Gentrification and the real estate state
Gentrification caused by real estate is significantly affecting many places around the globe. This book brings into conversation the literature on gentrification and real estate and shows how both processes intersect in several ways. Samuel Stein approaches the issue of gentrification through the lens of urban planning, putting into consideration the effect of political and economic interest on real estate. Special attention is given to the extent to which real estate development can be interpreted as gentrifying process that causes various forms of displacement. In advanced capitalistic economies, gentrification and real estate tend to coexist and, moreover, feed each other.
According to Stein, the Real estate state is a comprehensive study of the urban planning context of New York City to illustrate the interconnections and paradoxes as well as gentrification in this sector of the economy. Planners use gentrification by design or by coercion for the physical environment to flourish for money. It is the mechanism by which cities seek capital and capital seeks land. The final game is a city-owned by bankers and developers and runs like a business designed for the financial sector as a luxury product. The public is private, and the ordinary is enclosed. The city becomes gentrified through the land. The city is neoliberal by gentrification.
The growth of the real estate industry is a worldwide phenomenon, and people experience gentrification in both the North and the South of America. Gentrification is typical in US politics and urban planning, and it is subject to controversy. However, how gentrification occurs in these places is different. Planners work with the state to jointly track radical politics, and prepare for the resilience of racial inequality and the real estate state. These interests of capitalistic development and neoliberal state are actualized through urban planning and urban planners themselves due to the rising political influence of real estate within the local and national governments.
Planning lies at the heart of gentrification in the city itself. Planners ensure that gentrification’s producers are lured with land use and tax incentives to retain real estate investment. In particular, public funds are used by developers to draw private investment to specific areas. Under such schemes, developers end up paying low fees to the municipality. Additionally, planners have taken steps to surrender public ownership of land and buildings. As a result, the relationship between planning and gentrification has ended up being much stronger.
As every action has got consequences, so does gentrification. The result may be a city that is entirely run like a corporation by developers and bankers where every commodity is inflated as a result of the city seeking funding. Secondly, according to Jane Jacobs, gentrification is the best tool to curb the housing crisis by making cities such as New York livable. Gentrification has also led to a debt crisis because property development is a huge capital intensive economic activity, and it requires a large amount of debt for both the planners and the buyers.
In conclusion, Samuel Stein’s approach to the issue of real estate is a great move. Its crystal clear how well and efficient the book shines a light on the underlying economic, political, and technological forces that are at the epicenter of our cities and the issue of displacement. Capital City is, therefore, a valuable and exceedingly approachable and comprehensible publication which is providing adequate information to the field of urban planning and development.