This is sort of how it's playing out where I live now. The city has opened up densification in an area that has historically been suburbs. Old bungalows from the 50s/60s are being bought out by developers and turned into mini 6-unit condo buildings. So on one hand, densification, yay! On the other, starter homes suitable for young families are being lost and replaced with smaller apartments suitable for young couples, boo? Any potential family looking to buy those properties is completely outbid by the developer. The sale of 6x units covers the purchase price, tear down and new build with a healthy profit margin, the single family never had a chance. It seems like the middle is falling out of the market and developers seek profit in one of 2 ways. Mcmansion that maximize square footage on a single lot, or condos that maximize the number of small-as-possible units in one building. Then the government wonders why the birthrate is decreasing..