American Institute of Certified Planners (AICP) Practice Exam

In the context of urban development, what does "gentrification" imply?

1. Population decline in urban areas

2. Improvement of property values and living conditions

3. Increased tax rates and reduced services

4. Expansion of affordable housing

The correct answer is: Improvement of property values and living conditions

Gentrification refers to the process where urban neighborhoods undergo significant transformation, often characterized by the influx of more affluent residents. This process typically leads to improvements in property values and living conditions as investments are made in infrastructure, businesses, and housing. These improvements can enhance the overall attractiveness and safety of the area, subsequently benefiting local amenities. The phenomenon of gentrification is often accompanied by rising rents and property prices, which can displace long-standing, often lower-income residents, as newer, more affluent residents move in. This duality makes the effects of gentrification complex; while it brings about positive developments in terms of upgrades to the neighborhood, it can also lead to socio-economic tensions as the original community may struggle to remain in the area. In terms of the other options, population decline in urban areas describes a different scenario often linked to economic downturns or urban decay, whereas gentrification implies population growth due to the appeal of the area. Increased tax rates and reduced services may occur in some gentrifying neighborhoods, but they are not inherent features of the gentrification process itself. Lastly, the expansion of affordable housing typically contradicts the trends seen in gentrifying neighborhoods, where affordable housing often diminishes due to rising property values and