Impacts Of State Led Gentrification

State-led gentrification refers to the process where policies and initiatives driven by the government facilitate gentrification, which is seen as a widely controversial topic within modern society. This generates the process of urban development, where lower-income neighborhoods undergo considerable change to create more of an appeal towards those of a middle and high-income society. This process is implemented by the government, as urban ‘renewal’ transformation causes an inflow of wealthier new residents to move in at the cost of negative consequences to current residents in the area demonstrating the impacts surrounding the use of state-led gentrification. This essay will critically assess and evaluate the impacts that state-led gentrification

These impacts caused by direct state-led gentrification can lead to negative effects on the locals and the relationships between each other. Due to the rise in expenses of living in neighborhoods experiencing gentrification, residents may find it demanding to pay for their basic needs such as housing which can ultimately lead to displacement from their property. Residents often find that the more affordable housing for them in the neighborhood becomes inadequate or overcrowded causing them to move to areas that have not been affected by state-led gentrification, therefore cheaper but further away from their original home. In an area undergoing gentrification, private renters especially, have a lack of control over the untenable level increase of rent causing the eviction of current residents to be able to renovate properties that will attract high-income residents who are in a position to pay the increased prices. This process of gentrification is labeled as second-wave gentrification which is developed by the state government's decisions, involves the construction of new houses on redeveloped sites, and creates a demographic mix of the upper and lower class (Bounds & Morris, 2006). State-led gentrification has been seen as early as the 1980s locally with the government taking on the redevelopment of Pyrmont, Sydney. With the population growing at a rapid pace and Sydney becoming a tourist setting, the economic base and class structure were significantly altered with the traditional blue-collar working class becoming a small proportion of the workforce resulting in about 178,000 manufacturing jobs being lost (Bounds & Morris, 2006) due to the manufacturing sector to be taken over by jobs within the retail, service, recreation,