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How is your homeless situation? I've seen some with your issue have a large homeless problem as well, which is messing up demand.
this is a fresh new city started after 2.0 patch. I bought the game after 2.0 patch. this is the first city, game already broken.
This is truly frustrating indeed. that the game is allowed to simply give players a brick wall with no way to advance. I have given my citizen every luxury, and they are very happy (net citizen happiness at +23). This bug is simply game braking. If there is no fix soon, I am going to ask for a refund.
This time it's the huge economy patch, and its inevitable. Mine and most everyone I know recovered after a few in-game months.
But now all residential is again back to ZERO.
https://steamcommunity.com/sharedfiles/filedetails/?id=3280681386
I also found that dropping the tax rate to 8% or lower brings back the demand