01:450:250 Lecture Notes - Lecture 7: Land Values, Gentrification, Creative Destruction
1 Apr 2019
School
Department
Course
Professor
Document Summary
The rich want to move away from the lookalike suburban houses they grew up in, but instead want the urban authenticity of the city, they want the spontaneity and culture that one can"t get in the city. A theory of gentrification based on studying opportunities for profit. Consumer preference still matters, but the focus turns to patterns of investment. Why do certain blocks or neighborhoods gentrify all at once?(vs. Consumption theory, which focuses on individual pioneers" who blaze the trail". Neil smith developed this theory, following david harey"s writing on the urban process under capitalism . Industrial city emerges, with a built up downtown. Wealthier classes exit inner city for suburbs(week 3) Inner city declines due to lack of investment and tax money(week 5) Investors(backed by state) re-invest in dilapidated and undervalued neighborhoods to improve housing and sell for profit - creative destruction. Costs rise, forcing many locals to move out.
