" the most obvious of which is that the prices of those services simply rise until it becomes worthwhile for those people to commute further, or that they can s

" the most obvious of which is that the prices of those services simply rise until it becomes worthwhile for those people to commute further, or that they can start to move back into the city." - This is what should happen in a true free market. But the real world has zoning laws, building restrictions, slow and unreliable public transport and NIMBYs who will oppose any housing projects. That can make it impossible for new workers to meet the demand.