The Psychological Impact Of Gentrification: Community Identity, Culture, & Change

Medically reviewed by Julie Dodson, MA, LCSW
Updated January 21st, 2025 by BetterHelp Editorial Team

Gentrification refers to how outside businesses and more expensive housing moving to low-income and/or traditional cultural areas can push people out of their homes and communities. Gentrification has more than economic impacts; these changes can completely alter a community’s identity and negatively impact the mental health of residents—especially families who have lived in the area for generations. Below, explore how gentrification can be psychologically harmful and learn ways to challenge these changes so the integrity of culture and community can be upheld.  

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Getty/Colin Hawkins
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What is gentrification? 

National Geographic defines gentrification as “a clash between the power of non-public capital and government policy and the power of people in targeted communities to preserve their homes and heritage.” Historically, corporations, investors, and the government have used gentrification to make more money, as building new homes and businesses in lower-income areas often brings in new clientele, and prices can rise over time. 

Which communities are most commonly impacted by gentrification?

Gentrification often causes new demographics to enter communities, replace local businesses, and displace people from their original homes. It often affects Indigenous communities, communities of Black individuals and other people of color, and other areas where culture is rich and essential to community identity. In many cases, these changes can be devastating. Gentrification can happen in relatively small neighborhoods, like the Black community in East Austin, Texas in the early 2000s, or on a large scale in developing countries, such as in certain cities in Mexico in the present day.  

The impacts of gentrifying neighborhoods on community identity and culture

Culture and community identity are often a big part of mental wellness and personal identity, especially in communities with rich cultures. Without a connection to them, people may experience serious psychological distress and other mental health impacts. Many groups also face physical and mental health care inequities that make seeking support difficult or impossible, which can significantly impact health outcomes according to research based on the California Health Interview Survey. Below are some of the changes gentrification brings that may harm mental health. 

Loss of community due to gentrifying neighborhoods 

When new businesses, homes, and attractions are built in areas that are being gentrified, people can lose their community and population health. New people come in, taking up more space in traffic and local businesses. Often, people who move into gentrified communities are those of a different identity or social class. For example, in many historically Black cities or neighborhoods that have been gentrified, large numbers of Black families have had to move out due to rising costs, leaving a predominantly white population where Black culture was historically lived and preserved. 

New York City neighborhoods are an often-cited example of how gentrification can cause community loss and exacerbate mental health inequities. The Hampton publication reports this exact challenge in Brooklyn, New York, especially from 2010 to 2020. The Black population in this borough has decreased by 22,000 people in this time, caused by financial capital, which lead more white people to start to rent cheaper properties in historically Black communities. 

Since the beginning of this change, homes in Brooklyn have increased in cost by over 117%, which has become out of reach for most people—especially those of marginalized and original communities. As a result, specific neighborhoods have changed in class and identity completely. When people lose their community in this way, they also often lose their cultural ties, family homes, and businesses. 

Disconnect from culture causing psychological distress  

In addition, gentrification influences mental health because, as research suggests, culture can be important to mental wellness. A disconnect from culture can occur when one loses one’s physical community. 

Close-knit residents based in the same area often have the ability to frequently spend time together, host events, involve themselves in community fundraising, and practice cultural traditions. When people lose the physical space, neighbors, and funds to practice these critical events and traditions, their mental health may be impacted and the traditions could be at greater risk of being lost to time.

Financial challenges and displacement 

With inflation caused by gentrification, many community members can no longer afford to live where they’ve been all their lives. They may lose their homes or businesses, which are often purchased by companies or individuals and turned into “cookie-cutter” homes, apartment complexes, and buildings with no spirit or culture in them—made primarily to gain as much money as possible. Original inhabitants must then move to cheaper areas, where they may not know their neighbors or communities and are often more isolated. More affordable areas may also be unsafe for these families, putting them into difficult situations. 

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Getty/Moore Media

The psychological impact of gentrification on original communities in gentrified neighborhoods

Gentrification can impact communities in many ways. The following are some of the most common psychological impacts on original members of these communities. 

