How Gentrification is Affecting Housing Prices in Milwaukee
The word gentrification stairs up variety responses in all groups of people. This is especially the case in the main cities with neighborhoods that have had dramatic rehabilitation. Renewal is certainly always a positive thing, and yet it can have its consequences. So what exactly is gentrification and in Milwaukee, should we be concerned or heartened by restoration levels that are taking place. What impact does gentrification have on our housing markets?
In 2015, Governing magazine took on the subject of the impact of gentrification on America’s 50 largest cities, Milwaukee included. In their analysis, they define the issue and examine places where it’s most evident, particularly in the Census level. They also consider the impact gentrification has on specific neighborhoods and residents.
From what the researchers at Governing found, Gentrification is defined as a lower-income area where home values and incomes are increasing an extremely fast rate. In particular, they refer to a census tract as being gentrified if the median household income, as well as the median home value, is in the bottom 40th percentile of all the tracks that are in the same metro area. This is for the time since 2000. The area is also considered gentrified if, since the year 2000 it has been in the top third percentile in terms of growth of both home value and the percentage of adults who hold bachelor’s degrees period
According to their analysis, of 132 Low-income census tracts in Milwaukee, 16 have been gentrified since 2000. This includes seven tracks that are located in the adjacent neighborhoods of Riverwest and Harambee as well as three Bayview tracks. The other six tracks are scattered throughout various city neighborhoods.
Their data shows that gentrification is on the rise in a smaller percentage of lower-income neighborhoods in Milwaukee then what is the average throughout the largest 50 US cities. In Milwaukee, since 2000, 12.1% of lower-income census tracts have gentrified, compared to almost 20% of lower-income tracts in the 50 largest US cities during the same period.
Perhaps the area most affected by gentrification in Milwaukee is the Riverwest Neighborhood. Currently, there is a median listing for homes in this area of $166,000, with a square foot price of $120. There are some new construction buildings where condos are going for upwards of $240,000. For all estimations, this area is virtually entirely gentrified. In 2003, for example, rents were around $300 for a one-bedroom apartment.
If you’re looking to move into one of these areas, and get in on a nascent market opportunity, but you can’t afford the high prices, contact the real estate experts at We Buy Ugly Houses. With our vast experience in up and coming markets, we’ll help you to purchase a property for far less than the going rate. And, you’ll be able to do so with no commission or fees. Contact We Buy Ugly Houses today to learn how you can get in on the ground floor of some of Milwaukee’s most up-and-coming neighborhoods.