Living in a large house means that you will live in a less dense area. Housing price trends over the last 10 years have shown that most people don’t want that.
I don’t think people go out seeking density. The are avoiding a commute or being near entertainment district etc. It’s likely there are some large houses nearby too. They just require a different budget. But I bet most people would live in them if hey could.
People have different needs at different stages and situations in their lives, but most typically seek opportunity in youth which tends to necessitate density and then later prefer quiet and low density to get away from the horrors, costs and inconveniences of city life.
I don't think you can quite draw the conclusion. Housing price trends over the last 10 years could just as easily show a consolidating job market.