Gentrification of Downtown L.A. Pushed Home Values Up by 700 Percent
- Mar 20, 2018
Changes in home values, household income and highly-educated population can be good indicators of gentrification, finds a new study by RentCafé.
The apartment search website compiled a ranking of the most gentrified zip codes in the U.S., using data from the 2000 Census Survey and the 2016 American Community Survey. It analyzed zip codes with more than 2,000 occupied housing units and adjusted all amounts for inflation to 2018 values.
At the top of the list of the most gentrified zip codes is Los Angeles’ 90014, also known as DTLA, where home values skyrocketed by more than 700 percent in 10 years. Number two is D.C.’s 20001, which saw a 207 percent increase in home values, and number three was Houston’s 77003, where homes appreciated by 284 percent.
Seven of the top 20 fastest-gentrifying zip codes are in New York City, two in Los Angeles, two in Washington, D.C., and two in Philadelphia. In fact, Philadelphia’s 19146 (Point Breeze) saw the second highest jump in home values, above 400 percent. Besides Los Angeles, only one other West Coast city is in the top 20, Tacoma, Wash., with zip code 98402.
L.A.’s 90014, Houston’s 77003 and Philly’s 19123 saw the highest influx of highly-educated residents. In terms of changes in income, D.C.’s 20001 (Mount Vernon), Houston’s 77007 (Washington Ave.- Memorial), and Fort Worth’s 76102 (Downtown) saw the biggest jumps in the median household income. This doesn’t mean that the income for all residents rose, rather that new residents with high incomes have moved into these neighborhoods, driving up the average.
The complex phenomenon of gentrification has its pros and cons for both long-time residents, newcomers and real estate developers. Although difficult to quantify, it can have a powerful impact on not just the look of a neighborhood, but also on its residential, commercial and social makeup.