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bogus comments on Open thread, Jan. 25 - Jan. 31, 2016 - Less Wrong Discussion
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You can implement Hukou system. Obviously, it would lead to other problems.
You wouldn't even need the hukou; private covenants would be quite enough. However, these conevants are banned as an infringement of civil rights. But the real solution is to decouple education from local real-estate markets, by allowing people to freely choose their preferred schools (public, charter or private, via student-linked vouchers) regardless of their home address or VAT code.
I am a bit doubtful that free school choice will solve the "in some places real estate is really expensive" problem.
For example, NYC has a notoriously bad public school system and very expensive real estate.
The problem is not expensive real estate persay; it's supply restrictions that make real estate more expensive than necessary. Free school choice would remove much of the motive for these restrictions.
E.g. in New York City..?
I don't think school is the only or even the main reason for supply restrictions. People like to live with neighbours of approximately the same social standing and will actively oppose hoi polloi moving in, even without schools being involved.
Even people with no children buy property in good locations because that's where the jobs are. If remote work became more popular it would make living in a big city no longer a necessity.