Gentrifying as fast as we can

So I had never heard of the Thomas B. Fordham Institute until the Oregonian published an article using their statistics regarding rapidly changing neighborhoods.  While we may often think of gentrification as the growth of middle class, or even wealthier, into previously distressed neighborhoods, Michael Pertilli's June 11, 2012 article for the Fordham Institute's Flypaper, looks at increases in the white population as a sign of gentrification.  That assumption could certainly be debated, but not here.

Petrilli looked at zip codes; while gentrifictaion doesn't go by zip code, census data does.  Portland had two zip codes in the top fifty rapidly "gentrifying" zip codes in the country; 97227 at # 20 and 97211 at # 35. You'll notice, little 97227 is barely visible above the I-405 sign.   

Think of 97227 as the neighborhood of N. Mississippi and that secret residential neighborhood jewel, Overlook.  The Regional Multiple Listing Service reports 10 sales in this zip code so far in 2012, with a median sales price  of $384,950.  That certainly is "gentrification" compared to the city wide year to date median sales price of $220,000.


Think of 97211 as the neighborhood of N.E. Alberta. The Regional Multiple Listing Service reports 212 sales in this zip code so far this year, with a median sales price of $288,700; almost $100,00 lower than 97227, and still well above the citywide year to date median price.  A note, 97227 is a tiny area, so the low # of sales is not surprising.


Interestingly, 92113 in San Diego, is the only other west coast city in the top twenty-five, with three other California cities in the top fifty.  Our neighbor to the north, Seattle is a no show in the top fifty.  

As a real estate broker, and one who sells in Portland's urban core, I don't always love gentrifictaion.  On the face of it, I suppose one might think of gentrifcation as improvement, and an increase in prices.  But I don't always love that either.  What has been great about Portland, but for the crazy mid-2000's, is that normal people, with normal jobs could afford to live in a variety of neighborhoods.   Stable neighborhoods are in my opinion healthy for a community.  Stable doesn't mean rapidly gentrifying, stable doesn't mean a Starbuck's on every corner, and stable doesn't mean outpricing and displacing long time residents.  Pride of ownership is stable, taking care of property is stable. Knowing your neighbors and connecting with them is stable.

Curious what is going on in your zip code?  Give me a call!  503-312-8038.