College-educated White households have increasingly opted to live in central urban neighborhoods, transforming many parts of the urban core. While there is emerging evidence that schools may play a key part in this process, little is known about the extent of racial contract between children of gentrifier households and original residents. This study examines NYC's gentrifying areas, and the changing racial diversity in schools. Using data from the Census and the National Center for Educational Statistics, this study finds that schools in NYC's gentrifying areas have seen a reduction in racial segregation, more in traditional public schools than in charters. While this trend may be promising, high levels of segregation persist. Policy and research implications are discussed.