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> they want to live close to where they've lived so far, and they want to stay in their house.

Which they can still do. But they can also get a very similar house a few miles down the road and simultaneously get a large amount of money to put in their pocket.

> Rezoning will inflate the house prices in the vicinity (because of the effect that you're describing of people moving close) so the residents won't feel confident that they can keep affording that area, and won't be pushed out into the countryside.

If they're homeowners then the price they paid for housing was set when they bought their house, so they can't be pushed out. If they're renting then the value of the land going up isn't that relevant when the thing they care about is the value of a housing unit, which would go down as more units can be built on the same land, and thereby make it easier for them to stay.

> One is that demand increases with supply, prices of the apartments go up and match the prices of houses, and prices of houses will grow like you predict.

But that only makes further development even more profitable and creates even more supply.

> The other one is that people don't want to live in a mixed zone neighborhood, the developer won't make money, so they'll build cheap slum housing instead of normal housing

This is contrary to what has been observed in practice. People are willing to pay a premium to live in areas with mixed zoning and slums are created when existing neighborhoods decline for unrelated reasons and then landlords conclude that saving costs through lack of maintenance would be more profitable than trying to get blood from a stone.

The primary instance of slums being created by new housing construction are government housing projects which explicitly limit residents to people in poverty. That was a failed experiment and we shouldn't do it anymore.

> People from the burbs don't want to take the bus, so they won't vote for that.

It's not them who take the bus. The bus stops at the new condo tower so all the people who moved into it aren't clogging up your roads.

> The power to manufacture consent is still with the owning class.

Manufacturing consent requires bread and circuses. You make people enough homeless and miserable and you're going to get riots.





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