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Gentrification and Pioneer Businesses

Author

Listed:
  • Kristian Behrens

    (Université du Québec à Montréal, HSE University, and CEPR)

  • Brahim Boualam

    (Statistics Canada)

  • Julien Martin

    (Université du Québec à Montréal and CEPR)

  • Florian Mayneris

    (Université du Québec à Montréal and CEPR)

Abstract

Little is known about where hotspots of gentrification emerge within a city and the role that some types of businesses play in the process. We develop a method to detect the sectors whose presence heralds the process of gentrification in a neighborhood. We show that these sectors, mostly found in cultural and creative industries, help to anticipate neighborhood change and that their predictive power complements that of traditional gentrification determinants. We also examine mechanisms related to amenities, worker characteristics, and signaling that are consistent with these results. The analysis illustrates the importance of businesses in the sociodemographic dynamics of neighborhoods.

Suggested Citation

  • Kristian Behrens & Brahim Boualam & Julien Martin & Florian Mayneris, 2024. "Gentrification and Pioneer Businesses," The Review of Economics and Statistics, MIT Press, vol. 106(1), pages 119-132, January.
    • Handle: RePEc:tpr:restat:v:106:y:2024:i:1:p:119-132
    DOI: 10.1162/rest_a_01154
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    Cited by:

    1. Couture, Victor & Handbury, Jessie, 2020. "Urban revival in America," Journal of Urban Economics, Elsevier, vol. 119(C).
    2. Martin, Julien & Mejean, Isabelle & Parenti, Mathieu, 2020. "Relationship stickiness, international trade, and economic uncertainty," CEPR Discussion Papers 15609, C.E.P.R. Discussion Papers.
    3. Wang, Yixuan, 2024. "Urban Redevelopment and Gentrification: Evidence from the Atlanta BeltLine," 2024 Annual Meeting, July 28-30, New Orleans, LA 343550, Agricultural and Applied Economics Association.
    4. Garcia-López, Miquel-Àngel & Jofre-Monseny, Jordi & Martínez-Mazza, Rodrigo & Segú, Mariona, 2020. "Do short-term rental platforms affect housing markets? Evidence from Airbnb in Barcelona," Journal of Urban Economics, Elsevier, vol. 119(C).
    5. Julien Martin & Isabelle Mejean & Mathieu Parenti, 2024. "Relationship stickiness, international trade, and economic uncertainty," Working Papers halshs-04721417, HAL.
    6. Divya Singh, 2020. "Do Property Tax Incentives for New Construction Spur Gentrification? Evidence from New York City," 2020 Papers psi856, Job Market Papers.
    7. Alberto Hidalgo & Massimo Riccaboni & Francisco J. Velázquez, 2024. "The effect of short‐term rentals on local consumption amenities: Evidence from Madrid," Journal of Regional Science, Wiley Blackwell, vol. 64(3), pages 621-648, June.
    8. Murphy, Daniel, 2024. "Housing cycles and gentrification," Journal of Monetary Economics, Elsevier, vol. 144(C).
    9. Baum-Snow, Nathaniel & Hartley, Daniel, 2020. "Accounting for central neighborhood change, 1980–2010," Journal of Urban Economics, Elsevier, vol. 117(C).
    10. Julien Martin & Isabelle Mejean & Mathieu Parenti, 2024. "Relationship stickiness, international trade, and economic uncertainty," PSE Working Papers halshs-04721417, HAL.
    11. Kristian Behrens & Julien Martin & Florian Mayneris, 2021. "Analyse de la gentrification urbaine dans l'agglomération de Montréal et regard particulier sur les secteurs traversés par la ligne rose," CIRANO Project Reports 2020rp-36, CIRANO.

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    More about this item

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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