Most of the work is downtown.No, but everyone doesn't have to live in an urban jungle either. They should have a choice.
Humans did not evolve in close quarters. Look at uncontacted tribes. How dense are their settlements? How much territory do they cover?
So you have rentals, small condos and ways to move up the system to eventually buying something for a family.
In the UK and EU people live happily with less space and more public interaction.
The US and Canada are weird that way.