My point is that the principle of existing homeowners funding infrastructure for new homes is only tenable when

• developers are not creating huge externalities by creating ever larger suburbs with infrastructure funded by the core (take Ottawa as an example for that dynamic)
• when the base of established homeowners is large enough to support the rate of growth.

In the first case, development fees based on lot size for new sprawling burbs are a reasonable way to push the market towards density.

In the second case, with a high rate of growth in a specific market, other means of redistribution such as government subsidies may be a better way to redistribute.