It's not an "open market" if the government was out there subsidizing the development of the system. Obama's plan is simply a recognition of the imbalance which has been present in government funding the past 60 years or so.
If anything, density/gentrification is currently in vogue as people move back to the city while large McMansions and condo developments in the exurbs are sitting vacant. Look at Arizona or the Inland Empire.


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