Neighborhoods A and B are next to each other in a large urban area. If Neighborhood A is more gentrified than Neighborhood B, which of the following is most likely?

Question

Neighborhoods A and B are next to each other in a large urban area.  If Neighborhood A is more gentrified than Neighborhood B, which of the following is most likely?

Quizplus · Accepted Answer

11ecba2d_0d71_0ca2_a3bf_fd0ffa21fcd1_MD0008_00 Gentrification is the redevelopment of lower-income urban (city) neighborhoods that occurs in conjunction with an influx of higher-income individuals, resulting in the displacement of lower-income residents. As higher-income individuals move to a lower-income neighborhood, it is redeveloped (ie, new/improved homes and businesses) and housing prices increase. No longer able to afford to live in their neighborhood, lower-income residents are displaced (forced to move), and the influx of higher-income individuals and redevelopment continues. This cycle gradually transforms lower-income urban neighborhoods into higher-income urban neighborhoods. Because gentrification results in the displacement of lower-income residents, more lower-income residents will have been displaced from Neighborhood A (the more gentrified neighborhood) than from Neighborhood B. (Choice A) Gentrification causes housing and rental prices to increase. Therefore, housing and rental prices should be less (not more) affordable in Neighborhood A than in Neighborhood B. (Choice B) Gentrification results in many long-term residents getting priced out of (displaced from) their neighborhood as housing and rental prices increase. Therefore, residents will have resided for less time-a shorter (not longer) median duration-in Neighborhood A compared to Neighborhood B. (Choice D) The tax base includes all the assets (eg, property) and revenue (eg, business transactions) that are taxed by the government. Gentrification causes the local tax base to expand as the result of higher property values and new businesses. Therefore, Neighborhood A will have a larger (not smaller) tax base than Neighborhood B. Educational objective: Gentrification is a process of urban redevelopment of lower-income neighborhoods that occurs with an influx of higher-income residents. Gentrification causes an increase in housing prices, which forces lower-income residents to move (displacement).

Neighborhoods a and B Are Next to Each Other in a Large