Rent gap theory is used here as a way to analyse exclusionary displacement in six high-rise urban renewal areas in Santiago, Chile. Drawing on a survey of 746 original households, this article finds 40 per cent of low-income owner-residents do not have the chance to purchase new replacement accommodation using the portion of rent gap they capture after selling their land to high-rise developers. Whilst the sale price of new apartments rises, a particular type of blockbusting limits the choices of the low-income residents to selling at a good price or staying put. The ratio between the different ground rent levels captured either by developers and original owner-residents confirms the extensive power deployed by the large-scale real estate firms at the moment of gentrifying central areas and the extent to which they generate residential displacement. The ground rent capture is a political economic process, not a function of the market.
Rent gap, exclusionary displacement, blockbusting, gentrification, urban renewal
López, E. (2015) Assessing exclusionary displacement through rent gap analysis in the urban redevelopment of inner Santiago, Chile. Housing Studies (Online First).