Community revitalization is a common occurrence in areas that are becoming denser and require more housing options, have fallen into disrepair, or are lacking amenities. There have been several methods historically used to achieve revitalization, each with its own set of obstacles and consequences. While community change over time is inevitable, care must be taken to ensure that residents are not displaced in favour of a new demographic moving into the modernized community. It can be argued that an influx of more affluent residents moving to the area leads to rapid investment and development, spurring the local economy. However, socioeconomic integration should be a primary goal to ensure that the quality of life of all residents is raised, without unevenly benefiting only the more affluent residents.

Gentrification

Gentrification occurs when several higher income households move into a relatively low-income area; higher cost amenities and stores typically follow, and property values throughout the neighbourhood increase. As a result, the very people who called the neighbourhood home for years – decades in many cases – suddenly find themselves forced to move away, as they can no longer afford the cost of living in the area. The issue has only grown as the cost of buildings has increased; raising rent amounts or selling the building for commercial projects can often make more fiscal sense for landlords and building owners, rather than supporting affordable and subsidized rent programs.

With good reason, gentrification has been decried as a classist process that disproportionately affects low-income households and people of colour. It can also foster a discriminatory environment if not handled correctly, as the new higher income residents can hold much more decision-making power in the community as the updated amenities and community development caters more to them.

And as rent prices and cost of living has increased over time, gentrification has become a concern not only for low-income households, but also for middle income households, especially in particularly high cost of living areas, such as Toronto. This is clearly evident when reviewing the current social housing waitlists in municipalities across Ontario. It is not uncommon for households to remain on the waitlist for a family-sized unit for several years. In Toronto, where the waitlist is among the longest in the country, there is currently a 10 year wait for 2+ bedroom units. Notably, gentrification tends to occur at significantly higher rates in urban areas with higher, more diverse, populations.

Mixed Income Communities

To ensure current residents are not displaced during community redevelopment efforts, mixed income communities are a viable option to guarantee residents can stay in their homes. Mixed income communities typically require a specified number of units be held as subsidized units for low-income households. Additional units are held for market rate tenants, and in some cases a number of units are sold to prospective homeowners as well. The revenue generated from market rent tenants and selling units to homeowners offsets the cost of the subsidized units, and supports the community programming and economic development work in the area. Because the subsidized units are guaranteed, residents cannot be forced out of their homes due to being priced out of the neighbourhood.

Research has shown very beneficial outcomes for lower income households in mixed income communities, while the higher income households tend to have lower, but still positive, impacts. As higher income households tend to have negligible differences when living in more affluent communities as compared to mixed income communities, and low income households have strong positive improvements living in mixed income communities, the highest net positive impact on all residents is to develop mixed income communities, rather than fostering neighbourhood consolidation based on socioeconomic status.

Difficulties in Developing Mixed Income Communities

Having varying income level households living in the same community does not in itself transcend the stigma of subsidized housing or low-income renters. There have been cases where the market rent tenants dictate changes to the community to limit what they perceive to be unwelcome activities by low-income renters (noise limits, restricting social gatherings, etc.). There is a careful balance to be struck to maintain an equitable power dynamic between the needs of the different socioeconomic groups in the community.

And while residents of virtually all economic backgrounds desire high-quality amenities and services in their neighbourhoods, they don’t always agree on what high-quality means. For instance, while some residents may want the local community center to be renovated, a more high quality grocery store, and transit access, others may desire high-end dining, shopping, and entertainment options.

Gentrification can also lead to ghettoization, as households forced out of their communities and into an even less affluent area. As the lower-income community expands, typically it comes with less amenities, less accessibility to transportation and jobs, and lower rates of safety.

Resources:

• Statistics Canada: Gentrification, Urban Interventions and Equity (GENUINE): A map-based gentrification tool for Canadian metropolitan areas
• Government of Ontario: Housing Needs in Ontario