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Rent-Gap Theory
The rent-gap theory or Mietlückentheorie was in 1979 by the geographer Neil Smith as an economic explanation for the process of gentrification formulated (social restructuring and enhancement of a part of the town). It describes the disparity between the current rental income of a property and the potentially achievable rental income. Only from this difference arises the interest of investors, a particular object (to entire neighborhoods) to renovate, resulting in an increase in rents and an increase in value of the property result.
The theory going on that investment in the property market will only be made if a rent gap exists. Thus, it is contrary to other approaches of explanation, the more induced drag the changing lifestyles and housing preferences to justify. Therefore, it is a purely economic approach. The processes described with the rent-gap theory can be observed especially in North America.
==Literature==
* Jürgen Friedrichs, Robert Kecskes, Michael Wagner, Christof Wolf: Applied Sociology . Publisher of Social Science, Wiesbaden 2004, ISBN 3-8100-4117-3, page 26 ff
* Gentrification and the rent gap. N Smith - Annals of the Association of American Geographers, 1987
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