Neil Smith argues that in the last two decades gentrification has become a generalized global urban phenomenon. His theory is at a high level of abstraction, as it links urban gentrification to globalization, financial capitalism and neo-liberalization. With these global processes, all cities have experienced ‘third wave’ gentrification. The theory, however, leaves little room for variegations of gentrification, apart from characterizing geographical differences as idiosyncrasies or as minor variations. This downplays the role of intervening mechanisms that impinge upon the pursuit and social outcomes of gentrification. This paper modestly aims to amend abstract theory by looking at Amsterdam from an historical institutional perspective. In Amsterdam, gentrification was particularly made possible by a process of neo-liberalization within the housing system. However, as institutional change is incremental and based on layering and conversion, many older institutional arrangements remain in place. These arrangements tend to slow gentrification and assuage social consequences. Nevertheless, neoliberal modifications to the housing system have been accelerating the pursuit of gentrification. Current policies will very likely lead to exclusionary displacement. It would be quite an understatement to assert that research into gentrification is substantial (see Atkinson, 2003, Lees et al., 2008, Smith and Butler, 2007). Within this body of literature, different strands have opened ‘different windows to social reality’ (Lees, 2000). Theories focusing on the systematic causes of the urban phenomenon, are heavily influenced by the work of Neil Smith. His early work on rent (gap) theory was ground-breaking in gentrification theory (Smith, 1979, 1987). The theory has been particularly valuable in linking gentrification to capitalism at various scales (Hammel, 1999). This link was further strengthened when Smith theorized the connections between urban gentrification, globalization and the neo-liberalization of state political economies (in Smith, 2002). With the systemic changes associated with globalization of financial capital, the restructuring of the economy, and the rescaling of state power, ‘to differing degrees, gentrification had evolved by the 1990s into a crucial urban strategy for city governments in consort with private capital in cities around the world’ (Smith, 2002, p. 440). In the US, this phase has been termed ‘third wave gentrification’ (Hackworth and Smith, 2001).