Rentrification

A made up word (neologism) to define when landlord raise rents for temporary workers and higher rents displace local residents from their communities.

Rentrification can happen when drillers bring in temporary employees to work on local projects. Property owners respond to the influx of new people with good paying jobs by raising rents and displacing local people.

Here's the problem.
1. The boom has come so fast that good statistics are not available.
2. Local communities may be so glad to have the increased spending in the community that they will overlook the needs of the current residents.

One study looked at the impact of gas drilling on housing prices in Pennsylvania (where the gas boom has been going on longer). Bad news for low income residents:
NEED THE MONEY QUOTE

What can low income households do?
Right now, not much! There's no 'rent control' in Ohio and landlords are free to charge whatever they can get.

Is the situation hopeless?
Maybe not. By using government to protect at risk tenants, communities can stabilize their housing stock to prevent displacement and homelessness. But attitudes about taxing and 'big gubment' have to change if local residents can be protected.

Your stories
Tenant in New Philly: First, I’m not sure if I am contacting the right person, if not I am sorry, but I have a question on renting apartments, townhomes, etc. We currently rent what we would probably call a townhouse in New Philadelphia, Ohio. We have been paying $550 a month for almost 5 years.
In November, our previous landlord sold and we acquired a new landlord. Up until this point he has made minimal contact with us, no new lease or anything. Monday of this week, he had an assistant call and leave a message on our answering machine stating our rent was going from $550 to
$1000 and that someone would be around the beginning of March to sign a new lease. We realize he has given us 30 days and all, but it feels as though he is increasing our rent to get us out. He currently has 5 open that he has listed on Craig’s List for $1500, he is advertising them as Condos. We also were outside one afternoon and he was there talking with his brother, and he told him that he was going to get $1500 out of the oil workers. (Chesapeake) The increase seems very unreasonable and unfair. Maybe there is nothing to be done, but something needs done soon or those of us who live here will be homeless because someone wants to drill here.

Social service provider in Columbiana County: I heard about this situation on talk radio yesterday morning on the way to work....our area has seen the arrival of some of these companies...rumor has it one bought the Days Inn located just outside of Lisbon, for their workers. I've not heard of the rates being charged them...also there's a restaurant out by the hotel which they too have "taken over"....for the workers they brought to complete the ground work of accessing the paperwork for mineral rights.

Advocate in NE Ohio: The story below seems to affirm the new demand for rental housing in that area.
http://www.wksu.org/news/story/30551

Notes & Links

Media links to stories of rentrification

PSU - Marcellus Shale & Local Collection of State Taxes (PA).pdf

(520k)

Spencer Wells,

Apr 18, 2012, 1:30 PM

v.2

Real Property Tax Base, Market Values & Marcellus Shale.pdf

(469k)

Spencer Wells,

Apr 18, 2012, 1:30 PM

v.2

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