This article examines a unique, yet paradigmatic, case study of a colonial neighborhood in East Jerusalem that is undergoing a significant demographic transformation. 1 The French Hill neighborhood, built in 1971, was one of the first settlements in East Jerusalem. Initially, it was populated primarily by upper-middle class secular-Jewish residents. This group has been steadily diminishing as two other distinct new groups moved into the neighborhood: Ultra-Orthodox Jews and Palestinians. This volatile social mix has caused intense inter-ethnic and intra-ethnic collisions. Based on qualitative and quantitative studies, we argue that the juxtaposition of colonial and neoliberal logics of space reveals a shared, yet fragile, middle-class identity. We suggest that this new geopolitical space of neighboring calls for a discussion of political conflict, housing and current colonial conditions that brings class back to our understanding of the production of contested space. (ibid, table III/5). Correspondingly, within the Jewish population, the Haredi groups has grown substantially and become the largest Jewish sub-community in the city (ibid, III/19). These changes have transformed the demographic characteristics of several Jewish neighborhoods in Jerusalem, including FH. While the veteran residents have emigrated from the neighborhood, middle class Palestinians, especially those with Israeli citizenship, 5 and Haredi Jews have been drawn to FH due to low housing prices, good infrastructure and services, as well as proximity to, respectively, Palestinian and Jewish Ultra-Orthodox (Haredi) parts of the city. FH became the only residential area in Jerusalem which is cohabited by these three distinct and, until recently, highly segregated communities of the city, namely secular Jews, Haredi Jews and Palestinians (Rosen & Shlay, 2014). Another phenomenon has simultaneously contributed to the changes in the neighborhood: Palestinians from the neighboring villages in East Jerusalem-Issawiya, a-Tur and Shuafat began to make frequent use of the playgrounds, amenities and commercial center in FH (Yacobi & Pullan, 2014). This was observed in recent years as well in some other Jewish areas in East and West Jerusalem (Shtern, 2016; Nolte & Yacobi, 2015; Rokem & Vaughan, 2017). The growing presence of both Haredi and Palestinian residents and transients alike has provoked considerable opposition among the long-term residents of FH. Driven by the fear of demographic transition, local 5 Palestinian citizens of Israel are graduates of the Israeli educational system; thus, they speak very good