The Hyper-Gentrification Threat to the Black Community

slondon The biggest threat risks we identified towards the black community is something happening worldwide and it is hyper-gentrification thanks to short-term rental apps such as AirBnb and HomeAway. In this article, we are going to brief brothas and sistas on hyper-gentrification and how to address it. Many of you cats up in Brooklyn and Lower Manhattan experienced a quick gentrification in just a few years converting apartments to boutique hotels after Bloomberg passed those rental laws but hyper-gentrification can manifest itself in 90-120 days and we are going to talk about this. What is Hyper-Gentrification? roomo Hyper-gentrification is the process of converting apartments into short-term rentals that are listed on home-sharing applications such as AirBnB. This is the new global hustle that is more lucrative than “flipping homes” in some places around the world. There are cats who will buy a nice modest home in Puerto Viejo, Costa Rica or Kuala Lumpur for cheap and then rent it out on as a short-term rental or vacation rental and countries like this, you can have 365 day/year guests from all over the world from Spain to China to Americans and cats make more money than the house is worth in a few years. This has been a hustle for many smart brothas and sistas for a few years and their global hustle as well as a paid-off vacation/retirement home in Latin America in a few years. However, that modest home now being rented out exists in an already established community and that local community see nothing but strangers walking around now instead of their neighbors. So now you got cats in America looking for a side hustle buying these homes in places like Dominican Republic, Columbia, Nicaragua and so on and post them up on these international-based room sharing apps and making money year round. So while someone in America think this is a great idea, a local village in a third world country with beautiful mountain/ocean views are being quickly converted to short-term rentals displacing both the locals and the culture and full of passing by travelers instead. The Global Urban Problem paris Now, some people realize that they can actually expand this business model not in exotic places but in urban places around the world like the hoods in London and Paris for example. Or near the subway line in Tokyo and Hong Kong or Brooklyn New York and offer rates cheaper than a hotel. This is not regular home-sharing where you leave and let someone rent your home. In this hustle, someone rents an apartment for $1200/month but making $3600/month renting out for $144/night for 25 days out of that month. And as a result, many of these places around the world with areas like South London are at risk of hyper-gentrification reducing the available homes for immigrants while spaces are rented out by investors who offer them for short-term rentals for global tourists to London. The Threat Against The Hood hood Now, most urban black communities are very well situated near mass transportation near downtown and have good auto traffic to and from the city hub. And you have apartment complexes that may be for example a 12-unit Section 8 spot where the rent is $800/month that pays out $9,600/month in revenue. But what if someone decides they want to do some math and convert it to a short-term rental of $89/night for AirBnB and HomeAway and such? They are looking at $30,000/month in revenue versus the $9,600/month Section 8 and you know what happens next? Those Section 8 families are given eviction notices and they convert that whole building for AirBnb to make profit. And let’s go a step further – the USA has an EB-5 Visa program that gives cats overseas a visa if they invest in commercial ventures in poor communities. They don’t need to open a hair supply shop in your hood anymore because they can invest in a 12-unit flat and AirBnB it out to get their visas. And they can do this with an American who will sponsor them like an African-American brotha who decided to stop dating sistas and date Chinese chicks and bring a Chinese chick with money over from China to help him evict out the Section 8 sistas who didn’t give him the time of day back in grammar school and he shows those Section 8 sistas his new Chinese chick as his bae to them. And cats in China are buying up real-estate throughout America but there are other groups including rich Africans who will buy out hood spots and AirBnB them out and if this is executed, we can see scenarios where a black community can displace renting black families in a matter of months, not years but months! That is the hyper-gentrification threat to the black community we are going to have to address right now and find a solution. Big Risk Is There May Be No Legal Recourse For Quite Some Time! nstadium Affordable housing activists in San Francisco attempted to push Proposition F as a law to curb the rampant short-term rental operations throughout the city that caused a massive shortage in available housing. However Proposition F was defeated and now everything is back to square one. Now everybody is seeing this as a second-investment opportunity like flipping homes and will be looking directly at converting black hoods situated near downtowns into short-term rental units. The gates of hyper-gentrification against our black communities are now open. Even if local government pass laws, the courts may not find them legal as people have a right to rent their own property and do as they wish with their property. And as the court challenges take years, the hyper-gentrification will already have moved most black families out of that former black community and that community is now filled with hipsters traveling from all over the world going to the local subway to take a ride downtown. The economic fallout is going to be devastating to poor black families who are going to have to move somewhere far out and we are talking not one or two families but a whole housing unit have to go. What Can We Do? Expressive African American businessman looking puzzled and surprised. There is a lot of problems here. The first problem is most brothas and sistas going to say they don’t want those Section 8 housing cats around them because they attract nothing but trouble and hipsters doing short-term rental pay more money and don’t cause problem, promoting black-on-black hyper-gentrification. The second problem is do we have local councilman or alderman that will care more about the community or care about the short-term rental lobby paying them off to not fight the industry and let hyper-gentrification take its course against the black community? Another problem is once the hipsters come in paying money, hipster businesses start showing up to cater to those hipsters on short-term rental and that black community will be hyper-gentrified and will never come back either. We are seeing this done in parts of Atlanta as we speak, including near the new Atlanta Falcons stadium around Morehouse, Clark-Atlanta and Spellman where they can rent out those places for school events and those visiting to stay near the stadiums and arena for their favorite NFL/NBA teams. I personally don’t know what can be done and personally, I don’t trust any of you cats reading this article either. Are you going to turn down $30,000/month opportunity for short-term rentals or accommodate Section 8 single mother families for $9,600/month just to keep a poor black neighborhood intact? Yeah, thought so. This is going to be a battle that poor black people are going to need a strategy and fight but poor black people on Section 8 don't get involved in anything and that's why this whole situation is scary. We are predicting hyper-gentrification will devastate certain black communities around the USA from Houston to Chicago to Richmond to Atlanta and we are currently scrambling right now to find a way to drag in real cats to get involved and do something. Because when they take those units, they taking those commercial zones in that black community and it is game over after that.

