'We Been Here!': An Economic Analysis of Gentrification in New York City

Abstract

Gentrification has become a more pertinent issue since the 1990’s, largely due to public outcry. To examine the different factors associated with gentrification and how those factors impact current and incoming residents, scholars have attempted to define gentrification and compare differences between gentrifying and non-gentrifying neighborhoods. Others continue by examining the factors that impact gentrifying neighborhoods. This study examines those different methodologies in a three-step process. Using data at the sub-borough area level for New York City from 2006 and 2016, this study examines the different ways to classify gentrification, how certain factors affect gentrification, and how gentrification can then be used to predict how certain factors will change. We find that the median household income, median rent, and percent of people 25 years or older with at least a bachelor’s degree increase for gentrified sub-borough areas from 2006 to 2016 as opposed to those that are not. The percent of non-Hispanic whites seems to have results that are unclear. These variables do, however, appear to have a greater increase amongst gentrified sub-borough areas than those that are not. This study also examines how a gentrified sub-borough area can affect other factors such as the serious crime rate and school performance.