I agree that demand is there but one interesting challenge is tax revenue: many people moved to suburbs because the taxes are lower, and many will move again if they’re raised to the level needed to maintain city services & infrastructure. Toss in an aging population with many people unwilling to pay for services such as schools which their grown children no longer need (or climate change hardening which they won’t live long enough to need) and it’ll be an interesting fight in many suburbs across the country, with some finding a viable balance and others falling apart.
But, yes, as housing preferences shift it affects pricing and viability of different neighborhoods, at least at the margin.