Are Business School Neighborhoods Becoming More Gentrified?
When universities are found in downtown urban areas, gentrification most often follows. It almost seems inevitable since universities bring in more individuals with higher education, draw in more money, and increase new businesses. But what does the rapid increase of gentrification statistics mean for the business school students looking to start their career in a new area?
What Is Gentrification?
First, we need to look at what gentrification is. In simple terms, it’s the influx of more affluent residents moving into urbanized neighborhoods. At the outset, it may sound good, but it can be controversial.
Gentrification may improve the financial quality of a neighborhood, but it can also force the relocation of current residents and businesses due to increasing costs. Often, the process of gentrification also shifts a neighborhood’s racial and ethnic composition, as well as the average household income. This can lead to community displacement for lower-income families in gentrified areas, some of which often live in the area for several generations.
However, there is a grey area. Gentrification happens when a location becomes increasingly attractive. At that point, more high-income individuals move into the area bringing in investments in the community and leading to improved infrastructure and economic development.
What Causes Gentrification?
According to a recent comprehensive review of gentrification completed by researchers at UC Berkeley and UCLA, gentrification most often occurs when more public transportation is available. People are more attracted to transit hubs because they allow more privileged groups to trade car commutes for transit and signal a large-scale commitment to neighborhood upgrading, which, in turn, leads to increased employment opportunities.
Another spur to gentrification is education. Quality schools, universities, colleges, and medical centers tend to shape gentrification. The substantial federal support that public universities receive brings money into neighborhoods through many means including housing and housing subsidies for faculty and staff. A CityLab study revealed that universities and other academic institutions are key to attracting the creative class, creating more market demand and political pressure for better amenities, schools, and other services.
Analyzing University Neighborhood Gentrification Statistics
Since universities have such an impact on gentrification, we thought we’d take a look at what areas and schools have been most affected. While gentrification is not something most urban areas should aspire for, it happens, and it’s important to know where it’s occurring the most.
To find out, we looked at a recent study by RentCafe of the most gentrified areas in the U.S. The study took a look at the 2000 Census and the 2016 American Community Survey to see the changes that took place over a decade and a half across 1,000 U.S. ZIP codes. The study found that there are easy ways to quantify gentrification statistics when looking at median home value, median household income, and the population that holds a bachelor’s or higher degree.
Based on the results of the study, we analyzed the top five MetroMBA universities in gentrified areas.
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University of Southern California
Located less than five miles away from ZIP code 90014 in Los Angeles, USC Marshall is just on the edge of the most gentrified area in the U.S. Over the last 16 years, this area has witnessed:
- A 707 percent increase in home values
- A 95 percent increase in median household income
- And an 857 percent increase in people holding bachelors or higher degrees
So, while some at USC might be fighting gentrification, it may not be working. Just last year, USC opened up a brand-new $700 million USC Village with a Target Express, Trader Joe’s, and 15 restaurants, transforming the surrounding neighborhood. And even though as part of the development USC provided $20 million for construction of off-site subsidized housing, there are still concerns.
“Across the street, land values are going to increase,” Joe Donlin, Associate Director of Strategic Actions for a Just Economy, told KPCC. “We know the landlords are going to rent at higher levels of rent.”
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Howard University
Located in Washington, D.C. Zip Code 20001, Howard University’s campus is located directly in the second most gentrified area in the U.S. Over 16 years, the area has witnessed:
- A 207 percent increase in home values
- A 163 percent increase in median household income
- And a 212 percent increase in people holding bachelors or higher degrees
The gentrification statistics of the Howard University area hasn’t gone unnoticed. According to NPR, there has been a drastic change:
“The area, located just a couple of miles north of Capitol Hill, was once working-class and black. But as hundreds of new residents move to D.C. each month, more non-black residents move into Howard’s neighborhood. And as property values rise, the university is trying to capitalize on the hot real estate market.”
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University of Houston — Downtown
Located just steps away from zip code 77003, The University of Houston campus is located near the third most gentrified area in the U.S. In the last decade and a half, the area has seen:
- A 284 percent increase in home values
- A 71 percent increase in median household income
- And a 443 percent increase in people holding bachelors or higher degrees
Much of the gentrification can be laid at the university’s feet as its student housing footprint has expanded into surrounding neighborhoods over the last decades. According to the Houston Chronicle, “In the portion of the neighborhood closest to downtown, which includes Emancipation Park, median home values increased 176 percent between 2000 and 2013, according to an analysis of census estimates conducted by Governing.”
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University of Pennsylvania
The Wharton School at UPenn is less than five miles outside the fourth most gentrified neighborhood in the country: zip code 19123. This area, over the last 16 years, has noticed:
- A 203 percent increase in home values
- A 95 percent increase in median household income
- And a 230 percent increase in people holding bachelors or higher degrees.
