Restaurants, Reviews, and Residential Change: Examining the Relationship between Restaurant Reviews and Gentrification

Abstract

This thesis investigates the relationship between online restaurant reviews and gentrification in U.S. ZIP codes from 2005 to 2022. This study highlights the underexplored role of cultural capital, specifically as captured through Yelp restaurant reviews, and the way it influences neighborhood desirability and housing prices. The data used for this analysis is derived from the Yelp Open dataset for the treatment variables, Zillow Housing data to measure gentrification, and the American Community Survey to add demographic and socioeconomic controls. Using multiple regression methods, the results provide robust empirical evidence that positive restaurant reviews and the number of businesses on Yelp are significantly associated with rising housing prices. Surprisingly, however, total review volume shows a negative association and the average stars in a ZIP code show no statistically significant relationship. Implications for policymakers include the potential to use digital consumer data as early signals of neighborhood change, enabling more proactive and equitable urban planning.