An opinion piece in the Los Angeles Times this week repeats the argument that gentrification is reducing transit ridership. The Antiplanner was not persuaded by this when the claim was presented in the Eastsider last fall, but it and Senate Bill 827 raise another issue: what does gentrification do to housing affordability?
A standard theory of housing is that people who can afford to do so buy new homes and older homes trickle down to lower-income people. But this assumes that the older homes aren’t torn down to make way for the new. In regions with urban-growth boundaries, most new homes can be built only by sacrificing old ones — gentrification. This process is further encouraged by cities like Portland and Los Angeles that subsidize developers to build transit-oriented developments along rail transit lines.
People who already own homes aren’t hurt by this; in fact, their home values rise. But gentrification can price renters out of their housing and leave them with no comparably priced housing to go to. Continue reading