Understanding Community Change

No. 4 in The "Neighborhood Change in Urban America" Series

The nonpartisan Urban Institute publishes studies, reports, and books on timely topics worthy of public consideration. The views expressed are those of the authors and should not be attributed to the Urban Institute, its trustees, or its funders.

Note: This report is available in its entirety in the Portable Document Format (PDF).

Summary

The 1990s saw considerable improvements in many inner-city neighborhoods, with long-distressed communities experiencing renewed economic activity. Not all neighborhoods improved, though, and the extent and rate of change varied widely across communities. An analysis of change in lowincome Chicago neighborhoods illustrates some of the factors explaining the different experiences.

• Chicago's low-income neighborhoods generally experienced notable improvement. Real per capita incomes rose by 21 percent, unemployment fell by over 4 percent, and conventional mortgage lending in these areas increased by 110 percent.
• The most significant improvements took place in low-income communities closest to the downtown Loop (Chicago's central business district). Revitalization resembled a typical gentrification pattern, with an influx of young, childless, welleducated, white urban professionals.
• The city's overwhelmingly black neighborhoods improved, although they continued to lose substantial portions of their population. For the most part, those who left tended to be less economically productive.
• The neighborhoods had an older, better educated populace by the end of the decade than they had at the outset.
• Neighborhoods with high proportions of immigrants tended to decline on a number of economic measures. Many of these communities experienced population growth, but the influx of linguistically isolated, undereducated individuals, coupled with a growing number of children, contributed to lower per capita incomes, higher poverty rates, and lower levels of conventional mortgage lending.
• Although many of the economic indicators suggest that conditions in the immigrant neighborhoods have declined, the substantial population growth in these neighborhoods bodes well for their future prospects. Many of the communities are already experiencing significant economic activity, as evidenced by a growing housing market.

Note: This report is available in its entirety in the Portable Document Format (PDF).

The nonpartisan Urban Institute publishes studies, reports, and books on timely topics worthy of public consideration. The views expressed are those of the authors and should not be attributed to the Urban Institute, its trustees, or its funders.

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