I read an interesting article about Singapore, that claimed that was their approach. Lots of people live in social housing blocks, and as time moves on entire blocks are demolished and rebuilt to better suit the needs of the city. They appeared to consider the human side very well, by guaranteeing that people would remain in the same area as friends and family as they moved to newer housing stock, but I did wonder how the actual people felt about this. I've heard good and bad stories of similar things in my own country.