14 October 2014

Gentrification is a myth

A friend sent me a report he had read on gentrification in Oakland, and asked for feedback, after a conversation in which I claimed gentrification was largely a myth.
This was the report:

This is a report in which they are specifically looking for signs of it, trying to play it up, and focusing specifically on neighborhoods and time spans with the most dramatic rent increases.
And even by their own numbers, even at its worst rent increased more slowly than inflation.

The thing about housing prices and inflation - if a loaf of bread goes up from $1 to $1.50, its not really a big deal, its 50 cents more.
If a house goes from 200,000 to 300,000, that seems like a dramatic increase, $100k is a lot of money. 
But they are both the exact same 50% increase.

Below is my more in-depth analysis of the specific report, including hard numbers instead of thought experiment numbers: