Physical displacement is the result of eviction, acquisition, rehabilitation, or demolition of property or the expiration of covenants on rent- or income-restricted housing. Economic displacement occurs when residents and businesses can no longer afford escalating rents or property taxes.
Displacement is often the result of new investments in historically underserved areas. While these investments are oftentimes desirable, they can foster displacement if existing communities do not have the opportunity to share in the potential benefits.
Some residents and businesses struggle to “stay in place” as communities change around them, and they can be left out of benefits that come from this growth. These changes can result in the displacement of residents, including low-income renters, seniors, and persons of color, and small businesses. The loss of long-time residents and local businesses weakens the social fabric of a community.
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Direct displacement occurs when residents can no longer afford to remain in their homes due to rising housing costs.
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Indirect displacement occurs when vacant units are no longer affordable for low-income residents because rents and sales prices have increased.
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Cultural displacement occurs when shops and services shift to focus on new residents, and the neighborhood character transforms. Longer-term residents may feel disconnected from their community despite still living there.
While there is no silver bullet to combat the involuntary displacement that can result from public and private investment in areas of need, there are tools that have been proven to contribute to residents and businesses staying in place, even when their neighborhoods are changing relatively quickly.