In gentrifying areas of New York City, this research finds that a small but growing segment of middle-class, mostly White families are choosing to enroll their children in their neighborhood public elementary schools, thus increasing the diversity in those schools. Because residential and school segregation across the nation have traditionally had a symbiotic relationship where an increase in one leads to an increase in the other, the demographic phenomenon associated with gentrification where neighborhoods become more diverse has the potential to alleviate persistent school segregation, a major cause of educational inequity. The analysis of neighborhoods and school enrollment patterns in New York City finds that in the most rapidly gentrifying areas, racial segregation in elementary schools has declined modestly, more so in traditional public schools (TPS) than in charters. The findings from this study are promising since diverse schools have significant advantages, not only for learning but also for preparing all groups to live and work successfully in an increasingly diverse society. However, in spite of these changes, a high level of racial segregation remains in New York City schools and much more progress is still needed. Neighborhoods undergoing massive urban-core redevelopment and metropolitan growth have a particularly ripe opportunity to harness the upsides of community change and alleviate the stark racial and economic isolation that is so pervasive in urban centers across the United States. In order to create stable and diverse neighborhoods and schools, policy responses that link housing and schools are essential. [Foreword by Gary Orfield.]