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Whole Foods Market: leads or follows gentrification


But Christy Pardew, spokeswoman for Whose Foods, Whose Community?, an activist group protesting the forthcoming Whole Foods, says the issue is "keeping multinational chains out." According to Ms. Pardew, the addition of a high-end grocery store to Jamaica Plain will result in higher rents, pushing low-income residents from the neighborhood. "It's a term that real estate agents use," she intoned, "called 'the Whole Foods effect.'"

But real estate agents aren't economists, and Ms. Pardew admitted that there "isn't a lot of academic research" to back up the claim that stores like Whole Foods destroy low-income, ethnic communities. In fact, evidence points in the opposite direction: "To blame gentrification for rising rents is to get things exactly backwards," says Duke University economist Jacob Vigdor. "Companies like Whole Foods are building in places where the clientele is there already. They follow the customer."

When studying gentrification patterns in Boston, Mr. Vigdor investigated claims that elevated rates of neighborhood departure correlated with rising rents. "Actually, I found that in the gentrifying neighborhoods, the turnover rate among long-term residents was actually lower than it was in other parts of the city," because most residents see changes like lower crime rates and the revivification of derelict buildings as positive developments.

"People think that gentrification is causing prices to rise, when it's actually the reverse. In cities that are popular places to live, where demand exceeds supply, and prices go up all over the place--this leads people to seek out neighborhoods that are less expensive," says Mr. Vigdor.

Census data for Jamaica Plain show that Whole Foods is indeed following demographic trends, not simply hoping that if a store is built, the yuppies will come. In the past decade, the Hispanic population in J.P. has declined by 10%, while the African-American community shrunk by almost 15%.

PRIL 16, 2011
A Whole Foods Fight in Boston
Grad students and hipsters protest the organic market, but many Latino residents are happy about the new shopping option and the jobs.
By MICHAEL C. MOYNIHAN

Boston, Mass.

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