There is so much more to relocation and the purchase of "Real Estate" than interest rates, rate locks, investment capital, brokerage fees, home-inspections and appraisals.  The last week I spent some time with Dave Smith conversing with neighbors in the N Portland area and it really opened our eyes to a very significant neighborhood transformation that has really picked up in the last 5 to 7 years.  Gentrification is a phenomenon that is changing the face of Old Portland Homes and like all changes; it brings the good and the bad.

The effect of this dramatic transformation is what is known as gentrification.  According to Wikipedia, "gentrification is a number of processes of change in demographics, land uses and building conditions in an area accompanied by rapid increase in a neighborhoods property prices and influx of investment and physical remodeling and renovation."

At a glance, areas such as Piedmont, Irvington, Alberta, Sellwood and some other surrounding communities are radically changing shape. Take a stroll down any of these characteristic neighborhoods and you will immediately notice many home renovations, in fill developments and many projects aimed at improving "curb appeal".  Beyond the colonial columns, white picket fences and arborvitaes, there is a great deal of history and those homes can still remember the sounds of families playing and living together. On the breeze of the old maples and dogwoods, one can hear the whispers of life long since past. Gentrification changes this and builds new memories for the world of tomorrow.

 One of the primary results of gentrification is a shift in the demographics of a neighborhood. As properties are improved and prices increase, lower-income residents can no longer afford to buy in these areas. Another consequence is that an increase in property values results in an increase in property taxes. Residents, who find themselves unwilling or unable to pay the difference, typically sell or even transfer the difference to their tenants by increasing rents.  So, gentrification usually moves lower-income residents out of a neighborhood. For better or for worse, this is a natural result of the general improvement of the neighborhood.                                                                             

There are many people who are very un-happy about gentrification. We spoke with one member of the community who felt guilty for contributing to the renovation of her community.  She said, "I have seen good and bad come of this.  It is just shocking for me to see a house that 10 years ago sold for $100,000.00 and recently within the last month I watched it go for over $600,000.00." Yes, it is true that if you build up the value of the community, prices will increase as a result. It's also true that the increased prices will shut out certain demographic groups. These are tough issues and there isn't an easy answer.

On the other hand, there are also many wonderful results that naturally come from gentrification.  As a native Oregonian, I have many memories of the NE and N Portland areas and I remember numerous homes that were poorly maintained and in terrible shape.  Many of the homes in the N and NE Portland neighborhoods were run-down, neglected and abused.  My family and I always admired the 3 story, 5000 square feet historic Craftsman style homes (circa 1900) and the grandeur of historic colonials with their enormous columns boasting incredibly ornate detail.  At the same time, we were usually admiring these gems for their potential, because so many of them had fallen to the wayside.  To have such a unique piece of history slide into disrepair is such a shame.  Although gentrification alters the face of history, neglect can have a worse impact on both the value and the history of those old neighborhoods.

A great aspect of gentrification is that old, run down neighborhoods are making a huge comeback. Remodelers and renovators are buying some of these homes and they are bringing them up to modern standards while maintaining their original charm and character. Sometimes this doesn't happen and a total demolition occurs. But on the whole, these neighborhoods are now becoming very desirable places to live and this is resulting in the revitalization and renewed vigor of these communities.

What is attracting so many renovators and remodelers to these areas? Most of them are admired for character, developed neighborhoods, mature growth, history and charm.   Take Piedmont for example, which is located on the East side of the Willamette River in the N and NE of Portland.     The boundaries for Piedmont include Interstate 5, Northeast Columbia Boulevard, Northeast Martin Luther King Jr. Boulevard and North Ainsworth Street.  Within Piedmont's general boundaries contain approximately 616 acres, 2,518 residences and 6,427 residents.  Piedmont is known to be considered as an "Ideal Urban Village" and is widely praised for its easy access to popular neighborhoods like Kenton, Boise, Alberta, Irvington, Mississippi and Humboldt.

Furthermore, Piedmont, which literally means "foot of the mountain", was established in 1895 as an upper middle-class suburb (it's not a suburb anymore) and it was previously known as "The Emerald and Portland's Evergreen Suburb." Gentrification is renewing and reenergizing "Historic Piedmont" and this is a substantial improvement to the devolution that occurred there over the past 30 to 50 years.  Just as Dave spoke about waves in real estate pricing; Piedmont is experiencing a tremendous increase in both status and popularity.  Within the last 5-7 years, Piedmont has become one of the highest appreciating cities of all surrounding Portland neighborhoods.  Advancing from "starter home" to "fixer-upper" and now to "established"; the neighborhood has made a major transformation.  Some properties in the Piedmont area have appreciated by an astonishing rate of 80% or greater in the past 5 years.   This is one of the reasons that I write these articles. I want my clients to be highly informed about the pockets of real estate that show the most promise.

Personally, and I believe Dave would agree, I am delighted with the renovation of these Portland neighborhoods.  There is quite a lot of controversy surrounding the topic of neighborhood gentrification.

Allow me to make a case for gentrification because there are so many positive outcomes.  I concede that this process is changing the nature of the neighborhoods that are found in N and NE Portland. However, these changes have revitalized the community atmosphere.  This renovation is a testimony to property rights and freedom of land ownership.  This progression has taken place freely and gradually as more and more purchasers began to take an interest in the abundance and diversity that these neighborhoods boast.  There is also a profound sense of community that seems to be lacking in the more suburban neighborhoods.  We were talking with local residents in the Alameda and Piedmont areas and they were happy to tell us about their block parties, community barbeques, neighborhood awareness and the like.

It will be interesting to learn more about the neighborhood and to further investigate the development and effects of gentrification.  I highly recommend these communities to my clients because there is still a tremendous amount of untapped potential. I will continue to work in this area and I look forward to speaking with more community members who are usually kind enough to share their intriguing stories with me. This is perhaps the greatest thing about these neighborhoods; you are not only living in history but you become part of it.

Seraina Aguayo, Broker/Realtor, GRI

971-322-9878

www.search-portland-area-homes.com

www.serainaaguayo.com