Sunset Park, Brooklyn is one of the rapidly expanding Asiatowns within New York City. The influx of immigrants and the growth of the Chinese population within the area has been significant. The borders of the Asiatown have been continuously expanding and today, the heart of Asiatown ranges from 45th Street to 62nd. The community is mostly built around small businesses that attempt to cater to necessary goods rather than luxurious ones. Therefore, the area has many grocery stores, bakeries, restaurants, and pharmacies. However, it also has some upscale and less necessary businesses such as designer eye ware and optical shops and many spas and skin care stores. Furthermore, the area contains a lot of banks and insurance companies. In order to do research for our project, we visited Sunset Park multiple times, spoke to an employee at First Chinese International Bank, a realtor at LCCW Realty, a pharmacist, store employees and took pictures of our observations to obtain a better understanding of the Sunset Park area.
==Types of People Residing in the Area==
The Asiatown in Sunset Park is mostly made up of individuals from mainland China. Whereas other Asiatowns have mixes of Chinese, Taiwanese, Koreans and others, Additionally, when we attempted to conduct interviews, many of the employees were unable to speak English and said they were new. This indicates a movement of immigrants into the area. The surrounding area has a strong population of Hispanics but they are visibly absent along 8th avenue.
This chart indicates that every race has moved out over the last 10 years from the immediate area around 8th avenue except the Asians. The Asians have increased in the Sunset Park area by 30.6%, indicating that this area is quickly becoming dominated by the Asians.
| Statistics | TOTAL (All Selected Block Groups) | |||||||
| PL94:T5. Race | ||||||||
| 2000 | 2010 | Change | % Change | Change % Points | ||||
|
Total Population:
|
5,460 | 5,851 | 391 | 7.16% | ||||
|
White
|
1,120 | 20.5% | 573 | 9.8% | -547 | -48.84% | ||
|
Black
|
112 | 2.1% | 64 | 1.1% | -48 | -42.86% | ||
|
American Indian
|
14 | 0.3% | 24 | 0.4% | 10 | 71.43% | ||
|
Asian
|
3,648 | 66.8% | 4,763 | 81.4% | 1,115 | 30.56% | ||
|
Native Pacific Islander
|
5 | 0.1% | 1 | 0% | -4 | -80.00% | ||
|
Other
|
390 | 7.1% | 346 | 5.9% | -44 | -11.28% | ||
|
Multiracial
|
171 | 3.1% | 80 | 1.4% | -91 | -53.22% | ||
| PL94:T6. Hispanic Status | ||||||||
| 2000 | 2010 | Change | % Change | Change % Points | ||||
|
Total Population:
|
5,460 | 5,851 | 391 | 7.16% | ||||
|
Non-Hispanic
|
4,483 | 82.1% | 5,152 | 88.1% | 669 | 14.92% | ||
|
Hispanic
|
977 | 17.9% | 699 | 12.0% | -278 | -28.45% | ||
| ((http://www.socialexplorer.com/pub/reportdata/htmlresults.aspx?ReportId=R10063843&Page=4)) | ||||||||
==Observations==
Hong Kong Supermarket is one of the many grocery stores in the Sunset Park Area. The Asiatown within Sunset Park is populated by endless small businesses, many of which are grocery stores.
The grocery stores cater to the needs of the Chinese population and have many products which are imported directly from China. The supermarket had many customers and the prices for products were very cheap. In addition, it was one of the few stores with a parking lot. Although it was not the cleanest or most expensive store in the Sunset Park area, it was a strong embodiment of the Asiatown in Sunset Park. Sunset Park is an area that is still rapidly expanding and growing. It is not the most luxurious area, which indicates that it is not completely gentrified, but the development that has occurred over the last few years shows that gentrification is underway. From shops such as this to a demand for low income housing, the area is not trying to bring in higher income individuals, but rather, develop itself through small business ownership and by appealing to the Chinese population.
Many stores that we visited were relatively new, having only been in business for a few months. A pharmacy we visited had only been around for approximately 2 months and a home goods and toy store had been around for only 4 months. This indicates that new businesses are opening in the Sunset Park area and that rent is increasing, in some cases forcing unprofitable businesses to fold. 
This is a sign of gentrification taking place. Another strategy that has been employed by shops in Sunset Park, as seen in the picture, is dividing one big store and allocating space to other shops. Many stores we saw had multiple counters all devoted to a different thing. Some of the stores positioned in this way had counters selling cell phones and phone cards but more importantly, some were selling jewelry. The movement of jewelry stores into Sunset Park is another sign of gentrification. Although they have not dominated the neighborhood, the appearance of jewelry stores means that wealthier individuals are moving in. Only people with high incomes can afford this luxury good.
