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Urban displacement - when a household is forced to relocate due to conditionsaffecting its home or surroundings - often results from rising housing costs,particularly in wealthy, prosperous cities. However, its dynamics are complexand often difficult to understand. This paper presents an agent-based model ofurban settlement, agglomeration, displacement, and sprawl. New settlements formaround a spatial amenity that draws initial, poor settlers to subsist on theresource. As the settlement grows, subsequent settlers of varying income,skills, and interests are heterogeneously drawn to either the original amenityor to the emerging human agglomeration. As this agglomeration grows anddensifies, land values increase, and the initial poor settlers are displacedfrom the spatial amenity on which they relied. Through path dependence,high-income residents remain clustered around this original amenity for whichthey have no direct use or interest. This toy model explores these dynamics,demonstrating a simplified mechanism of how urban displacement andgentrification can be sensitive to income inequality, density, and variedpreferences for different types of amenities.

The Effects of Inequality, Density, and Heterogeneous Residential Preferences on Urban Displacement and Metropolitan Structure: An Agent-Based Model