username2 comments on Open thread, Jan. 25 - Jan. 31, 2016 - Less Wrong Discussion
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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.
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.