Macro · Structures & Institutions Stub 1979

Rent Gap Theory

지대 격차 이론

A critical geographical theory arguing that gentrification and urban redevelopment are driven by the disparity between current capitalized ground rent and potential ground rent under optimal reinvestment.

Field Geography · Sociology
Level of analysis Macro · Structures & Institutions
Paradigm Critical Theory Conflict Theory
Key figures 👤 Neil Smith (닐 스미스)
Year 1979

Key Claims

Neil Smith argued that gentrification is fundamentally a production-side, capital-driven process rather than merely a shift in consumer preferences. As inner-city buildings depreciate, the gap between actual capitalized ground rent and potential ground rent widens until the rent gap becomes sufficiently large to attract speculative capital, triggering mass urban restructuring and displacement.

Further Reading

  • Smith, N. (1979). Toward a theory of gentrification: A back to the city movement by capital, not people. Journal of the American Planning Association, 45(4), 538–548.

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