Urban demographics are changing as a result. Young, well-educated people are drawn to cities, often chasing a limited supply of housing. Due to the housing shortage, middle-income households are at a disadvantage: too rich to qualify for social housing, not rich enough to buy a house. They need to rely on the rental market.
However, if this market does not function well, as is the case in many cities, middle income families are forced to move away. Moreover, the rise of major cities also leads to increasing divergence between these cities and more peripheral regions. At the same time, spillover effects cause prices to rise in areas directly bordering major cities.