What does the term 'gentrification' refer to?

Gentrification refers to the process of urban renewal where older or historically established neighborhoods undergo a transformation typically characterized by an influx of more affluent residents, which often leads to rising property values and rents. This process frequently displaces lower-income residents who may no longer afford to live in the area.

Urban renewal, which is highlighted in the correct answer, involves revitalizing and upgrading urban areas to improve living conditions, encourage investment, and enhance the overall aesthetic and functionality of a neighborhood. Gentrification can be seen as a specific type of urban renewal that prioritizes economic development and higher-end residential investment, sometimes at the expense of existing community dynamics.

In contrast, the decline of neighborhoods refers to deterioration and population loss, reflecting the opposite circumstances associated with gentrification. Increased traffic in cities is a consequence of urban growth and development but does not directly define gentrification itself. Similarly, suburban expansion describes the growth of suburban areas, which is a separate phenomenon from the transformation occurring within established urban neighborhoods.