Gentrification in a market area typically produces:

Correct Answer

B) Rising values with displacement of existing residents

Why this is correct: Gentrification involves reinvestment and an influx of higher-income residents into a lower-income area, leading to rising property values and rents. This often results in the economic displacement of existing, lower-income residents who can no longer afford the area. Why the other choices are wrong: 'Falling values as newcomers arrive' is the opposite of gentrification. 'Stable values with no demographic change' describes stability, not gentrification. 'Uniform effects distributed across all property types' is incorrect; effects can vary greatly within a market. Exam tip: Gentrification = Rising values + Displacement. It creates rapid value changes that challenge comparable sales analysis.