American Institute of Certified Planners (AICP) Practice Exam

Gentrification is primarily characterized by what phenomenon?

1. Urban expansion into rural areas

2. Increased property values and displacement of original residents

3. Decline in urban property values

4. Suburbanization of metropolitan areas

The correct answer is: Increased property values and displacement of original residents

Gentrification is primarily characterized by the increase in property values and the subsequent displacement of original residents. This process often occurs in urban neighborhoods that have experienced neglect or decline, where investment flows in, leading to renovations and rising costs. As new, often wealthier residents move in, the demand for housing increases, causing property values and rents to surge. Consequently, long-time residents, who may not be able to keep up with the rising costs, can find themselves forced to relocate, resulting in a significant demographic shift in the neighborhood. The other aspects mentioned—urban expansion into rural areas, decline in urban property values, and suburbanization of metropolitan areas—refer to distinct urban and suburban development patterns, but they do not capture the essence of gentrification, which is uniquely tied to the interplay of investment, rising property values, and the social impacts those changes have on existing communities.