A Realtor's Guide To Becoming Gentrification Proof.
Updated: Sep 22, 2020
Is "Gentrification" the modern war on low income buyers...
What happens when a great place to live becomes too cool for the people who have supported the community for years?
Modern day hipsters, no-strings attached millenials, young families, and youthful professionals are flocking to up and coming neighborhoods like someone is giving away lifetime supplies of free ice cream. But when this influx causes housing prices and community resources to become more expensive than the people who originally invested in the growth can afford, coolness is a problem.
No Need To Gentrify
Housing and rental prices being driven up are almost inevitable if your town is too appealing. One of the ways to prevent this is to resist luxury rental developments from coming into your town, even if that means heading to City Hall. While a certain number of temporary luxury properties in the area can be beneficial to both your community and residents through interim home periods, too many can create unsustainable high traffic to your local neighborhood. Luxury rental units allow people to come into residential locations with no real investment, because they don't own. If you find too many of these kinds of properties popping up in your town, push for those luxury apartments to become co-ops or condos, thereby making the move-in process a lot more rigorous and less appealing. No one is looking to buy as a temporary investment, so lookers will think twice before deciding to come to your hometown because their money will be tied up much longer for something they buy versus rent.
Also initiate co-op, condo, and home owner associations or boards for your community, that have real processes which disallow temporary renting.
“ No one is looking to buy as a temporary investment, so lookers will think twice before deciding to come to your town because their money will be tied up much longer for something they buy versus rent.”
Another important process to limiting gentrified onlookers is to lobby for low income home buyer programs in popular and major areas of your locality. Anyone who wants to take the leap to buy a home, low income or not, isn't looking to go through the entire process of home ownership if they aren't really committed to being an asset to the community. Those who aren't serious about making contributions, regardless of their income are likely to be renters not buyers. Make sure the programs have advocacy for people of all backgrounds or not so great credit, the advantage to this is, it prevents wealthy buyers from monopolizing property ownership and thereby gentrifying. This balance can create great stability for the middle class majority and everyone else who has the desire for home ownership!