Final answer:
Neil Smith attributes gentrification to economic factors, specifically the lure of the rent gap that draws investment into urban communities when the cost of housing dips significantly below its potential value, causing redevelopment and often displacing less affluent residents.
Step-by-step explanation:
Geographer Neil Smith argued that gentrification is primarily the result of economic flows in and through the urban environment. Smith's Rent Gap Theory posits that when the realized value of housing in urban neighborhoods falls significantly below the potential value, the disparity becomes so attractive to investors that they are prompted to move capital into these areas, thus triggering gentrification. The influx of investment leads to redevelopment and increases in property values, often resulting in the displacement of the pre-existing, less affluent residents. Several competing theories aim to explain the phenomenon of gentrification, but Smith emphasizes the economic motivations behind real estate investment as the core driver. This process is not just about the shifting demographics or the attraction to a 'trendy' lifestyle as portrayed in the media, but is deeply rooted in financial calculations and the pursuit of profit. Moreover, gentrification can have significant social consequences, sometimes leading to the displacement of residents and businesses unable to cope with the rising costs associated with the revitalization of their neighborhoods.