Harlem is not considered as one of the safest neighborhoods in New York City. In particularly bad areas, garbage is thrown out of windows; homes are infested with rats; locks on doors no longer function; and children are kept indoors.
Many people thought that Harlem would be immune to gentrification because of the large number of public housing. Contrary to popular belief, rent began to increase because of the new developments. Today, Harlem is still in the process of being gentrified. New restaurants are opening, new condos are being built, and buildings are being renovated. Real estate prices are rising because middle and upper-middle class families of professionals and higher educated individuals have increased by 35%.
As gentrification continues in this neighborhood, Harlem is becoming less segregated. In the past century, Harlem’s population was predominantly made up of black citizens. Harlem continuously attracted younger black professionals because of its culture and the fact that their families were already living there. Now, the number of white households is accelerating because of what the neighborhood has to offer: affordability and a sense of community.
Real estate regulations have also been changing because of the new population moving in. As wealthier families move into their new homes, landlords now have an incentive that will favor the wealthy. This benefits the landlords’ own wallets. However, it is a disadvantage for lower income families who can no longer afford the living costs and are eventually pushed out of their homes.
Real estate sales in Harlem have been relatively parallel with other neighborhoods in New York City, as we can see in the first graph. As for median sales prices, those in Harlem are not too far behind others. At some points, Harlem’s median increased so much that it was higher than the New York average a short while after the recessions around 2002 and 2009.
The graph displaying the median sales price shows a dramatic drop in 2012. A possible cause of this is the large amount of homes that have eventually become rentals because of the smaller market. As the low-income families who originally lived there can no longer afford the housing, the real estate prices and interest rates drop in order to attract more families. As the market for rental homes increase, the sales would also increase especially with the assistance of lower interests. According to an article in International Business Times, “the decline was due to the rush of high-end closings … many of the luxury sales that would have happened in 2013’s first quarter closed in the fourth quarter of 2012 as sellers took advantage of lower capital gains tax rates.”
The table above and the cost of living index, which is 188 compared to New York City and New York State’s index of 224 and 125 respectively, go hand in hand to show that living in Harlem is generally less expensive altogether. As large retailers move in, the cost of living will slowly begin to increase. As the cost of living increases, families who have been there with the cheaper and smaller businesses will no longer be able to afford to maintain a comfortable lifestyle. This helps Harlem become gentrified because old families will begin to move out and new families who find the costs affordable will be moving in.
