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How Low Income Neighborhoods Change: Entry, Exit and Enhancement

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  • Ingrid Gould Ellen
  • Katherine M. O'Regan

Abstract

This paper examines whether the economic gains experienced by low-income neighborhoods in the 1990s followed patterns of classic gentrification (as frequently assumed) � that is, through the in migration of higher income white, households, and out migration (or displacement) of the original lower income, usually minority residents, spurring racial transition in the process. Using the internal Census version of the American Housing Survey, we find no evidence of heightened displacement, even among the most vulnerable, original residents. While the entrance of higher income households was an important source of income gains, original residents also experienced differential gains in income, and reported greater increases in their satisfaction with their neighborhood than found in other low-income neighborhoods. Finally, gaining neighborhoods were able to avoid the losses of white households that non-gaining low income tracts experienced, and were thereby more racially stable rather than less.

Suggested Citation

  • Ingrid Gould Ellen & Katherine M. O'Regan, 2010. "How Low Income Neighborhoods Change: Entry, Exit and Enhancement," Working Papers 10-19, Center for Economic Studies, U.S. Census Bureau.
  • Handle: RePEc:cen:wpaper:10-19
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    File URL: https://www2.census.gov/ces/wp/2010/CES-WP-10-19.pdf
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    References listed on IDEAS

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    1. Rosenthal, Stuart S., 2008. "Old homes, externalities, and poor neighborhoods. A model of urban decline and renewal," Journal of Urban Economics, Elsevier, vol. 63(3), pages 816-840, May.
    2. McKinnish, Terra & Walsh, Randall & Kirk White, T., 2010. "Who gentrifies low-income neighborhoods?," Journal of Urban Economics, Elsevier, vol. 67(2), pages 180-193, March.
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    Cited by:

    1. Shadi O. Tehrani & Shuling J. Wu & Jennifer D. Roberts, 2019. "The Color of Health: Residential Segregation, Light Rail Transit Developments, and Gentrification in the United States," IJERPH, MDPI, vol. 16(19), pages 1-19, September.

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