In fact, UPenn has had a complicated history with gentrification over the years, dubbed Penntrification by some. The problem, according to The Daily Pennsylvania, is that in West Philadelphia Penn students’ demand for housing is displacing low-income families. There have even been protests criticizing the university for causing gentrification in the area.
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Texas Christian University
Fort Worth, TX, contains the sixth most gentrified area in the U.S.; just two miles away from Texas Christian University (TCU). Over 16 years, the area has witnessed:
- A 323 percent increase in home values
- A 103 percent increase in median household income
- And a 122 percent increase in people holding bachelors or higher degrees
While Fort Worth’s growth has brought new life to the city’s urban core, it’s also sky-rocketed property values. In particular, the areas around TCU are growing quickly. The university recently completed a $100 million renovation for its football stadium—just five years after its last overhaul, which reportedly cost $164 million.
The Five Biggest Texas Internship Destinations for MBAs
Whether an internship is optional or required for your MBA program, interning at top companies in your metro can not only offer hands-on work experience, but the chance to develop professional relationships that can shape the rest of your career.
Major Texas metros like Houston and the Dallas-Fort Worth area are increasingly becoming known for their roles in business and technology, making these cities the perfect spot for students to begin their professional careers with summer internships. Often these internships can lead to continued work and career opportunities after graduation. For example, 100 percent of students at a top MBA program like TCU’s Neeley School of Business earned internships in 2016, nearly half of whom continued projects for their employer on into the following year.
The Five Biggest Texas Internship Destinations
Hewlett Packard (HP)
Headquartered in Palo Alto, CA, the multinational informational technology company, HP, has a strong presence in Texas’ biggest metros. With a massive range or products, from personal computers to 3D printers, HP has 55,000 employees around the world and a net income of $2.53 billion USD.
HP and their separate Enterprise Service business, Hewlett-Packard Enterprise, offer a number of internships for MBA students and are considered one of the top intern destinations for schools like the Naveen Jindal School of Management at the University of Texas at Dallas and Rice University’s Jones Graduate School of Business.
HP offers a 12-week paid summer internship program for students in a variety of fields. Current openings include positions like:
- Personal Systems MBA Project Management Intern (HP)
- Personal Systems MBA Marketing Summer Intern (HP)
- Financial Associate MBA Intern (Hewlett Packard Enterprise)
Texas Instruments
It likely doesn’t come as a surprise that technology company Texas Instruments, headquartered in Dallas, is a top employer for MBA interns in the region. The company, which as of 2017 had a profit margin of $3.68 billion, has a number of different career paths available for their interns, with rotational opportunities after students have graduated that can help accelerate their career. Business roles at the company include focuses such as Finance and Operations, Human Resources, Information Technology, Marketing Communications, and Supply Chain Analyst.
With internship opportunities in engineering as well as the business fields, Texas Instruments consistently tops lists for MBA interns in programs like the aforementioned TCU Neeley School of Business and other top Dallas schools.
AT&T
Headquartered in Dallas, AT&T today is the world’s largest telecommunications company and second largest provider of mobile phone services in the country. And with 254,000 employees worldwide, it makes sense that this massive company would seek to create a talent pipeline for MBA students in the area. AT&T tops the list as an internship destination for students in schools like Texas A&M University’s Mays Business School and Jindal at UT Dallas, among others.
AT&T offers summer internships in a number of different focuses and fields, which provide real-world projects, specialized training programs and leadership exposure. Currently open positions with the company include a Leadership Internship, Finance Internship, and Software Development Internship.
Deloitte
Another company making an impact for student interns at schools like Neeley, Rice, and Mays, is “Big Four” accounting organization Deloitte. The company is headquartered in London but with over 263,000 employees throughout the world. In 2017, Deloitte officially became the fourth largest privately owned company in the United States.
Deloitte’s commitment to recruiting talented finance students is reflected in the many MBAs who find both internships and full-time positions with the company. A Texas internship at Deloitte typically last eight to ten weeks during the summer and continue through at least one semester of the school year. MBA student interns have access to a number of incredible resources during their internship at Deloitte, including a consulting immersion program, women’s leadership launch, and the chance to participate in a number of case competitions.
Accenture
With headquarters in Dublin, Ireland, the work of global management consulting company Accenture may seem worlds away from Texas, U.S. But with nearly 500,000 employees around the world, this Fortune Global 500 company has left its mark as a top employers of MBA interns at schools like TCU Neeley and Rice’s Jones School of Business.
Accenture’s internship program is a ten to twelve week experience throughout the summer that encourages students to empower themselves through innovation. Student interns have access to programs like the Student Leadership Conference, Buddy Program, Summer Analyst Day of Service, and group outings. Those who are able to turn their internship stays with Accenture may also be awaiting a hefty payday when it comes to full-time employment after earning an MBA.
“According to Management Consulted, post-MBA salaries at Accenture hover around a base salary of $140-145,000 with a $25,000 signing bonus, an $8,000 relocation check and a performance bonus up to $44,000. Interns typically clock $31 per hour, plus overtime and a signing bonus.”
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