Researchers at Harvard University found that using data from review site Yelp may help policymakers more quickly predict areas that are ripe for gentrification, and then preserve the neighborhood's affordable housing stock.
Edward Glaeser, professor of economics, with Hyunjin Kim and Michael Luca, professor of business administration focusing on online businesses, found that Yelp reviews can provide clues about a neighborhood in transition faster and sooner than other data, as they include data on local businesses' prices, hours, menus, and popularity. Too, the growth and concentration of cafés is an important marker, as it precedes an average of 0.5 percent price growth for the neighborhood overall, Realtor.com reports.
Current tools for predicting gentrification are limited and often yield insights long after the results are obvious to anyone taking a casual stroll in a neighborhood. U.S. Census data, which tracks home prices, rents, wages, numbers of businesses and demographic changes, often lag by a couple of years, aren’t always available at the ZIP Code-level, and provide limited information about the types of businesses in an area, a challenge when neighborhoods are changing rapidly.
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