Other stores that signal gentrification are appearing as well. Stores such as high-end optical boutiques, banks and insurance companies are also present in Sunset Park. 
This shows that there is a movement of money into the area and people are looking for places to invest their money. The high-end optical stores are scattered throughout Sunset Park and speaking to an employee, they have a mix of both Asians and native Whites coming into their store. The optical stores are a sign of gentrification because they sell top-end glasses, such as Prada and Dolce & Gabbana, which can only be afforded by wealthier individuals.
==Real Estate and Opportunities==
===Jobs===
The large line of Asians looking at jobs and housing in the Sunset Park area indicates the heavy influx of Asians into the area. Whereas the immediate area around the Asiatown in Sunset Park has housing in the excess of $600,000, the Asian population usually does not reside in these houses. The Chinese immigrants look for apartments to share or other types of cheap housing so that they can support their families and use their minimum wage efficiently.
===Housing===
This is an image of the typical houses in the Sunset Park area. As the charts below indicate, housing prices in Sunset Park have been relatively steady. However they have risen a small amount, from $667,500 five years ago to $751,000 this year. But even this small increase is important and is an indicator of gentrification. As wealthier people have been moving into the community in the past few years, the housing prices have gone up. This has had an important effect on Sunset Park’s Chinatown because it has resulted in the increase in the prices of rent as well. Because of this, many residents are no longer able to afford their apartments and small store owners find it difficult to run their business and some of them must close their stores. We were able to speak to Ms. Maggie Lin, an employee at First Chinese International Bank. They specialize in home loans and having worked there for the last 6 years, she said that she’s seen the area expand over the last few years. Additionally, most of the customers are Chinese and the bank is able to help provide them loans in order to finance their new homes and move into Sunset Park.
((Lin, Maggie. Personal Interview. 9 May 2011.))
12 Month Rolling Median Sales Prices: Houses, CO-OPs, Condos, Combined
History of Rolling Median Sales Prices for the Last Year
| Month | Houses | CO-OPs | Condos | Combined |
|---|---|---|---|---|
| December 2010 | $690,000 | $265,000 | $334,620 | $466,440 |
| November 2010 | — § | — § | — § | — § |
| October 2010 | $685,000 | $260,000 § | $329,550 | $464,412 |
| September 2010 | $685,000 | $264,000 § | $321,945 | $445,000 |
| August 2010 | $700,000 | $264,000 § | $324,480 | $448,486 |
| July 2010 | $700,000 | $260,000 § | $329,550 | $464,919 |
| June 2010 | $700,000 | $252,500 § | $331,071 | $466,440 |
| May 2010 | $690,000 | $240,000 § | $329,550 | $480,000 |
| April 2010 | $690,000 | $240,000 § | $334,620 | $473,750 |
| March 2010 | $690,000 | $240,000 § | $334,620 | $466,970 |
| February 2010 | $690,000 | $231,750 § | $334,620 | $480,000 |
| January 2010 | $700,000 | $225,500 § | $334,620 | $480,000 |
| December 2009 | $700,000 | $230,250 § | $333,522 | $480,000 |
((http://www.deptofnumbers.com/nyc/home-sales/brooklyn/sunset-park/))
| Neighborhood | Feb – Apr ’11 | y-o-y | 3 months prior | 1 year prior | 5 years prior |
|---|---|---|---|---|---|
| Sunset Park | $742,500 | +18.0% | $680,000 | $629,000 | $667,500 |
| Brooklyn | $519,850 | 0.0% | $500,000 | $520,000 | $550,000 |
((http://www.trulia.com/real_estate/Sunset_Park-Brooklyn/5246/market-trends/))
===Realty===
We were able to speak to Mr. Vincent Lau at LCCW Realty. He was extremely helpful and gave us very good insight into the area. Mr. Lau told us that prices had been increasing up to about 2007 and despite the housing bubble bursting around the nation, prices in Sunset Park were able to stay stable ever since. The heart of the Asiatown in Sunset Park is expensive but around the outer edges, rent and property values are cheaper. A 2-family house, according to Mr. Lau, is about $1 million, more or less; with parking, the price of the house rises even more. To rent a 1 bedroom apartment, prices range from $900 to $1200 depending on where you reside.
Additionally, Mr. Lau told us that businessmen are changing the outlook of Sunset Park. Many Chinese have businesses in other states such as New Jersey, Pennsylvania and Maryland. After acquiring sufficient funds, they buy property in Sunset Park. Some people may convert the house to a mansion or expand its size legally, which shows a greater investment of funds in the area. If they convert the houses, they also need capital which is typically acquired from banks in the Sunset Park area. The input of capital from businessmen working in outside areas is important to the development and gentrification of the Sunset Park economy. Another way that Chinese businessmen convert the houses is to either divide the house up with walls and rent out individual rooms or change the layout of the house by converting it into an apartment building; this ensures a steady flow of rent for the owners and provides immigrants with low income housing. Typically, they would not have been able to afford the $1 million homes but due to the apportionment of homes, they are able to form the ethnic enclave.
