I also don't like the argument that "the market trends show X, therefore we must do X". The entire purpose of a government is to plan things out smartly so that we don't end up making bad decisions. Let's remember why we want inner city growth in the first place - our city's own estimates show that meeting our growth boundary goals will save us
$16 Billion in capital costs and
$390 Million/year in operating costs. But it's up to the city to price that into the free market, and we're failing badly.
Beyond zoning, I think we should rethink how our taxes work. Right now, because we primarily tax improvements, our tax system literally punishes people who improve their land and use it more efficiently, while rewarding decay, stagnation, and speculation. This is the opposite of how it should be. In a way, our tax system is actually creating a major market distortion, since we are not accounting for the negative externalities that come from inefficient land usage.
Various cities in Pennsylvania have adopted Land Value Taxes that have promoted development, destroyed blight, and revitalized communities. If we're serious about encouraging more efficient land use, we should look at decreasing the tax on improvements and increasing the tax on land - this could have a huge impact on market conditions and make inner city living more affordable for more people.