medium · GMAT Verbal

Passage: The gentrification of industrial neighborhoods—the transformation of former manufacturing districts into high-end residential and commercial zones—is a prominent feature of contemporary urban development. This process often begins when artists and small-scale entrepreneurs are drawn to the low rents and unique architectural aesthetics of abandoned warehouses. As these pioneers establish a creative identity for the neighborhood, its perceived value increases, attracting real estate developers and more affluent residents. This influx of capital often leads to the displacement of lower-income residents and the loss of small businesses that once served the local community. Proponents of gentrification argue that it revitalizes declining areas, increases the local tax base, and improves public safety through increased "eyes on the street." Conversely, critics contend that the "creative class" narrative often obscures the systematic destruction of social networks and affordable housing. They argue that the state often facilitates this process through rezoning and tax incentives, effectively subsidizing the relocation of the wealthy at the expense of marginalized populations. Thus, gentrification is not just a market-driven phenomenon but the result of specific policy choices that prioritize aesthetic and economic renewal over social continuity. What is the function of the second sentence of the passage ("This process often begins.

Abandoned warehouses")?

  1. It offers an example of the specific policy choices made by urban planners.
  2. It summarizes the main argument of the critics of gentrification.
  3. It provides a historical justification for why industrial neighborhoods became abandoned.
  4. It contrasts the aesthetic values of artists with those of real estate developers.
  5. It describes the initial stage of a social and economic transition.

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