((Lau, Vincent. Personal Interview. 9 May 2011.))
===Business===
Business in Sunset Park has been booming. In addition to new stores opening and unprofitable stores moving out, stores in the Asiatown of Sunset Park are mostly necessity based. Instead of luxury goods, there are grocery stores, restaurants, bakeries, pharmacies, and small businesses. Mr. Lau estimated the rent of a typical business in Sunset Park at about $50,000 to $60,000 per month. This is relatively high for rent, especially for stores not located in Manhattan, but this shows the upscaling that is occurring in Sunset Park. Although the market is currently catered towards inferior goods, luxury goods are slowly seeping in and will only increase in Sunset Park. As rents continue to increase, more expensive stores will come in, leading to gentrification. Gentrification remains in its early stages in Sunset Park.
==Types of Stores and Establishments==
===Banks===
Chase Bank in Sunset Park is one of the many branches throughout the neighborhood. In addition to Chase, there are branches for HSBC, CitiBank, Chinatrust Bank, First American International Bank and others.
The large presence of banks indicates that many residents need a place to store their income and that there is a large population in need of loans to invest in mortgages for property and businesses. In addition, the banks cater to a largely Chinese and Asian population. The competition amongst the banks for the savings and loans of Sunset Park residents shows that businesses are thriving in the area and that it will only continue to expand. This is an indicator that gentrification is taking place and that further investment is occurring in Sunset Park.
===Insurance Companies===
We observed a lot of insurance companies along 8th avenue. Insurance companies are a sign of gentrification because they are, in a way, a luxury good. Although insurance is not something that is tangible, it is a luxury good because it is not a necessity. For example, a person does not need life insurance or auto insurance to survive. As a result, people that do not have a lot of money are less likely to buy the services of insurance companies. However, the more money people have the more likely they are to buy insurance. The fact that there are many insurance companies in the area shows that there is a demand for insurance and that people do have the money to buy this good. It also shows that people are willing to invest in the future by making sure that all of their valuable belongings and life are protected.
===Low-Scale Stores===
This 99 cent store is one of many in the Sunset Park area. The fact that there are discount stores, such as this one, among the many other low-cost stores in the area, shows that Sunset Park is not completely gentrified. In addition, the fact that discount stores are able to survive shows that there is a great demand for these stores among the people residing in Sunset Park. In addition to 99 cents stores, there are very cheap grocery stores, eateries, supermarkets and other need based stores. All these stores indicate that gentrification has not yet taken place as there is no demand for luxurious goods.
===Restaurants and Bakeries===
There are many bakeries along 8th avenue. Most of these bakeries charge inexpensive prices. For example, one bakery sold bubble tea for $2.50 and chocolate cake for $.80. These kinds or prices would be hard to find anywhere else. Bubble tea outside of Asiatowns or Chinatowns often costs $4 or more. The low prices in these bakeries shows that most people in the area still demand lower priced goods. They prefer these lower prices of local businesses to the high prices of chain stores such as Starbucks.
===Future Stores===
As the gentrification of Sunset Park progresses and if 8th avenue is rezoned, there will be many new stores coming in to the area. Since there are increasing numbers of wealthier Chinese moving into Sunset Park, these new stores will probably sell higher end goods. Already, over the last few years, Sunset Park has seen a drastic increase in businesses moving in. These businesses have mostly been low-end shops but there have also been high-end shops as well. As more money is invested in the area and wealthier individuals move in, there should be a movement towards more expensive businesses and stores.
There are already signs of new stores moving in to Sunset Park. For example we stopped by a pharmacy, which had only been in the area for two months. Also, there was a store that sold high priced goods for the home, which had moved into the area four months ago. This indicates that rents are becoming too high for certain stores to remain and new stores are moving in. As rents increase, unprofitable stores will close and new stores will move in; many will be low-end but an increasing number should cater to luxury and high-end needs.
==The Surrounding Area==
Conversations with individuals working and residing in the area confirmed that about half of the population that visit the stores reside in the Sunset Park area. The surrounding area is home to the Chinese and many are buying and renting houses and/or apartments. It is cheaper for those with businesses to buy houses and then either extend them legally or rent out individual rooms to immigrants in order to offset costs. This not only allows the investment of money into the area, but also, allows low-cost housing to emerge for immigrants who cannot afford these 7-figure homes. Therefore, money is being invested while immigrants are moving in. The investment of money indicates a slow progression towards gentrification.
