If well managed I think this is possible. But it's not given. Another scenario is houses in the countryside, small towns and far suburbs getting empty and soon uninhabitable due to lack of maintenance/infrastructure degradation, and remaining people packing close to core areas that remain high cost.
The small towns in my area are desirable not just because they're small, but because they're small and have the same amenities as a bigger town. These towns are also increasingly relying on debt to fund decades of deferred maintenance just to keep the amenities they already have alive.
This would become dire if (for example) property values fell, as residential real estate taxes make up the majority of tax revenue. This might happen if demand for the town fell (perhaps due to fewer people), which would quickly become a catastrophic cycle (revenues fall, roads and schools deteriorate, which makes the town less desirable, repeat ad infinitum).
In a future with few or no kids, schools won't be needed.
So you lose some economy of scale when enrollment drops, you have to cut school funding, which makes the schools worse, which makes the town less desirable, which drops real estate prices, etc.