Rent gap theory, pioneered by late Marxist geographer Neil Smith, remains highly influentialwithin the study of urban political economy. However, the theory’s grand ambition to explain theroot cause of gentrification has generated significant controversy and criticisms regarding itslimited consideration of social, political, and institutional factors. In this chapter, I examine thepolitical and social dimensions of rent gaps, drawing from empirical examples in Berlin andStockholm. Three key aspects emerge as crucial: first, I discuss conceptual finetuning, whichinvolves deconstructing the production, widening, and closure of rent gaps. Second, I advocatefor a conceptual extension of rent gap theory by integrating discussions on the role of the state,broader social and symbolic structures, and political configurations. Last, I discuss conceptualdistinction, which involves considering the expansion of rent gap theory’s applicability todifferent forms of uneven urban development, beyond traditional sociological understandings ofgentrification.