Islands of decay in seas of renewal: Housing policy and the resurgence of gentrification

For many observers, the recession of the early 1990s signaled the end of wh at Berry called islands of renewal in seas of decay. In the past decade, ho wever, shifts in mortgage finance have intersected with developments in ass isted housing to alter the links between gentrification and housing policy. In this article, we use field observation, Home Mortgage Disclosure Act da ta, and HOPE VI plans to analyze the resurgence of gentrification in eight U.S. cities. Between 1992 and 1997, gentrified neighborhoods attracted conventional home -purchase mortgage capital at a rate that grew at more than 2.3 times the s uburban rate. Legit models confirm that mortgage capital favors gentrified neighborhoods even after controlling for applicant and loan characteristics , suggesting a new relationship between mortgage lending and neighborhood c hange. In some cities, gentrification has surrounded islands of decay and p overty with landscapes of renewal and wealth.