This being said, if there’s nowhere convenient to build out, building up (densifying) makes sense. I grew up in a condo (after I was 12, at least). It was actually nice living in a denser town where I could walk or bike to school, play sports after school without having to get a ride home. Nice for parents to be able to catch the express bus or train to NYC within walking distance vs having to sit in traffic, and to be able to travel in summer w/o having to worry about maintaining the house.
Most Americans are conditioned to prefer single-family, but condos in the right area and with a fairly normal HOA are actually an awesome thing. The HOAs of both condos that I own are pretty live-and-let-live.
Lastly, consider this: average floor space per household in 1970 was a bit under 1000 square feet. Were we really unhappier for that (and with bigger households/more kids than today)?