On the flip side there is more money in downtown LA than in SD and salaries are a lot stronger.
The urban development pattern of building up was the model of the 19th century, back when transportation was an issue. It was mostly an east coast situation, except for San Francisco. Most people lived in those areas because that’s where the jobs were and commuting wasn’t an option.
The other metro areas of the midwest and west coasts have followed the suburban sprawl pattern of development, which has its own downsides. However, the reason for sprawl is because people have preferred being spread out to living in the downtown areas.
Suburbia is a choice that remains very popular today, and I really don’t see a large percentage of Americans volunteering for the urban lifestyle. Some people may choose it for certain limited periods of their life, but most won’t embrace it as a long term lifestyle. We may force some people into the downtown areas because of the higher costs of living elsewhere, but I can’t see there ever being a waiting list to get in downtown.