Gumei Street of Shanghai Minhang district is a typical case of reconstruction of social space. In the process of invasion and succession, residential differentiation is experiencing a transformation which is influenced by economic environment changing, employment development. The low rent house supplying, employment information providing, peasant employment training are needed to solve the new emerged social problems in mobile population. This paper aims to conduct research on residential space evolution which is the key to social space evolution. The authors provide a case study of Gumei Street, a community of Minhang district, located in the southwest of Shanghai. Based on field observation and interview, from the characters of its residents and environment, the paper discusses residential differentiation modes in suburb, displays the rule of edge-city's social space evolution. The authors try to find the main problems and solutions, provide suggestion for the improvement of urbanization quality, and reasonable urban planning and establishment of harmonious society. From the mid of 1980s, Gumei Street has experienced the stages of urbanization. The features of the evolution can be concluded as following. As the city's enclave rare unit yards construction symbolized the beginning of invasion. City's reconstruction, prompt large amount of inner city's residents moved to the area. The New Shanghai immigrants move to commercial residential buildings. Fix-term employment development in different levels results the migrants differentiation. With the influence of globalization and international community, foreign residents increase. The author points out that the problems raised in the evolution are that contradictions between fix-term employment market demand and the under-developed migrants' residential space are still serious. Abnormal development of real estate market and social space segregation make the community security unguaranteed. Finally, the paper provided relative suggestions for the issues presented.