Gentrification is a process in which an urban, dilapidated area transforms because of an influx of wealthier residents. It results in rent prices increasing significantly and might lead to the current residents being displaced (see ‘displacement’ below)

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Some signs that a neighborhood is undergoing the process of gentrification are new construction sites appearing, old buildings getting renovated, wealthier residents moving in, hipster bars, cafes, restaurants and shops opening and more tourists frequenting the neighborhood.

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Displacement can be defined as a process in which current residents are not able to afford living in their homes due to increased rent prices. This process can be very emotional, as people get attached to their living spaces, forming social networks around them, and often also working nearby. One can imagine how difficult it is to start your life over in a new neighborhood, and to leave acquaintances, neighbors, and friends behind.

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Another consequence of an influx of wealthier residents is a change in the cultural landscape of the neighborhood. The new residents typically have different (higher) budgets and cultural interests compared to the residents who have been living there for a long time. This changes the clientele of the area and might result in some shops and restaurants (which catered to the old residents) going out of business. This in turn has an effect on the current residents who did not leave the neighborhood, as they feel that their interests and tastes are represented less after the new businesses arrive (catering to the new residents) and that they no longer belong in their own neighborhood. This process relates to belonging and is also referred to as cultural displacement.

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When the term ‘gentrification’ was coined by Ruth Glass in 1964, the main factor driving the process was the movement of people, so middle-class and upper-class residents moving to a previously disadvantageous urban area. Since then, the concept has evolved and although the movement of people still plays a role in neighborhood change, private investors and the state play an increasingly larger part in the process. Developers and (foreign) investors see it as a safe investment, that is, buying up cheaper housing, renovating it and subsequently raising rent prices. The state is also engaged in this (transnational) investment, as capital flow into a neighborhood is ultimately more money for the city or state. The role of the state is a bit more complex though, as one can argue urban renewal, if done right, has some positive consequences for the current residents too.

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It is important to keep in mind that although the concept of gentrification has now been applied to neighborhoods around the world and across different contexts, it originated in London, U.K. However, a lot of materials have been since produced about gentrification, specific to these contexts, e.g., gentrification in the United States, which deals a lot more with racial injustice than gentrification in Eastern Europe, for instance. Gentrification in one place can have different factors, characteristics, and consequences than gentrification in another place, thus it is important to keep this context in mind. The following page focuses on gentrification in NDSM, a small neighborhood in Amsterdam, the Netherlands.