Maybe the question that should be asked is why a large part of the population can't afford to live in a hip place in town, so what's left at the end is only ric

Maybe the question that should be asked is why a large part of the population can't afford to live in a hip place in town, so what's left at the end is only rich people and banks. I think there's two aspects to this: (1) Income inequality and (2) smart zoning laws. I think (1) has been discussed ad nauseam but for (2) see Japan as an example: http://urbankchoze.blogspot.jp/2014/04/japanese-zoning.html http://urbankchoze.blogspot.jp/2014/04/japanese-zoning.html. I live in Tokyo and I have to say - while there is still the business district that noone can afford and the gentrification process is somewhat visible in some places (however IMO slower than elsewhere), it's really not too hard to live in a place with lots of small business, shops, nice restaurants and locals to talk to. We pay <1000$ rent and have a three small supermarkets, ~15 good restaurants, 2 train stations, a recreational park with big pond and all kinds of small shops do get whatever supply you need, all within 10min walking distance. And this place is far from exceptional in Tokyo, this city is basically a huge spread of small towns grown together and connected with a train system on steroids. And I think zoning laws is probably one of the most important influences on why this happens - basically you can build an expensive house, a cheap apartment building, a restaurant, a medium sized supermarket, an estate agency and a fish tank supply shop all in the same block here - and that's also what actually happens. I've never seen this sort of chaotic mix in Europe or the US, but I think this is exactly what you need for a thriving community that stays this way.