How Rising Sea Levels - And Other Climate-related Occurrences - Are Driving Up Rents Through Climate Gentrification

Low-income communities and neighbourhoods are receiving the kind of attention they have once begged for. A kind of attention - investment- but in a way that forces them out of the environment they have built their whole lives in. This happens all the time but this time, it is as a result of climate change. "Climate gentrification" is a term that has emerged to describe the intersection of environmental change and socioeconomic inequality, where rising sea levels, extreme weather events, and other climate-related impacts disproportionately affect vulnerable populations. While traditionally, gentrification has been driven by economic forces and urban development, climate change is becoming a powerful catalyst for displacement, often leading to the forced relocation of low-income communities from increasingly desirable or safe areas.

The stakes are high. Recent studies predict that by 2100, up to 410 million people could be living on land less than 2 meters above sea level, making them highly vulnerable to coastal flooding as sea levels continue to rise at an average rate of 3.55mm per year. Not just that, the earth is becoming warmer and warmer by the year making hot areas like Arizona unbearable to stay in during hot weather. This looming crisis demands a critical examination of how climate change is reshaping the urban fabric, exacerbating social inequalities, and threatening the most vulnerable populations.

Climate gentrification occurs when climate impacts, such as rising sea levels, increased flooding, or extreme heat, alter the desirability of certain areas, leading to shifts in property values and demographic changes. This shift often results in increased inequality, as rising property values and rents make it difficult for long-standing, lower-income residents to remain in their communities, while wealthier individuals and newcomers are drawn to these newly attractive areas, leading to increased social and economic inequalities. This process can manifest in three primary ways:

1. Resilience Gentrification: Resilience gentrification occurs when climate-resilient areas—places with a natural infrastructure to withstand climate risks e.g. higher ground levels—become increasingly desirable, causing property values to soar. In Miami, for example, neighbourhoods like Little Haiti, which sit at higher elevations, have seen property prices rise sharply as wealthier individuals seek refuge from flood-prone coastal areas. This influx of affluent residents has led to the displacement of long-standing, lower-income communities, illustrating how climate risk mitigation can exacerbate social inequity.
2. Green Gentrification: While eco-friendly urban development is crucial for sustainability, it can lead to green gentrification, where the creation of green spaces and environmentally sustainable infrastructure drives up property values, displacing vulnerable residents. A case in point is New York City’s High Line, an elevated green park that transformed a previously industrial area into a high-end district. The area’s redevelopment attracted wealthier residents and tourists, raising the cost of living and pushing out the original working-class communities.
3. Adaptive Gentrification: In San Francisco, climate adaptation projects, such as sustainable public transportation, energy-efficient buildings, and flood defences, have sparked adaptive gentrification in low-income areas like the Mission District and Bayview-Hunters Point. While these initiatives aim to make the city more resilient to climate change, rising property values and rents have displaced long-term, lower-income residents. This has deepened social inequality, as wealthier individuals move into newly climate-secure areas, while displaced residents are pushed into more vulnerable and less desirable locations.
4. Disaster-Induced Gentrification: Natural disasters often create opportunities for disaster-induced gentrification, where affluent developers capitalize on the destruction to rebuild upscale housing. After Hurricane Sandy, some neighbourhoods in New York City, like Red Hook, saw rapid redevelopment as wealthier individuals moved into areas previously occupied by working-class residents. The reconstruction effort, although necessary, led to a surge in property values, making it difficult for former residents to return to their homes.

In a true sense, residents in climate-affected areas urgently need safe and comfortable housing. But how can we effectively balance the needs of both indigenous communities and newcomers, ensuring equitable access and protection for all?

The intersection of climate adaptation measures and social equity is increasingly becoming a critical point of concern, especially as cities around the world move swiftly toward implementing climate-resilient strategies aimed at reducing carbon emissions and fortifying infrastructure against the adverse impacts of climate change. However, while these measures are essential for securing a sustainable future, they often lead to unintended consequences, particularly for vulnerable, low-income communities. Climate adaptation projects—such as flood defences, green infrastructure, and water management systems—are essential for mitigating the impact of climate change, they often lead to rising property values, displacing low-income communities in the process. To prevent this, policymakers and urban planners must adopt inclusive, equitable strategies that protect both the environment and at-risk populations from displacement.

Local governments, therefore, face the monumental challenge of striking a delicate balance between fostering climate resilience and ensuring social justice. One potential solution is the integration of affordable housing initiatives with green development projects. For example, as cities introduce climate-resilient infrastructures like stormwater management systems, green roofs, and energy-efficient buildings, policymakers should also enforce zoning laws that require developers to include affordable housing units within these climate-friendly projects. These “inclusionary zoning” laws ensure that low-income residents can remain in their neighbourhoods while also benefiting from improved environmental conditions. Moreover, community land trusts could serve as a vital tool in preserving long-term affordability. By allowing communities to own land collectively, such trusts can prevent displacement, as properties remain under the community’s control even as surrounding real estate prices rise.

In addition to affordable housing measures, financial incentives for landlords could be employed to keep rental prices stable in areas undergoing green development. For instance, tax credits or subsidies could be offered to property owners who agree to maintain lower rent levels in regions where the government is investing heavily in climate adaptation. This ensures that vulnerable populations are not priced out of their homes as their neighbourhoods become more desirable due to green infrastructure improvements. However, these policies should not exist in isolation but must be part of a broader, more inclusive approach to urban planning that centres on the voices of marginalized communities. One of the most glaring issues in current urban development strategies is the lack of involvement from the very people most affected by climate policies—low-income communities and communities of colour. These groups are often left out of critical decision-making processes, leading to climate adaptation measures that do not fully account for their needs or priorities.

To create a genuinely equitable urban future, it is imperative that local governments foster genuine community engagement, inviting marginalized populations into conversations around climate resilience and social equity. This means not only consulting these communities but actively involving them in the design and implementation of climate policies. Participatory planning processes, where community members are given the platform to voice their concerns and offer input, are essential. Governments must also be transparent about the potential impacts of climate adaptation projects, including the risk of gentrification, and should work collaboratively with affected communities to devise strategies that mitigate these risks. By embedding social equity considerations into the planning process from the outset, cities can ensure that climate adaptation measures benefit all residents—especially those who are most vulnerable to both the immediate impacts of climate change and the secondary effects of green gentrification.

Ultimately, the goal is to avoid a zero-sum scenario in which climate adaptation comes at the cost of social equity. Climate resilience should not be a privilege afforded only to those who can afford to stay in newly revitalized neighbourhoods, while others are pushed to the margins. Instead, it should be an opportunity to create more inclusive, sustainable cities where all residents, regardless of income or background, can thrive. Achieving this requires bold, forward-thinking policies that prioritize both environmental sustainability and social justice in equal measure. Also, adopting strategies that promote affordable housing, incentivize fair rental practices, and engage marginalised communities in planning processes allows cities to create a balanced approach to climate adaptation—one that ensures resilience for all, rather than reinforcing existing inequities. In the face of a changing climate, the task ahead is not just to adapt but to adapt in ways that uplift and protect the most vulnerable among us, ensuring that no one is left behind in the pursuit of a greener, more resilient future.