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Urban renewal primarily refers to the process of revitalizing and redeveloping deteriorating urban areas to improve living conditions, infrastructure, and overall quality of life for residents. This often involves upgrading facilities, allowing for new housing developments, and enhancing public services and amenities, which can lead to increased economic opportunities and social interactions within communities.

The focus of urban renewal is typically on addressing issues such as poverty, crime, and lack of access to basic services within specific urban neighborhoods. By modernizing these areas, urban renewal aims to create a more attractive and functional environment conducive to better living standards. This process can also include addressing infrastructure deficits, promoting public transportation, and restoring public spaces for community use, which collectively contribute to a significant transformation of the urban landscape.

The other options do not align with the primary objectives and nature of urban renewal. Preserving historical landmarks is more accurately associated with heritage conservation rather than urban renewal itself. While the invasion of natural habitats is related to environmental concerns tied to urban expansion, it is not a core aspect of urban renewal. Lastly, the segregation of communities based on income refers to socio-economic disparities, which urban renewal aims to mitigate rather than promote.