, the1950s witnessed a period of disinvestment, and this affected most cities that experienced massive migration of the white middle –class families to suburbs. The deindustrialization of the 1970s heightened the situation leading to the emergence of run-down towns and waterfronts. Following this, the need to reinvest and regenerate the old neighborhood arose, and the process came to given the term gentrification.
In America, the white flight had taken root, and it involved the resettlement of the White majority from inner cities to the suburbia. Unlike in America where the racial ethnicity was a determining factor, London was experiencing another wave of segregation where people were running away from the working class. The outcome of this was that the urban centers were underdeveloped lacking proper infrastructure and amenities and hence unattractive to the affluent. Ruth Glass coined the term gentrification to imply the phenomenon that was gradually gaining popularity in Central London where the connection between housing and class inequalities became evident.

For gentry to occur, the region had to have experienced prior disinvestment that created an opportunity for investing from both the private sector and the government. Therefore, it predominantly related to the pumping of funds to rehabilitate residential areas formerly inhabited by the working class (Slater 572). Glass had witnessed this first hand in her hometown. The influx of the gentrifiers had led to the increase in property prices hence displacing the working class who could no longer afford the residential space. What followed involved the conversion of abandoned warehouses to high-end apartments and lofts as well as the eviction of families that were unable to meet the terms of the new landlords.
Furthermore, land rehabilitation was accompanied by the changes in property tenure from rentals to complete ownership of houses. Barnsbury is an excellent case of a residential neighborhood that experienced gentrification in the 1960s making it one of the properties in London attracting the middle class and the wealth in the community. After the Second World War, the town remained inhabited by the working class after the rest relocated to the suburbs. Class fear was a common phenomenon at the time, and the ongoing railway construction had attracted labor that was left to live in the vast stretch of London.
However, things changed when the first gentrifiers moved to Barnsbury in the early 1960s and started a new trend of property ownership. Unlike before when people were unable to afford the residential quarters, the influx of homeowners increased from seven to nineteen percent. The growth of the banking industry made it easier for the middle-class to own property as well rehabilitee the outdated ones. The government only imposed taxes considering the intervention of the private sector that was more affluent and capable of spending lump sums to own land. The 1970s gave people the opportunity to own property due to the ease of access to funds following the formation of societies that supported rehabilitation (Slater 575). For instance, in New York gentrifiers formed committees and later developed brownstone which was the term coined to define the gentrification enthusiasts who were slowly encroaching the inner-cities. The group was responsible for giving tips to residents who had plans to shift their tenure from paying rent to owning the unit.
Just like technology, gentrification was taking on a new shape because of the emergence of a new breed of professionals and elites form the corporate world. The financial markets were booming, and Wall Street professionals and managers were quickly looking to invest their money in the real estate industry. People were shifting from the classical gentrification that Ruth Glass to a more complex social reconstruction that encompassed socio-economic factors in the urbanization (Lees 2489). Instead of only regenerating neighborhoods, developers and landlords were also trying to come up with new structures by investing in vacant plots hence leading to the establishment of stores and amenities to support the middle-class lifestyle.
Experts on urbanism have called these new property owners as the third-wave Gentrification and it comprises of the so-called Wall Street financiers. The influx of capital from the globalization and financial markets has spilled to the already gentrified neighborhoods of London and New York. The middle –class are selling their houses and apartment at the highest bidder to investors and transnational businesspersons who could afford (Butler, and Lees 469). Super-gentrification is a new phase that requires more financial resources than those of previous waves that occurred before the 1990s. In this case, the financiers have unlimited income capabilities that allow them to live extravagant lives such as affording to shop in the high-end stores in the Upper Street.
The hefty salaries and annual bonuses have made super-gentrification possible in Barnsbury that is said to have witnessed the different waves of the land gentry. Today, the stock of residential spaces in Central London has changed with the establishment of stores such as Gucci that sell exotic commodities to the elite. The original owners of Barnsbury have cashed their ownership rights to new landlords who value high-priced properties and social connection created by globalization has played a vital role. Locations such as Brooklyn Heights have become famous for global destinations for the super-rich, and this shows the relationship between global economic and the residential spaces. Experts still attribute the increase in the value of property in London and New York to the economic boom experienced in the early 1990s.
