Gentrification, by any other name:
Kielhurn says these stories of dilapidated, unsafe, unsanitary rentals are fairly common. And the poor condition of some of the housing stock in poorer neighborhoods is what allows her, and other buyers, to grab up properties for such low prices. She’s bought many of her properties for under $50,000 and spends the bulk of her funds on renovations. When she rents them out again, she charges what she feels is a fair price for all the work she’s put in, and for the fact that she’ll be more attentive than previous landlords. So prices escalate to $800, $900, or $1,200 a month.
For muni and metro governments, who are already struggling with budget concerns, the idea of allowing the private sector a free hand in revitalization is an alluring one. Costs to the taxpayers are minimized, and the increase in property values ensures a nice tax bonus a few years down the road. But it's also irresponsible, because it exposes a portion of the citizenry to economic hardship that can (and does) result in homelessness and despair. Creating an affordable housing program (that works) is a complicated and costly venture, but it is a critical responsibility that must be pursued: