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i'm in era 3, just started the great depression, and i'm making 2.8 million surplus with a billion banked. oh, and everything i possibly can install has been installed in each of my districts. because holy hell does the money start rolling in.
now i need help figuring out how to spend it all.
to answer the OP's question - you need to check the buildings. some will have different requirements, but generally they will ask for specific services and need to have a minimum amount of demand. once they have the needed services and sufficient demand, they start to upgrade. and make you more money. a lot more.
Judging by LP videos, it will start making sense in the 2nd era. Do it in one district and keep it upgraded with things. Once the entire district is full of medium density, move on to the next.
That sounds about right. I managed to upgrade one district to medium early on sucessfully, but in a second district, no building upgraded at all, even though there was demand. It feels a bit like a hit and miss. Maybe a sloid way of looking at it is to have a couple of low-density districts first and then upgrade to medium, much like a piramid, wide at the base, narrow at the top.
there may be something else at play to for it to increase density beside having enough room and demand. Maybe time period helps. Not all the way sure. All i know is at the point in the game i am at i just build all my districts sparse and set to max density and they pop up swell.