1. Gentrification German Cities in Transition Prof. Dr. Frank Eckardt
Winter Semester 11/12

3. Definition
Economics
„New Urbanity“
Political Dimension
Process Analysis
Social Consequences
Examples from Germany

4. 1. Definitions First mention in a case study of London(Glass 1964: 18)
Highlightening:
Large housing estates in victorian style
Rotton down in earlier time and used in a different way
Gentrification once started does not stop before every working class household has left the area

5. 1. Definitions
Today, more than 1,000 studies on gentrification are counted
Mainly undertaken in geography and sociology
Increasingly transdisciplinary
Since the eigthies, there is no conceptional consens on what gentrification could be ,„chaos of gentrification“ (Beauregard)
Gentrification can only be explained in the light of more complex understandings of the city

6. 1. Definitions
„Exchange of one status lower group by one status higher in one housing area“ (Friedrichs 1996: 14).
„Because the language of gentrification tells us the truth about the class conflict implied by ‚regeneration', it has become a dirty word for developers, politicians and financial industries“ (Smith 2002: 445).

7. 1. Definitions State of the art:
„Gentrification is a process, in which households with a higher income pressure out households with a lower income and by which the principal character and the flair of this neighbourhood is changed.“ (Kennedy/Leonard 2001: 6).

8. 2. Economics Theoretical explanations:
A macro-economic theory which focusses on the cycle of attention in the property sector for attractivce areas
A micro-economic theory which points at the rationality of actors to gain profit from „rent gaps“

9. 2. Economics Macro-Economic Theory:
Real estate market is part of a cyclic process of investments which are necessary to organize the productive economy
Increasing investments into real estate and housing are the effect of a changend „accummulation regoime dominated by the financial industries“ (Chesnais 2004).
Incvreasing disparity between global value production and the symbolic valorisation at the financial markets (Klein 2008).
As a consequence of this crisis, a „second cycle“ of capital with large scale development projects, real estate and infrastructure investments grows
„place bounded fixity“ vs. „spatial mobility of capital“ wider.
Gentrification is a result of this dynamic

10. 2. Economics Micro-economic theory
A „rent gap“ between the potential price and the actual value motivates investments by individual actors (Smith 1979: 296)
Investments are only profitable if the expected re-sell-price is higher
Investments are either possible by internal or external actors
Internal investment is possible when inhabitants increase their income (students becoming lawyers) (incombent upgrading)
External investment is only possible if external actors are given space (gentrification)

11. 3. „New Urbanity“ (cp. Häußermann/Siebel 1991)

12. 3. „New Urbanity“ New Households
Since the 1980thies a growing individualisation and differentiation of housing and life styles can be observed (Hradil 2001; Geißler 2002).
New household types with an inner-city orientation are becoming stronger
Lower fertility rates, stagnating number of marriages, increasing numbers of devorce and a prolonged time of post-adolency all together increases the total number of households (Blasius/Dangschat 1990: 22).
Increase of households with an above average income, single, living unmarried toegether, small families (Friedrichs 2000: 64)

13. 3. „New Urbanity“ New work relations
The increasing service sector has more demand for the inner city.
Increasing numbers of precarious and flexible work forms require more nearness between work and living space
More flexible spaces can be realized easier in the inner city
Low skill workers are professionalised not replaced (Hamnett 2003: 2419).

14. 3. „New Urbanity“ Altered gender roles Increasing female work
Contested and partly overcome old role models
Uper income women are overrepresented as gentrifiers (Allisch 1993)
Feminisation of public space (Patch 2008)
Emergence of gay and queer spaces
Gentrified areas are more practical for small households and families (Karsten 2003)

15. 3. „New Urbanity“ New Lifestylkes
Increasing numbers of single person households, DINKS (Double Income No Kids) and single parent flats are representing the „crisis of the bourgeois life style“
New lifestyles are based on nearness to inner city infrastrucutre (cinema, gastronomy, services)
Everyday spatial behaviour of gentrifiers is motivated by the need of expression and distinction
Urban spaces are becoming a „stage“ („conspicious consumption“ (Beauregard 1986)
Authenticity is the main point of the gentrification motive (Jager 1986).

