State-led gentrification in previously ‘un-gentrifiable’ areas: Examples from Vancouver/Canada and Frankfurt/Germany

Abstract

Through an analysis of two international cases from Canada and Germany, this paper highlights the role of the state in governing gentrification and displacement in areas previously thought to be unattractive for profit-seeking capital, that is, ‘un-gentrifiable’. With this, we seek to contribute to the debate on how the role of the local state has changed from securing affordable housing for low-income households into becoming an essential player involved in real estate speculation. Taking Little Mountain in Vancouver as the first example, we examine the privatization and demolition of the public housing complex and thus the withdrawal of the state. Our second example, Ostend in Frankfurt, investigates the restructuring of a working-class neighbourhood through active state-led interventions including massive public investment. We analyse the two empirical examples along five dimensions: causal drivers and mechanisms that have led to the changing role of the state in governing urban transformations; policy instruments used by state agencies to encourage gentrification; strategies to legitimize state-led gentrification; outcomes in terms of direct and exclusionary displacement; and the forms of contestation and protest. We maintain that both cases, although presenting a stark contrast, follow the same rule, namely state-led gentrification.