Editing Gentrification (section)

===Economic shifts===
[[File:Arany János Street 19 - Október 6 Street 19, Gentrification in Budapest.jpg|thumb|Gentrification taking place in a [[Budapest]] apartment building]]
The economic changes that occur as a community goes through gentrification are often favorable for local governments. Affluent gentrifiers expand the local tax base as well as support local shops and businesses, a large part of why the process is frequently alluded to in urban policies. The decrease in vacancy rates and increase in property value that accompany the process can work to stabilize a previously struggling community, restoring interest in inner-city life as a residential option alongside the suburbs.<ref name="Lees page needed"/> These changes can create positive feedback as well, encouraging other forms of development of the area that promote general economic growth.

Home ownership is a significant variable when it comes to economic impacts of gentrification. People who own their homes are much more able to gain financial benefits of gentrification than those who rent their houses and can be displaced without much compensation.{{sfn|Freeman|2006|p=93–94}}

Economic pressure and market price changes relate to the speed of gentrification. English-speaking countries have a higher number of property owners and a higher mobility. German speaking countries provide a higher share of rented property and have a much stronger role of municipalities, cooperatives, guilds and unions offering low-price-housing. The effect is a lower speed of gentrification and a broader social mix. Gerhard Hard sees gentrification as a typical 1970s term with more visibility in public discourse than actual migration.<ref name="GH">{{cite book |first=Gerhard |last=Hard |chapter=Dimensionen geographischen Denkens |title=Osnabrücker Studien zur Geographie |publisher=V&R unipress |year=2003 |isbn=978-3-89971-105-9 |series=Aufsätze zur Theorie der Geographie |language=de}}</ref>

A 2017 study found that gentrification leads to job gains overall, with job losses in proximate locations but job gains further away.<ref name="auto">{{cite journal |last1=Meltzer |first1=Rachel |last2=Ghorbani |first2=Pooya |title=Does gentrification increase employment opportunities in low-income neighborhoods? |journal=Regional Science and Urban Economics |date=September 2017 |volume=66 |pages=52–73 |doi=10.1016/j.regsciurbeco.2017.06.002 }}</ref> A 2014 study found that gentrification led to job gains in the gentrifying neighborhood.<ref>{{cite journal |last1=Lester |first1=T. William |last2=Hartley |first2=Daniel A. |title=The long term employment impacts of gentrification in the 1990s |journal=Regional Science and Urban Economics |date=March 2014 |volume=45 |pages=80–89 |doi=10.1016/j.regsciurbeco.2014.01.003 |s2cid=153744304 |url=https://www.clevelandfed.org/newsroom-and-events/publications/working-papers/2013-working-papers/wp-1307-the-long-term-employment-impacts-of-gentrification-in-the-1990s.aspx }}</ref>

A 2016 study found that residents who stay in gentrifying neighborhoods go on to obtain higher credit scores whereas residents who leave gentrifying neighborhoods obtain lower credit scores.<ref>{{cite journal |last1=Ding |first1=Lei |last2=Hwang |first2=Jackelyn |title=The Consequences of Gentrification: A Focus on Residents' Financial Health in Philadelphia |journal=Cityscape |date=2016 |volume=18 |issue=3 |pages=27–56 |jstor=26328272 }}</ref>