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You don't need to tear anything down, invest in the proper infrastructure and let the free market take care of the rest. In general there will be two ends of the spetrum when it comes to projects that shift our metro areas from car dependent to pedestrian friendly. There's big projects by big developers who might buy up a dying mall and tear it down for a large mixed use, car-lite development where apartments are located near shops and the buildings are connected by smaller paths meant for golf carts and bikes.
Then there's the small developer hired by a homeowner to renovate their own house into a multifamily and/or mixed use dwelling. Being able to operate your business out of your home is a great convenience but as of now its illegal to do so in most of the US if you want to open up a service oriented business like an eatery or grocer. Allow that kind of thing and people will invest in those kinds of ventures.
Take a case like London. It has exceptional transport links - trains, underground, buses and taxis. The trains are always rammed and horrendously expensive (I can fly to Spain and back cheaper than a 60 like train journey) but 95% of the time run like clockwork
You are never more than a 5 mins walk from a convenience store. All of our major supermarkets also deliver.
The city is also rabidly anti car. We have the congestion charge, ULEZ fines, ever expanding pedestrian zones, dystopian levels of CCTV surveillance issuing automatic fines for even the most minor traffic violation. Parking is also horrendously expensive. Add to that car insurance is astronomically high due to the high crime rate.
Everything has been done to make driving as uncomfortable as possible.
Yet despite all that - the city is gridlocked every morning and evening with cars. There isn't too many cars, there's too many people
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