The real estate industry functions the same way as the product market where the forces of demand and supply dictate the flow of consumers. It, therefore, follows that Bransbury has continued prospering as a result of an increase in the purchase of luxury apartment and lofts by clients both locals and those working aboard (Lees 2482). The case of social displacement emanating from gentrification is slowly becoming insignificant in the contemporary world as witnessed during the advent of the third wave. Quality is an issue when it comes to satisfying the needs of the elite and transnational businesspersons, and this is one of the reasons that the composition of the neighborhoods was changed to give them that qualitative feel.
Impact of Gentrification
Although gentrification in England and the USA differ in dynamics, the effect it has had on the society is the same with both countries experiencing protests against land gentry. London has been going through this for decades, beginning in the late 1960s. By mid-1980s, the middle class had transformed the streets of London. The impacts of this process are diverse as they are both positive and negative. Gentrifying has completely changed the landscape of London from a post-war to a modern city suitable for the 21st century. Due to the dynamics brought about by the rehabilitation, its positive impacts far outweigh the demerits of the process.
Gentrification has led to the reinvestment of capital in London. One of the best examples is the developments along River Thames. The construction of new building along London`s riverside is on the increase over the last few years (Slater 579). Capital from affluent areas is reinvested in underdeveloped locations to uplift the economy of such neighborhoods. This has led to the redistribution of resources in a better manner with the effects visible on the ground. London`s riverside has seen the development of luxury hotels and apartments that will create more value for the community. Additionally, new amenities in the area have seen an increase in the numbers of tourist in the area.
Social upgrading by an incoming new middle-class population is another positive impact of gentrification. The number of residents in professional occupation has increased significantly in London over the years. The development of new commercial and residential buildings has led to population explosion and consequently, of residents with a professional occupation. Additionally, the new buildings are developed and marketed towards such markets. A one bedroom flat in Battersea, Chelsea Bridge, costs around 340,000 pounds while the same flat will cost only 120,000 previously before the developments.
Gentrification has put pressure on the housing market and led to rent and house value going up exponentially. Gentrifying areas has attracted new residents with higher incomes because of the available services and amenities. This has led to an increase in the cost of living and property value over the years. London has experience boom in the real estate industry, and consequently, the prices have skyrocketed over the decades (Butler, and Lees 470). These rates have displaced low-income residents to the outskirts of London. An example is the Kings Cross. 30 years ago, Kings Cross was a rundown, dilapidated area famous for street prostitution. It has since changed into an international transit hub, an art world center, and corporate offices. Land Gentry has led to the displacement of the low-income residents and real estate prices gone up exponentially.
Some people have argued that gentrification has brought adverse effects to the standards of living of those residing in the inner-city. The truth is that residents who are unable to afford the new rent rates are placed at a disadvantage and are forced to move to less gentrified locations. The lifestyle of residential areas such as Barnsbury and the Up Street requires individuals with strong financial foundations to bear the costs of living. On the other hand, others argue that the amenities such as schools and infrastructure are as a result of gentrification process and this has given the region a face-lift from the empty warehouses and abandoned waterfronts.
Conclusion
Property development is inevitable, and gentrification is considered a vital component to bringing the changes required. The government is earning revenue from the collection taxes from the sale of houses in the inner-cities, and this could be used to develop other residential areas regions while at the same time offering affordable housing. The advantages of gentrification outdo its disadvantages, and the financial world is partly to blame for its evolution into the different phases over the years.
Works Cited
Butler, Tim, and Loretta Lees. “Super‐gentrification in Barnsbury, London: Globalization and gentrifying global elites at the neighborhood level.” Transactions of the Institute of British Geographers 31.4 (2006): 467-487.
Lees, Loretta. “Super-gentrification: The case of Brooklyn Heights, New York City.” Urban studies 40.12 (2003): 2487-2509.
Slater, Tom. “Gentrification of the city.” The New Blackwell companion to the city 1 (2011).