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Gentrification: Who Really Benefits? The Impact of Urban Renewal on Black and Brown Communities

ONETEN MAGAZINE

Urban scene with diverse crowd, vendors under a colorful umbrella, people dining, modern and historic buildings. Vibrant and bustling.
A vibrant street scene where a diverse crowd mingles among historic brick buildings and modern glass structures. A colorful market stall bustles with activity as people enjoy the lively urban atmosphere, while others relax at sidewalk cafes.

The Illusion of Progress


Gentrification has long been sold as a tool for economic growth and urban redevelopment. City officials and developers often champion it as the key to revitalizing neglected neighborhoods, bringing in new businesses, and improving infrastructure. But beneath the glossy surface of renovated brownstones, new coffee shops, and soaring property values lies a stark reality: Black and Brown communities bear the brunt of these so-called improvements, which often fail to provide them with affordable housing, sustainable employment opportunities, or economic stability. The very residents who have called these neighborhoods home for generations are being displaced, priced out, and stripped of their cultural and historical roots. So, the question remains—who really benefits from gentrification?


The Broken System: Displacement Disguised as Development


At its core, gentrification is about power and economic control, rooted in historical patterns of redlining, racial segregation, and economic disenfranchisement. From the early 20th century, discriminatory housing policies systematically excluded Black and Brown communities from homeownership and economic mobility, laying the foundation for today’s cycles of displacement and exploitation. It is a systemic issue that disproportionately disadvantages marginalized communities while rewarding wealthy developers, corporations, and higher-income newcomers. The cycle is predictable and deeply flawed:


  1. Neglect & Underfunding: Historically Black and Brown neighborhoods suffer from decades of redlining, disinvestment, and poor municipal planning. Schools, infrastructure, and public services are underfunded, leaving residents struggling to maintain their communities.


  2. Rebranding & Rezoning: Once property values hit rock bottom, investors swoop in. City governments push rezoning laws to allow for high-rise developments, luxury apartments, and commercial expansion. What was once considered a "dangerous" or "undesirable" neighborhood is suddenly rebranded as an up-and-coming cultural hotspot.


  3. Rent Hikes & Evictions: Longtime residents—who have endured years of neglect—now face skyrocketing rents and property taxes. Landlords and developers pressure tenants to leave through forced evictions, buyouts, or increased costs that they cannot afford.


  4. Cultural Erasure: As new, wealthier residents move in, Black and Brown-owned businesses struggle to keep up with rising rents. Cultural hubs, restaurants, and historic landmarks are replaced by high-end retailers and national chains, erasing the community's identity.


  5. Policing & Criminalization: With gentrification often comes an increase in policing. Longtime residents are criminalized for simply existing in their own neighborhoods, facing racial profiling, over-policing, and displacement under the guise of "cleaning up the streets."


The False Promise of Economic Growth


Proponents of gentrification argue that new developments create jobs, increase tax revenue, and improve community services. While these benefits may exist on paper, they rarely extend to the original residents. The jobs created often cater to the incoming wealthier population—boutique retail, upscale dining, and tech startups—rather than providing sustainable employment opportunities for the community members being displaced. For instance, a study by the National Community Reinvestment Coalition found that in cities experiencing gentrification, only 9% of original lower-income residents saw economic benefits, while the majority faced displacement or wage stagnation.


Additionally, the increased tax revenue rarely translates to direct benefits for the displaced residents. Instead of investing in affordable housing, education, or healthcare, municipalities often allocate funds toward infrastructure projects that primarily serve new, wealthier residents—such as high-end commercial spaces, tech hubs, and entertainment districts.


Who Really Benefits?


The answer is clear: real estate developers, corporate investors, and wealthier transplants reap the rewards of gentrification, while Black and Brown communities are pushed further to the margins. The wealth gap widens, homeownership among marginalized groups declines, and generational wealth is lost. What is framed as "urban renewal" is, in reality, a modern form of economic and cultural displacement.


How Can We Fix It?


Gentrification is not inevitable—it is a policy choice. Rebuilding communities should not mean erasing them. Here’s what needs to happen to create equitable and just urban development:


  1. Stronger Rent Control Laws: Implementing rent stabilization policies can prevent landlords from pricing out longtime tenants. Laws that limit annual rent increases and provide tenant protections are crucial


  2. Affordable Housing Protections: Cities must prioritize the construction of truly affordable housing—not just luxury apartments with a handful of "affordable" units. Community land trusts and cooperatives can keep properties in the hands of residents rather than developers.


  3. Community-Led Development: Residents should have a say in urban planning. Community benefit agreements (CBAs) ensure that new developments include affordable housing, local hiring, and protections for small businesses.


  4. Preservation of Cultural Spaces: Historic Black and Brown-owned businesses, cultural institutions, and public spaces must be preserved through policy protections, grants, and subsidies that help them remain in place.


  5. Racial Equity in Homeownership: Policies that promote fair lending practices, first-time homebuyer assistance, and reparative investments in historically redlined communities can help build generational wealth.


  6. Accountability in Public Policy: Local governments must be held accountable for prioritizing residents over developers. Public funds should be used to improve infrastructure and services for existing communities—not to attract wealthier newcomers at their expense.


The Fight for Urban Justice


Gentrification does not have to be synonymous with displacement. Cities like Portland and Burlington have implemented community land trusts, tenant protections, and inclusive zoning laws to ensure that revitalization efforts benefit existing residents rather than pushing them out. By prioritizing policies that center equity and community-led development, it is possible to create thriving neighborhoods without sacrificing their cultural and historical integrity. With the right policies, investments, and community involvement, cities can be revitalized without sacrificing the people who built them. Black and Brown communities deserve more than to be pushed out of their own homes in the name of "progress." The fight for urban justice is a fight for equity, stability, and the right to thrive—not just survive.


Until we shift the balance of power and prioritize the needs of marginalized communities over profit-driven development, gentrification will continue to be a tool of oppression rather than an instrument of positive change. The question we must ask is not just who benefits from gentrification, but rather—who should?


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