An Examination of Selected Consequences of Revitalization in Six US Cities

Abstract

This paper examines four selected consequences of private market revitalization in 12 neighborhoods in six US cities. The analysis reveals that the physical quality of properties has been improved significantly, property assessments have increased substantially, and the investment in the properties by newcomers to the neighborhoods has encouraged original owners to improve their properties in one-third of the neighborhoods studied. However, the increase in assessed values generally has lagged far behind increases in the market value of the properties. Reinvestment also appears to have generated negative consequences. Many of the renters living in the neighborhoods prior to the start of reinvestment, many of whom had a low socioeconomic status, may have been displaced. In addition, the assessed value of properties owned by persons living in the neighborhoods prior to revitalization and not improved during revitalization increased as a result of the changes occurring in the neighborhoods. The percentage increase in the assessed value of these properties was not significantly less than the increase for properties improved by newcomers.