8 thoughts on “The Hyper-Gentrification Threat to the Black Community

  1. Its really a double edged sword on this one. You have absentee owners that could be earning revenue on vacant apartments. This is an under-served market. This could add more diversity to an urban location and more spending if there is a big buzz around about that area. On the other hand when its done to the extent on which its being explained on this article there is the problem. You have the prices being fluctuated in the market. On the other hand this can be done with already vacant buildings in a community. To me this will be hard its going to be a time where the market will be so saturated and profits will become diluted and eventually property owners will end up complaining sort of what is going on now with Uber.

    1. Actually what will happen is they will do what is being done in Latin America and Southeast Asia – rent them out or sell the property for a profit (it is making money) or make it a retirement home or convert into condos after the neighborhood is built up – which is the end goal of urban gentrification.

  2. “Live With 18 Roommates For $1,800 a Month at Brooklyn ‘Co-Living’ Space”

    “If you want a room on Pacific Street, act fast; Common said it’s already received 300 applications for its 19 bedrooms.”

    This is in my hood, right around the corner from a men’s shelter (Your Brooklyn readers will probably be familiar).
    This will be the future, and because most of us don’t own our homes or are active in local politics our days will be numbered in the area.

  3. This is precisely why it is important to buy instead of rent. If you wait it will become impossible to buy later, barring an amazing windfall of some sort.

    1. Wow Ed this is a deep post. It’s weird because I kinda like the idea of it but I hate what it does to struggling fellow Israelites (“black folks”). Again I do know that on certain areas on the south side of Chicago this would rid the violence in a neighborhood, but then again Israel will move somewhere else and continue to kill each other. Business can be harsh depending what side you’re on. “Blacks” need to stop screwin’ around and stop partaking in wickedness, this is the ONLY WAY. Other than that you have to roll with the punches. In Chicago people were talking about the yuppies taking over, coffee shop here, a boutique there, a pizza spot, some condo apts and BAM, but were living in the time of the Gentiles (whites and a others), but our people don’t want to hear that so let me say it in the way Israel understands….. Business is in the business of things that are about business, and business is about making money, not someone who got knocked up and is now struggling because most of them are a problem anyway. They move in kids, family and visitors mess up the apts or/ and hallways. Drama,drama,drama, and for what? To keep a “community” of of people who don’t care?

  4. It’s all about owning and controlling. The advantage is to those that own those apartments and leverage airbnb. You can’t protect a community if you don’t own it. ..

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