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The Rent Gap Debunked

Author

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  • Steven C. Bourassa

    (Urban Research Program, Australian National University, GPO Box 4, Canberra, ACT 2601, Australia)

Abstract

The rent gap theory of gentrification has inspired a substantial amount of critical attention as well as several empirical studies. None of these studies addresses a fundamental problem with the rent gap hypothesis—namely, its dependence on a distinction between actual and potential land rent. That distinction does not contribute to the explanation of either the location or timing of changes in land use. And, contrary to some claims, there are no antecedents for the rent gap in the history of economic ideas—whether Marxian or neoclassical. It is concluded that the standard neoclassical concept of land-use succession is more coherent than the rent gap concept. However, neither approach explains how neighbourhoods previously subject to disinvestment come to be perceived to have the potential for reinvestment and higher land rents.

Suggested Citation

  • Steven C. Bourassa, 1993. "The Rent Gap Debunked," Urban Studies, Urban Studies Journal Limited, vol. 30(10), pages 1731-1744, December.
    • Handle: RePEc:sae:urbstu:v:30:y:1993:i:10:p:1731-1744
    DOI: 10.1080/00420989320081691
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    References listed on IDEAS

    as
    1. Steven C. Bourassa, 1992. "Economic Effects of Taxes on Land:," American Journal of Economics and Sociology, Wiley Blackwell, vol. 51(1), pages 109-113, January.
    2. Mark G. Dotzour & Terry V. Grissom & Crocker H. Liu & Thomas Pearson, 1990. "Highest and Best Use: The Evolving Paradigm," Journal of Real Estate Research, American Real Estate Society, vol. 5(1), pages 17-32.
    3. Alan W. Evans, 1991. "On Monopoly Rent," Land Economics, University of Wisconsin Press, vol. 67(1), pages 1-14.
    4. Mason Gaffney, 1969. "Land Rent, Taxation, And Public Policy," Papers in Regional Science, Wiley Blackwell, vol. 23(1), pages 141-154, January.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Callum Ward & Manuel B Aalbers, 2016. "Virtual special issue editorial essay: ‘The shitty rent business’: What’s the point of land rent theory?," Urban Studies, Urban Studies Journal Limited, vol. 53(9), pages 1760-1783, July.
    2. Hamil Pearsall, 2013. "Superfund Me: A Study of Resistance to Gentrification in New York City," Urban Studies, Urban Studies Journal Limited, vol. 50(11), pages 2293-2310, August.
    3. Tom Kauko, 2004. "Towards Infusing Institutions and Agency into House Price Analysis," Urban Studies, Urban Studies Journal Limited, vol. 41(8), pages 1507-1519, July.
    4. Daniel You-Ren Yang & Jung-Che Chang, 2018. "Financialising space through transferable development rights: Urban renewal, Taipei style," Urban Studies, Urban Studies Journal Limited, vol. 55(9), pages 1943-1966, July.
    5. Eric Clark, 1994. "Towards a Copenhagen Interpretation of Gentrification," Urban Studies, Urban Studies Journal Limited, vol. 31(7), pages 1033-1042, August.
    6. Adam Millard-Ball, 2000. "Moving Beyond the Gentrification Gaps: Social Change, Tenure Change and Gap Theories in Stockholm," Urban Studies, Urban Studies Journal Limited, vol. 37(9), pages 1673-1693, August.
    7. Yan, Haiming & Yang, Huicai & Guo, Xiaonan & Zhao, Shuqin & Jiang, Qun'ou, 2022. "Payments for ecosystem services as an essential approach to improving ecosystem services: A review," Ecological Economics, Elsevier, vol. 201(C).
    8. Daniel J. Hammel, 1999. "Re-establishing the Rent Gap: An Alternative View of Capitalised Land Rent," Urban Studies, Urban Studies Journal Limited, vol. 36(8), pages 1283-1293, July.
    9. Ernesto López-Morales & Claudia Sanhueza & Sebastián Espinoza & Felipe Ordenes & Hernán Orozco, 2019. "Rent gap formation due to public infrastructure and planning policies: An analysis of Greater Santiago, Chile, 2008–2011," Environment and Planning A, , vol. 51(7), pages 1536-1557, October.
    10. Eric Clark, 1995. "The Rent Gap Re-examined," Urban Studies, Urban Studies Journal Limited, vol. 32(9), pages 1489-1503, November.
    11. Ismael Yrigoy, 2019. "Rent gap reloaded: Airbnb and the shift from residential to touristic rental housing in the Palma Old Quarter in Mallorca, Spain," Urban Studies, Urban Studies Journal Limited, vol. 56(13), pages 2709-2726, October.
    12. Allen J. Scott, 2019. "City-regions reconsidered," Environment and Planning A, , vol. 51(3), pages 554-580, May.
    13. Lai, Yani & Tang, Bosin & Chen, Xiangsheng & Zheng, Xian, 2021. "Spatial determinants of land redevelopment in the urban renewal processes in Shenzhen, China," Land Use Policy, Elsevier, vol. 103(C).
    14. Neil Smith, 1996. "Of Rent Gaps and Radical Idealism: A Reply to Steven Bourassa," Urban Studies, Urban Studies Journal Limited, vol. 33(7), pages 1199-1203, August.

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