Gentrification and Neighborhood Housing Wealth: How Gentrification Reproduces the Racial Stratification of Urban Neighborhoods

Abstract

Few researchers have considered how gentrification affects inequalities of housing wealth between Black and White neighborhoods. Drawing on the U.S. census and the American Community Survey, I test the hypothesis that home values rise more slowly in gentrifying neighborhoods that are majority Black compared to those that are majority White. I find that home values appreciate more quickly in gentrifying neighborhoods that are majority Black, particularly those that are experiencing significant change in their racial-ethnic composition. The findings further suggest that Black gentrifying neighborhoods experiencing racial transition—a large increase in the proportion of White residents and a large decrease in the proportion of Black residents—experience higher rates of home value appreciation than those not experiencing racial transition. I argue that gentrification reproduces the racial stratification of urban neighborhoods because large increases to housing wealth tend to be coupled with the arrival of the White middle-class.