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The "harm" is that you're competing with more people for parking, sidewalk space, spots in the gym, space in the supermarket aisles... on and on.

Parking is definitely a big issue, but all of the others can also scale with population density.

Luckily, population density brings economics of scale for walkable areas and public transport, so the need for parking should reduce.

That's an urbanite point of view.

How so? I've never lived in (what I would consider) an urban area. Closest is living in suburbs outside of a city.