Recent literature suggests a growing relationship between the clustering of certain visible minority groups in urban neighbourhoods and the spatial concentration of poverty in Canadian cities, raising the spectre of ghettoization. This paper examines whether urban ghettos along the U.S. model are forming in Canadian cities, using census data for 1991 and 2001 and borrowing a neighbourhood classification system specifically designed for comparing neighbourhoods in other countries to the
U.S. situation. Ecological analysis is then performed in order to compare the importance of minority concentration, neighbourhood classification and housing stock attributes in improving our understanding of the spatial patterning of low-income populations in Canadian cities in 2001. The findings suggest that ghettoization along U.S. lines is not a factor in Canadian cities and that a high degree of racial concentration is not necessarily associated with greater neighbourhood poverty. On the other hand, the concentration of apartment housing, of visible minorities in general, and of a high level of racial diversity in particular, do help in accounting for the neighbourhood patterning of low income. The authors suggest that these findings result as much from growing income inequality within as between each visible minority group. This increases the odds of poor visible minorities of each group ending up in the lowest-cost, least-desirable neighbourhoods from which they cannot afford to escape (including social housing in the inner suburbs). By contrast, wealthier members of minority groups are more mobile and able to self-select into higher-status ‘ethnic communities’. This research thus reinforces pleas for a more nuanced interpretation of segregation, ghettoization and neighbourhood dynamics.