16. 4. Political Dimension

17. 4. Political Dimension
All processes of gentrification are framed politically
Poltical frameworks can either support or hinder gentrification
Anglo-saxon cases show a more laissez faire-approach than elsewhere
Planning and conservcation laws have been important support for gentrification in London and New York (Lees 1994).
Urban revitalisation programmes often have the same effects (Wyly/Hammel 1999, 2001; Hackworth/Smith 2001; Smith 2002; Lees 2003).
The same can be true for local strategies to improve the tourist appeal
In most European states, the welfare state and the renters protection laws are buffering the consequences of gentrification

18. 5. Process Analysis

19. 5. Process Analysis First Fase:
Small groups of people entering the area „willing to take a risk“
Appartments and houses were renovated with much engagement
These groups bring social and cultural capital in („Urban Pioneers“)
There is little attention and no interest by the inhabitants or the property market

20. 5. Process Analysis Second Fase: More pioneers are coming
The real estate market gets interested
Pioneers are heavily renovating
First investments of professional property market agents
Pressure of demand rises
The number of abandoned houses decreases
First process of expulsion can be observed

21. 5. Process Analysis Third Fase:
The expulsion gets media and public attention
Real estate firms discover the area as an investment area
Professional modernisation of houses starts
Land and house prices go up
Increasing number of gentrifiers with a higher inconme arrie
Processes of expulsion fasten
Pioneers from the first fase are also affected

22. 5. Process Analysis Fourth Fase:
Investments and new inhabitants are exclusively coming from upper middle class
Services in the neighbourhood are dominated by the demand of these inhabitants
Continuing expulsion of pioneers and old inhabitants
The area has become a social homogenous neighbourhood

23. 6. Social consequences

25. 7. Examples from Germany
Research on gentrification stems from the eigthies
It started with single study projects in Hamburg and Cologne and a few academic theses (cp Blasius 2008: 875 f.).
Empirical studies followed re. Hamburg (Dangschat/Friedrichs 1988; Busse 1990; Alisch/Dangschat 1992), Köln (Blasius/Rohlinger 1990; Schulz 1990; Küppers 1992) and Frankfurt am Main (Wingenfeld 1990, Freyberg 1992, Keil/Ronneberger 1995)
The discussion ended mainly with two edited volumnes (Blasius/Dangschat 1994; Friedrich/Kecskes 1996).

26. 7. Examples from Germany

27. 7. Examples from Germany
After that research focussed mainly on the East German situation
Single studies were published re. East Berlin (Holm 2006, Krajewski 2006; Marquardt 2006), Dresden (Glatter 2007), Leipzig (Wiest 1997; Wiest/Hill 2004; Zischner 2003), Erfurt (Weiske 1996), Halle (Friedrich 2000), Magdeburg (Weist 2007; Harth/Herly/Scheller 1996; Thomas/Fuhrer/Quaiser-Pohl 2008) and Frankfurt/Oder (Marschner 2000)
In total, these studies contain little information about the potential of gentrification in East German cities
It can be crititcally discussed wether „gentrification“ is the right term to analyse the situation in East German cities. They talk about „soft“ (Wiest/Hill 2004), „slowed down “ (Zischner 2003) or „sensible“ gentrification (Krajewski 2006).

28. 7. Examples from Germany
Jan Glatter and Karin Wiest (21 small scale areas in five East German cities):
Developments can not be adequatley described and analysed with the term gentrification (Glatter/Wiest 2008: 55)
The expulsion of the old inhabitants cannot be seen
Little attention for the„exclusionary displacement“.

29. 7. Examples from Germany

30. 7. Examples from Germany