alt Hacker News"People want houses."
(Source needed. This probably depends on a lot of variables in play.)
Plenty of people in dense urban areas are happy with living in an apartment and, where I live, buying a condo in the city is at least as frequent as buying a house 20 km away from it for the same price.
Living in suburbia has its downsides - long commute, very limited entertainment and cultural possibilities, very limited choice in schools. Not everyone loves cutting the lawn etc. either, I surely don't. If any of your family members has any disease that could flare up, ambulance response time tends to grow worse with the growing distance.
Of course, a lot depends on factors such as "is the transport authority willing to make public transport actually safe and nice". That requires keeping raving drugged lunatics out of it, plus paying enough money for it. AFAIK in the US, Republicans have an ideological problem with the "paying money for it" part and the Democrats have an ideological problem with the "suppressing antisocial behavior in it" part.
People want a lot of things, many of them conflicting. I'd love a huge house on a large lot in a walkable area and it to be cheap, and also close to nature. Letting markets work is a good way of resolving people's revealed preferences. Some will prefer a condo in a walkable area, others a large lot outside a less expensive city, others will pay through the nose to have a single detached unit in a high cost of living area.