This paper presents a comparative case study of two northern suburbs in Melbourne, Australia, in order to analyze local perceptions of proximity, mobility, and spaces of community interaction within diverse neighborhoods experiencing socioeconomic and demographic transition. We first look at government policies concerning the two suburbs, which position one suburb within a narrative of gentrification and the other within a narrative of marginalization. We then draw on diverse residents’ experiences and perceptions of local space, finding that these “everyday geographies” operate independently of and often at odds with local policy narratives of demographic and socioeconomic transition. We conclude that residents’ “everyday geographies” reveal highly varied and contested experiences of sociospatial dimensions of local change, in contrast to policy narratives that are often neoliberally framed.