The Development of Gentrification Indicators and Ways to Utilize Them

Senior Researcher Lee Jin-hee, Senior Researcher Lim Sang-yeon,

Senior Researcher Park Jong-soon, Head of Urban Research Division Lee Wang-geon

Summary

1> Gentrification has a positive effect on the improvement of urban environment thanks to the inflow of the middle class and capital input but at the same time it causes the side effects such as removal of low-income residents and tenants as well as increase of vacancy rate as a result of excessive rent rise.

2> It is necessary to develop indicators to diagnose whether problems exist and progress through various and objective data that explain the gentrification phenomenon.

3> The gentrification index should be calculated as a composite score that integrates various subvariables that explain the phenomenon but weight for each subvariable should be applied to improve the explanatory power.

4> The stage of gentrification based on gentrification indicators should be classified into four stages: the period before the occurrence of gentrification problem, regional vitalization with implementation of policies, rise in real estate price, and aggravation of side effects and actions should be taken differentiately for each stage.

5> If gentrification is expected due to public investment such as urban regeneration project, it is possible to identify the problem and progress stage using gentrification indicator and appropriate policy measures can be applied considering regional characteristics.

Policy proposals

① Secure professionals to collect data for the purpose of developing indicator led by local governments and compile and manage the collected data by the central government to respond to gentrification continuously. 

② Implement proactive responses such as the establishment of relevant ordinances, designation of zones and establishment of district-level plan if risks are detected by applying gentrification indicator.

③ Share the visualized gentrification indicator with relevant government officials and local residents and utilize the indicator as the basis for understanding gentrification phenomenon, raising issues publicly and policy responses.

④ Lay the foundation for responding immediately to changes in the region by applying gentrification indicator in the policy implementation processes such as selection and assessment of urban regeneration project, public land banking and operation of public rental stores.