The residents of its city have often discussed the issue of gentrification. Some believe that gentrification provides a community with hope and changes; meanwhile others believe that it imposes a negative effect on the neighborhood. Geographer Neil Smith argued about the two forces that drive gentrification-the first issue is the “rent gap,” and the second is the competition between the major cities all around the globe.
The rent gap is defined as the gap between the amount of rent paid for a property compared to the amount that could be paid for it, which leads to much higher prices than the typical cost. This is the significant difference between the price of the property and the reflection of the ground rent. The inflation in the rent ground rate is decided by the situation at hand, which is the main source for gentrification. This leads to the rise of rent and property values in the neighborhood and the closing of the rent gap.
The decline of industrial tenants, and the historic fabric of working class neighborhoods that depreciates ground rents stimulate the second factor of gentrification. Due to this factor, the transformation of land use in the core of mid 1990s has turned from industrial zones to residential and commercial spaces. However, the process of developments is not only caused by the result of local development, but it is also a contemporary global process.
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