ECONOMY

The process of gentrification has always created clashes between the working class and the upper class. Working class people are more vulnerable to the changes in their communities.

 

Gentrification changes the jobs that are being accessed by the community. Residents in gentrifying neighborhoods are losing their jobs despite an overall increase in job opportunities. These job opportunities tend to go to new residents as they are created to sustain the new population moving in. In a study from The New School, local jobs declined by 63%. These people are losing jobs that are often their main source of income. With this, small businesses, such as Mom and Pop shops, are forced to close down to accommodate the new residents.

 

Female-headed households are disproportionately affected by gentrification due to their higher rates of poverty. In South Africa during 2006, the HCR (Head Count Ratio) for male-headed households was 32.54% while the rate for female-headed households was 61.98%. This larger percentage of people living below the poverty threshold under female-headed households causes them to be larger victims of gentrification.