What's happening in Jerusalem is not some unplanned event, or settlers taking matters into their own hands.

Israel is following the recommendations of the governmental Gafni committee, which determined in the 1970s that the Palestinian population must never exceed 26%.
Naturally, this is impossible to maintain without massive and illegal settlement projects, and by replacing the Palestinian population through various means, and generally making life miserable for Palestinians.
Despite this, the Palestinian population continued to grow.

Imagine if any city in the world declared that it needs to maintain a certain % ethnicity or race. Nobody would blink twice before condemning it.

But when it comes to Israel, suddenly it is ~complicated~ and ~nuanced~.
If you're interested in learning about some of the racist methods Israel uses to alter the demographics of Jerusalem, this report is useful:

https://www.btselem.org/sites/default/files/publications/199505_policy_of_discrimination_eng.pdf
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