Islands of decay in seas of renewal: Housing policy and the resurgence of gentrification

TLDR

The early 1990s recession was seen as ending the “islands of renewal” amid urban decay, but recent shifts in mortgage finance and assisted housing have altered the relationship between gentrification and housing policy. The study analyzes the resurgence of gentrification in eight U.S. cities using field observation, Home Mortgage Disclosure Act data, and HOPE VI plans. The authors employ field observation, HMD data, and HOPE VI plans to investigate gentrification trends.

Abstract

Abstract For many observers, the recession of the early 1990s signaled the end of what Berry called islands of renewal in seas of decay. In the past decade, however, shifts in mortgage finance have intersected with developments in assisted housing to alter the links between gentrification and housing policy. In this article, we use field observation, Home Mortgage Disclosure Act data, and HOPE VI plans to analyze the resurgence of gentrification in eight U.S. cities. Between 1992 and 1997, gentrified neighborhoods attracted conventional homepurchase mortgage capital at a rate that grew at more than 2.3 times the suburban rate. Logit models confirm that mortgage capital favors gentrified neighborhoods even after controlling for applicant and loan characteristics, suggesting a new relationship between mortgage lending and neighborhood change. In some cities, gentrification has surrounded islands of decay and poverty with landscapes of renewal