As well as positive aspects, there are a range of negative aspects associated with the process of gentrification. These can leave residents with a sour taste in their mouth and are some of the main reasons there are action groups against gentrification rising up in urban areas across the globe.
Loss of affordable housing
With the upside being property values increasing in a gentrified area, many low-income residents will rent their housing instead of owning it. This means residents will have rent hikes they can't keep up with, and end up having to be displaced to other low-income areas (which creates a more concentrated area of poverty, a massive problem in some cities creating favela-like areas).
Small business can suffer
As areas are gentrified, smaller businesses such as newsagents, hairdressers and the like can suffer from increased competition and similar rises in rent from property developers. With a changing demographic living in the area, there may not be as much custom as a small business needs, meaning shops will close. This is well documented with many small businesses suffering from bigger business taking over areas (such as supermarkets dominating smaller food stores).
Diversity suffers
With the demographic changing in areas, there is also a change in diversity in the area. While there are early gentrifiers that bring the same amount of diversity that low-income areas usually have, the majority of early gentrifiers are white residents in the 25-40 range (Reference). This loss of diversity can effect the community of the area, and create tensions between different classes in an area.
Can increase crime
Interestingly enough, some neighbourhoods that have been gentrified recently experienced increases in crime (albeit most of those neighbourhoods have since resumed normal crime rates). Sociologists have given reasons such as desperation to remain in the area, tensions between different classes and criminals recognising the increase in wealth in the area, targeting individuals in the area purposefully.
Displacement
One of the biggest reasons there is such an uprising against gentrification, displacement. The means of displacing strong-knit communities can have extremely detrimental effects on the residents currently living in the area, with many residents being priced out due to the rent increases and businesses targeting a higher social-class. Specifically in London, the displacement of people to certain lower-class areas creates even more poverty in that area, dooming the residents to certain austerity. Instead of helping residents enjoy a better way of life, they are simply moved on to an area that property developers aren't interested in (yet).
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