Historically, the East Village has been known for its diverse population, lively atmosphere, and inexpensive rent prices. If you walk down the streets of the East Village today, you will still see remnants of the East Village’s artistic culture: kooky characters still roam the streets and beautiful graffiti still covers some buildings.

However, behind the scenes, the East Village is slowly losing its counterculture roots and exchanging them for a more commercially mainstream image. The neighborhood that once housed several ethnic enclaves for a low price is now opening its doors to various popular fast-food chains, big-name retail stores, and expensive service shops and, as a result, kicking out many of its loyal residents.

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Several factors have led to the gentrification of the East Village. Research using Social Explorer and Census Data has revealed that rent prices have soared since the 1990s. The images to the left shows the Average Gross Rent for renter-occupied housing units in 1990, 2000, and 2014.

The most left image shows the average gross rent for 1990, which ranged between $300 and $600 in the Avenue B area. The more right image shows the Average Gross Rent for renter-occupied housing units in 2000. Rent increased to between $600 and $1000. This is denoted by the map’s more darkly shaded areas. Fast forward to 2014, (the bottom image) the Average Gross Rent for most housing units on Avenue B was greater than $1000, with many costing $1700 on average. Between 1990 and 2014, landlords in the East Village hiked up their rent by up to $1500.

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Between 1990 and 2014, the income of many of the residents living the East Village also increased. These statistics are shown in the images to the right.

Back in 1990, the average household income was between $20,000 and $40,000 (shown by the lighter colored areas in the most left image).

In 2000, as seen by the darker areas in the more right image, the average household income rose to between $50,000 and $70,000.

In 2014, (the bottom image) the average household income for some areas of Avenue B reached $100,000. This suggests that wealthier residents have been moving into the East Village and displacing lower-income residents.

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It’s hard to pinpoint which factor was the true catalyst of gentrification. It’s almost a “the chicken or the egg” dilemma: was it the higher rent prices that invited more affluent residents into the neighborhood and then the big-brand chains followed suit? Or maybe wealthier city dwellers became interested in the neighborhood and the rent changed according to the neighborhood’s new inhabitants. Whatever the cause was, there’s no doubt that the neighborhood’s demographics have changed. I got an insight into the specific types of changes that the East Village and Avenue B have experienced over the years when I interviewed the owner of Paws & Relax.

Paws & Relax is a local doggie daycare located on Avenue B between East 13^th and East 14^th street. It has been servicing Manhattan since 2009. The shop sits right on the border between the East Village and Stuyvesant Town and is only a few blocks from the L train. While the shop is wedged between two other storefronts, which is iconic for the East Village, it’s only a short walk away from the spacious parks and tall apartment complexes that define Stuyvesant Town. As a result, Paws & Relax services residents from both neighborhoods.

Paws & Relax’s long, bright blue storefront header was definitely an eye-catcher and a refreshing image after the slew of apartment buildings and brown storefronts that lined 14^th street. I have to admit, though, that I was disappointed when I opened the glass front door and, instead of being greeted by dogs, I stood in a small office space with a computer desk and shelves holding doggie biscuits and chew toys. The dogs happened to be behind another glass door inside of the building, and it sounded as though they were in the middle of training. Once I heard the aggressive barking and loud jumping, I was actually grateful that I was not surrounded by the dogs. It was in this office space that I met John, the owner of Paws & Relax.

What I discovered during my interview with John was that Paws & Relax has had a unique experience dealing with the consequences of gentrification that is different from the experiences of many businesses in the East Village. Unlike most shops that suffer, lose customers, and even have to close due to the effects of gentrification, Paws & Relax has not been just a storefront survivor, but a storefront success over the past 7 years because of gentrification.

The biggest question in my mind was: how does someone wake up one day and decide to run a Doggie Day Care? Well, John answered that question better than I ever could have. Both John and his partner grew up with dogs. Not only are they both knowledgeable about pet care, but they understand the emotional tie that owners have to their dogs. Currently having two dogs themselves, Ceasar and Harvey, John and his partner understand that owners need services that can walk and look after their dogs while the owners are at work or on vacation. Back when John and his partner lived in Brooklyn, there was a doggie day care in the neighborhood that serviced John’s dogs as well as the other owners in the area. When John and his partner moved into the largest apartment complex in Stuyvesant Town (it has 11,000 apartments!) that had only recently started allowing pets, they quickly realized that the area was severely lacking pet service businesses. There were some chain stores in the neighborhood that offered doggie daycare services, but John believed that his shop could offer a better quality service in a more convenient location.

