As part of the CBP seminar series, Dr Tasos Kitsos (Lecturer, Aston University) will provide a presentation on ‘The Creative Industries, Housing Markets and Residential Gentrification’.

Abstract

An established theoretical and case study literature discusses how the creative industries, and Creative City policies, may drive neighbourhood gentrification. However, this literature is inconclusive on the size of these links; whether or not creative activity drives neighbourhood change or follows it; the mechanisms in play; and differences across creative activities, notably the role of artists and ‘the arts’ versus other creative sectors. This paper seeks to clarify these questions by testing links between creative industries presence, changes in housing costs and residential gentrification. We look at a range of spatial scales, using rich UK microdata on house prices, rents and creative firms for the 2000s and 2010s. We also test differences across neighbourhood types, subsets of the creative industries, and combined housing market and socio-economic change. We find robust positive links between the presence of creative industries and subsequent change in time-consistent house prices at a range of spatial scales. Much of this is explained by change in historically cheaper areas across the UK and also the presence of creative producers rather than the arts. We find suggestive evidence that rent shifts follow different patterns, linked to richer areas and creative amenities. In London and Birmingham, we find that creative industries are also linked to processes of gentrification but have no link to rental market changes. Policymakers need to be aware of these nuances, in order both to design more targeted mitigation and to better convey potential impacts to local communities.

Details on Dr Tasos Kitsos research, can be found here.

CLICK HERE to join the seminar via Teams.