DENVER — A new study done by the National Community Reinvestment Coalition found that both gentrification and displacement of longtime residents was most intense in the nation’s biggest cities, and rare in most other places.
Gentrification is the process of renovating deteriorated urban neighborhoods so that they conform to middle-class taste. It's a common and controversial topic in politics and in urban planning. It's a fact that renovations and improvements to an area or district will inevitably increase property values. That also means rent costs will likely go up. As the price of rent increases, the supply of affordable housing decreases.
A lot of times, it's minority groups who suffer from that snowball effect. And that's what's happening in Denver.
The NCRC study found that a greater number of Hispanics, on average, are being displaced from the most rapidly gentrifying Denver neighborhoods than in any other major U.S. city.
9NEWS spoke to representatives from The Denver Office of Economic Development (OED) about the recent study. They agreed that there is displacement of minorities happening in rapidly developing Denver neighborhoods. In fact, they've been working on remedying the issue for years.
For example, there was a groundbreaking Thursday morning in the Elyria Swansea neighborhood on 32 energy-efficient, affordable, 3- and 4-bedroom homes.
“I find that the core issue here is wage inequity," said Irene Aguilar, the director of the Neighborhood Equity and Stabilization Team (NEST). It's a new effort by the city to ensure culture is preserved in those rapidly developing Denver neighborhoods before it's too late to get it back. Aguilar’s position is only 5 months old.
"I've been focusing my work on different communities where I see changes happening that are going to potentially lead to displacement," Aguilar said.
The city's idea is that by creating more affordable housing, it will be supporting home ownership for families of all demographics.
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