Gentrification in Portland: the rising costs of buying or renting a home in the city

What is gentrification?

Gentrification is the process by which neighborhoods undergo a rapid increase in value as properties are purchased and renovated by wealthier people than those currently living in the community. This most often occurs in poor and working-class urban neighborhoods resulting in the displacement of those residents. In recent years the signs of gentrification in Portland are easily identifiable and abundant. New owners purchase properties then either improved or tear down and replace what was there. This leads to rents going up dramatically, wealthier people moving into the neighborhood, and area businesses becoming more upscale. All this means that less wealthy, long-time residents can no longer afford to stay.  In fact, a 2015 study by Governing Magazine found that Portland, Oregon has experienced this gentrification process more severely than any other U.S. city since 2000. This has had a profound impact on many Portland neighborhoods as housing costs continue to rise.  More and more people are unable to remain in the neighborhoods where they have long resided and some are unable to find affordable housing within the city limits at all.

What causes gentrification?

Gentrification can happen in any neighborhood where property values suddenly rise as newer, wealthier residents move in, invest in improvements and/or new construction then displace those who have previously lived there. Often, gentrification is a legacy of past policies that restricted people of color to certain neighborhoods and denied them access to financing. This process occurred through redlining. This excerpt from the documentary Race: The Power of an Illusion illustrates how redlining worked:

 

 

In Portland, African Americans were largely restricted to North and Northeast Portland, so it is no surprise that those are two parts of the city undergoing the most rapid gentrification. The Oregonian’s “Roots of Gentrification” series provides an excellent overview of the changes in the city that have greatly contributed to the gentrification of North and Northeast Portland.  Also, the city’s State of Housing in Portland report provides a good overview of the scope of the problem.

 

What has been the result?

While gentrification has affected areas across the city, among the most impacted has been North and Northeast Portland, the long-time center of the city’s African American population. The impact on that community has been profound. Largely priced out of their homes, the city’s black residents are increasingly moving into east Multnomah County where housing is less expensive. This has meant there is far less diversity in traditionally black neighborhoods. A clear example of gentrification in an historically African American community is the Alberta neighborhood. Studies done in 1992 and 2015 show just how much the area has changed. Gentrification also contributes to the rapid increase in rent. A recent study showed Portland's rents rose at  the nation's sixth-fastest rate over the last five years.

 

What is the solution?

That all depends on who you ask, but because gentrification is not the result of a single, simple cause, there is likely no single, simple solution. It is an issue intimately tied to other challenging social problems surrounding race, class, and economic opportunity. The City of Portland has prepared a study of gentrification risk that identifies different strategies to address the issue. Recently, the Portland Housing Advisory Commission recommended a significant increase in the amount of public money spent on affordable housing. In August 2015, city leaders announced new projects in Northeast Portland to provide jobs and subsidized housing. A coalition of community groups has recommended a comprehensive 11-point plan to combat gentrification but still recognize that there is “no silver bullet” that will solve the problem. To address the issue of high rent, the Portland Renters Assembly organizes meetings across the city and would like to take direct action against the rising cost of rent. Clearly, a variety of tactics are needed to ease the most damaging effects of gentrification. It is impossible to know now what will ultimately be the result.

Comments

Assessed value pertains to the amount that a local or state government has designated for specific property. This assessed value will be used when a property tax is levied by the government. With this simple fact established. Let's proceed with my analysis. Poor areas are renovated or upscale. Thus this would naturally increase not only the value of the property but also the assess value as well. Thereby increase property tax. Which in turns raises the rent, etc . This would push out the poor because the property tax increased based off of the assess value. --- the E.
In Portland there was a time when African Americans not allowed to rent or buy a house or live in Portland. But my 6th grader teacher back in his' earlier years battle the city to allowed African Americans into this city as well as go to school here. Eventually be able to live, rent, or buy a home.
What also adds insult to injury, in my mind, is that the taxpayers paid for the very infrastructure improvements that now only the wealthy will be able to enjoy and ultimately capitalize on. These same taxpayers are the people who will have to move to the suburbs and endure those horrible Portland commutes. And by taxpayers, I'm of course not referring to the top 1% who profit from all of this gentrification. They don't pay their fair share of taxes. That new bridge that Portland taxpayers just built will most benefit the affluent.

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