In 2009, John opened up Paws & Relax and the daycare was a huge hit. “Now that the 11,000 apartments were allowing dogs, there was a need,” John said. John said that he credits part of the success of his company to the changing of the building’s pet policy. “It’s hard to say if it’s something that we’re doing or something that they’re doing,” John said in relation to whether it’s the company’s high standards or the sheer demand in the neighborhood that has kept the place open and running.

Taking into consideration the statistics in rent prices and incomes over the last few decades, the most likely explanation for the increase in demand is that people, like John, who owned dogs were now moving into the area because the largest apartment complex was permitting pets. John confirmed the change in demographics amongst the population as well as how unusual the New York demographic seemed to him. Most of Paws & Relax’s clientele are between the ages of 20 and 50 and are “on the wealthier side.” These customers are swamped with busy work schedules and require pet services.

“We have one client that goes to work at 6:00 AM. We service their dog at 10:00AM, and they don’t even come home until seven or eight o’clock at night. They don’t even use the day care; they use our walking services twice a day. It’s just different from the 9 to 5 population.”

Meanwhile, John grew up in Illinois. “I’m originally from a town of 4,000 people. The people there are all of the same demographic, they all have the same work schedule.” He explained that it doesn’t come close to matching the craziness that defines New York City.

The combination of the work schedules, the fact that the customers are dog-owners, and the fact that Paws & Relax’s services are on the expensive side due to the quality of their services all point to the assumption that the company’s customers are financially well-off. Historically, this is uncommon for the East Village and further supports the idea that gentrification is behind Paws & Relax’s success.

John also revealed one specific change in the neighborhood when he explained his experience with competition to me. Paws & Relax actually beat out the local competition in the neighborhood: “technically, there was [a doggie daycare] across the street, but she closed within a few months of us being open. She was just a small, tiny little grooming shop that also did some daycare in the front.” What John said next truly outlined how gentrified Avenue B was becoming. John pointed out the window and said that the grooming shop was “where Subway is right now.” Sure enough, just outside of John’s window stood the sandwich chain’s yellow sign, radiating through Avenue B. A fast food chain had moved into Avenue B just a little after Paws & Relax’s grand opening. This moment really opened my eyes to how quickly the East Village was changing and how endangered local businesses are.

Luckily, John’s involvement in the pet industry has saved him from experiencing the negative effects of the economic busts. John explained that, no matter what happens, “people are still going to take care of their pets.” Even during the summer months when the business usually loses some customers, those customers are replaced by new dog owners who are moving into the area.

John made it a point to mention that, despite the business’s success, he still values the importance of customer relations. That’s why he makes sure that his employees are on good terms with each other and with their clients. “When you have a small company, it becomes a family. You don’t want the vibe to feel like, you know, when parents that are getting divorced put their kids in the middle.” John has made sure that his employees are friendly and work well with each other so that the dogs can spend time in a healthy environment.

John doesn’t have big plans for expansion. His biggest worry is stretching himself too thin. John understands that customers enjoy being able to come into the store and see him working and overseeing operations. “Our clients come in and they know me. I’m here five days a week because I want to know my clients. They vent to me, they see pictures of my son, it’s like a small family.” John knows that a second location in the East Village would be just as financially successful, but his focus is on maintaining the close relationships that he has with his customers.

Although the East Village is losing some of its defining characteristics, its still a unique neighborhood. Before we started the interview, John and I heard a man singing outside. When we looked out the window, we saw that that man was wearing six different neon colors, a fedora, and combat boots, and he was singing along to a boom box as he walked along Avenue B. John confirmed that he never misses a chance to see an interesting character on the streets of the East Village.

The gentrification of the East Village has expanded Paws & Relax’s clientele and has allowed it to thrive even during economic slowdowns. However, not all businesses have been as lucky as Paws & Relax. Gentrification continues to change and affect the social and economic dynamics in Avenue B and the East Village, and it’s a problem that needs to be addressed in order to keep the identity of the East Village alive.