This paper examines the factors that have limited gentrification in two Toronto neighbourhoods which have below-average proportions of public housing and which have traditionally acted as immigrant reception areas. The first failed to gentrify despite the existence of gentrification nearby, whereas gentrification stalled in the second in the early 1980s. Analysis of the historical reasons behind this suggests ways in which policy could intervene to limit the spread of gentrification in the absence of support for local affordable housing. These include the maintenance of areas of working-class employment, different approaches to nuisance uses and environmental externalities, a housing stock not amenable to gentrifiers' tastes and state encouragement of non-market and ethnic sources of housing finance. However, the Toronto experience also highlights the importance of policy in a negative way, as changes in municipal policy which run counter to these prescriptions are now resulting in the gentrification of these two neighbourhoods.
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