Neil Smith's Rent Gap Theory

From a theoretical point of view, the rationale of rent gap theory is suggesting that gentrification activities will probably occur for neighborhoods and homes in case where speculations of land or properties exist. This theory was first argued by a renowned geographer, Neil Smith, and further unevenly developed by several theorists, pointing out that if there is a potential disinvestment in property occurs, which means the estimated value generated from the piece of land or the property is higher than the current use, the rent that can be extracted will become gradually less. The extent of the gap will always tend to be developed between the rental value of the property and that which could be derived a higher reinvested use. All in all, these

Ley’s book (1990) The New Middle Class and the Remaking of the Central City, described patterns of urban gentrification in six Canadian cities and raised a demand-side explanation to gentrification, as opposed to Smith’s theory. Ley proposed that the tastes and housing preferences of the newcomers of middle income class led them to the inner city to become professionalized. This redistribution has been related to the movement towards the increasing incomes for larger segments of the workforce and better living standards. In studies promoting notion of professionalization, it is crucial to distinguish between real increases in the numbers of professionals and localized increases in the numbers of professionals/gentrifiers in particular neighborhoods. The main ideas of these two explanatory frameworks for the causes of gentrification have driven a theoretical conflict to explanations of gentrification, but more importantly, that these theoretical approaches are complementary and thus a more effective insights result from the combined application of these theories could be

For example, landlords who think the properties in the piece of land are worth charging more for the original renters, which leads to higher income households entering the neighborhood, or may harass renters to empty the house for the purpose of filling in these new households. Other residents, finding that friends and family have been "evicted", may follow these social networks to maintain the original living. From past research, several indicated that low income households were relocated to areas nearby their previous locations. However, recent research showed that displacement is now likely to push such households to the boundaries of cities. Consequently, low wage labor in these cities find more difficult to relocate and most households suffer great stress in relocating some distance away from the supporting networks of local family and friends, which can also impose psychosocial problems to those