==Change Over Time==
The Sunset Park area has grown significantly over the last few years. The Asiatown is continuously growing and taking over the other stores along 8th avenue. Outside of the heart of Sunset Park Asiatown, there are smaller Chinese stores which will eventually be swallowed by an expanding Asiatown. Maggie Lin, a employee at First International American Bank, said that in her 6 years working in Sunset Park, she’s seen more businesses come in and Asiatown engulf more blocks and the area grow as a whole. Small businesses are thriving in Asiatown and those that fail are forced to sell their property and new businesses arrive. Furthermore, more jewelry and high end eyeglasses stores are moving in but they are relatively small. These jewelry stores are parts of stores that are divided to incorporate other stores as well. Therefore, we can say that gentrification is still in its early stages and although luxury stores are moving in, they remain outnumbered by small, necessity based businesses. Ambitious immigrants who call Sunset Park home are setting up new shops in the Asiatown and using it as the stepping stone to achieve the American Dream.
==Movements Against Gentrification==
The Chinese Staff and Worker Association, Chinese New Promise Baptist Church, and the Asian American Legal Defense Fund have formed the Coalition to Protect Sunset Park. The Coalition’s goal is to protect Sunset Park against gentrification and its harmful effects on the people who live in the area. The coalition argues that the appearance of luxury condos has raised the rent prices so much that many people are forced to crowed into one apartment because they cannot afford to live in their own apartments. In addition, the coalition is working to protect the rezoning of 8th avenue, which they say will bring in more upscale businesses and luxury condos.
Here are some of the demands made by the coalition:
1. No up-zoning on the avenues, especially 4th and 8th Ave. Stop the gentrification seeping down from Park Slope.
2. End the gentrification of our community by designating Sunset Park as a Special District with anti-displacement and anti-harassment provisions.
3. Work with NY State’s Housing Trust Fund to build low-income and affordable housing.
4. Conduct an Environmental Impact Study, accounting for the people as part of the environment.
5. Protect current manufacturers providing jobs in Sunset Park.
6. Conduct a study on housing conditions in Sunset Park, in addition to the land use study currently underway.
7. Work with local banks to strengthen their Community Reinvestment Act requirements.
((http://prattcenter.net/sites/default/files/users/pdf/PrattCenter-Coalition_to_Protect_Sunset_Park.pdf))
==The Future of Sunset Park’s Gentrification==
The foundation has been laid for gentrification in Sunset Park to occur in the future. The Asia town in Sunset Park could move away from 99 cents Discount Stores towards more upscale and expensive amenities. This can be attributed to the commercial success due to the increase in population in the area and the amount of Chinese with substantial capital moving into the area. Already, unprofitable stores have been forced to close their doors because rents have gone too high.
The possible rezoning of 8th Avenue will allow for more businesses to open. In addition, the Asiatown in Sunset Park has been expanding for many years and it is still growing. This will also allow for new businesses. Also, groups of wealthier Chinese are moving in to the area. They have already started renovating houses and building new apartment buildings. This process is also likely to continue. Because of wealthier groups moving in to Sunset Park, the new stores on 8th Avenue will be more likely to cater to their needs. There are already signs of this occurring, as there are jewelry stores, spas, and designer eye wear stores along 8th avenue.
We were able to speak to two employees in new stores who acknowledged that their stores had only been open for 2 months and 4 months. This shows that small businesses without a sound business strategy will be forced to fold and new ones will come in. Eventually, as wealthier individuals move in, new stores that pertain to luxuries such as jewelry, expensive restaurants and Starbucks could move in and add a new aura to the area. There have already been indications of this as jewelry stores are popping up but have yet to establish their own stores. Once they are able to make enough profit, the process of gentrification will be ready to take the next step. Sunset Park remains one of the fastest expanding Asia towns in New York City and its gentrification will bring in many wealthy individuals while displacing the low-income. The stores right now are not the stores we will see in 15 years.
==Conclusion==
Sunset Park is not currently gentrified. Instead, it is in the early stages of gentrification. There are many low cost stores, such as 99-cent stores and bakeries, which shows that there is a demand for lower priced goods. Also most of the goods sold along 8th Avenue are necessities. However, there are still signs evident of limited gentrification. These include, insurance companies, jewelry stores and renovated buildings. In addition, Chinese with higher amounts of capital are buying property in the area. Furthermore, the prices of housing, although stable, are relatively high. As the Asiatown grows and attracts newer businesses and people with higher amounts of capital who can invest in the area, Sunset Park will likely become more gentrified. If you walk down 8th avenue in Sunset Park today you may be surprise by the strong smell of fish as you walk past a grocery store or by the man offering to fix your shoes. However, underneath this appearance, the process of gentrification may well be underway.
