alt Hacker NewsWait, I thought upzoning and increased density increased quality of living? Are you saying that's not the case?
Putting that aside, no one is forcing region Y to upzone or not upzone in this scenario. They can make the choice they prefer, just like region X.
The state of California is forcing Rancho Palos Verde to upzone. Because it's good for California even though whether it's good for Rancho Palos Verde is debatable.