Communities can capture the economic benefits of gentrification for long-time residents instead of losing them to displacement.
While talking about gentrification a few weeks ago, my friend Jacquelyn West said to me: "The definition is the outcome." Her insight captures a troubling reality facing urban communities today. The fear of negative consequences from neighborhood improvement has created what I will call the "everything good is bad" phenomenon. Examples are no longer rare of situations where one might hear: "You will plant trees, yes, but what happens after, as this place gets nicer? The rents will go up! Maybe we are better off without the trees."
This fear of gentrification—the economic and social phenomenon where wealthier new residents move into lower-income neighborhoods, bringing improved infrastructure and economic growth but also displacement through higher prices—has become perhaps the largest obstacle to revitalization initiatives that could improve incomes, offer opportunities, and increase quality of life in poorer communities. While scholars and journalists have been thorough in documenting and bemoaning gentrification, there is much less work on what can be done to prevent or mitigate its negative impacts.
But it needn't be so. With thoughtful planning and strategic investment, this author believes it is possible to accomplish local economic development without displacement. In fact, rather than displace the local population we should aim to “enrich in place”. The key insight, drawn from author Majora Carter's work on transforming neighborhoods from "low status" to "higher status," is that revitalization need not come at the cost of displacing long-time residents. Instead, it can provide them with new opportunities—improved infrastructure, better services, and financial mobility—while they remain in their community.
What is "Enrich in Place"?
The strategy I propose centers on a local organization or authority—which I'll call "Enrich"—dedicated to ensuring that the wealth generated by neighborhood improvement flows to existing residents rather than displacing them. This entity could be an existing government agency, a local nonprofit, or a newly created authority, depending on community capacity and needs. What matters most is that it has adequate funding, community trust, and a mandate to act as both protector and facilitator for long-term residents during neighborhood transformation.
Enrich would operate on a simple principle: capture the wealth effects of gentrification for existing residents through strategic interventions in housing, lending, education, and community development. Rather than fighting market forces, this approach harnesses them for community benefit.
The "Enrich" organization would function as a neighborhood-based entity with three core capabilities: information and advocacy, financial intermediation, and strategic property control. Structurally, it could take several forms—a community development corporation (CDC), a municipal authority with dedicated neighborhood focus, high functioning not-for-profit or a hybrid public-private partnership—but would require consistent funding, legal authority to engage in real estate transactions, and deep community trust. Operationally, Enrich would maintain a permanent neighborhood presence with staff who know residents personally, track local property values, and maintain relationships with banks, developers, and city officials. Its financial model would combine municipal backing (allowing access to low-cost capital), philanthropic support (for education and community programs), and revenue from strategic property transactions (buying low, holding, and ensuring community benefit rather than maximizing profit). Crucially, Enrich would operate with full transparency—publishing regular reports on property transactions, loan activities, and community outcomes—while maintaining the flexibility to respond quickly when residents face pressure from speculators or need access to capital for property acquisition. Think of it as a community-controlled financial institution combined with a neighborhood advocacy organization, backed by the resources and authority necessary to compete with market forces rather than simply react to them.
Building Trust and Providing Information
An essential first step is for Enrich to establish itself as a trustworthy partner of neighborhood residents. This begins with transparency and education. When rezoning occurs, Enrich should explain it in simple terms with quality visual aids. When property values are expected to rise, residents need advance warning about potential speculators and even con artists who might try to exploit their lack of market knowledge.
Regular public meetings, accessible contact information, and consistent community presence help establish Enrich as a long-term advocate rather than another outside organization with temporary interest in the neighborhood.
Supporting Homeowners: Protection and Opportunity
Once real estate values begin rising in a formerly static market, speculators often target long-time homeowners with below-market cash offers that can seem attractive but represent significant lost wealth. Many residents in marginalized neighborhoods are unaware of their properties' increasing value and vulnerable to exploitation.
Enrich can provide crucial protection through several mechanisms:
Regular property appraisals: Every six to twelve months, Enrich should inform all local owners of their property's fair market value and likely trajectory through mailers, door-to-door outreach, or community meetings.
Market-rate purchase guarantee: With adequate resources, Enrich could offer to purchase homes at true market value when residents face pressure to sell to speculators. If someone offers $85,000 cash for a $125,000 property, Enrich could step in with the full $125,000, ensuring residents receive fair value.
Below-market lending: Partnering with local financial institutions and backed by municipal borrowing capacity, Enrich could provide renovation loans, refinancing, and improvement capital at rates below commercial market levels. Armed with specific knowledge of planned neighborhood improvements, Enrich would face lower risk than conventional lenders, justifying favorable terms that could generate significant savings across the community.
Supporting Renters: Pathways to Ownership
Realistically, most residents in target neighborhoods will be renters, and they face the greatest displacement risk as property values and rents rise. Several interventions can help:
First-time buyer assistance: The primary barrier preventing renters from becoming owners is accumulating down payment capital. Since mortgage payments often approximate rent levels, Enrich could extend purchase credit to local renters, transforming them into owners positioned to benefit from rising property values rather than being displaced by them.
Priority access programs: Where rezoning creates new housing opportunities, local renters could receive priority access to units at affordable rates.
Strategic property acquisition: Enrich could acquire and maintain key buildings within the neighborhood—particularly those with historical or cultural significance—to provide both affordable residential units and commercial space for local businesses and organizations. This dual approach preserves community character while protecting residents and enterprises from displacement.
