Displacement of local residents happens when middle-class or affluent people reinvest in a neighborhood (restore run-down or abandoned properties, or open new businesses that cater to higher income residents) and there are inadequate government safeguards to maintain housing affordability. In such areas, property values and tax assessments increase. This process forces lower-income residents who are no longer able to afford rent or pay property taxes in their neighborhoods to move out.

The Situation in DC
The District of Columbia is feeling the effects of a booming real estate market. The boom has fueled a huge demand for new housing, and consequentially home prices are increasing at twice the regional rate. In 2002, the average home value was $265,000, which is up 10% from 2001 (1). Reinvestment in urban properties has been intensely concentrated in a few neighborhoods, such as like Logan Circle, Congress Heights, and Columbia Heights. In these areas, affordable housing policies have been inadequate and many existing residents have to move due to rent increases or rental apartments being converted to expensive condominiums.

The Brooking's Institute's report, A Region Divided, discusses some of the socioeconomic discrepancies both in DC and throughout the region.

Preventing Displacement
Officials, academics, and activists concerned by these developments are calling for measures to be taken to curb the negative effects of the real estate boom. They advocate investment in public facilities (e.g. schools, libraries, and recreation centers), the need to attract middle-income families, and the adoption of strategies to protect lower-income residents from rising property values. Among the most important steps to prevent displacement include taking measures to ensure that affordable housing options remain in neighborhoods. These measures include rent control, inclusionary zoning and other tax incentive-based legislation.

More Information:
Revitalizing Washington's Neighborhoods: A Vision Takes Shape (Brookings)
Expanding Housing Opportunity in DC: The Case for Inclusionary Zoning (Policy Link) - Oct 2003
Go to http://www.policylink.org and click on "publications"
Housing In the Nation's Capitol (Fannie Mae)
Leading Indicators of Gentrification in DC Neighborhoods (Urban Institute)

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1) Turner, Margery et. al. Housing in the Nation's Capital 2003. Report by The Urban Institute prepared for The Fannie Mae Foundation. 2003.