Nice in theory
I'm not saying anything you propose is wrong, but trying to fix policy around housing is like the tail trying to wag the dog.  People don't choose to live in the suburbs because they like suburbs.  The ones I know -- myself included -- move there because they want schools for their kids that are safe, modern, well-staffed and offer academic opportunity.

When urban schools get fixed, then you will lure mainstream, parenting-age adults back to the cities.  The market will take care of itself.

And that doesn't mean magnet schools and academies where demand exceeding available seats requires lotteries, or queuing up for hours like they're waiting for concert tickets. Parents of school-age kids are inherently conservative about their kids in that most want a sure thing.

I don't know what city has model urban schools that are accessible.  Where good schools blossom in urban environments, word spreads quickly, and housing values in their districts skyrocket, thus limiting access.  Or limited access gets imposed through lotteries and lines.

Suburban sprawl continues to exist because the sacrifices families make, like living a long way from work, are seen as the path of least resistance for access to good schools.  I wouldn't even call it unsustainable.  It's sustainable as long as families can find ways to make it sustainable for their individual circumstances.


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