gentrification and the rent gap Flashcards
(24 cards)
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What is Neil Smith’s rent gap theory?
It defines the rent gap as the disparity between the current capitalised ground rent (based on existing land use) and the potential ground rent (based on the most profitable use).
How does the rent gap incentivise reinvestment and redevelopment?
When the rent gap becomes large enough, it incentivises reinvestment and redevelopment, often leading to gentrification.
What does Smith’s theory build on?
Smith’s theory builds on Harvey’s analysis of capital accumulation in the built environment, framing gentrification as a spatial fix for surplus capital.
What are the two types of differential rent distinguished by Smith?
DR1, arising from inherent locational advantages (e.g. proximity to the CBD), and DR2, resulting from improvements or investments in the land.
What is absolute rent according to Smith?
Absolute rent emerges from the monopolisation of land through property rights, allowing landowners to extract rent simply by withholding land from the market.
How does the case of Barnsbury, London illustrate rent gap theory?
Landlords in the 1960s–80s evicted tenants and converted multi-occupancy flats into single-family homes, capitalising on the rent gap between tenanted investment value and vacant possession value.
How did Clerkenwell experience gentrification?
Vacant or underused properties were identified by developers and financial institutions as opportunities for reinvestment, transforming the neighbourhood’s socio-economic profile.
What is Bourassa’s critique of rent gap theory?
Bourassa argues that the distinction between capitalised and potential rent is conceptually flawed, as land value reflects expectations of future use.
What is Ley’s consumption-based explanation for gentrification?
Ley emphasises the preferences of a ‘new middle class’ seeking urban lifestyles aligned with cultural capital, focusing on utility maximisation and individual choice.
How does Shoreditch provide an example of consumption-based gentrification?
Shoreditch’s transformation was driven by its appeal to creative professionals and the ‘cool’ urban aesthetic, not solely by rent gaps.
What role does the state play in gentrification according to the essay?
Gentrification is often facilitated by public policy, including urban regeneration schemes, tax incentives, and planning decisions.
What is an example of state-led gentrification in London?
The designation of New Kent Road as a Major Economic Area (MEA) prioritised residential redevelopment over industrial uses.
What is the concept of super-gentrification?
Super-gentrification refers to the displacement of even earlier gentrifiers by wealthier newcomers, suggesting gentrification is a dynamic and iterative process.
What is the essay’s conclusion about rent gap theory?
While rent gap theory provides a robust structural explanation for gentrification, it is not sufficient on its own. A more comprehensive understanding requires integrating both production- and consumption-based perspectives.
What does Slater (2018) expand on in the context of London?
Slater (2018) expands on Neil Smith’s rent-gap theory in the context of London.
What percentage of UK bank loans go to property?
76% of all UK bank loans go to property.
What percentage of UK household debt is tied up in mortgages?
87% of all UK household debt is tied up in mortgages.
According to Harvey (2014), what must capital do to address the crisis of continuous compound growth?
Capital must devalue the existing capital fixed to the land and other things to reinvest for the absorption of the surplus.
Which investment firm does Slater (2018) give as an example?
Slater (2018) gives the example of Westbrook Partners, a NYC investment firm.
What did Westbrook Partners do in March 2014?
Westbrook Partners bought the New Era estate in March 2014.
What was the New Era estate originally built for?
The New Era estate was built by a charitable trust providing affordable renting housing.
What did Westbrook Partners notify tenants about after buying the New Era estate?
Westbrook Partners notified tenants there would be a rise to market values.
What does the New Era estate example illustrate?
The New Era estate example illustrates how land value is created from collective social investments in land, which landowners extract using the rent gap.
What is the rent gap used for according to Slater (2018)?
The rent gap is used for expropriating socially created use values.
