I actually really enjoy this mechanic. It forces me to put thought into how I zone my city and plan the infrastructure and services, because I know there are consequences to taking people’s homes after they have moved in. If I find out I need to retrofit additional infrastructure into a built out area of my city, I have to do so carefully so I minimize impacts to surrounding properties. It’s a fun problem to solve and feels realistic.
I agree, I should face some kind of consequence for deleting entire neighborhoods in order to start over. In real life, older cities have histories, which are told in the patterns of development. On the one hand, just knocking something down because it stands in the way of "progress" is very modern, but on the other hand, historic preservation is a real and valuable phenomenon.
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