Gentrification Genesis
When we hear about gentrification, it’s often framed as “urban renewal” or “revitalization.” But let’s be clear: gentrification is not simply a tool for making cities better.
At its core, gentrification is about capital investment and the accumulation of wealth—a process that has evolved into a deliberate urban strategy.
How Did We Get Here?
Don’t just take our word for it—here’s what renowned researchers have uncovered:
Originally, gentrification referred mostly to the housing sector. But as cities shifted from Keynesian economics to neoliberal policies, gentrification spread far beyond housing—affecting every part of urban life. (Neil Smith)
With the globalization of capital, governments began prioritizing investor-friendly policies while cutting social welfare programs. You’ve probably heard the reasoning before:
“The free market will take care of it.”
This shift opened the door to massive investments in city centers from global capital.
Properties became more than just homes or buildings—they became instruments of wealth accumulation, money laundering, and speculative trading.
Urban theorist David Harvey explains this through what he calls the “second circuit of capital” in real estate:
Most profits in real estate don’t come from construction or renovation.
They come from trading and financial accumulation.
In other words: You don’t build to live—you build to finance.
The combination of internet and global investments the FIRE economy emerged as major driver.(FIRE = Finance · Insurance · Real Estate) - (Leslie Kern)
These sectors work together to circulate capital, primarily through property speculation. Homes, apartments, and commercial spaces are bundled, flipped, and traded—not as places for people to live, but as financial instruments.
The result?
Very little is left for your everyday life.
Over time, gentrification has revealed itself not as a natural byproduct of “urban progress,” but as a deliberate strategy for capturing land, wealth, and power—often at the expense of local communities.