Abstract
Housing experts generally have been optimistic about the ability of local governments to promote neighborhood upgrading, that is, physical and social improvement with the existing working-class or lower-class population remaining in place. This review of the theoretical and empirical literature questions such a rosy picture. The fundamental causes of neighborhood decline are changes in their social class and racial composition. Up to now upgrading programs have been too narrowly focused on physical housing conditions to affect these population shifts. Consequently, the prospects for success of upgrading efforts are poor in racially changing communities. Only when the underlying causes of social class change-poverty and discrimination -are addressed will the prospects for neighborhood upgrading in these areas be improved.
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