Displacement anxiety and mental health conditions in those in gentrified neighborhoods

When families or individuals in gentrified neighborhoods get displaced because of rising housing costs, a loss of community, or development projects, displacement anxiety is a risk. Individuals may worry about financial matters, family, or where to go. Some may face the risk of homelessness, whereas others may have to relocate to unfamiliar or even unsafe areas. They may also worry about others in their community facing similar challenges. Anxiety can lead to impacts like persistent stress, trouble sleeping, pain, depression, and other physical and mental health challenges. 

Trauma and poverty as part of the psychological impact of gentrification

Researchers classify gentrification as causing a chain of “community and individual traumas.” Losing one’s home, community, and culture can cause individual distress and may be classified as traumatizing, especially when the loss leads to displacement, homelessness, poverty, or similar life-altering situations. In addition, witnessing other people you know and love in your community losing everything can be painful and traumatic. Some people develop post-traumatic stress disorder (PTSD) due to these experiences. 

Loss of power, leading to changes that harm original community members

Often, when entire areas are gentrified, new government officials are voted in as the original community loses voting power and majority vote when people are displaced. Any new laws that are passed which directly harm original community members and displaced residents—such as new zoning laws, economic changes, or laws that discriminate against certain identity groups—may result in further trauma for these individuals. Trauma can put someone at a higher risk of psychological distress, depression, anxiety, stress, and PTSD, among other challenges. 

Fighting gentrification by supporting local cultural activities, businesses, and communities

There are many ways to push back against gentrification in your community or in neighboring communities. For example, if you live in a big city where specific neighborhoods are being gentrified, you might travel to those neighborhoods to support local businesses. Eat at restaurants owned by long-time locals, buy art from local artists, and share information about local events for people to attend. Spread the word about these businesses by giving them positive reviews online. 

Talk to community members and ask them how you can best help. You can also support funding for public health, mental health cost factors, and urban health support organizations to improve adult mental health outcomes in the area. 

By putting your money and time into supporting these community resources and businesses, you may be able to help them stay alive and fight against competition in the area. Try not to eat at chain restaurants owned by corporations in these areas if they were recently built, and avoid renting apartments in new buildings in traditionally cultural neighborhoods that are being developed by projects that erase history and significance.  

Activism as a strategy against gentrification and psychological distress in your neighborhood 

Because gentrification is inherently linked to laws and the economy, local political activism can be an effective strategy for promoting positive change. By fighting against gentrification, communities may be able to save important landmarks, buildings, and historical businesses. 

Many nonprofits are working across the US to end gentrification in communities. For example, in Atlanta, Community Movement Builders is an organization working to reduce housing costs, save local businesses, and hold up community identity. You might look for or organize a group like this in your community.

Affordable housing and rental cap limits for neighborhood members 

Housing prices are an important part of keeping a community alive despite the threat of gentrification. When housing prices increase, people lose their homes because of new residents' high median household income. That’s why some community organizations are working to get rental cap legislation passed so landlords are legally not allowed to increase rent past a certain point. In addition, joining activist efforts for housing affordability can help put projects into place that build or establish affordable housing in these areas, especially for those displaced due to gentrification and rising costs. 

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Mental health support options 

If you or someone you love has been impacted by gentrification and are experiencing mental health distress, you’re not alone. Therapy can be a helpful option for coping with mental health challenges, trauma, and stress. If you do not have the resources to attend in-person therapy, which is often more expensive, online counseling through a platform like BetterHelp may be a more affordable option. 

Through an online platform, you can specify if you want to meet with a therapist of a particular identity, such as an LGBTQ+ counselor, a Black, Indigenous, or Person of Color (BIPOC) provider, or a therapist of a certain faith tradition. You can also mark a preference for your therapist’s gender and specify the unique challenges you’re looking for help with to increase your chances of getting matched with someone with experience in that area. Studies suggest that 71% of people who use online therapy find this option more effective than face-to-face sessions. 

Takeaway 

Gentrification changes the economic, cultural, and social structure of communities—usually those made up of people from marginalized identity groups. These changes often result in significant psychological challenges for community members. Standing up against the harmful erasure of cultural history is one way to make a change. If you’re experiencing mental health challenges, consider reaching out to a therapist.

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