When you’re in the process of searching for and buying your first home, you may experience a pretty steep learning curve. Real estate and mortgage jargon alone can be confusing, and terms like adjustable rate mortgage, contingencies, and fixed installment can leave a first-time home buyer’s head spinning.
To make things more complicated, there are terms to learn about the markets you’re looking in, too. A word that’s gained popularity recently is gentrification. This term has been around for several decades, but has recently received a lot of bad press as a situation where lower-income residents are displaced.
What Is The Definition of Gentrification
The purchase & improvement of businesses and residential homes in low price or dilapidated urban neighborhoods by middle & upper income people or families. This both changes the perceived “character” of the neighborhood, increases property value, decreases crime-rates but also can push out lower income residents who find their property taxes increased, high rent from landlords and less housing available as land owners sell properties to be improved.
There are socially recognized issues with some impacts of gentrification. However, a “gentrifying neighborhood” could present some great opportunities for buyers on a budget. Knowing that a neighborhood or city is generally improving from lower value to higher value could be a significant factor in your purchase decision. Check out this in-depth infographic that explains the gentrification, where it came from, and what it could mean for you as a buyer. Plus, you’ll learn about some of the nation’s top gentrifying cities. Could your first home be in one of them?