The demand in Europe is just as high as in the US. Density is not the same however... Think about how large European cities would have to be in order to match US population at US density.

We don't have as many skyscrapers here.

Regardless there are plenty of reasons not to want car-centric suburbian neighbourhoods. Unwalkable, outrageously expensive to maintain, encourages car ownership and usage (yay more debt and running costs), etc.