Gentrification and land rent: A historical view of the rent gap in Minneapolis

The rent gap theory has been a prominent explanation of gentrification for nearly two decades. It has been subject to much critique, but few empirical analyses. This research, based in Minneapolis, attempts an empirical evalu ation of the hypothesis using land price data in nine redeveloped parcels o ver a span of 130 years. While the rent gap appears to exist in most parcel s, a simple one-to-one correspondence between the gap and gentrification ca nnot be made because of the nature of the theory and the limitations of the data. There is evidence, however, that rent gaps may form nor just in decl ining areas, but in stable poorer areas when there is substantial capital i nvestment on the urban fringe. This finding lends support to the theory's e mphasis on the role of uneven development in the creation and eventual clos ure of the rent gap.