Community Land Trusts: Enrich could support or create Community Land Trusts that allow communities to collectively own and manage land, ensuring it remains accessible for affordable housing and local businesses rather than being sold to the highest bidder. CLTs help preserve neighborhood social and cultural fabric by preventing market forces from pushing out long-standing residents.
Ideally, new zoning regulations could grant Enrich a "right of first refusal" on any land or building sales in the area, providing maximum flexibility to protect community interests.
Workforce Development and Economic Integration
As neighborhoods undergo revitalization, new job opportunities inevitably arise in construction, retail, technology, and hospitality. Rather than allowing these positions to flow to outside workers, Enrich should proactively identify emerging opportunities and offer targeted job training programs to help residents gain necessary skills.
Partnerships with local universities, community colleges, and businesses can create training programs tailored to the changing job market. This ensures local residents are positioned to take advantage of economic growth in their own community while preventing the "brain drain" that Majora Carter identifies as a key factor in neighborhood impoverishment.
Every public meeting should include financial literacy education—covering topics like understanding property values, managing finances during gentrification, and accessing affordable housing or loans. Like a dance night that begins with basic steps instruction, these pre-meeting sessions would equip residents with knowledge necessary to navigate neighborhood changes as informed, empowered stakeholders.
Transparency and Accountability
Trust requires transparency. Enrich should create and maintain a public platform tracking real-time impacts of revitalization efforts, including affordable housing creation, real estate transaction information, job training outcomes, and income levels. Regular, accessible updates foster accountability and help prevent concerns that residents are being left behind.
This data-driven approach empowers the community to actively engage in shaping their future, ensuring transformation remains inclusive and beneficial to all.
Why Not Inclusionary Zoning?
One important tool I deliberately exclude from this framework is inclusionary zoning. While often presented as a gentrification solution, artificially segmenting the market creates long-term challenges. Inclusionary zoning pushes developers to build larger, often out-of-scale buildings to subsidize affordable units, leading to overdevelopment and spaces that may not serve existing residents' actual needs.
Instead, the strategy I propose focuses on harnessing wealth generated by gentrification pressures to fund direct resident support—financial assistance for property acquisition, funding for homeowner improvements, and programs allowing renters to transition to ownership. This ensures neighborhood-generated wealth remains with current residents without artificially distorting the market.
Financing the Vision
The French saying "L'argent est le nerf de la guerre" (money is the nerve of war) applies here. Even the best policies require adequate funding. Several financing mechanisms can support this approach:
Property value capture: Since home prices will rise in target areas, capturing a portion of that increase provides a natural funding source. Cities could advance funds against future property tax revenue increases to initiate programs.
Philanthropic partnership: Organizations committed to poverty reduction should find this wealth-building approach attractive. Education components particularly align with foundation priorities, while real estate acquisition activities could merit larger grants or low-interest loans.
Innovative models: Atlanta's Community Foundation for Greater Atlanta has created a flexible $100 million fund helping nonprofits purchase affordable housing from private equity investors. Cincinnati's 3CDC has rehabilitated or built over 1,000 apartments in Over-the-Rhine while maintaining ownership to ensure workforce affordability. These examples demonstrate viable pathways for scaling community-controlled housing development.
Making housing part of downtown management organizations' work provides another avenue for steadily increasing affordable housing volume while maintaining community benefit.
Addressing Implementation Challenges
This approach faces several potential obstacles that must be acknowledged. Political feasibility varies significantly across jurisdictions—some communities may lack the institutional capacity or political will to create and sustain an "Enrich" entity. The scale of intervention required may exceed local resources, particularly in rapidly gentrifying markets where property values rise faster than community organizations can respond.
There's also inherent tension between market-based solutions and the significant public intervention required. Critics might argue that such extensive market intervention creates distortions or unfair advantages. Additionally, success depends heavily on timing—intervening too late may prove ineffective, while intervening too early may be unnecessary.
However, these challenges are not insurmountable. They require careful planning, adequate resources, and sustained political commitment. The alternative—allowing gentrification to proceed without intervention—has proven consequences we already understand.
A Call for Inclusive Transformation
Ultimately, gentrification is not a battle between old and new residents. It's a question of creating a more inclusive future where all residents' needs and aspirations are considered. As Majora Carter has pointed out, revitalization's goal should not simply be increasing property values or attracting wealthier residents—it should be creating neighborhoods where everyone, regardless of income or background, has the opportunity to thrive.
The task before us is not stopping gentrification but ensuring it works for everyone, especially those who have been left behind for far too long. When harnessed correctly, gentrification can become more than economic renewal for buildings—it can become social justice for people, where every resident, regardless of starting socioeconomic status, has the chance to share in their transforming neighborhood's benefits.
The next step is action. Communities experiencing early signs of gentrification pressure should begin building the institutional capacity and community trust necessary for "enrichment in place." Those already in transition need immediate intervention to protect vulnerable residents while positioning them to benefit from ongoing change.
This is not just urban policy—it's a pathway to justice that recognizes community residents as the rightful beneficiaries of their neighborhood's success.
Sources:
Kalima Rose: Beyond Gentrification (2001)
Majora Carter: Reclaiming Your Community (2006)
Next City, Robert Davis (2025)






