Measuring Economic Benefits from Gentrification

Gentrification of our older cities results in a stream of costs and benefits for these cities and their residents. One of the major assumptions by city officials is that genlrification can help lead their cities back to fiscal health by directly and indirectly increasing the tax base as affluent newcomers enter urban markets. Whether new tax flows resulting from gentrification are sufficient to offset any increased demand for city expenditures by the newcomers is the central research question in this paper. The utilization of such revenue flows is also examined.