Union Square resident Aaron Greiner loves his neighborhood.

“The parks, the businesses, the community, it all has been a reason why I love living here,” Greiner said, “and I am really excited by the long-needed investment in this square.”

But that investment, he noted, should benefit the people who live and work in the neighborhood. And the area’s recent transformation has brought a lot of new development that came with downsides for longtime residents, like higher prices or even eviction notices.

Today Union Square is a booming area filled with boutiques, restaurants and green spaces. Time Out, an international travel magazine, just named it one of the “38 coolest neighborhoods in the world,” alongside areas in Miami, Tokyo and London.

Ben Ewen-Campen, who represents Ward 3 in Somerville City Council, said the neighborhood’s changes — alongside the arrival of the Green Line extension — have pushed up interest, as well as prices. He said many residents simply can’t afford to stay, and he worries that new developments will further exacerbate Somerville’s housing crisis.

“There is just an unbelievable demand to live in neighborhoods like Union Square and neighborhoods across Somerville,” said Ewen-Campen. “I think it is important that we face the reality that we need to build more housing.”

The average rent in the neighborhood is now about $3,900 a month, according to BostonPads.com. That’s above the average for Somerville at large, and notably higher than neighborhoods like Spring Hill and Winter Hill. The average home value in Union Square has jumped by about 15% in the past five years, averaging about $915,000 today, according to the real estate site Zillow.

Union Square’s transformation has not only affected tenants, but also neighborhood businesses. Many heavily rely on locals who support them rather than visitors who are just passing through.

Jessica Morales, owner of Picante Taqueria, said her restaurant thrives because of Somerville’s residents.

“We hope more people come in the upcoming months and that they come and explore the area, but right now, customers from outside the neighborhood only make up a fraction of our sales,” she said.

Luis Florez, owner of Luce Boutique, said the increased foot traffic in the square has brought him new clients. But he said the changing neighborhood has also led to a rise in homelessness. He recalled an incident involving one unhoused individual that resulted in damages to his store.

Florez said the community must address challenges like the need for housing so that his store and other small businesses can thrive.

Somerville Ward 2 City Councilor JT Scott said uplifting community voices is essential.

“The people who live here and have lived here for a short time or a very long time, or their whole lives, they know what this neighborhood needs,” he says.

In the past years, community members and organizations, along with City Council, have worked hard on negotiating community benefits and project labor agreements for new developments, he said. Scott hopes that these new jobs and infrastructure will benefit the residents of Union Square in the long run.