But humans occupy physical space. Almost everyone would prefer more privacy and space to less. Hence if the human population keeps growing, the price of having physical privacy and space will also keep growing. It’s just the bitter reality of it.
In addition, often times the architecture or established land use patterns of certain neighborhoods act as an upper limit on population density. It really grinds my gears when people advocate for essentially paving over these crucial neighborhood characteristics. This effectively destroys local culture in the name of “inclusivity”. Granted, there are definitely more neighborhoods without any unique character than not, and it’s hard to feel any sympathy for paving them over. But there are certainly quite a few neighborhoods globally that are quite special, and in these places inclusivity tends to be a tragedy of the commons scenario.