Chinatowns confront rapid luxury development

Penny and Jack Lee, now married, grew up in the 1960s and 1970s among the thousands of people of Chinese heritage who lived in apartments lining the main stretches of Washington, D.C.’s bustling Chinatown.

“Chinatown was very bright, vibrant,” Jack Lee recalled. “All of our recreations ended up being in the alleys of Chinatown.” They felt it was a safe haven, he said.

But the neighborhood didn’t stay the same for long. First came a convention center in 1982 that displaced many in the majority Chinese community. Then, in 1997, came the MCI Center, now Capital One Arena, a few blocks from the heart of the neighborhood. These developments, as well as luxury condos, caused rents to rise and forced grocery stores and restaurants to close. They also pushed residents to move to safer and cheaper areas, Penny Lee said.

Just a few hundred people of Chinese heritage still live in the neighborhood, mostly in Section 8 apartments for lower-income residents. There are now fewer than a dozen Chinese restaurants, as well as the long-standing Chinatown gate and non-Chinese businesses with signs bearing Chinese characters. Jokingly called the “Chinatown Block,” reflecting its diminished size, what’s left of the neighborhood is mere blocks from a wealthier area that contains the U.S. Capitol and the National Mall.

Chinatowns across the nation face a similar reckoning. In major Chinatown neighborhoods, luxury development and public-use projects have altered the fabric of these historic communities, according to more than two dozen activists, residents and restaurant owners. While some argue these developments accelerate local economies, many interviewed by CNBC say they destroy the neighborhoods’ character and push out longtime residents.

Some Chinatown residents benefited from the development boom, selling properties to developers or drawing more customers from increased foot traffic. Many others, meanwhile, have been driven out by higher rents, limited parking and increasingly unsafe conditions.

The changes in Chinatowns across the country look similar, though they’re unfolding at different timelines and magnitudes. Chicago’s Chinatown, in comparison with other Chinatowns with shrinking populations, more than doubled its Chinese population between 1990 and 2020.

Cities already deeply affected by gentrification and high-end development stand as templates for how the shift may unfold elsewhere. For many, housing is the problem — and the solution.

“We can’t build our way out of the housing crisis, but we…