Not saying the market is infallible, but it's often smarter than you and I.
When the Invisible Hand builds luxury apartments, it is indeed for the rich, because if the rich don't get the luxury apartments they want, they will settle for middle-class apartments at good locations.
Since they are rich, they can outbid all the middle-class people, and only rich people will be able to live at places that used to house middle-class folk.
When the Invisible Hand builds luxury apartments, it is indeed for the rich, because if the rich don't get the luxury apartments they want, they will settle for middle-class apartments at good locations.
Since they are rich, they can outbid all the middle-class people, and only rich people will be able to live at places that used to house middle-class folk.
That's what gentrification means.