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Gentrification: how urban renewal is reshaping cities and pushing residents out

Gentrification is changing the character of cities across the world, bringing investment and new businesses to once-neglected neighbourhoods while driving up housing costs and pushing long-term residents out. The process can revitalise urban areas, but it also raises questions about affordability, social inequality and the loss of local identity.

What is gentrification?

The term was coined in 1964 by British sociologist Ruth Glass, who used it to describe the transformation of working-class neighbourhoods in London as wealthier residents moved in. As property values and rents rose, many of the original inhabitants could no longer afford to remain in their homes.

Since then, gentrification has become a widespread feature of urban development. It often begins when artists, students and young professionals move into neighbourhoods where housing is relatively affordable. Their presence attracts cafés, restaurants, independent shops and cultural venues, gradually changing the area’s appeal.

As demand grows, property owners and investors begin to see new opportunities. Buildings are renovated, public spaces may improve and new businesses open. These changes can bring economic activity to neglected districts, but they can also trigger a cycle of rising rents and property prices.

The consequences are not limited to housing. Small, long-established businesses may struggle to meet higher commercial rents, while traditional shops and services are replaced by businesses catering to wealthier newcomers and visitors. Over time, neighbourhoods can lose some of the social networks and distinctive character that made them attractive in the first place.

Tourism and the expansion of short-term rentals can intensify these pressures, reducing the supply of homes available to permanent residents. In such cases, urban regeneration can become a source of displacement, particularly for lower-income households.

Gentrification therefore presents a complex challenge for city authorities. Investment can improve buildings, infrastructure and public spaces, but without measures to protect affordable housing and existing communities, the benefits of regeneration may be unevenly distributed.

Bologna: the impact of students and housing demand

In Bologna, the presence of a large student population has contributed to pressure on the housing market. Demand for accommodation can drive up rents and make it harder for local residents to find affordable homes.

Gentrification across Italy

Similar tensions can be seen in other Italian cities. In Naples, neighbourhoods such as the Spanish Quarters have attracted growing interest from visitors and investors. In Milan, areas including Isola and NoLo have undergone significant changes as new businesses and residents move in. In Rome, districts such as San Lorenzo, Pigneto and Testaccio have also experienced shifts in their social and commercial character.

These examples illustrate the broader dilemma facing historic urban centres: how to encourage investment and renewal without pricing out residents or undermining the communities that give neighbourhoods their identity.

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