City Subsidizes Gentrification In Black Neighborhoods

With tax abatement for 5 to 15 years for renovated properties, the City of Richmond, Virginia, loses $14.6 million each year in real estate taxes. Meanwhile, long-time residents are pushed out by high taxes for unrenovated houses they own or rent.

2 minute read

April 12, 2007, 8:00 AM PDT

By maryereynolds


"Although gentrification is nothing new, and is often driven by unstoppable market forces, there's no denying that Richmond's generous tax-abatement program has also served as something of a gentrification subsidy. While affluent Richmonders get a reprieve on taxes, the poorer neighbors are stuck paying higher taxes as a result of the improvements." Richmond offers the most generous tax abatement program in Virginia, but it costs the City millions of dollars in taxes that owners of renovated houses do not have to pay.

University of Richmond professor of urban studies John Moeser believes that the City's tax abatement program focused on luring a residential tax base lost to the suburbs. But it comes with a price. "The city would be heartless if it's just concerned with luring wealth into the city," Moeser says, adding that the surrounding counties' refusal to help develop low-income housing is fueling the fire. "Ultimately, this is a moral issue."

As poor families move out of neighborhoods, they also lose their social support networks. "In their little social microcosm, it's devastating," says Michaela Zonta, professor of urban planning at Virginia Commonwealth University. "They don't have child-care facilities. They don't have transportation. They rely on a very limited social network. I don't think it's just to simply forget about them." She points out that when low-income public housing projects are demolished, the adjacent properties are more attractive for investment. However, poorer neighborhood residents are forced out. She asks: "Are we playing chess with these people? What's going to happen to them?"

Wednesday, April 11, 2007 in Style Weekly

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 2, 2025 - Diana Ionescu

White and purple sign for Slow Street in San Francisco, California with people crossing crosswalk.

San Francisco Suspends Traffic Calming Amidst Record Deaths

Citing “a challenging fiscal landscape,” the city will cease the program on the heels of 42 traffic deaths, including 24 pedestrians.

July 1, 2025 - KQED

Google street view of red brick multi-story power plant building in Pittsburgh, PA.

Defunct Pittsburgh Power Plant to Become Residential Tower

A decommissioned steam heat plant will be redeveloped into almost 100 affordable housing units.

July 4 - Pittsburgh Post-Gazette

Cyclist on protected bike lane in middle of street in Washington D.C. with Washington Monument obelisk visible in background.

Trump Prompts Restructuring of Transportation Research Board in “Unprecedented Overreach”

The TRB has eliminated more than half of its committees including those focused on climate, equity, and cities.

July 4 - Streetsblog USA

Blue and silver Amtrak train at small station.

Amtrak Rolls Out New Orleans to Alabama “Mardi Gras” Train

The new service will operate morning and evening departures between Mobile and New Orleans.

July 3 - New Orleans City Business