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Gentrification is the transformation of a inner city neighbourhood from a low incomecommunity to a middle class neighbourhood (D'Addario, 2013). Gentrification can beexplained by both cultural and economic reasons. Before moving on to the reasons let'sexplore the conditions that must be met for gentrification to occur. The first condition is

that a pool of gentrifiers must be present. What do we mean by gentrifiers ? These arethe people who are willing to move into a low income community to form new

neighbourhood. Secondly a gentrifiable central city land must be available and thirdly

there should be demand for this central city property by the gentrifiers.

What stimulates gentrification?. Gentrification is the result of investment in communityby local government, community activists or the business groups which can often spur

economic development, attract business, deter crime and have other benefits to thecommunity. The lure to exploit the gap between actual and potential ground rent

attracts the gentrifiers (Smith, 1993), whereas local governments invest and favourgentrification because of the increased tax base associated with the new high incomeresidents, as well as other perceived benefits of moving poor people and rehabilitating

deteriorated areas. Gentrification as a urban process transforms the organization of thearea being gentrified influencing the structure of the city as well. In a community

undergoing gentrification, the average income increases and average family sizedecreases. Old industrial buildings are converted to residences and shops, new

businesses which can afford increased commercial rent cater to a more affluent base of

consumers. As a result of this economic eviction poorer pre gentrification residents whoare unable to pay increased rents and property taxes are often driven out. Apart from

displacement and economic shifts gentrification transforms the social hierarchy of a city.It mixes people of different socioeconomic strata bringing in class distinction in terms of

income, education, household composition and race which are the main definingcharacters of a city.

Our city, Toronto serves as a very good example of gentrification. Regent park was acommunity developed to provide housing to the new immigrants and war veterans in

1940's. It became home to large number of Irish and other poor immigrantstransforming into a neighbourhood for low income residents which later got plagued

with high levels of violent crime. During this time Toronto was going through a phase ofsuburbanization driven by sought profit and availability of cheap land. This change inconsumption led to fall in inner city land prices such as Regent park, which resulted in

poor upkeep and no maintenance of these properties by owners and landlords (Coleby,

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2011). The area of Regent park in particular got devalued which caused rent to be

significantly cheaper than the potential rent which could be derived from the 'best use'of the land while taking advantage of its central location. The disparity between theactual capitalized ground rent (land price) of a plot given its present use and potential

ground rent that could be gleaned under a 'higher and better' use drove gentrification inRegent park. Plan for this gentrification was approved in 2003 and its in construction

phase. The plan aims to demolish the 2083 residences in the 69 acre downtown core

bounded by Gerrard, Dundas, Shutter and River street. Funded by government andcapitalists the main interest is to perceive potential profit which would be derived from

re-investing in Regent park and redeveloping it for new economically stable tenants.