This article describes the effect that gentrification has had on SRO hotels and their occupants in recent years. The author provides historical background to gentrification, tracing its history from a small, grassroots movement to established policy in many cities. He presents data regarding loss of SRO housing units from a number of cities, with more detailed information on New York City. Kasinitz highlights the problems, including increased homelessness, that gentrification has caused by displacing traditional inner-city poor SRO tenants. He recommends that new alternatives be provided for single impoverished city residents, who have nowhere to go when SROs are destroyed.