That’s what I am thinking too.
But I wonder if other issues wouldn’t arrive to segregate people out of their choice to live in the city?
Say we fix school choice with vouchers, and schools improve as a result as we pro-voucher people expect ... it seems to me that would make housing costs within the city rise even more ... as there would be more demand.
Either way, it seems the trend is moving toward more central city living (and first/second ring “close-in” older suburbs).
Gentrification is one part of the picture, and I expect it to continue. The growth of employment hubs in the suburbs is another. Many of the suburbs are becoming urban places in their own right, and that's fine. The DC area is a good example; DC is the hub surrounded by a growing network of satellite cities.
If I worked in the 'burbs, I'd want to live out there too. There are good neighborhoods scattered all over. That's why it's a suspect decision to live 25 miles from your job and spend 4 hours a day in your car.