Assessing Economic Change in HOPE VI Neighborhoods

Neighborhoods surrounding large public housing developments have historically been economically distressed. The revitalization of many developments through the federal HOPE VI program, in conjunction with increased inner‐city lending and a strong economy for much of the 1990s, should theoretically lead to improvements in these neighborhoods. This study analyzes changes in selected HOPE VI neighborhoods since 1990 and compares them with changes in other high‐poverty communities, as well as with overall trends in their respective cities. At the beginning of the decade, conditions in HOPE VI communities were almost universally worse than in other high‐poverty areas. By the end of the decade, the relationship was reversed. The changes resulted from a number of interrelated factors, including the redevelopments themselves, other private market activity, specific commitments of resources by city governments, and increased attention to the communities by lenders. These neighborhoods still qualify as economically distressed, but economic development now seems a realistic possibility.