The one thing that Stossel doesn’t mention in his article is that gentrification is not an option in many cities, well not a sane option. The taxes, particularly property taxes, make it cost prohibitive for many. I guess there are those that are willing to pay high taxes, but why would someone want to pay substantially higher taxes when they could live a mere five miles away with lower taxes. In addition there is less crime, garbage, traffic, etc. The only way this works out is when a city has a program that provides a waiver for part or all taxes for a period of time. That is hideous and unfair to other taxpayers.
Your comment certainly doesn’t apply to NYC. Besides, property taxes are actually lower in the city than on Lawn Guyland and Westchester, although the purchase price of housing is also higher than both suburbs.